Natural wealth, persistent poverty: institutions, public policies, and development in the Ecuadorian amazon

Abstract

The Ecuadorian Amazon exemplifies the resource curse, where the coexistence of vast natural resources with high levels of multidimensional poverty reveals deep structural dysfunctions. In 2018, the “Law for the Planning of the Amazon Territorial Circumscription” was enacted, which in theory enables greater economic revenues from the exploitation of natural resources (oil, mining, hydroelectric power) to promote the sustainable and comprehensive development of the Amazon. Between 2017 and 2024, oil, mining, and hydroelectric exploitation generated revenues that contributed significantly to the national budget; however, provinces such as Orellana and Morona Santiago continue to register the highest poverty levels in the country. This study examines the interaction between extractive wealth, institutional quality, and public policies, assessing how the management and allocation of such revenues influence territorial development. Preliminary findings indicate that the capture of resources by political-economic networks and institutional weakness have limited the redistributive scope of wealth. It is concluded that overcoming this paradox requires strengthening transparency, citizen participation, and intergovernmental coordination, channeling revenues toward productive diversification and the sustainable reduction of poverty.