LSE Global South Unit
WORKING PAPER SERIES
Strategies and Counter-strategies:
China in the Andean Region of South America.
By Ádam Chimienti and Benjamin Creutzfeldt.
ABSTRACT
.
lse.ac.uk/ By employing a comparative method that analyzes China’s increasing presence in
di erent Latin America countries, this study explores key features and implications of
Beijing’s approach towards this region. Colombia, Ecuador and Peru are used as case
studies to evaluate China’s diplomatic rhetoric and the degree to which trade and
investment realities live up to the goals proclaimed. Each of the countries examined
seeks a more balanced relationship with external actors and recognizes China’s
increased presence in the domestic political economy. Beijing seeks to distinguish itself
as a soft power and “South-South” partner, and yet its ability to maintain this stance is
complicated by the inevitable asymmetry that a rising China implies. e paper argues
that China’s economic involvement in terms of trade, aid, loans and investment is
indisputably important, but just one opportunity amongst many for these countries to
achieve the political and economic goals that they have set for themselves.
JEL Classi cation: F23, F63, 012, 019, 054, Q33, Q56.
Keywords: China relations with South America, neoliberal economics, win-win,
South-South cooperation, Washington Consensus, FDI.
I
NTRODUCTION
.
We employ a comparative case study method to analyze some of the implications of
China’s increasing presence in Latin America (LAC). Our departure point is “ e
China Policy Paper on Latin America” (China, 2008), which emphasized win-win
rhetoric to characterize the rapidly growing political and economic ties between China
and Latin America in the 2000s. e content of the Policy Paper, along with policies,
principles and pledges laid out over the past decade by Chinese ocials concerning the
China-Latin America relationship, is examined against the unfolding outcomes of
China’s growing involvement in three Andean countries in the South American region:
Ecuador, Colombia and Peru.
1
rough these case studies we shall also address three
speci c themes: the extent to which growing ties with China seem to be transforming
the development strategy of each country, whether a stronger relationship with China
has a orded the receiving countries greater exibility and pragmatism in the design
and execution of economic policy, and the e ect that the longstanding relationships of
each country with the United States are seeing upon the deepening Chinese presence. Read Article
telesurtv.net reported Mauricio Rodas has admitted to knowing Ignacio Muñoz, who is accused of money laundering for one of the world’s major drug cartels, but he says they were working together on a project to build nurseries for children. Quito’s Mayor Mauricio Rodas has admitted to knowing the Mexican businessman Ignacio Muñoz, accused of money […]
Walter Spurrier Baquerizo/eluniverso.com – opinion Hard times are coming In its July report on Ecuador, the Monetary Fund, after dialogue with the authorities Ecuadorian and those who follow the national economy (everything in Washington or by Skype; not allowed that a mission came to the country), observes in what remains of the 2014 and 2015 […]
confidencialcolomia.com reported according to the newspaper La Prensa that country reported Colombia is the main source of funds coming from abroad to banking center and the Colombian authorities want access to account information of its citizens, information that Panama is protected by law. A Panamanian banker explained that most of the funds coming from the […]
fortmilltimes.com reported Fitch Ratings has affirmed Ecuador’s long-term foreign currency Issuer Default Rating (IDR) at ‘B’. The issue ratings on Ecuador’s senior unsecured foreign bonds are also affirmed at ‘B’. The Rating Outlook on the long-term IDR is Stable. The Country Ceiling is affirmed at ‘B’ and the short-term foreign currency IDR at ‘B’. KEY […]
Fulano.info reported…PLAYAS DE ROSARITO – The perception of crime and the difficult economy in Rosarito are the main worries among the Americans who live in this municipality, which are estimated to be some 14,000 Americans. When they saw the Tourism and Foreign Resident Assistance Protocol, American citizens who live n Rosarito said that, regrettably, many […]
(Prensa Latina) In the first eight months in 2014, Ecuador reported investments valued at $966 million USD, which represents 151.2 millions more compared to the same period in 2013, according to reports. According to figures released by the Superintendent of Companies and Securities, out of the total investments, $612.2 million USD were invested by domestic […]
