Background Notes: Ecuador
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Jun 30, 19916/30/91
Category: Country Data
Region: South America
Country: Ecuador
Subject: Military Affairs, Cultural Exchange, Travel,
History, Trade/Economics,
International Organizations, Environment
[TEXT]
Official Name: Republic of Ecuador
PROFILE
Geography
Area: 271,000 sq. km. (109,000 sq. mi.); about the size of Colorado.
Cities: Capital--Quito (pop. 1.5 million). Other cities--Guayaquil (2
million). Terrain: jungle, mountains to coastal plain. Climate:
varied.
People
Nationality: Noun and adjective--Ecuadorian(s). Population (1990):
11 million. Annual growth rate: 2.4%. Ethnic groups: Indian 25%,
mestizo (mixed Indian and Spanish) 65%, Caucasian and others 7%,
African 3%. Religion: predominantly Roman Catholic. Languages:
Spanish (official), Indian languages, especially Quichua. Education:
Years compulsory--ages 6-12. Attendance (through 6th grade)--
76% urban, 33% rural. Literacy--88%. Health: Infant mortality
rate--51/1,000. Life expectancy--66 yrs. Work force (3.4 million):
Agriculture--39%. Services --42%. Industry--11%. Other--8%.
Government
Type: Republic. Constitution: 1979. Independence: August 10,
1809.
Branches: Executive--president and 12 cabinet ministers.
Legislative--unicameral Congress. Judicial--Supreme Court,
provincial courts, and ordinary civil and penal judges.
Administrative subdivisions: 21 provinces.
Political parties: 15 legal political parties (1986) represent a wide
variety of views; none predominates. Suffrage: Obligatory for
literate citizens 18-65 yrs. of age; optional for other eligible
voters; active duty military personnel do not vote.
Central government budget (1990 est.): $1.4 billion.
Defense (1990): $154 million.
Economy
GDP (1990): $10.9 billion. Annual growth rate (1990): 1.5%. Per
capita income (1989 est.): $1,043. Inflation rate (1990): 50%.
Natural resources: petroleum, fish, shrimp, timber, gold, limestone.
Agriculture (17% of GDP): Products--bananas, seafood, coffee,
cacao, sugar, rice, corn, and livestock. Industry (16% of GDP):
Types--food processing, wood products, textiles, chemicals
(pharmaceuticals).
Trade: Exports (1990)--$2.4 billion: petroleum and petroleum
products, shrimp, bananas, coffee, cocoa. Major markets--US, Latin
American Integration Association (ALADI), EC. Imports (1990)--
$1.7 billion: agricultural and industrial machinery, industrial raw
materials, agricultural commodities, chemical products,
transportation and communication equipment, petroleum products.
Major suppliers--US, EC, Japan, ALADI.
Official exchange rate (March 1991): 1,000 sucres=US$1.
Fiscal year: calendar year.
US Assistance (FY90): Economic--$16.7 million; Military--$1.2
million; Law enforcement--$1.4 million.
Membership in International Organizations
UN and most of its specialized and related agencies, Organization of
American States, ALADI, Andean Pact, Organization of Petroleum
Exporting Countries, Latin American Energy Organization, Latin
American Economic System, Group of 77, Non-Aligned Movement,
Permanent Commission of the South Pacific (a regional organization
composed of Colombia, Chile, Ecuador, and Peru, which coordinates
fishing and conservation in the 200-mile maritime jurisdiction
claimed by the four countries).
PEOPLE
Ecuador's population is ethnically mixed. The largest ethnic
groups are Indian and mestizo (mixed Spanish and Indian). Africans,
Spanish and other Europeans, and some Asians form smaller groups.
Two kinds of internal migrations are occurring in Ecuador,
from the highlands to the coast and from the countryside to the
cities. Although Ecuadorians were concentrated in the mountainous
central highland region a few decades ago, the population today is
divided about equally between that area and the coastal lowlands.
The cities now contain about 55% of the population. The tropical
forest region to the east of the mountains remains sparsely
populated and contains only about 3% of the population.
HISTORY
Pre-Columbian Ecuador was inhabited by linguistically and
culturally diverse peoples. The dominant pre-Hispanic organization
was the Inca Empire, a pyramidally administered autocratic state
whose absolute ruler was believed to have descended from God. In
the 15th century, the Inca Empire spread into what is now Ecuador
from Peru. One emperor, Huayana Capac, established Quito as a
major administrative and military outpost. The Spanish explorer
Francisco Pizarro conquered the Incas in Peru in 1532, and other
Spaniards took advantage of Inca weakness and tribal resentment to
subdue Quito and surrounding areas in 1534.
