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A Special International Report Prepared by
The Washington Times Advertising Department - Published on April 21, 1999
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Ambassador addresses economic and political concerns
A-Baki has been promoting Ecuador around the world and was in Washington for only a few days when we interviewed her at the Ecuadorian Embassy. She had just returned from the InterAmerican Development Bank (IDB) conference in Paris and was heading to Ecuador to work with the President as he faces political and economic challenges. The Ambassador was widely praised for her work at the IDB Conference, where she received strong support from leaders of multinational institutions. "Money is not the issue," she says. "If the President's reform package passes, we will get stand-by," she insists. The World Bank, Corporation Andina de Fomento, the International Monetary Fund and IDB have already pledged a total of $930 million, with the National Finance Corporation promising lines of credit. However, in order to receive this money, the country must show that it is prepared to follow strict measures, institute reforms and repair years of poor management. In response, the President invited a team of international auditors to check out the banking system. "We need a full auditing of the banking system. We are fighting corruption. The system must be made clean," A-Baki firmly asserts. "The crisis stems from long-term problems," says A-Baki. "We need to focus on the economic and political problems that stem from past administrations." In order to solve these problems, the government must provide a plan for the future. "The President has to balance a long-term vision with short-term needs." However, there is even more to the current problem. The Ambassador explains, "The peace created high expectations. Once the historic peace was signed, everyone began to ask, "What next?" Next are compromises and consensus as well as the understanding that the President can not create miracles and solve decades-long problems overnight. At the same time, A-Baki believes that the country must work together to solve its problems. Shortly after the President's speech to the nation on March 11th the country was far from working together. One of the main problems was how to raise money to pay the high internal and external debt, especially if people were unwilling to pay the taxes they currently owed, let alone to pay additional taxes. In the end, the President and Congress compromised. Although a one percent financial tax was initially successful, bringing in millions of dollars in the first couple of months, people were beginning to find ways to evade it. Capital flight was a concern. In response, the government is reforming the tax system, reinstating and reducing income tax to 10 to 15 percent, eliminating certain exemptions for the value added tax, and increasing penalties for those who avoid taxes, A-Baki explains. However, A-Baki believes the best way to prepare the country for the future is through education. As Mayor of Quito and now President, Mahuad places a heavy emphasis on this topic. His vice president is a former Dean of Catholic University. His new education minister is fond of open dialogue. Education is also the key to bringing Ecuadorians out of poverty and to instilling feelings of pride and patriotism. "Education will change people's mentality towards Ecuador. It will help people rise up out of poverty and hunger," A-Baki says. "If we don't do something for education, we won't change people's mentality." Mahuad's Minister of Education is a woman as are his Ministers of Environment, Tourism and Finance. A-Baki believes that women are natural negotiators. When asked to speak in front of women's groups, she explains that she is not, however, a feminist. "I promote feminism and women, not feminism," she affirms. "Women can be different and make a difference." A-Baki is also an optimist. "Order comes after chaos," she concludes. "We are passing through a serious stage. We need to face the reality of the problems and find solutions. The President must be as clear as possible and work for consensus, but he must do what he has to do." |
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Table of Contents (1) President Mahuad announces new economic plan |
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The first Ecuadorian woman Ambassador to Washington, D.C. A Harvard graduate. An articulate spokesperson. A painter. Ambassador Ivonne A-Baki is not your average Ambassador. However, in the midst of Ecuador's political and economic crisis, A-Baki comes across as serious, focused and prepared. She is a staunch supporter of President Jamil Mahuad, a long-time friend, but she is also willing to see both sides of a story and to accept advice as to how the President and his administration can better connect with the average Ecuadorian, the person most affected by recent events.