businessinsurance.com/elcomercio.com reported According to elcomercio.com, revenues for disaster insurance in Ecuador fell seven percent to 61 million collars in the first half of 2014. Disaster insurance typically covers damages and losses to catastrophes such as earthquakes, floods, and explosions. One expert reported that despite rules and regulations that mandate such coverage, there is little uptick […]
Theguardian.com reported Breast implants shortage hits plastic surgery clinics in Venezuela Brand-name implants almost impossible to obtain, say surgeons as currency controls affect imports In Venezuela, cosmetic procedures are often regarded as a normal, even necessary rite of passage for young women. But the currency crisis, which has already caused chronic shortages of staple foods, […]
bloomberg.com reported Mexican consumer prices rose more than expected in the first half of September, keeping the annual inflation rate above the upper limit of the central bank’s target range. Prices increased 0.32 percent from two weeks earlier, the national statistics institute said on its website today, compared with the 0.25 percent median forecast of […]
MEASUREMENT AND CHARACTERIZATION OF THE MIDDLE CLASS IN LATIN AMERICA 1 Maria F. Cortés Public Policy Consultant Econometría Consultores Nancy A. Daza Researcher at Directorate of Economic Studies National Planning Department of Colombia Abstract The present research aims to compare and improve the measurement and, therefore, the definition of what “middle class” represents, for a […]
ftseglobalmarkets.com reported after a steady rise during the past decade, Latin America’s middle class growth is moderating and ratings agency Moody’s believes the slowdown in middle class growth will likely have a broad economic impact as well affecting particular industries. Moody’s new report, entitled, “Latin America’s Middle Class Growth Slows, Tempering Prospects for Retailers, Banks […]
mynextfone.co.uk reported….Ecuador’s Dollarization Architect Doubts Correa’s Pledge. Ecuador President Rafael Correa, a critic of his nation’s use of the U.S. dollar as its official currency, is now creating a government-backed digital tender. One of the intellectual architects of the nation’s switch to the greenback 14 years ago sees a red flag. With the country facing […]
Eluniverso.com reported Ecuador is on the road of becoming the first country in the world to create an electronic coin that will be issued and distributed by the Central Bank and who will be using the cellular network; definitely a bold move that analysts suspect that it may create the conditions for a possible devaluation […]
elpais.comreported “We are going to pay the amount due in the next few weeks. We have the fortitude and capacity to continue to fully meet our international obligations this year,” President Nicolás Maduro said during a meeting with his economic team in Caracas last week. Although the statement was applauded, there are reasons to question […]
buenosairesherald.com reported the end of this year brings a crucial coincidence: the economies of most South American countries are experiencing difficulties unknown in the last decade and, at the same time, several of its progressive governments face challenging elections which, also for the first time, could put an end to a historic left-wing political era […]
AXISOFLOGIC.COM REPORTED you wrote about the examples of Ecuador and other countries, which after the collapse of oil prices in the late ’80s found themselves with huge debts and this, of course, led to massive austerity measures . . . sounds all very similar to what we are now seeing in Greece. How did the […]
theguardian.com reported Venezuela’s oldest newspaper will stop publishing next week because it cannot find printing paper, the latest victim of a shifting media landscape triggered by shortages. “As of Monday the 15th, and for a time we anxiously hope will be as short as possible, the mouthpiece of the people of Lara state will cease […]
An Explanation of Ecuador’s Digital Currency THEGUARDIAN.COM/Rachel Banning-Lover / REPORTED 40% of Ecuadorian adults don’t have a bank account, but is their new ‘currency’ more about escaping the US dollar? How will Ecuador’s new ‘digital currency’ work? Under a new monetary code, the Ecuadorian government in August released more information about plans for what they […]
World Editor Rob Cox of Reuters THINKING OF MOVING TO ECUADOR? ALREADY LIVE IN ECUADOR? READ THIS BOOK FOR DEEPER CULTURAL KNOWLEDGE One of Latin America s most successful left wing politicians may have to changes economic chain. Pretty soon he s done a pretty good job as. Ecuadorian President Rafael Correa all of investing […]
