Over the past decade, Ecuador hassuffered natural disasters, political instability, andfinancial crises. These events have occurred in the contextof already low economic growth and high income inequalityand poverty and have exposed the poor to the risk ofirreversible losses of assets, including human capital. Thispaper updates our knowledge of poverty in Ecuador. Chapter 1describes the high poverty and income inequality in Ecuador,and how both poverty and inequality have been increasing inrecent years. Chapter 2 describes the current crisis, theeffect of the crisis on the poor and the near-poor, andGovernment stabilization in response to the crisis. Chapter3 focuses on the provision of basic public services ofnutrition, health, and education to the poor. Chapter 4reviews those public sector programs specifically targetedon the poor. It begins with the Bono Solidario, and thenreviews programs that benefit each of the especiallyvulnerable groups among the poor. It ends with an assessmentof social infrastructure program which have the potential togenerate employment. Chapter 5 examines policy options toprovide income support, to prevent irreversible physical andmental losses and losses in human capital. Finally, Chapter6 estimates the cost of implementing the strategy discussedin the previous chapters, and assesses the possibilities offinancing the strategy within the Government's expectedsocial sector resource envelope.
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