Information and History of Ecuador: Urbanization, Natural Resources and Politics

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Ecuador

General Information

Official Name: Republic of Ecuador
Area: 272,046 square kilometers
Official Language: Spanish
Currency: US dollar
Capital: Quito
Largest City: Guayaquil
Regime: Unitary presidentialconstitutional republic
Constitution: August 10, 1998.
Population: 15,008,000 (Bailey 1).
The Ethnic Groups: “native Ecuadorians 25%, European descendants 7%, mestizo (mixed Spanish and Indian) 65%, and African 3%” (Bailey 1).

Around 70% of the country’s population lives in urban territories, nearly 50% of people inhabit the coastal plain areas, and a little less people live in the Andes valleys and the plateaus (Bailey 1). Not more than 600, 000 people inhabit the tropical rainforest territories (Bailey 1). The country’s non-continental part, the Galapagos Islands, is inhabited by an estimated 17, 500 Ecuadoreans (Bailey 1). The sad fact about the country’s population is that almost 45% of people live in poverty (Bailey 1).

Geographical Analysis

The very title of the country “Ecuador” resounds its geographical location as it is situated on the equator.

Ecuador borders the Pacific Ocean on the west, Peru on the east and south, and Colombia on the north. The territory of the country also includes Galapagos islands, that lie 960 kilometers off the coast. The continental part of the country is divided into an eastern jungle, mountainous central highland, and a coastal farmland. The capital of the country lies at an altitude of 2, 730 meters in the Andes highlands. The highest pick of the Andes is 6, 067 meters.

Due to its geographical position, the country is rich in natural resources (“Background Note: Ecuador” 1). The most important one of them is petroleum that is deposited in the eastern densely forested area. The other important natural resources are gold, fish, and timber.

The rich variety of geographical territories in the country results into a wide range of climates. In the jungle part in the east, the climate is hot and humid, and in the highland part, it is drier and milder. In addition, the weather in the coastal farmland is greatly influenced by the Humboldt Current, which makes it more moderate.

Historical and Political Analysis

Ecuador is the country with a long history. The territory, which is now the biggest part of the country, is first mention in the Middle Ages period in connection to the Inca Empire and its conquests. In 1513, the Inca Empire was captured by the Spanish conquistadors, who turned the local population and the Africans, which they brought with themselves, into slaves. The period from the XVI to XVIII century became a difficult period for the population of the country as Spanish government had an aggressive devastating politics. In the end of the XVIII century, the Ecuadorians began their temerarious fight against the suppressors. As a result, in 1822 they gained their independence from the Spanish (“Ecuador: Country Conditions” 47).

During the period from 1830 to 1948 the Ecuadorians did not see any stability in their lives as a great number of dictators, presidents, and juntas were constantly replacing each other on the political stage of the country. The situation got a little better beginning from 1948, but until the 1990s instability was the main feature of Ecuadorean political life.

Today, significant level of stability in the country is achieved due to a close partnership with the United States. Ecuador and the United States established close ties based on common interests in framing economical and financial ties; struggling with drug trade; having membership in inter-American organizations; and promoting democratic values. The United States helps Ecuador develop politically and economically through a variety of specialized agencies such as the World Bank, Organization of American States, USAID, Peace Corps, the Inter-American Development Bank, and many more. Total annual investment of the United States into the development of Ecuador is more than $ 100 million USD (Hare 2). The United States-Ecuadorian ties are also supported by the attendance of an “estimated 150,000 United States citizens regularly coming to Ecuador, by more than 17,000 American citizens living in Ecuador on a permanent basis, and by over 100 U.S. companies, that are engaging in commerce in Ecuador” (“Ecuador: Country Conditions” 49).

Speaking about the country’s foreign politics, it should be stated that Ecuador has always practiced multifaceted approach in international relations. The country is a member of the United Nations and the biggest part of its specialized agencies. It also has its membership in the Rio Group, the Latin American Energy Organization, the Latin American Economic System, the Andean Pact, and the Latin American Integration Association.