BBC.COM reported…Venezuela’s annual inflation rate has risen to 63.4%, the highest in Latin America, according to official figures published on Tuesday. The figures are the first released by the central bank since May, which has led critics to accuse the government of withholding data for political reasons. The poor state of the economy, among other […]
uk.reuters.com reported Ecuador’s economy will grow between 4.0 percent and 4.5 percent next year, while inflation should be less than 3 percent, Finance Minister Fausto Herrera said on Tuesday. The oil-dependent nation, OPEC’s smallest member, is also facing a budget deficit of 4.0 to 5.0 percent of gross domestic product in 2015, Herrera said in […]
nytimes.com reported private equity and venture capital investments in Latin America dropped by 10 percent in the first half of this year compared with figures in the period a year earlier, the Latin American Private Equity and Venture Capital Association said on Thursday. Investments totaled $2.6 billion, compared with $2.9 billion during the first half […]
ticotimes.net reported Costa Rica was among the top three most “competitive” economies in Latin America last year, according to the World Economic Forum’s Global Competitiveness Report 2014-2015, released on Wednesday. Costa Rica, ranked 51st worldwide, came in behind Panama (48) and Chile (33). Costa Rica has enjoyed a steady rise on the index during the […]
aljazeera.com Opinion …….(Gregory Weeks) The assertion that the United States is “losing” Latin America is a persistent and bipartisan obsession. In an era of intense domestic polarisation, analysts – especially in the United States but elsewhere as well – of all different political stripes seem to find agreement. This line of reasoning gathered steam in […]
elcomercio.com reported in August the cost of the Basic food basket was USD 638,06, representing a deficit of USD 3.39 between the income and the cost of the basket. Ecuador registered a monthly inflation of 0.21% in August 2014 compared with 0.17% of the same month in 2013, according to the National Institute of statistics […]
China expanding its investments in Argentina’s South Atlantic fisheries mercopress.com reported China is interested in investing in Argentine port infrastructure and in setting up companies with access to the South Atlantic fisheries, according to reports from Shanghai where an Argentine top level delegation is currently negotiating in the framework of the China-Argentina cooperation agreement. Read […]
Argentina milks more US dollars from commercial banks mercopress.com reported Argentina’s central bank said on Wednesday it had reduced the amount of dollars commercial banks could hold, a move that should push more greenbacks into the spot market and may give a mild boost to flagging reserves and the local Peso. The new central bank […]
A letter from Ecuador’s Ambassador to the U.S., Nathalie Cely published in the Wall Street Journal Ecuador’s Electronic Cash Is Strong The reality is that our economy is prospering, our society is stable and investors are returning. In her latest article about Ecuador (“Ecuador’s Phony Bitcoin Ploy,” Americas, Aug. 25), Mary Anastasia O’Grady once again […]
publimetro.com reported the price of the products of the basic basket reported increases of 100 and up to 157% between the main cities of the country, especially in fruit and vegetables. The Federal consumer Attorney (Profeco) said that, in the week of 25 to 29 August, the price of the Hass Avocado recorded cost 25 […]
freebeacon.com reported an anti-Internet piracy firm with ties to the government of Ecuador, and its president Rafael Correa, on Friday filed a copyright complaint against a news organization that days earlier exposed potential corruption by the South American nation’s ambassador to the United States. The company, arcelona-based Ares Rights, demanded that a website hosting service […]
bbc.com reported Cuba is bringing in new rules limiting personal imports of foreign goods into the country, where locally-made items are scarce and expensive. Some $2bn (£1.2bn) in goods have been flown into Cuba in travellers’ baggage each year since air travel restrictions were lifted in 2009. Many ordinary Cubans say the new rules will […]
telesurtv.net reported the findings from the International Monetary Fund’s Article IV assessment contradicts local Ecuadoran media reports. Ecuadoran President Rafael Correa issued a statement in his weekly public address clarifying erroneous claims that had been made by local media earlier this week, stating that the International Monetary Fund had declared that Ecuador was nearing dangerous […]
