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State Participation in the Economy - Coggle Diagram
State Participation in the Economy
Elimination of controls consecuences:
.
Corruption
Administrative mismanagement
Disorganization of the economy
Large financial losses
Neoliberalism
What is it?
An economic trend based on free-market forces
No state intervention
How?
.
Implement policies like:
Economic adjustment
Elimination of subsidies
Reduction of public employees
Privatization of state-owned enterprises
State &Crisis
What happens when a CRISIS occurs?
There are:
Fewer jobs: unemployment
No money for education
No money for health
No money for housing
TheState does not have money to pay its employees
State Accounts
Ecuador sustains itself thanks to the following products:
Oil and fuel sales
Value Added Tax (IVA)
Income Tax
The external or internal debt is made when this income is not enough.