Despite its firm peaceful course, the country has a few differences with its neighbors, which are connected to the border line issues. In the middle 1990s, there was a severe military conflict between Peru and Ecuador. Only by means of the United States intervention, the countries were able to solve the conflict and sign the peaceful treaty. The other serious conflict that Ecuador has with Columbia is still in progress. The key point of their argument is the 450-mile-long northern border line division, and the other important issues are related to bringing to an end the activity of Columbian mafia, which has its strong positions on the territory of Ecuador due to badly protected boundaries between the countries (“Ecuador: Country Conditions” 48). Besides, Columbian border is the source of drug trade and human trafficking in Ecuador. Ecuadorian government is seriously concerned with these two problems because they damage the reputation of the country on the world stage.

Economical Analysis

GDP: $35 billion (Bailey 2).
Real Annual Growth Rate: 3,1% (Bailey 2).

The rate of unemployment in Ecuador is 5%. The GDP per capita is estimated at $8, 500 USD (Hare 3).

The main fields of industry in the country are the production of gasoline, fuel oil, and other oil products; the electricity and telecommunications sectors; cement production; textiles production; pharmaceuticals production; and processed foods production. Although the country is rich in oil recourses, its leaders have been unable to take full advantage of them because of mismanagement, shortage in investment, inconvenient and unattractive laws for investing into the industry, and high levels of corruption among the high officials who are busy in the oil industry of the country. The other serious problem for the country’s development is the instability in the electricity and telecommunication sector of industry that is caused by often disputes between privately owned companies, and the state monopolists. Apart from oil processing fields, agriculture appears to be the field where the greatest amount of Ecuadoreans is employed. The main areas in the country’s agriculture are growing bananas, coffee, cacao, oil palm fruit, oranges, sugar cane, potatoes, wheat, and rice. Besides, a cattle breeding is the other important area of Ecuadorian agriculture. Cattle are raised for dairy and meat needs.

Almost half of Ecuadorian export income is made by means of oil sales; the other part of it is made up by banana sales. Ecuador is the leading banana exporter in the world. It is also the world’s second shrimp exporter, and the world’s first balsa wood exporter. Besides, Ecuador is a large cut flowers and live animals exporter. The largest trading partner of the country is the United States. In general, Ecuador’s export is estimated at $ 17.4 USD (Hare 5).

Tourism is the other important area of Ecuadorian economy. Annually, an estimated 700,000 tourists visit the country for the sake of ecotourism and having a seaside vocation in the luxury resorts of the Galapagos Islands. Ecuadorian resorts present tourists with an excellent opportunity to engage in such attractive and sometimes extreme kinds of rest as hiking, mountain biking, diving, rafting, kayaking, climbing (including mountains and volcanoes), bungee jumping, snorkeling, fishing, windsurfing, jet skiing, horseback riding, paragliding, and many more. Every year, the economy of the country gets revenue of approximately $450 million USD due to tourism (Hare 7).

To stabilize the economical system of the country, and lower its foreign debt the government decided to adopt the US dollar as its currency in 2000. Du to this wise decision, the economy of the country became more stable and even demonstrated a significant level of growth. According to “Ecuador: Country Conditions”, “the average rate of inflation lessened to an annual variable of 24% in 2001” (48). Beginning from 2001, the rate of real annual economic growth reached 5,6% (Bailey 2).

References

“Background Note: Ecuador.” Background Notes On Countries Of The World: Ecuador (2006): 1-8. Print.

Bailey, Ellen. “Ecuador.” Our World: Ecuador (2012): 1-3. Print.

“Ecuador: Country Conditions: Background.” Political Risk Yearbook: Ecuador Country Report(2005): 47-49. Print.

Hare, Richard. “Country Report: Ecuador.” Ecuador Country Monitor (2012): 1-21. Print.

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