Indebtedness In Ecuador From Birth

Indebtedness in Ecuador from birth

Each person born in Ecuador is born with a debt of 18 thousand dollars. (ACR, 2018). Ecuador is a country that has constantly lived in debt, because of bad administrations and the respective decisions that have been made in the governments of the day, whether good or bad, another problem that has been an important cause of Ecuadorian indebtedness are the various casesof corruption, and this has influenced the country not to develop both internally, externally, in areas, social and economic. Because of indebtedness, the country has had to resort to economic organizations such as the IMF, the country to date already has 19 agreements with this agency, the first time it went to the fund was in 1957. Basically Ecuador is one of the Latin American countries that has come to Stand-by credits most times. Sometimes the country has paid debts, but it is borrowing again acquiring new benefits. And for all these situations the country has lived and is currently living a complicated time since the population is going through situations such as unemployment that greatly affects the economy of a country in general. But that we would do without the debt at this time, the debt is a development mechanism, since the government needs money and has no other option, it is something productive in the situation in which we are because this is how flow of money is generated,And some adjustments can be made in the administration of the country’s resources.

Developing

The debt in Ecuador Data since the country did not constitute a republic and a very important factor in the timeline of the history of the Ecuadorian debt, it is the time of the oil boom since the debts of the country increased excessively at that time.

And at present with respect to the size of the country, on each date the debt has multiplied by four, that is, not only the expense grew, the country also continued to indebt. The debts of a country directly affect its population and we all pay that debt with taxes, unemployment, lower economic activity, higher rates, among others. 

According to the figures of official entities until 2006, the State spent on average 21% of GDP, but between 2008 and 2019 on average expenditure 38% of GDP, that is to say that the expenses were duplicated.

One of the problems in Ecuador, is the destination of the indebted fundeven more in governments as the previous one;In the country, large amounts of money are needed to copeThe agreement with the IMF.  

Another of the big problems in the country that has directly motivated indebtedness is the enormous dependence that Ecuador has with respect to oil, there is only that hope and there is not enough support that motivates production in the private sector, the private sector depends on the private sectorRisking, investing and generating capital flow for the country, since as an additionaffected by dollarization, thanks to the dollar the country has been maintained in one way or another. 

Our country has great potential in different areas and with a variety of resource, and great diversity, but due to bad administrations and bad political practices since government practices have focused on using all available resources and spending them are to anticipate savings, The country’s money has also been badly spent on corruption over the years, since politicians do not have a vision of collective development, because due to the lack of ethics and consciousness for the common good, they are based on their Individual preferences and the country is submitted to underdevelopment, in which the economy enters recession, but this is also a cultural issue because education is based on an individualistic and competitive system without a sense of patriotism because there is not enough confidence towards Ecuadorian industry, so Ecuadorian prefers to consume external products harmful to the country’s own economy; In Ecuador, the country’s potential has not been exploited to one hundred percent, we have a country rich in tourism, if we exploit the potential of agribusiness that also has Ecuador would be another reality that currently be lived, we have the dollar, a strong factor, a strong factor, a strong factor, But unfortunately the debt continues to grow, so far Ecuador has 19 agreements with the International Monetary Fund and as an indebted country that we are we have certain obligations to comply with. 

conclusion

The government faces many challenges, such as reducing the size of the State, but it is not easy to achieve, because capital is needed for compensation, and unemployment is also generated, it is a complicated issue that we are facing as a country, the debt of the debt of theCountry is large, extremely large and foreign investment does not reach a significant way, you have to support the private sector, creating changes in our exportable offer, with new entrepreneurial initiatives, protecting our industry and thus creating favorable conditions to attract the market of the market of theexterior and thus creating employment to give the flow of productive activities because to get ahead a competitive country that looks attractive is required, if the government manages it properly with the debt can create a good future for the countryAnd the people who are part of it, but it is not so easy, a hard adjustment is needed, which affects the Ecuadorian population.