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50+ Economists Warn Against Neoliberalism's Return in Ecuador


50+ Economists Warn Against Neoliberalism's Return in Ecuador

Ha-Joon Chang, James K. Galbraith, et al.

Over the past ten years, Ecuador has achieved major economic and social advances. We are concerned that many of these important gains in poverty reduction, wage growth, reduced inequality, and greater social inclusion could be eroded by a return to of the policies of austerity and neoliberalism that prevailed in Ecuador from the 1980s to the early 2000s. A return to such policies threatens to put Ecuador back on a path that leads not only to a more unequal society, but to more political instability as well.


¡Maldición de recursos!


With all the respect to the authors of the article, as an Ecuadorian I felt the urge to leave a comment.
I agree that in the past 10 years, there has been may changes in Ecuador, especially in infraestructure. However, Ecuador new roads, schools and new buildings don't translate to jobs creation, better education/ health, human rights respect, or a better economy in a country where the government is the main employer and the owner of most media communication.
Most Ecuadorians think this is the most corrupt government in our history. In the first part if the latest election, over 60% of the Ecuadorian population voted for a change in government, and the same government took four days to recognize their failure and made the votes result public to the population.
Ecuador is a place where nobody can criticize the government with suffering consequences. That said, I would invite all the economists supporting and the authors of this article to spend a week in Ecuador and talk to average people (taxi drivers, street sellers, shoe shiners, etc., and after that write another article updating what the real situation of Ecuador, its dying economy, its people, its natural resources, its almost disappearing NGOs, its rampant corruption, the state of propaganda, and its lack of freedoms are so the world can know what a failure populist governments can be.


Excellent report Comment Dreams, the Neoliberal economic policies in did have been tried in Ecuador, and have failed to deliver, similar to what happened en E.U. under George Bush, in Ecuador under a Neoliberal government we had one of the worst economic Crisis called el "FERIADO BANCARIO" thousands of Ecuadorians lost their savings they had in the banks, some people immigrated to other countries, some even killed themselves, was bad, interesting Mrs Lasso the opposite candidate was the Minister of Economy in those day he actually supported and benefit from these terrific crisis and now believe or not he wants to be President, imagine that..., Ecuador under these administration invested in project like education, Scholarships, infrastructure, new Schools, Universities, Hydroelectrics plant etc, that actually help the majority of Ecuadorians and of course that that create jobs, that is why the majority of people voted for Mr. Correa twice and won overwhelming, the opposition all they have and do is complain, used "Ould slogans and propaganda, they take the streets, close traffic destroyed private and public property..etc.,Is unfortunately but he ideology close peoples minds ., The reality is that Ecuador is not perfect but is better than before even with the prices of oil down, Earquakes and a violent opposition. like or not the facts and works of these administration is real. Once again congratulation for these great report.


Naturally, this comment was left by a paid cybernaut, probably one of the many recruited by some of the "agencies" that the Ecuadorian's government hires at huge cost, in order to propel its 10 year endless campaign. If anything can be called a success of this left winged populist regime, it should be its political marketing. In fact, all the investment made by it throughout the last decade amounts to less than 20% of the state's budget, and most of it has been built by Chinese companies at pretty elevated costs with more than doubtful quality. The 80% of the state's budget for the past 10 years, roughly 200 MM, has been spent in bureaucracy, propaganda, demagogic subsidies and debt service. The state's debt has grown from 11 MM to more than 50 MM, which practically equals the investment made in infrastructure, and clearly indicates that this regime has only "made" the roads, hydroelectric plants, etc., but hasn't paid for any of them. We have a president that bought 2 jets at 100 million, in order to travel around the world with his big entourage ca. 100 weeks of the total 500 he's been in office. All the state's companies, like gas and electric, telecom, 3 tv channels, a couple of newspapers and the state's airline, are practically bankrupt, and the state's deficit has grown so fast since the oil prices sunk, that almost half of the whole debt has been acquired at 7% and higher interest rates. Ecuador is selling its flag airline and some of the hydroelectric plants, in order to get money to pay government salaries. The only thing preventing us from Venezuela's faith, is the fact that we don't have a currency of our own, and that's why the government is pushing its "electronic money" agenda, as a virtual national currency will allow the state to pay internal expenses without support of the scarce hard currency. No need to explain the notable gentlemen that subscribe this article, if in fact they have and it's not another of our government's scams, that such a plan will trigger a double currency market, which will most surely end in hyperdevaluation of the one, and all the known consequences to the economy.


Ladies and gentleman Mr. B made my case, all they have is old propaganda and an right wing Former-banker Lasso for candidate that support and benefited from the "Feriado Bancario", on top of that now he is trying to tell us that he knows more than 50 True economist LOL.. Here is a little history of what happen when the Neoliberal was in power:,,,,https://www.facebook.com/xavier.magallanes/videos/1450078925016706/


The economic analysis in this post lacks of professional rigor.
The following post refutes four imprecise and false macroeconomic statements presented here.


It's quite clear that all 50+ Economists drank Correa's Kool-Aid.