THE ADVANCEMENT OF DEMOCRACY THE ADVANCEMENT OF DEMOCRACY AS AN INSTRUMENT AS AN INSTRUMENT

FORFOR ECONOMIC AND SOCIAL ECONOMIC AND SOCIAL DEVELOPMENTDEVELOPMENT

ECUADORIAN CASEECUADORIAN CASE

JAIME BARBERIS JAIME BARBERIS AMBASSADOR OF ECUADOR TO HUNGARY 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.

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BASIC FACTSBASIC FACTS

GROSS DOMESTIC PRODUCTGROSS DOMESTIC PRODUCTNOMINAL NOMINAL (US$ millons)(US$ millons)

3 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

GDPGDPBY ECONOMIC SECTORS BY ECONOMIC SECTORS ((PORCENTAGESPORCENTAGES))

4 Source: BCE (2011): Boletín de Cuentas Nacionales Trimestrales, 77.Elaboration: DEECO / MRECI

GLOBAL TRADE BALANCEGLOBAL TRADE BALANCE(US$ millons FOB)(US$ millons FOB)

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

Elaboration: DEECO / MRECI

GLOBAL TRADEGLOBAL TRADEEVOLUTION OF EXPORTS BY GEOGRAPHICAL EVOLUTION OF EXPORTS BY GEOGRAPHICAL REGIONS FROM JANUARY TO DECEMBERREGIONS FROM JANUARY TO DECEMBER (US$ (US$

millions)millions)

6 Source: Central Bank of Ecuador. Data of China from MCPE 2011-2012.Elaboration: DEECO / MRECI

CONSTITUTION OF 2008.

103 LAWS HAVE BEEN APPROVED

NATIONAL PLAN OF “BUEN VIVIR” Sumak kawsay

COMMITMENT TO LATINAMERICAS INTEGRATION

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POLITICAL, ECONOMIC POLITICAL, ECONOMIC AND SOCIAL FRAMEWORKAND 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

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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

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ACHIEVEMENTS ACHIEVEMENTS

Sources: Latin American national institutions responsible for official statistics

Elaboration: DEECO/MRECI

ECONOMIC GROWTH IN LATIN AMERICA ECONOMIC GROWTH IN LATIN AMERICA AND THE CARIBBEANAND THE CARIBBEAN

RATE OF ANNUAL CHANGE RATE OF ANNUAL CHANGE 2010-20112010-2011

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SOCIAL INVESTMENT WITH RESPECT TO SOCIAL INVESTMENT WITH RESPECT TO GDPGDP (%)(%) ( (Without public banksWithout 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.

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GOVERNMENT INVESTMENT GOVERNMENT INVESTMENT IN SOCIAL AREASIN SOCIAL AREAS

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

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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.

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TAX COLLECTION AND TAX BURDENTAX COLLECTION AND TAX BURDENMilion US$ and percentageMilion US$ and percentage

We have doubled tax collection. Those who have more, pay more. Promoting a culture of paying taxes.

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UNEMPLOYMENT, UNDEREMPLOYMENT UNEMPLOYMENT, UNDEREMPLOYMENT AND FULL EMPLOYMENTAND FULL EMPLOYMENT

NATIONAL TOTAL NATIONAL TOTAL (Percentages)(Percentages)

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UnemploymentUnemployment

UnderemploymentUnderemployment

Full Full employmentemployment

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

Elaboration: DEECO / MRECI

65%

49%

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 HEALTHEDUCATION AND HEALTH

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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

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FINAL RMARKSFINAL RMARKS

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

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

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THANKTHANK YOUYOU