Wealth Distribution in Ecuador

This is a translation of an the article "La distribución de la riqueza en el Ecuador" written by Juan Paz y Miño in the newspaper "El Comercio (Sept 13, 2010)

Wealth Distribution in Ecuador

By Juan Paz y Miño

The inequity in the distribution of wealth in Ecuador has a historical origin. it started with the Spanish conquest and colonization. During the three colonial centuries, the indigenous communities lost all or part of their ancestral lands and the private property was concentrated in the creoles. During this period there was also the appropriation of mines.

Above all, the farming and mining was based in the overexploitation of the indigenous work force.

The Republic inherit these condition and did not worked it out because in Ecuador was established an oligarchic-landowner regimen which lasted until the 20^th century. By mid 19^th century, the businessmen joined. At the beginning of the 20^th century also the banks and factories joined.

These sectors concentrated the property, the capitals and the wealth based on the work of urban and rural bad paid worked with almost any rights.

The liberal revolution (1895) began important social and legal changes, but could not overcome the inherit regimen.

The ‘juliana’ revolution (1925) started the long and winding road to change the oligarchic regimen. Since then, in many waves, a protective legislation for workers was established, the public services were increased. The economic intervention of the State was institutionalized over the previous one that was absolutely private.

During the 60s and 70s of the last century, the ‘development’ proposed by the State modernized the country. But even the ‘petrolerism’ avoided the concentration of wealth. From 1985, with the progressive acceptance of a development model which trusted the free market, the des-regularization, the Non-intervention State, the laborer flexibility and the absolute support to the private entrepreneurship, Ecuador was among the 10 first places of inequity in the world.

The economic inequities took other faces, despite the democratic impulse

The inequity heritage, plus the wealth concentration promoted during the last two decades of the 20^th century, with the assimilation of the ‘liberal’ ideas have to be demolished. And this is not possible without a clear consciousness and with a strong political decision to redistribute the wealth.