After an end-of-summer visit to Ecuador, UN Special Rapporteur on Extreme Poverty and Human Rights Olivier De Schutter called on authorities to continue efforts to curb drug-related crime in the country and to increase investment in the education, healthcare, and social protection sectors.
In his report, De Schutter cited poverty as the root cause of the continual increase of crime, violence, and insecurity in Ecuador. This explainer will explore the history of slavery in Ecuador, the current state of poverty in the country, and how poverty implicates slavery.
What is the history of slavery in Ecuador?
Slave ships first arrived in Ecuador in 1526. Between 1526 and 1822, enslaved Ecuadorians worked on plantations and in gold minds. By 1822, slavery was abolished when the country gained independence. However, the legacy of slavery continues to impact the descendants of enslaved Ecuadorians, particularly Afro-Ecuadorians.
What does the current state of poverty in Ecuador look like?
According to De Schutter’s UN report, in June 2023, the country’s Gini index stood at 0.467, indicating an inequal distribution of income among individuals and households within the Ecuadorian economy. Urban areas experienced a slightly lower Gini index, at 0.440, while rural areas experienced a higher index at 0.479. Income poverty rates during the same time period were higher in rural areas, at 46.4%, while urban areas experienced 18% income poverty. The national rate for income poverty was 27%.
Among Afro-Ecuadorians, De Schutter highlighted multidimensional poverty rates. Multidimensional poverty measures the ratio of households in a given country that experience monetary poverty, educational poverty, and depravation of basic infrastructure services. While the multidimensional poverty rate across Ecuador was 38.1% in 2022, Afro-Ecuadorians experienced a multidimensional poverty rate of 54.3%. Similarly, Afro-Ecuadorians experienced the second-highest percentage of income poverty, at 33.7%.
De Schutter also called attention to women as experiencing disproportionate rates of poverty in Ecuador. Income poverty rates in 2022 had a gender gap of 1.6%, which suggests inequality in the labor market, inequal wages, more women working unpaid jobs, and more time spent on childcare. Also indicated by higher poverty rates among women are a lack of access to education and lack of employment opportunities for women. Within the women population, Afro-Ecuadorian and indigenous women experience higher rates of poverty.
How does poverty in Ecuador implicate slavery?
The current poverty rates implicate a lack of economic opportunity and social protection initiatives from the Ecuadorian government. According to De Schutter’s report, Ecuador spends 9.6% of its GDP on social protection, resulting in health insurance, disability pension, and overall benefit disparities for those in the workforce.
Similarly, Ecuadorians who are not covered by social insurance rely on social assistance, which fails to protect the lowest income group and does not effectively protect individuals from poverty. This results in the exploitation of workers who already live below the poverty line, leaving them with little choice but to continue working without benefits or adequate pay.
Enforcement of labor law also contributes to poverty rates in Ecuador. The UN report cites that Ecuador’s Ministry of Labor and Employment reported that there are a mere 140 labor inspectors to enforce labor law in a country with a population of 18 million. Likewise, there are 100 social security inspectors to enforce social security protections in the country. This disparity results in existing labor law not being enforced and further worker exploitation.
An example of the consequences of a lack of labor law enforcement is seen at the Furukawa farms in the abaca plantations in Ecuador. Owned by the Japanese company Furukawa Plantaciones C.A., the plantations were alleged to have slavery-like conditions. According to the UN Working Group of Experts on People of African Descent, most workers at the plantations are Afro-Ecuadorian. They lack employment contracts and social security and are housed in territories that are owned by the company that lack water, electricity, public lighting, and sanitary and toilet facilities.
Bonded labor, in which people give themselves into slavery as security against a loan or inherited debt, is prevalent in Ecuador. It is found in different sectors, such as the sugar cane, avocado, fruit, maize and beans industry. According to the UN report, it is alleged that in these industries, Afro-Ecuadorian households perform work for wages significantly below minimum wage as a form of debt bondage. This starts for individuals as early as 12 years of age.
How does Ecuador alleviate its current state of poverty and slavery?
De Schutter recommends that the Ecuadorian government take several steps to alleviate the existing plight of poverty and slavery in the country. An increase of the minimum wage is recommended to combat in-work poverty. He also recommends an increased monitoring and enforcement of labor law to ensure protection and equality for workers.
De Schutter also recommends that the government increase its social investment. This looks like an improved quality of education, improved targeting of social assistance, a more progressive and efficient tax system, and rationalizing fossil fuel subsidies.
The wealth of Ecuador, De Schutter concluded, is not in its “subsoil; it is in its people and the priceless wellbeing they derive from their environment.”