After the War of Independence ended in 1822, Simon Bolivar
joined Ecuador with the Republic of Greater Colombia. In 1830,
Ecuador seceded and became a separate republic. The 19th century
was a period of political instability, and Ecuador's first 95 years as
a republic were marked by a succession of 40 presidents, dictators,
and juntas.
From 1925 to 1948, Ecuador had 22 presidents or chiefs of
state. Stability was re-established when Galo Plaza Lasso (later
Secretary General of the Organization of American States), became
president after free elections in 1948, and completed his
constitutional 4-year term. Jose Maria Velasco Ibarra (1952-56)
and Camilo Ponce (1956-60) repeated his accomplishment.
Velasco Ibarra was re-elected in 1960 but forced out of
office in 1961 after economic problems and political turbulence. He
was succeeded by Vice President Carlos Julio Arosemena. Less than
2 years later, the armed forces replaced Arosemena with a four-
member junta.
Almost 3 years of military rule ended in 1966 with the
appointment of an interim civilian president, Clemente Yerovi.
Yerovi supervised the election of a constituent assembly, which
named Dr. Otto Arosemena interim constitutional president. When
elections finally took place in 1968, Velasco was elected to a fifth
term. However, student riots and financial problems quickly
undermined his position. In 1970, with the support of the armed
forces, Velasco suspended the constitution, dissolved Congress, and
reorganized the Supreme Court. Despite these measures, in early
1972, the military deposed him for a fourth time.
After 4 years, Gen. Guillermo Rodriguez Lara was replaced by
other military officers. The new government, led by Adm. Alfredo
Poveda, paved the way for the resumption of civilian government in
1979.
Jaime Roldos, a protege of Guayaquil politician Assad
Bucaram, was inaugurated in 1979, beginning a new era of civilian
rule. His brief term was marked by sharp conflicts with the
Congress and with his former mentor, Bucaram. Roldos, a populist,
brought Christian Democrat Osvaldo Hurtado with him as vice
president. In May 1981, Roldos was killed in an airplane crash, and
Hurtado ascended to the presidency.
During his 3-year tenure, Hurtado pursued a course of
moderate change and economic development marked, at times, by
financial difficulties. Floods caused by a persistent weather
pattern known as "El Nino" did enormous damage to the country's
agriculture and roads and sparked social unrest.
Social Christian Leon Febres Cordero won the 1984
presidential elections by a narrow margin. Much of his tenure was
characterized by bitter wrangling between the executive and the
other branches of government, which were often dominated by the
opposition, led by Social Democrat Rodrigo Borja. Febres Cordero
implemented free-market economic policies, sought to diversify
Ecuador's exports, and pursued close ties to the United States. He
also took a strong stand against drug trafficking and terrorism. A
devastating earthquake in March 1987 set back development plans.
In August 1988, Rodrigo Borja became president after a
landslide victory the previous spring that gave his party
(Democratic Left-ID) almost an absolute majority in Congress. He
instituted a government characterized by respect for human rights
and economic restructuring. The government reached an accord with
the main terrorist group (AVC) under which it was to become law
abiding.
Despite initial success, efforts to control inflation failed to
bring it below 50%, and in mid-term congressional elections (June
1990), the ID lost more than half of its seats. Nevertheless, Borja
pledged to continue economic restructuring, tight credit control,
and efforts to attract foreign investment.
GOVERNMENT
The constitution provides for concurrent 4-year terms of
office for the president, the vice president, and the 12 congressmen
(of a total of 72) who are elected as "National" (at large)
legislators. The remaining 60 legislators, representing the
country's 21 provinces, serve for 2 years. No president can be re-
elected, and outgoing legislators must sit out a term before running
for Congress again.
Each year legislators elect from among themselves a
president and vice president of Congress. Congress begins its
annual 2-month regular session on Independence Day, August 10.
For the remainder of the year, unless an extraordinary plenary
session is called, all legislative business is transacted by the 20
members of the Congress who constitute its 4 permanent
committees.
Ecuador has a three-tiered court system. Congress appoints
justices of the Supreme Court for 4-year terms. The Supreme Court
names the members of the superior (provincial) courts, who in turn
choose ordinary civil and penal judges. The power of judicial
review rests with the Tribunal of Constitutional Guarantees (TGC),
a 15-member body representing executive, legislative, and judicial
branches, as well as the private sector. All TGC decisions must be
submitted to the Congress, which has ultimate authority to
interpret the constitution.
