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I've heard that Raphael Correa has brought unemployment in Ecuador down to 4%, and has cut poverty in half. This sounds very difficult to believe; an economy in crisis can't be turned around in just two presidential administrations. Can anyone provide more realistic information? If unemployment has been cut to that extent, have many of the Ecuadorans who left the country in the late 90's and afterwards to find work in Spain and the US returned and found jobs? Has the pay scale improved under Correa? And what about inflation? Any up-to-date info on the labor and economic situation in Ecuador would be appreciated.
There's a guy named GARY SCOTT who has a background in financial matters and writes quite a bit retirement and Ecuador.
You might find some useful feedback if you seek out his blogs.
Don't believe unemployment numbers in Latin America. I think most people have figured that out. As for poverty who knows, it might be marginally true. When you don't run your own printing press it's really hard to see how a decade brings significant change. All you can do is redirect resources and change taxes to alleviate the worst poverty, beyond that hard to see how you take poverty down in half unless you change the standard by which you count poverty.
I found some articles that explain some of it. First of all, poverty hasn't been halved, as some claim, but it's been cut back by about 20%. Employment has indeed grown, to the point that expats have returned and are employed, and Correa has invited unemployed Spaniards to seek jobs in Ecuador. He defaulted on several billions of $$ in loans from private foreign banks, but is still servicing debt from multilateral sources, like the Inter-American Development Bank, and others. He's raised taxes on foreign companies doing resource extraction in Ecuador, which has brought in a lot of money to state coffers, and has built a lot of schools to raise the level of education. The current high price of oil is also buoying the economy. The economy's dependence on oil is a bit worrisome, but it will take a long time to diversify the economy and continue building it from the ground up.
I found some articles that explain some of it. First of all, poverty hasn't been halved, as some claim, but it's been cut back by about 20%. Employment has indeed grown, to the point that expats have returned and are employed, and Correa has invited unemployed Spaniards to seek jobs in Ecuador. He defaulted on several billions of $$ in loans from private foreign banks, but is still servicing debt from multilateral sources, like the Inter-American Development Bank, and others. He's raised taxes on foreign companies doing resource extraction in Ecuador, which has brought in a lot of money to state coffers, and has built a lot of schools to raise the level of education. The current high price of oil is also buoying the economy. The economy's dependence on oil is a bit worrisome, but it will take a long time to diversify the economy and continue building it from the ground up.
Thanks for the Summary, very useful however:
Could you post a link to those articles? It would possibly help people understand more about this.
Of course the conservatives will NEVER admit it...
I'm told the Ecuadoran media, which are controlled by corporate interests, have been against Correa from the start, and he has to spend a fair amt. of time coming up with ads and announcements refuting their accusations. The Economist has an article saying he'd defaulted on loans, leaving him with no options other than China for loans. But that's not true. A visit to the Inter-American Development Bank's website shows that the Bank is financing all manner of government projects, as it always has. He only defaulted on loans from private banks that jacked up their interest rates to usurious levels. These were old loans from an era when banks were aggressively pushing cheap loans on Latin American countries in an attempt to improve their own bottom line. Then after they finally got some takers, the interest rates would jump to over 20%.
I'm told that this being Correa's last years in office, his party has groomed a successor who recently was elected president of the national Congress: Gabriella Ribadeneira. There are videos of her on youtube, including one in which she addresses the nation in Kichwa, which she claims to speak fairly fluently.
I have some more news about how Correa is paying for all the improvements in Ecuador. Turns out he has accelerated oil exploration and extraction in Amazonia. It's almost being turned into a sort of sacrificial zone to finance his regime. Of course, this isn't sustainable, and needless to say, Amazonia's residents are not happy with it, but Correa ignores the protests and marches. Considering that Ecuador's Amazonia has some of the greatest diversity of fauna in the Western Hemisphere, this is distressing news. So much for ecotourism.
I like the principles of "Bolivarianism", but the leaders advocating it tend to be so full of it, I don't think Evo Morales is very bad but he's not innocent either, if I recall both Morales and Correa called indigenous activists something along the line of American lackeys or right wing traitors, Correa is more authoritarian though. I understand they may be in difficult positions but that's why I believe in more grassroots solutions anyway, although that is much easier said than done Still these actions against indigenous nations under the guise of "bolivarian" ideals are disturbing, but not surprising.
Don't believe unemployment numbers in Latin America.
You shouldn't believe them in the United States.
If a person has been out of work for a year in the U.S. they no longer are counted in the unemployment figures. Also, if you work part-time or even a temporary job for a few weeks, you are counted as employed.
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Still these actions against indigenous nations under the guise of "bolivarian" ideals are disturbing, but not surprising.
