The document examines the rise and fall in income inequality in Ecuador over the past two decades. This being said, the authors claim that Ecuador’s falling income inequality during the 2000s coincided with the rise to power of a new social-oriented government, as well as with the country’s recovery from the deep crisis occurred in the late 1990s. Furthermore, the document suggests that the new regime’s social transfer policies helped reduce inequality, however Ecuador’s primary export-based growth model and the lack of structural economic change may hinder future reductions in inequality levels.
The paper is structured as follows. After a brief introduction, section two provides a description of the country’s main inequality trends, whilst section three identifies the main determinants of the rise and fall in income inequality across Ecuador. Finally, section four provides some concluding arguments on the matter.
To conclude, the authors claim that the results obtained shed light on Ecuador’s trend towards greater income equality. Furthermore, income inequality and poverty have fallen since the early 2000s, such behavior can be attributed to the country’s recovery from natural disasters and deep economic and financial crisis in the late 1990s.