The executive branch includes 12 ministries and several
cabinet-level secretariats headed by presidential appointees. The
president also appoints Ecuador's 20 provincial governors (the
capital district of Pichincha Province has no governor), who
represent the central government at the local level.
POLITICAL CONDITIONS
Historically, Ecuador's political parties have been small, loose
organizations dependent more on populist, often charismatic,
leaders than on programs or ideology. Frequent internal splits
produced extreme factionalism.
To encourage the development of strong, stable political
parties, the constitution permits only candidates affiliated with
registered political parties to run for elective office. To be
certified, a party must file a petition signed by a number of
unaffiliated citizens equal to at least 1.5% of the number of valid
votes cast in the last national election. The party must then field
candidates in at least 10 of the country's provinces, including 2 of
the 3 most populous.
The 1990 congressional and local elections revealed that
political fragmentation continues to exist: 15 parties, including 2
communist parties, contested the election. Eleven political parties
are represented in the Congress. The opposition, made up of
independents, the center-right, and populist parties, remains
loosely organized, with former leaders of the Febres Cordero
administration among the chief spokesmen. The armed forces
include about 50,000 troops.
ECONOMY
Agriculture is the cornerstone of Ecuador's economy. The
coastal region produces most of Ecuador's export crops, such as
bananas and coffee, while the highlands grow most of the country's
food crops and is beginning to export flowers and vegetables.
Although only 15% of GPD, petroleum constitutes half of Ecuador's
exports and of government revenue. Therefore, international oil
prices have a major effect on overall economic performance. The
small industrial sector produces largely for a protected domestic
market.
Pursuing a policy of gradual economic reform, the Borja
administration achieved notable improvements in the economy in
1989. It tightened public sector spending and slowed monetary
growth, reducing inflation from 86% at the end of 1988 to 54% at
the end of 1989. It also improved the external accounts, raising net
international reserves from negative $176 million to a positive
$203 million. However, growth in 1989 was only 0.2%.
Progress stalled in the first half of 1990. Public spending
increased, monetary growth remained high, and inflation stabilized
at just under 50%. In response, the government cut spending for the
second half of the year by the equivalent of 11% of the original
budget. This, coupled with increased revenue from higher oil prices,
may reduce the deficit and moderate inflation.
Although the government has made structural reforms, much
remains to be done, including a reduction of direct government
control of the economy, movement toward free-market interest
rates, privatization of some companies, further liberalization of
trade, reform of labor laws, and promotion of domestic and foreign
private investment.
On foreign debt, the government has regularized its relations
with the multi-lateral banks and bilateral creditors. The IMF
approved a stand-by program for Ecuador in 1989 and renewed it in
1990, and the World Bank and IBD have resumed lending. In October
1989 the government rescheduled principal and interest due to
official bilateral creditors (the Paris Club). Ecuador began discussions
with commercial bank creditors in August 1989 but was
unable to reach agreement. The original round of talks stalled, but
discussions were resumed in November 1990. Beginning in June
1989 the government began paying about 30% of interest due. At the
end of 1989, total outstanding external debt was $11.3 billion.
FOREIGN RELATIONS
Ecuador traditionally has maintained good relations with East
and West and emphasizes multilateral approaches to international
problems.
One of Ecuador's basic foreign policy objectives is a revision
of the 1942 Rio Protocol of Peace, Friendship, and Boundaries,
which ended a short war between Peru and Ecuador. Ecuador holds
that the protocol awarded disputed territory to Peru. Geographical
features along a 78-kilometer (49 mi.) stretch of land that do not
match topographical descriptions in the protocol have, according to
Ecuador, made a complete boundary demarcation between the two
countries "inexecutable." Most Ecuadorians would welcome a
revision of the protocol (a move Peru opposes) to gain sovereign
access to the Maranon river, a main tributary of the Amazon.
This long-running border dispute has erupted into armed
conflict along the undemarcated section. The most recent and
serious episode occurred in 1981. Ecuador has requested that the
four guarantors of the Rio protocol (Argentina, Brazil, Chile, and the
United States) help end formal differences over the border. In his
inaugural address, Borja expressed interest in reaching a negotiated
solution, and relations between the two countries have warmed.
In addition to international financial institutions, Ecuador
looks primarily to the United States, Western Europe, and Japan for
assistance in addressing social and economic development. The
government has indicated it will seek to attract private foreign
investment and has begun to remove trade impediments. Ecuador is
not a member of GATT (General Agreement on Tariffs and Trade).