BBC.COM reported the Ecuadorean government has released more details of its plans to create what it calls the world’s first digital currency issued by a central bank. Central bank officials say the electronic money, as yet unnamed, will start circulating in December. The new money will be used alongside the existing currency in Ecuador, the […]
businessweek.com/bloomberg reported Ecuadorean President Rafael Correa sent parts of a finance bill back to congress to clarify rules governing a fund that was set up as a lender-of-last-resort for local banks and held $1.64 billion at the end of last year. Correa, a 51-year-old former economics professor, asked lawmakers to spell out changes to the […]
Daniel Lansberg-Rodriguez/ft.com Latin America swaps its populists for apparatchiks By Daniel Lansberg-Rodriguez Beijing’s readiness to invest facilitates regimes to ape China, writes Daniel Lansberg-Rodriguez Latin America, long neglected by Europe and taken for granted by the US, has found a suitor in China. Resource hungry, highly risk tolerant and non-judgmental about matters of social and […]
Chile’s economy cooling faster than expected: weakest pace since 2009 mercopress.com reported Chile’s GDP grew at its weakest pace since 2009 in the second quarter as investment waned and a previously rapid expansion in consumer spending slowed, central bank data showed. The economy grew 1.9% in the second quarter compared with a year ago, or […]
portafolio.co reported the capital of the Republic is surpassed by São Paulo, Rio de Janeiro, Santiago de Chile and Buenos Aires, according to the Ranking of cost of living each year performs the consulting firm Mercer. Africa and Europe are continents more expensive for expatriates by the fluctuations of their currencies and the impact of […]
HOSPITALS ARE VIRTUALLY CLOSED portafolio.co reported for the President of the Venezuelan medical Federation, Douglas León Natera, Venezuelan hospitals are “virtually closed”. In its estimates, 98 percent of them does not operate. “If you see open is because the team strives to fulfill the work under your own risk,” said. It has, for example, that […]
eluniverso.com reported Ecuador fell 4.5% to 4% its expectation of growth in 2014, due to delays in external financing and that it expects an increase in the import of petroleum products, President Rafael Correa said Saturday. “We believe that we are going to have to reduce our expectations of growth (…) The ECLAC said that […]
elmercurio.com reported Ecuadorian President Rafael Correa affirmed that dollarization adopted by his country in 2000, “remains” and stepped out of versions of certain analysts have warned of an alleged output of that system the entry into force of a new Monetary Code. This legal instrument “what endangers dollarization?” Correa asked during a television interview in […]
Argentina: US dollar reaches a new record of 13.15 Pesos in Buenos Aires ‘blue’ market mercopress.com reported the US dollars climbed to a record 13.15 Pesos on the black or ‘blue’ market on Wednesday trading as fears mount regarding the outcome of the holdout bonds conflict with the New York court. The official dollar rate […]
prensa latina reported the Venezuelan Prosecutor”s Office this week issued a list of 116 companies under investigation for alleged inappropriate use of hard currencies, official sources said on Saturday. According to the Prosecutor’s Office, the list of companies was sent to the National Foreign Trade Center (CENCOEX), the institution that is verifying the use of […]
tasnimnews.com reported Iranian first vice-president expressed Tehran’s enthusiasm for the enhancement of bilateral relations with Ecuador in all fields. In a Sunday message to his Ecuadorian counterpart Jorge Glas, Eshaq Jahangiri congratulated the Latin American nation and government on the country’s Independence Day. “I hope we will witness a further enhancement of ties between the […]
lainformacion.com reported the deficit of the United States in its trade of goods with the countries of Latin America and the Caribbean increased by 37.9% between May and June, going from 1.172 million from $ 1.617 billion, the Commerce Department reported today. The deficit with the Latin American and Caribbean region represented in March a […]
lainformacion.com reported almost 14% of employed population receive a wage lower than the minimum wage Nearly half of its 118 million people living in poverty . In contrast, the minimum wage of Costa Rica triples (3.18 times) the income equivalent to the poverty line. Mexico, the second Latin America economic power after Brazil, is “the […]
