Ecuador to conduct 'sovereign' policies not to become an IMF colony - mini

[Judi Lynn]

AFX News Limited
Ecuador to conduct 'sovereign' policies not to become an IMF colony - minister
05.31.2005, 02:48 PM

QUITO (AFX) - Economy minister Rafael Correa said that the new Ecuadorian administration will conduct 'sovereign' economic policies to avoid becoming a colony of the IMF.

Correa announced yesterday that Ecuador is ending the surveillance programme with the IMF which was signed under the Gutierrez government, ousted in March after days of street protests.
(snip)

Correa dismissed fears that the IMF will refuse to provide funds to Ecuador due to his criticisms.

He said that rumours about the IMF shunning Ecuador are part of a 'psychological war'.
(snip/...)

http://www.forbes.com/markets/feeds/afx/2005/05/31/afx2066867.html

~~~~~~~~~~~~~~~~~~~~~~~~~~~

Argentina will not sign accord with IMF that would hinder growth - Lavagna
06.03.2005, 07:10 AM

BUENOS AIRES (AFX) - Economy Minister Roberto Lavagna said the Argentine government will not sign a new IMF agreement that would hinder economic growth.

Lavagna said in a speech that a new IMF deal would have to be 'compatible with growth, job creation and a reduction in poverty'.
(snip)

Argentina said late yesterday it had concluded the final operative phase of its the restructuring of its private debt in default.
(snip/)

http://www.forbes.com/markets/feeds/afx/2005/06/03/afx2074650.html

[HuckleB]

1. Are the leaders of Ecuador and Argentina actually doing their jobs?

And looking out for the citizens of those nations?

Perhaps. I certainly hope this trend continues.

[getmeouttahere]

2. That's right, HuckleB....

I too hope that this is the trend. They see right through the hypocricy coming out of BushCo.

www.handsoffvenezuela.org

[Chopin]

3. Whoops! Watch for some "unexpected" instability in Ecuador.

Can you say -> Coup <- ?

[Barkley]

4. What is the official currency in Ecuador?

I heard that they use dollars or have their currency tied to the dollar.

[mitchtv]

5. Sucres, I believe, the dollar is widely used

At least it was way back when.

[Robbien]

6. They were forced to change to the US dollar by the IMF

It really hurt the economy.

This new round of IMF "reforms" they are trying to force on countries is the one India just agreed to which is hurting India's industries, especially drug manufacturing. The IMF is also telling the US it must conform to these new "reforms" which means more privatization. BushCo is looking favorably on signing on to the "reforms".

The IMF is no longer just going after developing countries. They now want to impliment their reforms on every country.

[HuckleB]

7. I've got lots of problems with the IMF.

However, the IMF did not force Ecuador to adopt the dollar. Further, the adoption has not hurt the economy there. It has, if anything, actually helped overall.

[Robbien]

8. Not too sure about that

The IMF was mixed up in it along with the US and the elites. I researched and found:

After Ecuador’s currency, the sucre, lost 65% of its value in 1999, and a further 20% in the first week of 2000, President Mahuad declared a state of emergency, froze all bank accounts valued at over £100, said that he would introduce the dollar in favour of the sucre, and sacked his entire government. Protests against the replacement of the national currency resulted in a bloodless coup by a coalition of highland Indians and military officers. After the USA threatened to isolate the country, the vice-president, Gustavo Noboa, was sworn in as president, and pledged to stick to Mahuad’s plans to adopt the dollar. The Indian leaders condemned his action and called for protests to resume. However, in March 2000 the international response to a government bill regarding the adoption of the dollar was largely positive, with the International Monetary Fund (IMF) and other lenders offering US$2 billion, and the bill was passed. To make the transition possible, Noboa reduced government spending, provoking further unrest. The dollar was introduced in September, but followed by Ecuador’s worst-ever inflation rate (at 90%) caused in part by IMF-stimulated rises in the price of some basic items and by the local elite stripping domestic banks of assets.

http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0019726.html

[HuckleB]

9. That's a vast oversimplification, with some questionable numbers.

And quite clearly not an objective source of information.

No one is saying the switch was easy, but within a year of the switch, the economy was stabilizing and moving foward in ways that it had not been able to in years. To say that it was a bad thing for Ecuador's economy is simply not being honest.

[Robbien]

10. When a country's money is being controlled by another country's

fiscal policy, I do not see how that would be a good thing. Not having control over their own fiscal policies is the major complaint the EU countries have with the Euro.

And going by the fact that Ecuador keeps throwing out its leader every nine months or so, I do not believe they themselves feel the country is moving forward as you say.

[HuckleB]

11. What's with the exaggerations?

Ecuador has thrown out 3 leaders in nine years. Further, there are many complicated factors at play in that regard, and the fact that growth does not meet needs which have been unmet for decades is no small factor. However, at least there is actual growth occurring now, and that cannot be said of the situation prior to dollarization. Finally, the dollar has stabilized inflation in Ecuador and allowed the economy to begin to develop some consistency, allowing the population some sense of what's worth what and what they'll be paying to keep themselves fed, clothed, and sheltered. That's all positive at this point in time, IMHO.

[Robbien]

12. If it is an exaggeration, it is slight

They switched to the dollar in 2000 and since the switch no president has served out his term. Mahauad booted out in 2000, Noboa in 2003 and Gutierrez a month or two ago. Having four presidents in a little more than five years is slightly more than my statement of one every nine months or so, but not much.

Perhaps some sections of Ecuador are having it somewhat better now, but going by the protests in the street, many are not. If I were Bill Gates, Paris Hilton or Tom Delay, I would probably be of the belief that the US economy is great. It depends on one's perspective.

[HuckleB]

13. You're not being intellectually honest.

No one said that the change to the dollar solved all the problems for a country with great poverty and much difficulty. It has helped the situation overall. That doesn't mean that people aren't fighting to increase their rights, and it doesn't mean that they aren't going to stand for incompetent leadership overall, and for extreme dishonesty and nepotism, which is what led to the end of the last two Presidents more than anything.

You can't simply tie the dollarization to the coups and say that it's the fault of the dollar. And you certainly can't say, as you have, that the dollar has hurt the economy, which was clearly being far more hurt by staying with Sucre.

[Robbien]

14. You rudely declared me to be questionable, oversimplifying and not honest

In each post you do not just state your position, you hit out with a character attack. You do not discuss or debate, you smear.

I have tried to be polite in face of this rudeness, but am done now.

[HuckleB]

15. I did that once, actually.

And, I'm sorry, but the evidence piled up, so I called a spade a spade. It's funny, even when you get huffy, there's spin. I find that to be dishonest. And you'll excuse me if I find that to be incredibly rude. Perhaps you genuinely only understand part of the story. Still, you should know that and be able to hedge your comments accordingly. In the end, I was no more rude than you, that is, if I even met your level of rudeness.

Please get a mirror.

Thank you.