The Impact Of Economic Improvement In Ecuador

In the last 34 years, since Ecuador returned to democracy and changed to the US Dollar for currency in 2000, life and the economy has drastically improved. Although Ecuador is still considered to be a poor country compared to “Westernized” countries its economy is ranked 8th in Latin America; includes Central and South America.

This economy has grown due to two main changes: Governmental policy changes and focusing on increasing production of exports.

One reason why the economy has improved is government policy changes. In 1979 Ecuador returned to democracy after nearly a decade of civilian and military dictatorships. Returning to democracy has given stability to a corrupt government. In 2000, Ecuador adopted the U.S. dollar as its national currency. Dollarization further stabilized the government as well as the economy since the U.S. dollar is seen as a stronger, more reliable currency throughout the world. Returning to democracy and changing to the U.S. dollar made Ecuador more appealing to tourists and investors; both of which added a much needed boost to the economy. One of the best examples of this would be the city of Cuenca. Tourism and investors from abroad has made Cuenca the number one retirement city in the world and has helped the country's economic development in the last decade. Economic performance supported by high oil prices, strong domestic consumer demand, increased non-traditional exports, and decrease poverty. Education has been improved dramatically over the years especially between 2006 – 2009 when the Ecuadorian government doubled social spending on social programs and education. Improvements in the Ecuador educational system have improved the literacy of many locals and given the populace the opportunity to improve their lives. Improved education means those that previously would have been relegated to poverty now, at least, have a chance to improve their lives. The development of educational systems in Ecuador has also assisted the country in training professionals and to educate employees that contribute significantly to many industries within the country and on a global scale.

Another reason why the economy has improved is production along with exports. The export of oil and various types of exotic woods has caused environmental problems not only for the areas in which the production is done but, also, throughout Ecuador in the form of water pollution. Deforestation has caused erosion throughout the highland areas and the exploitation of our rain forest threatens one of the most diverse ecological areas on the planet. There are thousands of different varieties of plants, insects and birds that cannot be found anywhere else in the world being endangered and pushed toward extinction.

The culture, production, commercialization, industrialization, and export of bananas and cocoa is one of the most important sectors of the economy of Ecuador. The

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