The United Nations’ Economic Commission for Latin America and the Caribbean estimates that the region’s economy will expand 2.2% this year, a sharp reduction from a previous forecast of 2.7%. The projection is based on weaker external demand, less dynamic domestic demand, lagging investments, and limited room for putting in place policies to boost growth, […]
From Wikikepdia.org… The 1998–99 Ecuador banking crisis resulted in about 70% of the country’s financial institutions closing. In 1999, economic activity decreased by 7–8% and the currency depreciated by 195%.[clarification needed][1] Per-capita income in US dollar terms plummeted by 32% during the year.[1] Unemployment increased from 9% to 17% and underemployment increased from 49% to […]
cryptocoinsnews.com/ Venzen Khaosan wrote … besides representing a next-logical-step in the evolution of currency, Ecuador’s decision to adopt cryptocurrency must be driven, in part, by the many practical benefits of doing so. Reducing dependency on outmoded, cumbersome payment systems as well as reducing Dollar dependency are self-evident motivations. Consider, too, that Ecuador’s central government has […]
The Committee on the Regional Study of El Niño Phenomenon (ERFEN), which gathers different specialized organizations, concluded that local oceanic-atmospheric conditions tend to normalcy, which means low probabilities of this weather event to happen. “Different studies have been made by international organisms that analyze the condition of El Niño Phenomenon, and they have reached to […]
elpais.com reported oil has propped up Ecuador’s economy since the 1970s. For every $100 earned in exports, $60 come from oil sales. During Rafael Correa’s seven years as president, the price of oil has been between $80 and $100 a barrel. Still, the country has had to take on loans in order to fund public […]
gmanetwork.com reported a US judge has blocked payments on the restructured debt as long as Argentina refuses to pay the holdouts, which it brands “vultures”. But, with no visible progress in talks with the holdouts, President Cristina Kirchner’s chief of staff, Jorge Capitanich, said the country could fail to make a $539-million payment on the […]
Phase V of Ecuador’s Arturo Salazar Orrego hydroelectric power plant (Saymirin) is nearly ready to begin commercial operations. The 7.52-megawatt (MW) project will be connected to the national grid within 60 days, officials with project owner Generadora del Austro S.A. (Elecaustro) (Cuenca, Ecuador) told Industrial Info. Read Article
ibtimes.co.uk reported Ecuador has banned digital currencies including bitcoin, but is looking to create a state-run digital currency, taking cues from modern cryptocurrency technology. An amendment to the country’s existing monetary and financial laws approved by the National Assembly of Ecuador bans all decentralised digital currencies. The amendment was approved by 91 members, and President […]
telesurtv.net reported A United Nations Development Program report reveals that Ecuador has reduced poverty by half since 2003.In working to to meet its Millennium Development Goals, Ecuador has seen a 50 percent reduction in poverty since 2003. In its report released on Thursday, the United Nations Development Program (UNDP) has shown that Ecuador is one […]
coindesk.com reported the National Assembly of Ecuador has effectively banned bitcoin and decentralized digital currencies while establishing guidelines for the creation of a new, state-run currency. With 91 votes in favor of the amendments to the country’s existing monetary and financial laws, the National Assembly approved a bill that now goes to President Rafael Correa […]
Bloomberg.com reported Ecuador, who uses the U.S. dollar as its official currency may create its own parallel currency. This currency would be used for local transactions. Apparently the government is having difficulty in making its spending commitments according to the article. Congress has until the end of today to vote on President Rafael Correa’s banking […]
Elpais.com reported 0il has underpinned the economy of Ecuador since the 1970s. Of every 100 dollars entering the country export 60 correspond to this hydrocarbon. In the seven years leading Rafael Correa as head of State, barrel has quoted between 80 and nearly 100 dollars, surpassing expectations. Even so, the country has had to borrow […]
voanews.com reported Ecuador sealed a free-trade deal with the European Union on Thursday, giving the Andean nation greater access to the EU’s 500 million consumers and offering the EU’s fragile economy another market for its cars, whiskey and luxury goods. Ecuador joins Colombia, Chile, Mexico and Peru in the group of Latin American economies that […]
