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THE STATE AND THE ECONOMY - Coggle Diagram
THE STATE AND THE ECONOMY
PARTICIPATION OF THE STATE IN THE ECONOMY
However, market forces that run the economy without state intervention are the foundations of neoliberalism which affected all Latin America in the 20th century. This neoliberalism caused capital to concentrate in a few hands and increase poverty.
THE STATE AND THE CRISIS
Sinclair, Mazar Doubas, etc. are projects that could promote change.
THE INTERVENTION OF THE ECUADORIAN SYSTEM IN THE ECONOMY 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.
THE STATE ACCOUNTS
The State has financed its works from three main sources:
✓ Oil and fuel sales
✓ Value Added Tax (IVA)
✓ Income tax
The external or internal debt is made when the aforementioned income is not
enough
THE ECONOMY AND IST PROBLEMS
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.
5.2. CHANGES
But just as we see problems in the national economy, we also see momentous
changes and innovations that seek to address the problems of unemployment and
poverty. For the new 21st century, the country has been experiencing an economic
improvement that has allowed it to recover from the economic crisis of 1999 and has
shown signs of greater stability and growth of its economy, although the problem of
poverty has remained
5.3. EXAMPLES
In addition, an increase in income taxes on imported products will protect artisans and small and medium-sized national enterprises from the competition with foreign goods. In recent years, the arrival of large quantities of imported products seriously affected small producers and caused unemployment and emigration.