Ecuador

The Context

Ecuador is a middle-income country. Its economy is highly dependent on oil and agricultural exports. In the last decade, Ecuador has increased social spending and investments in infrastructure, hospitals and schools.

Income inequality remains a problem, with almost half the rural population living in poverty compared to a third of people nationwide. The rates of extreme poverty in rural areas are double that of the total population.

More than one in three people live in rural areas where unemployment and underemployment are high, salaries are low, and there is limited access to markets and productive assets, such as land and credit.

In early 2024, Ecuador faced a significant wave of violence involving an armed conflict between the government and organized crime groups. This surge of violence has deeply shaken Ecuador's social and political landscape.

The Strategy

IFAD diversifies the rural economy by promoting cooperatives and investments that generate employment and income for poor rural families.

Key activities include:

• improving access to assets and resources; and

• increasing the capacities of rural poor producers to engage in productive policies