csmonitor.com reported many Latin American nations have commodities China seeks in bulk like soy and copper. Yet slowing economic growth means few want to leverage against China, which is a major lender and buyer. South American nations have a lot of issues to raise with China: questionable labor and environmental practices of Chinese firms in […]
blogs.wsj.com reported Ecuador posted a trade surplus of $483 million for the January-May period from a deficit of $626 million one year before as exports grew 9% and imports fell 2%, the country’s central bank said on Monday. Exports rose to $11.10 billion during the first five months of 2014, while imports fell to $10.61 […]
Panama’s new president Juan Carlos Varela’s key challenges include dealing with slower economic growth, rising inflation and the goal of reducing poverty. BY LATIN AMERICA ADVISOR Inter-American Dialogue What are the major economic challenges confronting Panama’s new president Juan Carlos Varela? What do his cabinet choices so far say about his plans? Will he be […]
The following information was provided by an expatriate female residing in Quito Ecuador. On July 2, 2014, in the area of Las Granja neighborhood, a female expat was accosted at gunpoint by a man driving what appeared to be a fake taxi. (The Expat requested that she not be identified for this report.) 1. Incident […]
blogs.reuters.com reported….Analysts at risk consultancy Eurasia Group warn investors not to be misled by Ecuador’s recent conciliatory moves, which it says are motivated by necessity rather than any ideology shift. The government has a $4.9 billion deficit this year, and public spending is over 40 percent of GDP. They write:”Though Correa is currently on a […]
laht.com reported Standard & Poor’s Ratings Services lowered its global scale foreign currency ratings on Banco Hipotecario S.A., Banco Patagonia S.A., Banco de Galicia y Buenos Aires S.A., and Banco de la Provincia de Buenos Aires S.A. to ‘CCC-’ from ‘CCC+’. The outlook on these ratings is negative and reflects the outlook on the sovereign. […]
bvibeacon.com reported the amount of money being sent home to Latin America and the Caribbean from migrants outside the region stayed about the same in 2013 compared to 2012, a recent study has found. While the remittance flows are still below their 2008 highs, further growth is expected in 2014, according to the Inter-American Development […]
capital.gr reported the Republic of Ecuador is targeting a 10-year maturity and an 8% coupon for its planned U.S. dollar-denominated bond, an investor said Friday. The country, whose debt is rated Caa1 by Moody’s Investors Service Inc. and B by both Standard & Poor’s Corp. and Fitch Ratings, hosted a series of roadshows in London, […]
NPR.org reported Venezuelans in need of U.S. dollars are restricted by government controls in the amount they can purchase legally. So many head across the border to Colombia. Hundreds of money-changers are at work in the border town of Cucuta, which also sets the exchange rate for the black market in Venezuela. Read Article
reuters.com reported that the Republic of Ecuador will begin meetings with fixed-income investors this week ahead of a potential US dollar-denominated bond offering, according to market sources. The sovereign, rated Caa1/B/B, has mandated Citigroup (global coordinator) and Credit Suisse to arrange the meetings, which will take place in London on June 10, Boston on June […]
bloomberg.com/Nathan Gill reported Ecuador agreed to transfer more than half its gold reserves to Goldman Sachs Group Inc. for three years as the government seeks to bolster liquidity. The central bank said it will send 466,000 ounces of gold to Goldman Sachs, worth about $580 million at current prices, and get the same amount back […]
bloomberg.com reported the end of a decade-long boom driven by cheap money and strong commodity prices has deeply divided Latin America between fast-growth countries along the Pacific coast and stragglers on the Atlantic. Venezuela, Brazil and Argentina, which make up 98 percent of the combined economies of the Mercosur trade bloc, will grow an average […]
Ecuador, the small South American country is the only Andean Community Nation (CAN) that has yet to sign a trade pact with Korea. Other CAN members are Colombia, Chile and Peru. Worries already have become a reality as the Ecuadorian producers of 15 commodity goods were hit hard after Korea’s FTA with Chile and Peru […]
reuters.com reported Ecuador’s announcement that it plans to return to global financial markets following a 2008 default has been met with strong interest by sovereign bond investors, the South American nation’s ambassador to the United States said on Thursday. “There is great appetite and strong demand … to buy Ecuadorean debt, there’s a lot of […]
