The Human Development Credit as a strategy of the Popular and Solidarity Economy to fight poverty.

Abstract

Introduction: The poverty indexes in Ecuador have forced the state to generate different programs that seek the social development of its citizens, among them the human development bond (HDB) and pensions; the beneficiaries of these monetary subsidies can access the human development credit (HDC) which consists of the delivery of the accumulated amount of the HBD or pension received during two years; the objective of the HDC is that the beneficiaries form enterprises or self-employment that allow them to generate the necessary cash flows so that they become self-sustainable and stop depending on the HDB or pension. Objective: To analyze if the HDC has contributed to the generation of entrepreneurship in the popular and solidarity economy by fighting poverty. Methodology: The quantitative approach has been used based on the results obtained in the research of statistical and economic data, starting from the general to the specific describing the relationships of the information obtained. Results: The indicators of poverty and extreme poverty, the state's investment in social development expenses, the amounts granted as HDC from the general state budget and the use of credit in different productive activities are compared. Conclusions: Citizens are increasingly dependent on state subsidies, which has caused a decrease in the granting of HDC´s, affecting the popular and solidarity economy by reducing the number of enterprises and self-employment.