Ecuador is a middle-income country whose economy is dependent on oil and export agriculture. Over the past ten years, Ecuador has made a remarkable effort to fight poverty and inequality through impressively modernizing infrastructure, hospitals, and schools, through increased social spending and significant investment.
However, the recent economic downturn and shrinking domestic demand have put these gains at risk, which has increased the overall poverty rate from 22.5 percent to 20.5 percent between 20 and 20 years. Coast of Ecuador
If the situation is not reversed, many of the families who went away from poverty during the years of prosperity could fall again, especially in rural areas where poverty levels were still high, 1.2 percent in 2016, twice the level of urban poverty. The social indicators also point to a continuity in both cases. This situation is attributed to high unemployment and low unemployment, low wages, limited access to productive resources such as land, water, credit and technology, and a market deficit connection.
Creating a model of development of the country, modernizing the productive sector and reducing dependence on imported goods and services are among the government’s priorities. To achieve this goal, rural small producers need to increase their productivity, efficiency, and connectivity through the use of technology and access to efficient rural services.