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. 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: plant species, bird species, 600 butterfly species, 106 endemic reptiles, 138 endemic amphibians. 2 BASIC FACTS

GROSS DOMESTIC PRODUCT NOMINAL (US$ millons) 3 Source: BCE (2011): Boletín de Cuentas Nacionales Trimestrales, 77. PIB de 2011 proyectado IEM 1918 de diciembre de Tabla Elaboration: DEECO / MRECI

GDP BY ECONOMIC SECTORS (PORCENTAGES) 4 Source: BCE (2011): Boletín de Cuentas Nacionales Trimestrales, 77. Elaboration: DEECO / MRECI

GLOBAL TRADE BALANCE (US$ millons FOB) 5 Source: BCE (2012): Estadísticas de Comercio Exterior [Online], Disponible en: [16 mar. 2012]. Elaboration: DEECO / MRECI

GLOBAL TRADE E VOLUTION OF E XPORTS BY G EOGRAPHICAL R EGIONS FROM J ANUARY TO D ECEMBER (US$ millions) 6 Source: Central Bank of Ecuador. Data of China from MCPE Elaboration: DEECO / MRECI

CONSTITUTION OF LAWS HAVE BEEN APPROVED NATIONAL PLAN OF BUEN VIVIR Sumak kawsay COMMITMENT TO LATINAMERICAS INTEGRATION 7 POLITICAL, ECONOMIC AND SOCIAL FRAMEWORK POLITICAL, ECONOMIC AND SOCIAL FRAMEWORK

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 8

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 9 ACHIEVEMENTS

Sources: Latin American national institutions responsible for official statistics Elaboration: DEECO/MRECI ECONOMIC GROWTH IN LATIN AMERICA AND THE CARIBBEAN R ATE OF ANNUAL CHANGE

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

GOVERNMENT INVESTMENT IN SOCIAL AREAS Expenditures of the Central Government's Budget by Sector (U.S. $ million) 12

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

TAX COLLECTION AND TAX BURDEN Milion US$ and percentage We have doubled tax collection. Those who have more, pay more. Promoting a culture of paying taxes. 14

UNEMPLOYMENT, UNDEREMPLOYMENT AND FULL EMPLOYMENT NATIONAL TOTAL (Percentages) 15 Unemployment Underemployment Full employment Source: INEC (2011): Ecuador en Cifras Ecuador in figures [Online], Available at: [Apr ] 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 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 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 EDUCATION AND HEALTH 16

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 17

FINAL 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. 18

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