Legal implications of the control of informal trade by the Decentralized Autonomous Governments

Abstract

This article aims to analyze the legal implications of informal trade control carried out by the Decentralized Autonomous Governments (GAD) in Ecuador, focusing on the compatibility of local policies with the fundamental rights of informal vendors and potential reforms for their integration into the formal economy. The research employed a mixed methodology, combining a comprehensive bibliographic and normative review of the existing legislation, semi-structured interviews with legal experts, GAD officials, and civil society representatives, and a case study conducted in various cities across the country. The results revealed significant variation in control policies between GADs, leading to a lack of harmonization between local regulations and constitutional and human rights principles. In cities like Quito and Guayaquil, punitive and restrictive interventions have generated legal tensions, such as disproportionate sanctions, evictions without viable alternatives, and violations of the right to work. In contrast, in cities like Cuenca and Ambato, where regularization policies and temporary permits have been implemented, greater acceptance from informal vendors was observed, although barriers such as bureaucracy and lack of access to financing still persist. The conclusions emphasize the need for legal reform that enables a more inclusive integration of informal vendors into the formal economy, ensuring the protection of their labor and social rights.