Education and capacity building
Currently
Ecuadorians study an average of 10.45 years; those who identify as mestizo/white have 30% more education than other ethnicities. In national assessments, students score higher than teachers.
If we achieve
To improve the situation and close gaps, it is estimated that each additional year of schooling will generate 3% of additional income and 1.8 percentage points of economic growth.
Chronic child malnutrition
Currently
Malnutrition costs 4.3% of GDP per year. Even now, 27.2% of children under 2 years of age suffer from chronic child malnutrition.
If we achieve
To improve the situation and close gaps, it is estimated that every dollar invested generates 17 dollars in the long term and access to income 50% higher
Security
Currently
The cost of insecurity is estimated at around 3% of GDP per year, including not only public expenditure but also the social scourge and other associated costs. This also affects employment. Ecuadorian companies spend approximately 1.8% of their revenue on security, according to World Bank figures. Additionally, 17% of companies face losses due to crime, and 18% consider crime as a constraint to entrepreneurship
If we achieve
Improving the situation and closing gaps would free up sufficient resources, approximately equivalent to the current healthcare budget.
Leadership and institutional strengthening
Currently
The cost of corruption is estimated at around 3% of GDP per year. In addition to the distortions it creates in investment and entrepreneurship, it represents a brake on economic growth of 0.5 percentage points of GDP.
If we achieve
Improving the situation and closing gaps would allow the economy to release resources equivalent to those needed to close nearly half of the water and sanitation gap in the country.
Economic development and work
Currently
Informality and underemployment are presented as long-term structural challenges. These indicators temporarily deflated fictitiously during the oil boom, but sustainable policies are required. The productive structure and economic complexity have hardly changed in recent years, and as a result, incomes in the informal sector have remained 30% lower than the formal sector, among other gaps.
If we achieve
Improving the situation and closing gaps would allow us to achieve more and better employment sustainably. It is estimated that for every 10 points of sustained reduction in informality, growth would accelerate by around 1.8 points.
Environment and sustainability
Currently
Improving the situation and closing gaps would make the growth effects of such taxes positive by around 2 percentage points of GDP, considering a tax rate of around 75 USD/tCO2e, and the effects could even be reinforced if capital taxes are replaced (ECLAC).
If we achieve
Mejorar la situación y cerrar brechas haría que los efectos sobre el crecimiento de este tipo de impuestos serían positivos en alrededor de 2 puntos del PIB considerando un tipo impositivo de alrededor de 75 USD/tCO2e, e inclusive podrían reforzarse los efectos si se sustituyen impuestos al capital (CEPAL)