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TOPIC 23 THE STATE AND THE ECONOMY - Coggle Diagram
TOPIC 23 THE STATE AND THE ECONOMY
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.
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
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.
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
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
. 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.
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.