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TOPIC 23 THE STATE AND THE ECONOMY, image, image, image - Coggle Diagram
TOPIC 23 THE STATE AND THE ECONOMY
PARTICIPATION OF THE STATE IN THE ECONOMY
Market forces rushing the economy without state intervention are the foundations of neoliberalism that affected all of Latin America in the 20th century.
This neoliberalism caused capital to concentrate in a few hands and increase poverty. In addition, the elimination of controls causes corruption, administrative mismanagement, disorganization of the economy, and large financial losses.
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.
1999 CRISIS
It demonstrated the importance of the State promoting investment to generate development, jobs, strengthen production.
THE INTERVENTION OF THE ECUADORIAN SYSTEM IN THE ECONOMY
Since the 1960s, Ecuador has managed huge oil resourcesinvested in the construction of roads, telecommunications,education and health.
1999 problems:
Corruption
Bureaucracy growth
Neoliberal governments
Beginning 21st century
There was a recovery in the economy but there is always a risk of bureaucratic growth.
THE STATE ACCOUNTS
The State has financed its works from three main sources:
The external or internal debt is made when the aforementioned income is not
enough.
Oil and fuel sales
Income tax
Value Added Tax (IVA)
