Help with Assignment

RESEARCH PROPOSAL

Student Name

27th September 2021

Ecuador’s Poverty

Introduction:

Ecuador is a middle-class country that can be taken as a developing country, and it is struggling for its stable economy. Poverty is increased, and the ratio of unemployment has been enhanced. The people are not satisfied with the government because of its policies and want to have a stable life. Its economy is based on oil and agriculture export. Nearly one-quarter of the population lives in poverty, and most people are from rural areas. The rural poverty rate was 43 percent, and the urban area was 15 percent in 2018. There has been a significant difference between the urban and rural areas. The topic of discussion is to evaluate the factors that trigger poverty in the country and the strategies to avoid them (Pablo, 2019).

Background and significance of topic:

Several reasons contribute to poverty in the country, including unemployment, limited salaries, limited jobs, limited access to education, and restricted access to markets, business, and agriculture. Modern agriculture methods are not adopted in the country because it has been observed that 6 percent of the population is working in agriculture and land. Almost all of them use the traditional methods of farming. The country's economic model is also one of the reasons for the poverty in the country (Hentschel, 2002).

The country has faced political instability, due to which it has to face several problems. Poverty has been increased because the political system is passing through the crucial phase. The politics were not good, so the pricing strategies could not align with the government strategies, and prices increased. Due to political factors, the economy of the country went down. All these factors were not good enough for developing a country (Bertoli, 2014).

It has been a long time since the country has been considered poor because, in 1994, the population living below the poverty line was 21 percent. It means that poverty is not new, and the strategies to prevent poverty are not new, but there should be new strategies for the people to overcome them. Otherwise, the country has to face the poverty cycle in the long run. The country has to focus on its developmental projects and should consider the reasons for being poor. Several nations have to pass through poverty, and they have a population living below the poverty line. Still, the government must provide them with solutions to make them comfortable (Lanjouw, 2010).

Ecuador is termed a third-world country, and it has been seen that the government is aware of all these problems and is trying to resolve the issue. It is known as a third-world country for different reasons. First is unstable financial conditions that prevail the whole country for a long time. Third-world countries do not have enough resources to improve their economic condition, and they require a long time to include in the list of developed countries. It has been observed that several developed countries help third-world countries. The government is required to look for the changes and is considering them. Several international authorities have tried to help the third world countries, but the uptake of the economy and less population can bring success (Quishpe, 2019).

Most of the population belongs to the indigenous class in the country, and it is one of the main reasons for poverty to prevail in the country. Indigenous people mostly belong to the rural areas, and they do not have enough resources to live, so the country has to suffer. It has been seen that almost 1.1 million indigenous people live in the country, and they have to live on the land and agriculture. The agricultural countries can also be successful, but the people work only for their lives because of the fewer economic resources. It was estimated in 2007 that a 44 percent wage gap was found in indigenous people compared to others. They also do not have resources for their children to educate and contribute to a bright future (Croes, 2017).

On average, the salary for the workers in Ecuador is 24,000 USD, and the highest-earning people make almost 26,000 USD per month. However, more than 50 percent of people earn low-income work and earn 300 USD per month. The low earning income families are large in number in the country due to which the issues increase. The average income of salaried people is increasing in the country, but there is a need for improvement. The improvement in the economy is attributed to the unstable financial and salaried system. It is seen that the workers working on fixed salaries are not awarded the extra work, or they are not allowed the compensations. There are fixed allowances for them that they have to use during employment, so the system needs to be reformed. The workers working on an hourly basis can work extra hours and get the extra payment. It has been observed that the payments and earnings need to be increased because the global economy is also passing through a critical phase (Alova, 2017).

Different groups make several efforts to help the people eradicate poverty, but it requires long-term efforts. Among the several projects and authorities to terminate or reduce poverty in the country, it has been observed that FEVI Ecuador is one of the most important and famous non-profit organizations serving fellow man to beat poverty and promote employment. The organization's main goals are to promote intercultural practices and educate low-income families and their children. It was established in 2008 in the country, and since then, it has been trying to remove poverty from society. However, the results are not fruitful yet, but the situation is getting improved. The limited access to the land, education, and employment are the main factors contributing the poverty, so the organization has always tried to fix these issues. It is working for low-income families to make them feel good and to know that they are not alone in difficult times (Erskine, 2017).

The government also made a lot of reforms in the previous years to bring the change. In 2001, it considered USD currency the national currency, and the country observed stability in the economic issues (Bravo, 2017). The present study will discuss the reasons and factors contributing to poverty in Ecuador and the strategies to reduce them.

Research Statement:

Ecuador is one of the third-class countries where poverty is getting increased with time. The unemployment, instability of the economy, financial issues, limited access to land, education, and the urban areas are the leading factors contributing to poverty.

Research Question?

· What are the leading factors to contribute to the poverty of the country?

· What are the strategies to reduce the unemployment, instability of the economy, financial issues, limited access to land, education, and the urban areas?

· What is the role of organizations like FEVI Ecuador to reduce poverty in the country?

Variables:

The dependent variables will be poverty, and independent variables will be unemployment, instability of the economy, financial issues, limited access to land, education, and urban areas.

Methodology and resources:

The primary resources to collect the data are magazines, journals, and reliable websites. The primary method of data collection will be used in the research. The survey with a quantitative approach and questionnaire as a research tool will be used. The results will then be analyzed through appropriate statistical tools.

Alova, G., & Burgess, G. (2017). Housing poverty in Ecuador: challenges to eradication. Survey Review, 49(353), 117-133.

Bertoli, S., & Marchetta, F. (2014). Migration, remittances, and poverty in Ecuador. The Journal of Development Studies, 50(8), 1067-1089.

Bravo, J. C. M. (2017). Employment, poverty, and redistribution in Ecuador; A minimum wage story?

Croes, R., & Rivera, M. A. (2017). Tourism’s potential to benefit the poor: A social accounting matrix model applied to Ecuador. Tourism Economics, 23(1), 29-48.

Erskine, L. M., & Meyer, D. (2017). Influenced and influential: the role of tour operators and development organizations in tourism and poverty reduction in Ecuador. In Tourism and Poverty Reduction (pp. 59-130). Routledge.

Hentschel, J., & Waters, W. F. (2002). Rural poverty in Ecuador: assessing local realities for the development of anti-poverty programs. World Development, 30(1), 33-47.

Lanjouw, P. (2010). A Case Study of Ecuador. In Small Firms and the Environment in Developing Countries (pp. 57-81). Routledge.

Pablo, Q. S., Paloma, T. D. L. P., & Francisco, J. T. (2019). Energy poverty in Ecuador. Sustainability, 11(22), 6320.

Quishpe, S. P., Paloma, T. D. L. P., & Juárez, T. F. (2019). Energy Poverty in Ecuador. Sustainability, 11(22), 6320.