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Topic 23: State and Economy - Coggle Diagram
Topic 23: State and Economy
THE INTERVENTION OF THE ECUADORIAN SYSTEM IN THE ECONOMY
Since the 1960s, the State has managed huge oil resources that were invested in
the construction of a wide network of roads, telecommunications, educational works,
and health. However, there were also major problems of corruption, bureaucracy
growth, space for neoliberal governments, ending in a crisis that resulted in the loss
of the currency. Only at the beginning of the 21st century there is a recovery in the
economy but there is always a risk of bureaucratic growth.
5.1. THE WEIGHT OF THE PAST
Despite the potential and the variety of enterprises
in the Ecuadorian economy, deep and serious
problems affect socioeconomic development of the
country, such as the excessive concentration of
wealth, low industrialization and lack of professional
training, among others, are still a concern. These
problems are real challenges for Ecuadorian
society and its authorities, in order to build a country
with opportunities for all Ecuadorians, which
guarantees greater well-being.
PARTICIPATION OF THE STATE IN THE ECONOMY
There are many opinions regarding the role
of the State in the economy and its
participation in the market such as private
initiatives. However, market forces that run
the economy without state intervention are
the foundations of neoliberalism which
affected all Latin America in the 20th century.
THE STATE AND THE CRISIS
There is a crisis when incomes fall, there are fewer jobs, there is no money for
education, health, housing, the State does not have money to pay its employees,
etc. The last crisis demonstrated the
importance of a State promoting
investment to generate
development, jobs, strengthen
production, etc. Projects such as
hydroelectric works Coca Codo
Sinclair, Mazar Doubas, etc. are
projects that could promote change.
