Poverty in Ecuador

The note looks at poverty in Ecuador, assessing macroeconomic developments through its policies to maintain stability with fiscal discipline, and increase economic productivity and competitiveness, in particular, the 1998/99 crisis, the 2000 dollarization and their effect on poverty. From 1990 to 2001, national consumption-based poverty rose from 40 to 45 percent, and the number of poor people increased from 3.5 to 5.2 million. Poverty increased by over 80 percent in urban areas at the Costa and the Sierra, was stable in the rural Costa, and rose 15 percent in the rural Sierra. Poverty rates continued to be highest in rural areas, but rapid urbanization increased the number of poor people living in urban areas. Employment is the main income source, frequently the only one, for most urban families. Thus policies that generate employment and wage income are crucial for reducing urban poverty. The 1998/99 crisis sent employment and real labor income plummeting, urban poverty rose, and poor urban households resorted to various coping strategies, such as increased labor force participation, and migration. Poverty declined slowly after 2000, reflecting just a weak formal employment creation. It is stipulated social expenditures could be used more effectively, for significant improvements are needed in education provision, and quality, especially in rural areas, while health service coverage must be expanded and integrated better across different subsystems, and providers.

Bibliographic Details

Main Author:	Sanchez-Paramo, Carolina
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2005-05
Subjects:	ACCOUNTABILITY, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL RESEARCH, AGRICULTURE, ASSETS, AVERAGE CONSUMPTION, CAPITAL FLOWS, CHRONIC MALNUTRITION, COLLATERAL, COMPETITIVENESS, DURABLE GOODS, ECONOMIC BARRIERS, ECONOMIC EFFICIENCY, ECONOMIC MANAGEMENT, ECONOMIC POLICIES, EXTERNAL SHOCKS, FARM PRODUCTIVITY, FARM WORKERS, FISCAL DEFICITS, FISCAL POLICIES, FREE TRADE, GDP PER CAPITA, HEALTH EXPENDITURES, HEALTH SERVICE, HOUSEHOLD LEVEL, INCOME, INCOME GENERATION, INEFFICIENCY, INFLATION, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL FRAMEWORK, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LACK OF CREDIT, LAND DISTRIBUTION, LAND REGISTRIES, LAND TITLING, LAND TRANSACTIONS, LEGISLATION, MACROECONOMIC CRISIS, MIGRATION, PER CAPITA CONSUMPTION, POOR, POOR BENEFIT, POOR HOUSEHOLDS, POOR INFRASTRUCTURE, POOR PEOPLE, POVERTY GROUP, POVERTY RATES, POVERTY TRENDS, PRICE STABILIZATION, PRODUCTION FUNCTION, PRODUCTIVITY GROWTH, PRODUCTIVITY INCREASES, PROPERTY RIGHTS, REAL GDP, RURAL, RURAL AREAS, RURAL CREDIT, RURAL FARM, RURAL HOUSEHOLDS, RURAL INCOME, RURAL POOR, RURAL POVERTY, SALES TAXES, SAVINGS, SERVICE PROVISION, SOCIAL ASSISTANCE, SOCIAL EXPENDITURES, SOCIAL PROGRAMS, SOCIAL SECTORS, SOCIAL SERVICES, SOCIAL SPENDING, TARGETING, TARIFF BARRIERS, TAX REVENUES, TECHNICAL ASSISTANCE, TOTAL FACTOR PRODUCTIVITY, TRANSACTION COSTS, UNEMPLOYMENT, UNEMPLOYMENT RATE, URBAN AREAS, URBAN HOUSEHOLDS, URBAN POVERTY, URBANIZATION, WAGE INCOME, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2005/05/6405185/poverty-ecuador http://hdl.handle.net/10986/10333
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