Skip to main content

Ecuador after ten years of President Correa

A new report from the Center for Economic and Policy Research (CEPR) looks at key economic and social indicators, as well as policy, institutional, and regulatory changes in Ecuador in the decade since President Rafael Correa took office. The paper also looks at how the government dealt with the 2008–2009 world financial crisis and recession, and then a second oil price collapse beginning in 2014.

The reforms and macroeconomic policy changes over the past decade, some of which were quite innovative, seem to have allowed for significant economic and social progress ― despite two major external economic shocks that triggered recessions in Ecuador,” said CEPR Co-Director and economist Mark Weisbrot, a coauthor of the paper.

Among the highlights, the paper finds:

  • Annual per capita GDP growth during the past decade (2006–2016) was 1.5 percent, as compared to 0.6 percent over the prior 26 years.

  • The poverty rate declined by 38 percent, and extreme poverty by 47 percent ― a reduction many times larger than that of the previous decade. This resulted from economic growth and employment, and from government programs that helped the poor, such as the cash transfer program Bono de Desarollo Humano, which more than doubled in size as a percent of GDP.

  • Inequality fell substantially, as measured by the Gini coefficient (from 0.55 to 0.47), or by the ratio of the top 10 percent to the bottom 10 percent of the income distribution (from 36 to 25, as of 2012).

  • The government doubled social spending, as a percentage of GDP, from 4.3 percent in 2006 to 8.6 percent in 2016. This included large increases in spending on education, health, and urban development and housing.

  • There were significant gains in education enrollment at various levels, as spending on higher education increased from 0.7 to 2.1 percent of GDP. This is the highest level of government spending on higher education in Latin America, and higher than the average of the OECD countries.

  • Government expenditure on health services doubled as a percentage of GDP from 2006 to 2016. 
     
  • Public investment increased from 4 percent of GDP in 2006 to 14.8 percent in 2013, before falling to about 10 percent of GDP in 2016.

The paper notes that these results were not driven by a “commodities boom,” but from deliberate policy choices and reforms that the Correa government enacted, including ending central bank independence, defaulting on illegitimate debt, taxing capital leaving the country, countercyclical fiscal policy, and ― in response to the most recent oil price crash ― tariffs implemented under the WTO’s provision for emergency balance of payments safeguards.

Ecuador’s experience over the last ten years indicates that a relatively small, lower-middle income developing country is less restricted in its policy choices by ‘globalization’ than is commonly believed,” Weisbrot said.

Source and links:

Comments

Popular posts from this blog

Pro-Trump capitalists fire the first serious warning shot in Capitol

globinfo freexchange In June, 2020, we wrote that, the whole picture indicates that all these far-right militia groups together with a significant part the US police force are forming a loony army of Trump defenders, driven by racism, ultra-conservative ideas and far-right extreme conspiracy theories. These fanatics have become so loyal to their leader - who happens to be the President of the United States - that they will do whatever it takes to see him in charge for another four years. As Trump's popularity has taken a downturn, his "brigades" are ready to take action in case he loses November's election. Especially if he loses marginally. Previously, we explained that, what we see now in the United States with Trump, is a counter-attack by the part of the American capital against the globalist faction. The faction that is primarily consisted by the liberal plutocracy . Therefore, as the capitalist class splits, the capitalists around Trump are now taking with the

The DNC mafia is about to complete the process of assimilation of the progressives, exactly as predicted

globinfo freexchange   Since already July 2018, we identified an immediate mobilization by the corporate media in the US to force the progressive wing of the Democratic party comply with the DNC neoliberal norm. In the specific example , we analyzed how the corporate pundit forced the new star of the progressive wing, Alexandria Ocasio-Cortez, to literally declare loyalty to the DNC corporate "chief-baroness" Nancy Pelosi. After that, we saw an unexplained and bizarre contribution of both Bernie Sanders and Ocasio-Cortez to the establishment pro-McCain 'litanies'. In this totally unnecessary self-recruitment for the McCain's legacy whitewash operation, Cortez retreated unconditionally and the establishment marked a second victory against her. As we had mentioned , the corporate media will focus mainly on pushing progressives to be 'swallowed' by the current DNC establishment in order to destroy the political revolution of Bernie Sanders. Yet, it is expect

George Monbiot got it half-right: There is a capitalist civil war, but not exactly the kind of war he describes

by system failure  Since at least July 2019, we were supporting the idea that Brexit is primarily the result of a capitalist civil war. Very few people (mostly in social media), were eager to accept this theory, while several were even mocking it as some kind of crazy conspiracy theory.    What puzzled us most, was the fact that even people from the global real Left were completely ignoring the capitalist-civil-war factor in Brexit equation during public debates. Many of them were seeing Brexit mainly as an angry response by the UK working class against the political and financial elites. We thought it would take forever to find someone from the Left to support the capitalist-civil-war theory.   Finally, at last, it was George Monbiot who spoke clearly about a capitalist civil war. And not only that. He correctly supported (as you can hear in the beginning of his analysis) that " The only way really to understand Brexit is as the outcome of a civil war within capitalism. " 

Venezuelan Foreign Minister on why Juan Guaidó wasn't arrested & the Left's revival in Latin America

The Grayzone   As Venezuela elects and swears in a new National Assembly Red Lines host Anya Parampil sits down with the country's Foreign Minister, Jorge Arreaza, in their latest conversation since the US launched its coup attempt against his government in January of 2019. They discuss the impact of US regime change policy on Venezuela's domestic political situation, why Juan Guaidó has not been arrested, hope for diplomacy with the incoming Biden Administration, the left's resurgence in Latin America, and more. 

