Open Dialogue MICs Conference 2013 Vienna May 8, Presentation by Ecuador

Challenges to Sustainable Development and International Cooperation in

Middle-Income Countries

The Role of Networks for Prosperity

National Development plan Plan for good living

Growth and Redistribution

• Generate wealth and achieve equality in the society at the same time.

• The economy has grown. Wealth has increased. It is an ethical responsibility to promote its distribution and redistribution.

Growth of GDP in 2011 (%)

• third largest economic growth in Latin America.•doubled the regional average.

Ratio of Income between the Rich and Poor

Tax Collection and Tributary Pressure

•tax collection has doubled•Now the ones who have more pay more.

Evolution of Oil Extraction• Recover of the state extraction of crude oil and the participation of the State in the oil income.•Due to the renegotiation of contracts, the State receives an additional US$ 46 million for each one-dollar increase in the barrel price.

Productive Transformation

• Ecuador is on the way to achieve productive transformation to ensure economic and environmental sustainability.

• The energy mix has started to change. Need to increase the importance of the industry in the economy.

• It is necessary to produce knowledge and to transfer technology to generate added value in the exportable offer; to develop the internal market and to encourage economic integration - all within the biophysical limits of nature.

• Tourism is a force of change.

Energy mix Productive structure• The productive mix has to bee modified.• The industrial share remained at 14 %.

Productive structure• The specialization pattern has not been modified.• The share of primary exports has maintained, on

average, at 76 %.

Optic Fiber Implementation and Internet Access

Gini Coefficient of Land at National Level• Land concentration is still high.• 5% of owners account for 52% of agricultural land.• 60% of small owners account for 6.4% of the land.

Protected Areas

Environmental Quality

• The percentage of urban households using toilet and sewage system rose from 71% to 78% between 2006 and 2010.

• The percentage of rural households with access to waste collection rose from 22% to 37%.

Increase in the Purchasing Capacity

Human Development Index• Out of 187 countries, Ecuador ranks 83.• Between 2007 and 2011, Ecuador rose 6 positions in the ranking of the HDI.

Drop of Poverty by Income (%)• In five years of government, the poverty dropped 9 percentage points.• About 650 thousand Ecuadorians were lifted out of poverty in 2011.

Drop of Poverty by Income (%)

• Between 2006 and 2010, the poverty of the Afro-Ecuadorian population fell by 15 percentage points.

• The poverty reduction among the indigenous population was of 5 percentage points.

Coverage Basic and Middle Education

The Great Challenge is to Improve theQuality of Education and Health

• Ecuador has taken steps to improve the quality of education: evaluation, training, merit-based competition and improvement in the labor conditions of teachers.

• Students assessment.• Quality infrastructure (e.g. millennium schools).• New Unified Bachillerato (school leaving examination).• In health, the challenge is to develop an evaluation

system that assesses the quality of the services.

Higher Education• Ecuador wants to offer higher education of excellence that promotes

the quality at all levels of the educational system and presents the development generator of the country.

• The investment in science an technology was doubled. • The universities were evaluated. • New Constitutional Law of Higher Education. • The new institutions of the system are working for the

transformation of higher education. • Nevertheless, it could advance more quickly.• The conditions are already given; Ecuador must accelerate the

process of change.

Net Registration Rate in Higher Education

• The new Constitution states that public higher education is free.• More young people are studying now at university.

Objectives• Ecuador is committed to overcome conditions of inequality and

exclusion, with an appropriate distribution of wealth, without any discrimination on grounds of gender, ethnicity, social level, religion, sexual orientation or place of origin.

• Ecuador wants to build a sustainable future shared with all Ecuadorians.

• Ecuador wants to achieve „el Buen Vivir“.

Dignified Work for all Men and Women

Roughly 40,000 people engaged in domestic service receive a fair wage and are affiliated to the Social Security Institute.

Ecuadorians have seen their quality of life improvethanks to a fair wage system

The purchasing power of Ecuadorian men and women has improved substantially. From 2006 to 2011, coverage of the basic food basket has increased by 22%.

Education to change the history of previously neglected groups

In the last four years, enrollment atthe country‘s universities by indigenous and Afro-Ecuadorian citizens has doubled.

Industry continues to grow

The industrial base is growing steadily through sales, which increased by 56% from 2006 to 2010.

A Record in Public Investment and Efficiency

• Investment increased by 132% over the three previous governments, indicating greater efficiency in execution.

• Red tape has been removed and new procedures have been set forth in the Code of Planning and Public Finance.

Support for Small and Medium-Scale Entrepreneurs for the Sustainable Growth of the Country

The Government of the Citizens‘ Revolution prioritizes small and medium-scale entrepreneurs. Public procurement is an instrument that invigorates the country‘s economy.

Better Quality of Life for Priority Attention Groups

Ecuador values local production that is culturally appropriate for the most vulnerable population groups. One point three million food rations were handed out in the 2007-2010 period.

Thank you for your attention!