mercopress.com reported the Argentine currency ended trading on Friday, the first month of 2014, at 8.01 Pesos to the US dollar with an accumulated devaluation in January of 18.63%, the greatest loss in a single month since 2002. However market analysts described the situation as a depreciation ‘sustained and managed’ by the government of President […]
Vistazo.com reported the inflation rate ending April 2014 posted a rate of inflation at 0.30 percent. Annual inflation is currently stated at 3.23% reported by the Institute of statistics and census. The Institute explained that the inflation was primarily due to price increases in food and non-alcoholic beverages followed by education costs. Esmeraldas Province had […]
bbc.com reported that Ecuador has rejected a petition for a referendum on whether the Yasuni National Park in the Amazon should be opened to further oil exploration. The National Electoral Council said not enough signatures were collected to force a referendum. Activists from the group Yasunidos, who had gathered the signatures, accused the council of […]
imf.org repored…Economic activity in Latin America and the Caribbean is expected to stay in low gear in 2014, according to the IMF’s latest forecast for the region. The recovery in the United States and other advanced economies is expected to bolster export growth, but lower world commodity prices and rising global funding costs are likely […]
Elcomercio.com reported that trafficking in stolen artifacts from Ecuador has shown an increase in 2014. The Ecuadorian National Institute of Cultural Patrimony revealed that so far in 2014, there have been 17 reports of stolen historical items. Most of the thefts have occurred from convents, churches, and museums. MAJOR MARKETS FOR STOLEN ITEMS OF HISTORICAL […]
THE REALNEWS.COM REPORTED: BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKC: Thank you. DESVARIEUX: So, Bill, I know that you recently returned from Ecuador. Can you just paint a picture for us of what the economic situation is like there down in Quito? BLACK: Yeah, I just got back on the red-eye about two hours […]
elpais.com reported that…According to the Economic Commission for Latin America and the Caribbean (ECLAC), with respect to the distribution of income, high inequality continues to be characterised to the Latin American region. In Honduras, a country with 70% of poor, the poorest quintile (20% of households with lower income) picks up on average less than […]
Pass-through in dollarized countries: should Ecuador abandon the US dollar? María Lorena Marí Del Cristo and Marta Gómez-Puig Economic Theory Department, University of Barcelona, Barcelona 08034, Spain In this article, we examine the convenience of dollarization for Ecuador today. As Ecuador is strongly integrated financially and commercially with the United States, the exchange ratE pass-through […]
bbc.co.uk reported that Argentina said citizens can buy up to $2,000 (£1,210) per month if their monthly salary is over 7,200 pesos ($900), after a two-year ban on buying dollars. But large businesses and investors will not be able to make the purchases. Last week, Argentina said it would ease restrictions after the peso fell […]
Reuters.com reported… Ecuador hopes to lower its trade deficit this year through new quality controls for imported products and support for domestic industry to produce such goods at home, a government official said on Tuesday. OPEC’s smallest member has over the last five years seen its trade deficit grow steadily as a result of shrinking […]
WSJ.com reported that Ecuador’s foreign debt in October totaled $18.33 billion, up 16% from a year before, the central bank said. The amount is equivalent to about 20% of Ecuador’s $90 billion gross domestic product forecast for 2013. According to current law, the country’s debt-to-GDP limit is 40%. Read Article Want to know more about […]
ELTIEMPO.COM.EC reported that the increase is $22, recalling that in 2013 the basic remuneration is $ 318. The Government had to set the rate, once the workers and the employers failed to reach an agreement. Employers proposed a rise of 17 dollars over the current SBU, while employees raised an increase of 30 dollars. To […]
Venezuela has delayed publishing its closely watched monthly inflation data, sparking opposition accusations that the figures might be manipulated to suit President Nicolas Maduro’s “economic offensive” to bring prices down. The Central Bank is supposed to publish the latest consumer price index within the first 10 days of the month. But no information on November […]
