Tuesday, December 31, 2013

Happy N Y E report: Could Ecuador be the most radical and exciting place on Earth?

Could Ecuador be the most radical and exciting place on Earth?

A decade ago, Ecuador was a banana republic, an economic basket case. Today, it has much to teach the rest of the world- 

Ecuadorian President Rafael Correa
President Rafael Correa's approval ratings are in excess of 70%. Photograph: Guillermo Granja/Reuters
 
  Ecuador must be one of the most exciting places on Earth right now, in terms of working towards a new development paradigm. It shows how much can be achieved with political will, even in uncertain economic times.

 Just 10 years ago, Ecuador was more or less a basket case, a quintessential "banana republic" (it happens to be the world's largest exporter of bananas), characterised by political instability, inequality, a poorly-performing economy, and the ever-looming impact of the US on its domestic politics.

In 2000, in response to hyperinflation and balance of payments problems, the government dollarised the economy, replacing the sucre with the US currency as legal tender. This subdued inflation, but it did nothing to address the core economic problems, and further constrained the domestic policy space.

 A major turning point came with the election of the economist Rafael Correa as president. After taking over in January 2007, his government ushered in a series of changes, based on a new constitution (the country's 20th, approved in 2008) that was itself mandated by a popular referendum. A hallmark of the changes that have occurred since then is that major policies have first been put through the referendum process. This has given the government the political ability to take on major vested interests and powerful lobbies.

 The government is now the most stable in recent times and will soon become the longest serving in Ecuador's tumultuous history. The president's approval ratings are well over 70%. All this is due to the reorientation of the government's approach, made possible by a constitution remarkable for its recognition of human rights and the rights of nature, and its acceptance of plurality and cultural diversity....read more: http://www.theguardian.com/commentisfree/cifamerica/2012/jan/19/ecuador-radical-exciting-place

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