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THE "PROCESS" OF ECONOMIC GROWTH

Mauricio Pozo's favorite phrase is: "This is a process". The economical situation of Ecuador is truly undergoing a "process" of recuperation and stabilization, after a crisis in 1999 that obligated the country to default on its debts and forced negotiations with its creditors.

To prevent an economic crisis, the previous government adopted the U.S. dollar as the monetary unit of the country and completely abandoned the "Sucre", the national currency. This year President Gutierrez obtained support of financial markets, reassured investors and gave the IMF signs that he is serious about reforms. It was a necessary opening to the international business community, which also follows the same policies as President Lula of Brazil.

Foreign Trade Minister Ivonne Baki is also developing a medium to long-term program called "Ecuador 2007", in which she seeks to coordinate the actions of the government and the private sector to strengthen industry and export production.

The goal is to diversify Ecuador's product base, which is currently based on banana, coffee, cacao and shrimp. The Plan seeks private investment as part of joint productive projects or as part of private capital injection programs.

However, legal security is a necessary precursor in order for foreign investment to flow into Ecuador - which is a problem that has not yet been solved.

"The government needs to respect international norms and specify its future intentions so that foreign investment can be secure. This is what needs to happen in order for foreign corporations to plan new investments in Ecuador", says Gustavo Romero, Main Partner of Romero Arteta Ponce Attorneys at Law. "With transparent mechanisms, a simplified legal framework and a stable business environment, we can quickly provide greater security for investors in Ecuador" adds Romero.