US-ECUADORIAN RELATIONS
The United States and Ecuador have close ties based on mutual
interests in maintaining democratic institutions, fighting narco-
trafficking, building trade, investment and finance, fostering
Ecuador's economic development, and participating in inter-
American organizations. The United States assists Ecuador's
economic development through its Agency for International
Development program in Ecuador and through multilateral
organizations such as the Inter-American Development Bank and the
World Bank. In addition, the US Peace Corps operates a sizable
program in Ecuador.
Both countries are signatories of the 1947 Rio treaty, the
Western Hemisphere's mutual security treaty. Ecuador shares US
concern over increasing narcotics trafficking and terrorism.
Ecuador has condemned terrorist actions, eliminated coca
production since the mid-1980s, and developed a vigorous program
of combating money laundering and narcotics trafficking.
Differences have arisen over the breadth of the territorial sea
claimed by a coastal state and its rights over highly migratory fish
traveling through its claimed territorial waters. Although the
United States claims jurisdiction for the management of coastal
fisheries up to 320 kilometers (200 mi.) from its coast, it excludes
highly migratory species such as tuna. Ecuador, on the other hand,
claims a 320-kilometer (200-mile) wide territorial sea and has
implemented that claim by imposing license fees and fines on
foreign fishing vessels, with no exceptions, made for the catch of
migratory species.
In the early 1970s, Ecuador seized about 100 foreign flag
boats, many of them American, and collected fees and fines of more
than $6 million. After a reduction in such seizures for some years,
several US tuna boats were detained and seized in 1980 and 1981.
The US Magnuson Fishery Conservation and Management Act then
triggered an automatic prohibition of US imports of tuna products
from Ecuador. The prohibition was lifted in 1983, but the
fundamental difference between Ecuadorian and US legislation
remains. Successive Ecuadorian governments have declared their
willingness to explore
solutions to this problem with mutual respect for long-standing
positions and principles held on both sides. No current conflict
exists.
Principal Government Officials
President--Rodrigo BORJA Cevallos
Vice President--Luis PARODI Valverde
Foreign Minister-- Diego CORDOVEZ Zegers
Ambassador to the United States-- Jaime MONCAYO Garcia
Ambassador to the OAS--Miguel Antonio Vasco
Ambassador to the United Nations--Jose AYALA
Ecuador maintains an embassy in the United States at 2535
15th Street, NW, Washington, DC 20009 (tel. 202-234-7200) and
consulates in Chicago, Dallas, Houston, Los Angeles, Miami, New
Orleans, New York, and San Francisco.
Principal US Officials
Ambassador--Paul C. Lambert
Deputy Chief of Mission--James F. Mack
Consul General, Guayaquil--Gwendolyn Clair
The US Embassy in Ecuador is located at Avenida 12 de
Octubre y Avenida Patria. Phone: (593)(2) 562-890. The Consulate
General is at 9 de Octubre and Garcia Moreno, Guayaquil (tel.
(593)(4) 323-570).
TRAVEL NOTES
Clothing and climate: Temperatures vary with altitude, not
season. Spring-and fall-weight clothing is useful all year in the
Sierra, while summer-weight clothes are necessary in the Costa
and Oriente. Rainwear is necessary during the rainy season in Quito
and Guayaquil (roughly November-March).
Immigration and customs: A valid Ecuadorian visa is required
to enter the country; however, visas can be obtained from
immigration authorities upon arrival in Ecuador. Tourist visas are
valid for up to 90 days per calendar year. Those wishing to study or
work in Ecuador should request visas from the nearest Ecuadorian
Consulate or the Ecuadorian Embassy in Washington, DC.
Health: Inoculations against typhoid, polio, tetanus, and
hepatitis are recommended throughout the country. In addition,
malaria suppressant and yellow fever inoculation are recommended
in the lowlands. Travelers must take precautions against
contaminated food and water. Tapwater is not potable in all areas.
The high altitude of the Sierra may cause problems, especially for
older people and those with heart problems.
Telecommunications: Domestic telephone, telegraph and FAX
services are available between major cities in Ecuador. Long-
distance telephone service, cables, and telex are available. Ecuador
is in the eastern standard time zone but does not observe daylight
savings.
Transportation: Flights are available from the United States.
Domestic airlines serve most large-and medium-sized cities in
Ecuador. Intercity railroad passenger service is limited, but intercity
buses are frequent. In the major cities, buses and taxis are
plentiful and reasonably priced.(###)
Published by the United States Department of State, Bureau of
Public Affairs, Office of Public Communication, Washington, DC ,
November 1990. Series Editor: Peter Knecht. Department of State
Publication 7747. Background Notes Series -- This material is in
the public domain and may be reprinted without permission;
citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office,
Washington, DC 20402. (###)