The real reason corporate America fights Chinese high-tech giant Huawei so hard

globinfo freexchange   The short answer that comes immediately in mind is: competition.    Indeed, Huawei had been found frequently at the epicenter of Trump's "holly" trade war against China. Someone should expect this since Silicon Valley oligarchs see the Chinese high-tech giant rapidly penetrate into the global market, claiming bigger and bigger portion of the market pie.   As we reported previously, the US imperialist machine openly called Western allies (and particularly the UK), to sabotage China's economic and technological penetration in its Western sphere of influence, through a Foreign Policy article. According to the article, the UK appears to be the most suitable, among the US allies, to lead the race against China's 5G infrastructure deals with Western countries. In essence, it called the UK to play a leading role in sabotaging China's and Huawei's deals with the UK itself and other Western countries.   Also, according to MintPress , &

Assange verdict: Statements from WikiLeaks, Assange's partner, Reporters Without Borders & more

acTVism Munich   These statements were recorded by the "Don't Extradite Assange" campaign. acTVism Munich has republished it today because of the lack of coverage of these statements in the local media landscape, as well as to foster understanding of the Julian Assange case.  

Assange wins - The cost: the crushing of Press Freedom

by Jonathan Cook   Part 2 - A moment of celebration   We have contributed collectively in our various small ways to win back for Assange some degree of freedom, and hopefully a reprieve from what could be a death sentence as his health continues to deteriorate in an overcrowded Belmarsh high-security prison in London that has become a breeding ground for Covid-19. For this we should allow ourselves a moment of celebration. But Assange is not out of the woods yet. The US has said it will appeal the decision. And it is not yet clear whether Assange will remain jailed in the UK – possibly in Belmarsh – while many months of further legal argument about his future take place. The US and British establishments do not care where Assange is imprisoned – be it Sweden, the UK or the US. What has been most important to them is that he continues to be locked out of sight in a cell somewhere, where his physical and mental fortitude can be destroyed and where he is effectively silenced, encouraging

UN expert: crippling US sanctions on Syria are illegal and hurting civilians

The Grayzone   An independent United Nations expert is calling on the US to lift its crippling sanctions on Syria. Under the Caesar Act, US sanctions explicitly target Syria's reconstruction in the aftermath of a catastrophic 10-year war. Alena Douhan, the UN Special Rapporteur on the impact of sanctions, says that the US sanctions are illegal and depriving Syrian civilians of their basic needs.  " People shouldn't die, people shouldn't suffer, and people shouldn't fear whether they can survive after tomorrow, because they have neither medicine or food, because of the sanctions applied, " Douhan says.

Apr 2020 picks

April 1st 1957: the day Western mainstream media officially became masters of propaganda through a seemingly innocent April Fools' Day joke    Varoufakis claims that the innermost circle of the Greek PM owns shares of vulture funds connected with the non-performing loans of Greek banks   COVID-19 demonstrates that capitalism has outrun its historical tolerability      As Bernie drops nomination, progressives are left with only one political option: the Green Party    Biden's lame attempt to lure Bernie supporters fails miserably    How Bernie Sanders could still become president    We have come now to the point where an entire class of society has been designated "expendable"   Best evidence so far for the fact that Biden would start a war with Iran, just like Trump   

UK judge justifies CIA spying on Assange citing debunked CNN report based on… CIA spying

UK judge Vanessa Baraitser justified CIA spying on Julian Assange by citing a falsehood-filled CNN report. Her judgment highlighted corporate media’s enthusiastic role in a state-sponsored assault on press freedom.   by Ben Norton   Part 2 - UK judge casts doubt on US spying on Assange while simultaneously justifying it   The Grayzone has published several investigations into the US government spying operation that targeted Julian Assange when he was trapped in the Ecuadorian embassy. The Spanish company hired by Ecuador to provide security, UC Global, was secretly working with the CIA, providing the US spy agency with 24/7 video and audio surveillance that covered almost every inch of the diplomatic building, including even the women’s bathroom. Max Blumenthal demonstrated that the CIA presided over this illegal spying ring with the help of a company owned by billionaire Republican mega-donor Sheldon Adelson, a close ally of President Donald Trump and former CIA Director and Secretar