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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.
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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.
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