Economic of Ecuador Essay

735 WordsApr 28, 20143 Pages
Consuelo Winn Mr. Sean Wilcox ENL 201 Writing June 16, 2013 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. However, with economic growth also increased environmental problems. 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

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