Impact of COVID-19 on Poverty in Ecuador
Ecuador is a South American country with a population of more than 17 million. The country relies heavily on oil exports and was battling a global oil crisis when the first COVID-19 case broke out there in February 2020. Since then, the combined effects of the oil crisis and COVID-19 have created many problems for Ecuador. However, there are many sources offering aid to alleviate the impact of COVID-19 on poverty in Ecuador.
The Impact of COVID-19
As the COVID-19 pandemic spread across the world, Ecuador was one of the hardest-hit countries. Not only was it the first Latin American country affected but it also ranks ninth worldwide in confirmed deaths per million, according to the World Health Organization. The impact of COVID-19 combined with the effects of a global oil crisis could cause up to an 11% decrease in GDP for the nation.
Organizations Offering Aid
Despite the negative effects people across the world have felt and the impact of COVID-19 on poverty in Ecuador, organizations are helping the country recover.
- U.S. Department of State – The Department of State/U.S. Agency for International Development sent almost $18 million in aid to Ecuador. This will fund improvements to the medical system, purchase rapid test kits and provide medical and personal protective equipment.
- International Monetary Fund – On Sept. 30, 2020, the Executive Board of the IMF approved a “$6.5 billion Extended Fund Facility arrangement” with the goal of helping Ecuador recover from the economic impacts of COVID-19. By providing these additional funds, the Ecuadorian government will be able to spend more on health and education services. The government can also give cash transfers to Ecuadorians who lost their jobs because of the pandemic.
- The World Bank – The World Bank provided a line of credit of $500 million to help the Ecuadorian government support families affected by COVID-19. In addition to this, it approved “$14.1 million in nonreimbursable resources from the Global Concessional Financing Mechanism” to provide additional support to the government for its admittance of a large number of refugees.
- UNICEF – UNICEF reallocated $2.7 million in funds to help with the COVID-19 response. These funds were used to provide PPE, handwashing stations, nutritional supplements, hygiene materials and teachers to help distribute supplies and educate the population on proper sanitation techniques. In addition, UNICEF also provided funds to help cash transfers to Venezuelan refugees who have been unable to receive any from the Ecuadorian government.
There are also other non-governmental and international organizations that are providing aid to the people of Ecuador. The services provided range from telemedicine and hospital care to assisting with sanitation efforts. The U.S. Embassy and Consulate in Ecuador has a list of organizations that are active in Ecuador. It is working to help with the recovery.
As the country faces a difficult recovery, international support is vital to jumpstart the economy and support Ecuadorians. The government will need help to continue providing the necessary equipment, testing and social safety nets for the impacted population. Donating to organizations or urging representatives to continue supporting these forms of aid are great ways to help.
Despite this large impact of COVID-19 on poverty in Ecuador, aid increases recovery efforts. International organizations, foreign governments and non-governmental organizations are working hard to provide funding and supplies to help Ecuador.
– Taryn Steckler-Houle