Informality is a structural characteristic of productive and social organization in Latin America. According to the Economic Commission for Latin America and the Caribbean (CEPAL), more than half of economic activities take place under conditions of high vulnerability, including low income, precarious labor conditions, limited access to labor rights, and inadequate social protection. Thus, informality is a social refuge that represents the main alternative for populations with limited economic resources. The objective of this chapter is to analyze the coexistence between the informal economy and global distribution networks in Ecuador. It begins by identifying theoretical differences on informality in a global value chain and then illustrates the scope of informality, precariousness, and labor protection deficits through case studies. The methodology will involve the combination of qualitative and quantitative methods. The findings show the importance of the role of the social economy in Ecuador’s economic development, emphasizing its connection to labor informality as a strategy to survive. It is important to remark the need for inclusive policies that promote formalization, social protection, and productive development while fostering equitable participation in global value chains, ensuring labor inclusion, and addressing structural disparities through education, financing, and territorial strategies.