The advancement of democracy as an instrument for economic and social development ecuadorian case
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THE ADVANCEMENT OF DEMOCRACY AS AN INSTRUMENT FOR ECONOMIC AND SOCIAL DEVELOPMENT ECUADORIAN CASE. JAIME BARBERIS AMBASSADOR OF ECUADOR TO HUNGARY. Area: 256,370 Km2 (Galapagos, Pacific Coast, Andes and Amazonia) Population :15 million (2011).
 Life Expectancy: 76 years.

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The advancement of democracy as an instrument for economic and social development ecuadorian case

THE ADVANCEMENT OF DEMOCRACY AS AN INSTRUMENT FORECONOMIC AND SOCIAL DEVELOPMENTECUADORIAN CASE

JAIME BARBERIS

AMBASSADOR OF ECUADOR TO HUNGARY


Area: 256,370 Km2 (Galapagos, Pacific Coast, Andes and Amazonia)

Population:15 million (2011).
Life Expectancy: 76 years.

Literacy Rate: 93%


Ethnicity: Mestizos 64%,Indigenous 22-25%,White 7-12% Afro-Ecuadorian 2-3%

Form of Government: Representative Democratic Republic

President: Rafael Correa Delgado

Language: Spanish and Quichua


Capital: Quito

Currency: US Dollar

Major Exports: oil, flowers, bananas, shrimp, palm oil, cacao, coffee, sugar, tropical fruits

Annual Exports 2011: 22,345,000,000 USD

Ecuador is a multiethnic and pluricultural country: 13 nationalities, 16 indigenous peoples

Ecuador is one of 17 mega diverse countries in the world with: 25.000 plant species, 1.600 bird species, 600 butterfly species, 106 endemic reptiles, 138 endemic amphibians.

BASIC FACTS


GROSS DOMESTIC PRODUCT

NOMINAL (US$ millons)

Source: BCE (2011): Boletín de Cuentas Nacionales Trimestrales, 77. PIB de 2011 proyectado IEM 1918 de diciembre de 2011. Tabla 3.3.1

Elaboration: DEECO / MRECI


GDP

BY ECONOMIC SECTORS (PORCENTAGES)

Source: BCE (2011): Boletín de Cuentas Nacionales Trimestrales, 77.

Elaboration: DEECO / MRECI


GLOBAL TRADE BALANCE

(US$ millons FOB)

Source: BCE (2012): Estadísticas de Comercio Exterior [Online], Disponible en: www.bce.fin.ec , [16 mar. 2012].

Elaboration: DEECO / MRECI


GLOBAL TRADEEvolution of Exports by Geographical Regions from January to December(US$ millions)

6

Source: Central Bank of Ecuador. Data of China from MCPE 2011-2012.

Elaboration: DEECO / MRECI


Political economic and social framework

CONSTITUTION OF 2008.

103 LAWS HAVE BEEN APPROVED

NATIONAL PLAN OF “BUEN VIVIR” Sumak kawsay

COMMITMENT TO LATINAMERICAS INTEGRATION

POLITICAL, ECONOMIC AND SOCIAL FRAMEWORK


Course of action taken
COURSE OF ACTION TAKEN

ADOPTION OF PUBLIC POLICIES

IMPLEMENTATION OF FISCAL STIMULUS

ADOPTION OF A SOVEREIGN ECONOMIC POLICY

RENEGOTIATION OF OIL CONTRACTS

BETTER COLLECTION OF TAXES

DIVERSIFICATION OF DIPLOMATIC AND POLITICAL RELATIONS AND MARKETS


ACHIEVEMENTS

  • POLITICAL AND ECONOMIC STABILITY

  • TRANSFORMATION OF PRODUCTION AND HIGHER ONVESTMENT IN PRODUCTIVE ACTIVITIES

  • HIGH SOCIAL INVESTMENT WITH RESPECT TO GDP

  • GROWTH IN 2011: 7.78%

  • REDUCTION OF POVERTY

  • HIGHER LEVELS OF EMPLOYMENT

  • LARGER INVESTMENT ON EDUCATION AND HEALTH


ECONOMIC GROWTH IN LATIN AMERICA AND THE CARIBBEANRate of annual change 2010-2011

Sources: Latin American national institutions responsible for official statistics

Elaboration: DEECO/MRECI


Social investment with respect to gdp without public banks
SOCIAL INVESTMENT WITH RESPECT TO GDP(%) (Without public banks)

  • In five years we have doubled the public investment. Social investment grow 2.5 times.

  • Ecuador had the highest public investment in Latin America and the Caribbean with respect to GDP in 2011.


Government investment in social areas
GOVERNMENT INVESTMENT IN SOCIAL AREAS

Expenditures of the Central Government's Budget by Sector (U.S. $ million)


Decline of poverty by incomes
DECLINE OF POVERTY BY INCOMES (%)

  • In five years of government, poverty has decline by 9 points.

  • Approximately 650 thousand Ecuadoreans are no longer in poverty in 2011.


Tax collection and tax burden milion us and percentage
TAX COLLECTION AND TAX BURDENMilion US$ and percentage

  • Wehavedoubledtaxcollection.

  • Thosewhohave more, pay more.

  • Promoting a culture of payingtaxes.


UNEMPLOYMENT, UNDEREMPLOYMENT

AND FULL EMPLOYMENTNATIONAL TOTAL (Percentages)

Unemployment

49%

65%

Underemployment

Full employment

Source: INEC (2011): Ecuador en Cifras Ecuador in figures [Online] , Available at: www.ecuadorencifras.com, [Apr. 16 2012]

Elaboration: DEECO / MRECI

15


Education and health

Investment on education has grown from 2.5% to 5.5%. Enrollment in middle education has increased 14 points from 48% in 2006 to 62% in 2011.

The largest increase in educational coverage occurred in indigenous and Afro-Ecuadorian populations

Education is mandatory until high school and free until third level.

To improve school performance, children in poor social sectors receive breakfast, school books and uniforms free of charge.

Medical consultations from 14 million in 2006 to 34 million in 2011.

Between 2007 and 2010, 3,539 million dollars have been invested in Health, more than double the amount compared to the three previous governments.

184 million dollars have been allocated annually for free medicine under the notion that medicines are social not commercial goods.

The national vaccination program covering 4 million beneficiaries from 4.8% and 2.5% respectively in 2008 to 3.9% and 1.8% in 2010.

EDUCATION AND HEALTH


Further lines of action
FURTHER LINES OF ACTION

  • Increase of productivity based in knowledge and technology

  • Transformation of the energy matrix

  • Transformation of the production matrix

  • Reduction of labor vulnerability

  • Better social services

  • Reforestation and better distribution and use of land

  • Diversification of markets and products

  • Consolidation of Latin-American integration process


Final rmarks
FINAL RMARKS

  • Ecuador has introduced democratic changes needed in order to promote economic and social development.

  • Ecuador´s new paradigm for development is the “BuenVivir”, guaranteed by legal frameworks and carried out through the application of the National Plan of “BuenVivir” and public policies.

  • There is still important objectives to archive for a more just and equitable society.

  • Internationally, Ecuador will promote the process of the Latin America integration and Peace and solidarity with all nations o f the world.


THANKYOU


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