Ecuador in the 1980's

World context	Characteristics of the economy	External debt	Poverty and accumulation of the wealth
Prominent political events Americas ·         Ronald Reagan was elected U.S. President in 1980. Reagan pursued a hardline policy towards preventing the spread of communism, initiating a considerable buildup of U.S. military power to challenge the Soviet Union. ·         At the end of the decade, the fall of the Berlin Wall in 1989 would be followed in 1990 by the German reunification. ·         The United Kingdom was governed by the Conservative Party under Prime Minister Margaret Thatcher, the first female leader of a Western country. Under her Premiership, the party introduced widespread economic reforms including the privatization of industries. ·         She was also a staunch opponent of communism earning her the nickname 'The Iron Lady'. Electronics and computers Arcade games and video games had been growing in popularity since the late 1970s, and by 1982 were a major industry. Personal computers experienced explosive growth in the 1980s Music In the United States, MTV was launched and music videos began to have a larger effect on the record industry. Pop artists such as Michael Jackson, Whitney Houston, Duran Duran, Prince, and Madonna mastered the format and helped turn this new product into a profitable business. The Techno style of electronic dance music emerged in Detroit, Michigan during the mid- to late 1980s. Fashion Significant clothing trends of the 1980s include teased hair, ripped jeans, and neon clothing, shoulder pads, jean jackets, leather pants, aviator jackets, , skin-tight acid-washed jeans, miniskirts, leggings and leg warmers.	Economics ·         The early 1980s was marked by a severe global economic recession that affected much of the developed world. ·         International debt crisis in developing countries, reliance of these countries on aid from the International Monetary Fund. ·         Revival of laissez faire/neoliberal economics in the developed world led by the UK and US governments emphasizing reduced government intervention. In 1979 Ecuador returned to the democratic governments, there were many presidents who worsen the crisis. These presidents governed the country under the decisions and headlines of the International Monetary Fund (IMF). ·         Ecuador faced an economic crisis that last almost 30 years. ·         Inflation continuous affecting the economy. ·         Unemployment and underemployment increased. ·         Prices of exporting products decreased.	External debt increased during the 1980’s and 1990’s with international organisms like the IMF, the World Bank and several international banks.  Many private companies and banks acquired several private loans; the government took care of those and paid them with public resources.	During the 1980’s the IFM impose several economic setting according to the neoliberalism, that cause poverty, for example: ·         Increment of fuels prices. ·         Increment in public services prices. ·         Currency devaluation. Economic problems caused a low life level. There were 4 million poor people in Ecuador by that time. In the other hand bankers, company owners, exporters and importers became richer than ever in history. 20% of the population controlled 52% of the wealth in the 1990’s.