Receiving financial treasures in red, delaying changes in economic guidelines and gradually utilizing them are some of the mistakes of the outgoing government.
Lennon Moreno “dreamed” of an Ecuador by 2021, where everyone has decent housing, especially the poor, where children are not malnourished, where poverty will decrease and employment will increase. The government program is a lifetime Designed in the first 100 days of his administration in 2017. Some of the goals adjusted along the way were partially met, while others were simply not even on the agenda.
One of the key promises of the outgoing president, even in the campaign His government was creating 250,000 jobs each year, which means he had to create at least a million jobs by the end of his term. In January 2018, which was already in power, he “clarified” that it was about 500,000 for his entire term. It sought to reduce the unemployment rate to 4.6% that year, according to figures from the Ecuadorian Institute of Statistics and Census (INEC).
However, Moreno will end his term with an increase of more than one point on this index (5.7%)., Although union organizations have criticized the measure, promising that the percentage is too high. In 2020 alone, at least 700,000 formal jobs will be lost. Moreno justified the non-compliance with the “catastrophic” situation inherited from the national accounts, and in the latter part of his term, with the epidemic.
To counter the impact of the suspension of economic activity due to COVID-19, it reached in 2020, Consent of the so-called Humanitarian Support Act, According to the outgoing president, helped save “thousands of jobs”, although the unions confirm that the regulations contain dangerous working conditions.
Another promise to fix is to build houses. Moreno initially pledged 325,000 homes under the Gaza Para Dodos project, But announced that in 2018 this number will be 220,000. He blamed the economic crisis. Then, with the above epidemic, it was adjusted again and the target was 142,000.
However, As of April 28, more than 123,000 homes had been built, according to the Ministry of Housing. Of this total, more than 30,000 were 100% subsidized by the government (for people living in poverty), a Data verification from an American university.
It is questionable that, according to the study, Moreno’s statements in February 2021 stated that “in the last 20 years his government has provided more community housing than any other administration.”
Economic growth also did not achieve the expected results. In 2017, there was an increase of 3%, in 2018 it was 1.3% and in 2019 it was 0.1%, according to the central bank.. On the other hand, by 2020, there was already an epidemic, one 7.8% decrease, the deepest summary of the last century.
“We know we have not left the table (for Guillermo Lasso’s government), but at least we have left a plate, a spoon and a glass,” said Outgoing Economy Minister Mauricio Pozzo this week. The harsh truth.
Receiving financial treasures in red, delays in changing economic guidelines and gradual use of them are some of the errors that did not allow Moreno to comply with what was given to him.Says economist George Calderon.
“He begins his mandate with the same economic measures (Coresmo’s). It found a minister like Carlos de la Torre, then Elsa Vitori, and continued public spending, so that the economy could grow and shut itself down to international markets and not be able to issue currency,” he says.
However, the lack of income made it difficult to maintain that system, and the recession that began in 2015 began to worsen: “With Richard Martinez, the economic turning point is coming. He approaches the business sector and diversity, and foreign investment began to grow, but gradually he tried to use the measures to his detriment, ”says Calderon.
This recession in making economic corrections was most significant with the advent of the epidemic. But Calderon admits that if Moreno had not taken the turn of the wheel, Ecuador would have been hard to deal with after COVID-19. “Oil revenues have fallen and tax collections have fallen. The support of a diverse population has helped us to sustain 2020. Last year, the country’s risk was always over a thousand points, and reaching 5,000 is a difficult situation to remember, ”Calderon said.
Moreno goes with increasing poverty signs. In December last year, 32% of the population was living in poverty, a seven-point increase compared to 2019. Moreover, there was 14.9% extreme poverty in 2020, an increase of six points over the previous year.
His government plan established that by 2021 total poverty would be reduced to 27% and extreme poverty to 3.5%. The epidemic, again, is the cause, the current president has said in several interviews with the media.
Another goal of the outgoing government is to reduce chronic malnutrition in children under the age of five by 24% to 13%, but by 2020 this indicator was, According to the Vice Presidential post, and due to the epidemic, it could rise to 27%. Just one at the end of last year The “occupation” plan will be seen by the end of 2021.
Political analyst Alejandro Rhodes says the epidemic is a different factor and although any government could have had political and economic repercussions, Moreno’s handling of the crisis was not right.
“There is a lack of accountability and transparency in dealing with the economic crisis. Instead of hiring doctors, money was given to creditors. Moreover, all promises (pre-epidemic) are mere talk“, He says.
He agrees with Calderon and confirms that Moreno received accounts with “prepared” figures, but that the “inefficiency and ineffectiveness” of the outgoing regime made it impossible to create jobs and provide tools so that the popular classes could get out of poverty and create wealth: But there are no real solutions. “
In the end, statistics show that Moreno longed for 2021, leaving Ecuador alone in a dream.
Social assistance, the flag of the Moreno regime
He describes Lennon Moreno as “the largest social security network in the history of the country”, one of the “great traditions” of his government. This includes structured community assistance programs such as Los Manuvelas, Mission Turnura, Casa Para Dodos, and programs for the disabled and the elderly.
According to figures from the Ministry of Economic and Social Inclusion, the number of beneficiaries of these aids has increased, especially after the sharp decline at the end of the previous government term.
The Los Manuvelas program alone has served more than 400,000 transgender people and their families. In addition, Moreno highlights the various aids (direct currency exchanges) he made during epidemics, especially in 2020. Although the provision of assistance in times of crisis such as the current situation is positive, it should be focused, temporary and not dependent on debt as the current government has done, says economist George Calderon.
“When you build the conditions for these people to get out of poverty, the bonds are issued for a period of time, and the bonus is no longer needed.