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TOPIC 23 THE STATE AND THE ECONOMY - Coggle Diagram
TOPIC 23 THE STATE AND THE ECONOMY
1. PARTICIPATION OF THE STATE IN THE ECONOMY
There are many opinions about the role of the State in the economy and its participation in the market such as private participation
initiatives.
The neoliberalism that affected all of Latin America in the 20th century. This neoliberalism caused capital to be concentrated in few hands and increased poverty.
In addition, the elimination of controls causes corruption, administrative mismanagement, disorganization of the economy and large financial losses.
2. 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.
CRISIS OF 1999 Demonstrated the importance of the State promoting investment to generate development, jobs, strengthen production.
3. 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.
Only at the beginning of the 21st century there is 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:
Oil and fuel sales
Value Added Tax (IVA)
Income tax
The external or internal debt is made when the aforementioned income is not
enough.
Neoliberalism
An economic trend based on free-market forces
No state intervention
