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TOPIC 23 THE STATE AND THE ECONOMY - Coggle Diagram

- - - - THE STATE ACCOUNTS
        The State has financed its works from three main sources:
        
        Oil and fuel sales
        
        Income tax
        
        Value Added Tax (IVA)
        
        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.
        These problems have an explanation in the history of the country, as it lacks an organization with a sense of national development because it has not had the
        capacity to distribute its wealth in terms of greater equality for all its inhabitants. A profound inequality in the distribution of land and water has not allowed the formation
        of peasant farms. The poor distribution of capital and technology, necessary to set up industrial companies, as well as of updated knowledge, has determined the
        formation of a country that historically and socially has excluded the majority of its inhabitants from the benefits of the exploitation of its wealth. A great part of the
        wealth generated by its agriculture, mining, fishing, and industry has benefited foreign countries.
        
        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. During the last few years, the Ecuadorian State has taken a turn towards a change of organization or development model that proclaims an increase in national
        industrial production and greater social protection for the population. Examples of these signs of improvement are the settlement of foreign debt, greater social investment, and the use of planning for government works and projects through a national plan. This national plan seeks to redistribute the means of production and wealth, improve education, through the use of science and
        elecommunications technology, such as the Internet, to increase students' knowledge in an increasingly globalized world. These actions will make it possible to establish greater equality of opportunity for the entire Ecuadorian population in the future. In summary, the improvement of opportunities for the neglected social sectors will result in the improvement of their economic income,
        through greater education and training.
        
        5.3. EXAMPLES
        As exemplary cases of the changes, we have the inclusion of new educational
        technology in public education, such as computers and the Internet, which will
        improve the knowledge of Ecuadorian students. Increasingly, public institutions
        have access to this technology that is spreading worldwide. Other types of state
        policies, such as a greater and better collection of taxes from those who have
        more income, will allow for a better redistribution of income through the
        construction of public works for the benefit of the entire population, such as access to
        roads, schools, public transportation, hospitals, and popular housing. 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. Products
        such as shoes, clothing, metal items, etc., will have good prices for small producers in
        the Andean Sierra, located in provinces such as Tungurahua, Pichincha, and
        Cotopaxi. In addition, the export of agroindustrial products, such as fruits, flowers, and vegetables, directed to the
        international market, will create more jobs for the population in provinces, such as
        Pichincha, Cotopaxi, Guayas, Los Ríos, and El Oro.