Reuters.com reported Ecuador’s economy will grow around 4 percent this year while inflation will remain below 3 percent, President Rafael Correa said on Thursday, adding GDP in 2014 will likely expand 5 percent. “The year 2013 has been a good one for the economy,” Correa told reporters in the port city of Guayaquil. The year’s […]
TELEGRAFO.COM.EC REPORTED The report ‘Social view’ of the Economic Commission for Latin America and the Caribbean (ECLAC) shows that poverty in Latin America ‘slightly’ decreased by 0.3 percentage points in 2013 compared to last year. Currently there are 164 million inhabitants with limited resources, similar to 2012 figure. In Ecuador, according to the ECLAC, the […]
laht.com …. December 2 marked the 10th anniversary of that Monday back in 2002 when Venezuela kicked off the so-called National Civic Stoppage, whose protagonists were all the nationals committed to the democratic system and citizen freedoms established by the National Constitution. Back then, millions of Venezuelans expressed in a radical manner their discontent about […]
wsj.reported that in October, Deloitte interviewed 132 high-level business executives at top companies employing a total of more than 50,000 people. About 60% of those surveyed for the “Barometer of Companies” survey said sales at their companies should grow next year, while only 11.5% see a reduction and 28.5% predict no change. Read Article AN […]
DOINGBUSINESS.ORG REPORTED…. This page summarizes Doing Business 2014 data for Ecuador. The first table lists the overall “Ease of Doing Business” rank (out of 189 economies) and the rankings by each topic. It also lists the economy’s distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and […]
ibtimes.com reported Chile is the best country in Latin America to do business. The South American powerhouse was the highest-scoring country of the region, clocking in at 34 out of 189 nations surveyed. The second-largest economy in the region, Mexico, was rated number 53, two positions lower than last year. Mexico was praised for its […]
kpbs.org reported….The United States is the largest source of remittances to Latin America. The recession greatly slowed money being sent to home countries by migrants. But the Pew Hispanic Trends Project has found that rates in most Latin American countries have bounced back, except in Mexico. Thinking of moving or living in Ecuador? Read this […]
The National wages Council today held a meeting to define the unified Basic salary increase. This meeting presented a series of data such as inflation, productivity, etc., such as a diagnosis of the situation in the country. The collegiate body, which meets at the Ministry of Labor Affairs, is composed of a representative of the […]
Agence France-Presse reported that Ecuador’s possible scrapping of a bilateral investment treaty with the United States could lead to loss of American investment in the country, Washington’s envoy warned Monday. “If the bilateral investment treaty is canceled that would obviously have a negative effect because US companies would be afraid to invest,” Ambassador Adam Namm […]
reuters.com reported that Argentina has made “positive progress” in reforming the quality of its economic data, the head of the International Monetary Fund said on Sunday, adding that the IMF’s board is set to review the country’s moves in a few days. The IMF, which requires accurate statistics to analyze the world’s economies, censured Argentina […]
mercopress.com reported that consumer prices in Brazil edged up last month but remained stable at 5.8% over 12 months, the Brazilian Institute of Geography and Statistics (IBGE) reported Thursday. It put October inflation at 0.57%, up from 0.35% the previous month. On an annualized basis, the 5.84% rate in October, which compared with 5.86% in […]
voxeu.org reported….In recent years, the growth rates of Latin American countries have been cooling-off in comparison to the period of 2004-08. This column argues that the cooling-off is not due to a change in external factors because these have remained favourable. Persistent economic growth can be achieved by internal transformations. It cannot be sustained solely […]
On October 24, 2013, O Estado de São Paulo reported that a study produced by the World Economic Forum found that gender inequality in Brazil fell for the third straight year. The survey used four categories: political power, economic participation, access to education and health. Out of 136 countries, Brazil placed 62nd in 2013, 20 […]
The consumer price index in Venezuela rose 4.4% in September, bringing accumulated inflation in the first nine months of the year was 38.7%, more than three times the 11.5% that accumulated this same height 2012. The Central Bank of Venezuela (BCV) said in a statement that these figures influenced the increase of agricultural products (4.0%), […]