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A Special International Report Prepared by
The Washington Times Advertising Department - Published on April 21, 1999
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US Ambassador prepares to say "Good-bye" to Ecuador
"It is easier for multinational companies and multilateral organizations to talk with President Mahuad," explains Alexander in the United States Embassy compound in downtown Quito. "He has a solid education from a major United States university (Harvard) which musters confidence, he speaks fluent English, and he has a good style of managing government." With Mahuad's background, foreigners feel an alliance to him and understand where he is coming from. Furthermore, "as mayor of Quito, he showed a capacity to manage a large enterprise." Alexander also commented on Mahuad's uniqueness among Ecuador's most recent Presidents. "He is a good public speaker who inspires confidence. He doesn't use crazy rhetoric nor make unrealistic claims. Mahuad is a sober and serious realist." However, Ecuador is facing an economic crisis that President Mahuad himself called the worse crisis in 70 years. One of the main factors is the country's high debt, which makes it very difficult to get fresh funds from banks or the multilateral agencies. The government's spending on war and government bureaucracy, combined with the devastating effects of El Nino, created a "profoundly serious problem without relief in sight," according to Alexander. The irony is that Ecuador is a well-off country with an abundance of natural resources such as bananas, shrimp, flowers and petroleum. "Ecuador is not overpopulated. It is relatively peaceful. There is no bad human rights legacy," says Alexander. "Today's inflation rate and high poverty stem from the oil boom which lifted Ecuador out of its third world status and at the same time led to overspending." It's a classic case of too much too soon. Ecuador is taking steps to create both a sound economic and political future. The signing of the peace agreement between Ecuador and Peru has helped to decrease spending and promote regional integration and new opportunities. "Now there is an increase in trade between the two countries. This will improve the economic performance and commercial relations between the Andean countries, the region and the international community. Foreign companies may not be as scared of Ecuador and may be more prepared to increase their foreign investments in the entire region." President Mahuad's desire for a smaller, meaner, more efficient bureaucracy and armed forces, a more transparent government and the elimination of corruption, combined with more foreign investment should help Ecuador come out of its crisis in time for the new millennium. Alexander believes, "Ecuador has the potential to be better in the eyes of the Ecuadorians than it is today." |
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Table of Contents (1) President Mahuad announces new economic plan |
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Leslie Alexander, Ambassador to Ecuador from the United States, has seen a few Ecuadorian Presidents come and go during his almost three-year term in Quito. As Alexander prepares to leave the country, he is very positive on the outlook for Ecuador and for President Jamil Mahaud's new administration.