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Analysis of the Parallelism Between Traditional Socialism and Socialism of the 21St Century Under the Figure of Rafael Correa”

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Analysis of the Parallelism Between Traditional Socialism and Socialism of the 21St Century Under the Figure of Rafael Correa” FACULTY OF LAW School of International Studies “ANALYSIS OF THE PARALLELISM BETWEEN TRADITIONAL SOCIALISM AND SOCIALISM OF THE 21ST CENTURY UNDER THE FIGURE OF RAFAEL CORREA” GRADUATE THESIS PRIOR TO OBTAINING A BILINGUAL BACHELOR IN INTERNATIONAL STUDIES MINOR IN FOREIGN TRADE AUTHOR: GABRIELA CAMPOVERDE DIRECTOR: AB. ANA MARÍA BUSTOS CUENCA - ECUADOR 2017 i Dedication This thesis work is mainly dedicated to my son who has been my main motivation to finish with this goal, as well as my family and my boyfriend who have supported and helped me at all times throughout this journey. ii Acknowledgments I would like to thank my family, my son and above all my parents who, despite the difficulties, have supported me at all times to achieve this goal. I would also like to thank my director, Ana María Bustos, who has guided me, in a timely manner and with a great deal of patience, in the culmination of this work. And a special thanks to my boyfriend Alvaro Abad and my sisters Samantha and Emily who have helped me unconditionally and motivated me to finally reach this goal. iii Table of Contents Dedication ......................................................................................................................... ii Acknowledgments ............................................................................................................ iii Table of Contents .............................................................................................................. iv List of Tables and Figures .............................................................................................. viii Appendices ......................................................................................................................... x Abstract ............................................................................................................................. xi Introduction ........................................................................................................................ 1 CHAPTER 1: SOCIALISM ............................................................................................... 3 1.1. Background of Socialism .................................................................................... 3 1.1.1. Historical context - political, social and economic aspects of the Middle Ages 3 1.1.2. Historical context– political, social and economic aspects of the Modern Age 8 1.2. Capitalism .......................................................................................................... 10 1.2.1. Economic context of Capitalism ................................................................ 12 1.2.2. Political context of Capitalism ................................................................... 13 1.2.3. Social context of capitalism ....................................................................... 14 1.3. Utopian Socialism ............................................................................................. 16 1.4. Scientific Socialism ........................................................................................... 18 1.5. Elements of Scientific Socialism–Marx- ........................................................... 24 1.5.1. Political context .......................................................................................... 24 1.5.2. Economic context ....................................................................................... 25 1.5.3. Social context ............................................................................................. 27 1.6. Real Socialism ................................................................................................... 29 1.6.1. Background ................................................................................................ 29 1.6.2. Definition ................................................................................................... 32 1.6.3. Lenin .......................................................................................................... 32 iv 1.6.3.1. Political context ...................................................................................... 33 1.6.3.2. Economic context ................................................................................... 37 1.6.3.3. Social context ......................................................................................... 40 1.6.4. Stalin .......................................................................................................... 43 1.6.4.1. Political context ...................................................................................... 44 1.6.4.2. Economic context ................................................................................... 46 1.6.4.3. Social context ......................................................................................... 48 1.6.5. Dissolution of the USSR ............................................................................ 49 CHAPTER 2: SOCIALISM OF THE 21ST CENTURY IN LATIN AMERICA ........... 53 2.1. Background ....................................................................................................... 53 2.2. The new left ....................................................................................................... 55 2.3. Socialism of the 21st century: definition ........................................................... 58 2.3.1. Heinz Dieterich (theoretical foundation) ................................................... 59 2.3.1.1. Phases ..................................................................................................... 62 2.3.2. Hugo Chávez .............................................................................................. 63 2.3.2.1. Bolivarian Socialism .............................................................................. 64 2.3.3. Other contributions..................................................................................... 70 2.3.3.1 Juan Carlos Monedero................................................................................ 70 2.3.3.1.1. Bases and definition of 21st century socialism ...................................... 70 2.3.3.1.2. Errors and successes of Real Socialism ................................................. 73 2.3.3.1.3. Philosophy of 21st century socialism ..................................................... 74 2.3.3.2. Carlos Gallego Medina ........................................................................... 75 2.3.3.2.1. 21st century socialism as a process of construction ............................... 75 2.4. Characteristics of 21st Century Socialism ......................................................... 77 2.5. Key policy advocates ......................................................................................... 80 CHAPTER 3: SOCIALISM OF THE 21ST CENTURY UNDER THE FIGURE OF RAFAEL CORREA ......................................................................................................... 81 3.1. Political, economic and social context prior to the electoral victory of Rafael Correa 81 3.2. Characteristics of the government of Rafael Correa ......................................... 88 3.2.1. Background of the Alianza PAIS Movement............................................. 90 v 3.2.1.1. Current structure ..................................................................................... 91 3.2.2. Rafael Correa's rise to power ..................................................................... 94 3.3. Socialism of the 21st Century in Ecuador ........................................................... 104 3.3.1. Drafting of a new Constitution as a starting point for the construction of Socialism of Good Living ....................................................................................... 107 3.3.2. Consolidation of the State's regulatory role ............................................. 110 3.3.2.1. Control of strategic sectors ................................................................... 110 3.3.2.1.1. Renegotiation of oil contracts ............................................................... 111 3.3.2.1.2. Change of the productive matrix .......................................................... 114 3.3.2.2. Economic policy ................................................................................... 120 3.3.2.2.1. Institutionalism ..................................................................................... 120 3.3.2.2.2. Towards a new model of development: Social and a Solidarity-based Economy 121 3.3.2.2.3. Regulation of monopolies .................................................................... 124 3.3.2.2.3.1. Media and banking............................................................................ 126 3.3.2.2.4. External debt ......................................................................................... 131 3.3.2.3. Social policy ......................................................................................... 135 3.3.2.3.1. Human Development Benefit ............................................................... 137 3.3.2.3.2. Social investment ................................................................................. 140 3.3.2.3.2.1. Education .......................................................................................... 143 3.3.2.3.2.2. Health ................................................................................................ 145 3.3.2.3.2.3. Road Improvements .........................................................................
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