By
Luis Yerovi Jr.
The public relation's nightmare created by the oil duct's possible
effect on the environment and on native people will cause an uproar,
which will serve to delay and complicate any investment made in the
oil duct. Indigenous peoples, organized and united by their threatened
autonomy and livelihood, will find allies in an awakening and skeptical
middle class to oppose the plan. Pesky, determined and passionate
environmentalists will continue to recruit support against the OCP.
An inquiring international media will be there to make the process
more transparent to the chagrin of government officials. Youth, fueled
by a want for change and a desire to be driven, will support and continue
the protest movement, already having vowed to tie themselves to trees
which lie in the path of the bulldozers.
The investment in the OCP is not the most correct one, even on strict
economic principles. The OCP's endeavor, made in the name of providing
jobs and economic opportunity for "the people", will lead
to an increase in the disparity between rich and poor. Of the 1.2
billion dollars intended as an initial investment by the banks, only
half actually goes to Ecuador. The bulk of the money will go to foreign
companies who have the capability of supplying the equipment, material
and expertise needed to build the duct. Already, small business entities
in Ecuador are wondering exactly what their services will consist
of and, as of now, have not been given specific contracts to execute.
Of the money that remains in Ecuador, a large part will be distributed
to a limited sector of the economy, namely the road engineering, construction
and heavy transport industries (i.e. the trucker's union). Even within
these industries, given that the work wages in Ecuador are minimal,
the "bosses", and not the workers, will reap a disproportionate
lion's share of the money.
Given the above, it is apparent that that an investment in the OCP's
plan for Ecuador is not an environmentally, politically and economically
sound one, even if the prize is the black gold we call oil.
Alternatively, that same 1.1 billion dollars can be invested in
a more conscientious manner by putting it towards improvements in
Ecuador's educational system, tourism infrastructure and agricultural
output. A maximization of these three spheres will bring about an
egalitarian distribution of wealth and a more prolonged, sustainable
return than the "sugar rush" anticipated by the influx of
oil money.
Education remains the only method which has been demonstrated to
maximize the economic benefits of open markets. Improvements in education
will allow for a more widespread distribution of the benefits from
an increasingly global market. With an education, the working class
is able to exercise greater economic autonomy, as they acquire skills
and knowledge which render them more readily employable. The resulting
increase in an educated work force will encourage international companies
to utilize Ecuador as a country where they can set up businesses.
Such foreign interests and investments will create a myriad of jobs
and opportunities for those who could not otherwise have found employment
in Ecuador's current limited job market. This increase in job prospects
will have the benefit of preserving family structure, as the heads
of households will no longer be compelled to leave Ecuador (legally
or illegally) to find employment.
A resulting increase in average income among Ecuadorians will increase
the spending power, and money can be put back into the economy at
a steady rate. Further, educated workers could have an increased ability
and flexibility to respond to, exchange and initiate changes and insights
garnered from market patterns and technological advances. Innovation
and entrepeneuralism, two principal factors for a sustainable economic
model, would result and the money invested in education would continue
to generate dividends across generations.
Tourism ranks amongst the top five industries worldwide. Billions
of dollars are spent yearly on travel. Countries, such as Spain, Italy
and Costa Rica, live mainly off the economic return of tourism. Except
for the famed Galapagos Islands, the potential for tourism in Ecuador
has not yet been tapped into. This relatively untouched market is
filled with opportunities. Just for starters, the impressive cultural
diversity and incredible micro-habitats that characterize Ecuador's
landscape from the Amazon jungle to the Andes and to the Pacific Coast
could serve as a national monument to an enormous tourist clientele.
This natural tourist attraction would require a minimal economic investment
and would contribute to an economic boom.
Take, for example, the small picturesque villages which sit high
in the Andes. In a world becoming more Westernized and homogenous,
the value of maintaining their uniqueness is enormous. These villages
could open hostels, cafes with unique themes, markets which sell handmade
crafts, all of which would bring in capital in a manner that would
be sustainable and compatible with the needs of inhabitants. More
available money would facilitate the modification of current infrastructure,
including the building of safer roads, improvements in sanitation
(i.e. water cleanliness) and making more comprehensive efforts towards
maintaining security. These alterations not only promote tourism but
improve quality of life, morale and cultural pride among the village
people. Such changes would enable the inhabitants to become active
contributors to their future and, thus, to the over-all benefit of
Ecuador.
Improvements would not be limited to the villages, as large metropolitan
cities could benefit economically from infrastructure modifications
brought about by a tourism culture. The mere addition of one extra
day to a tourist's average length of stay in Quito would translate
into a significant increase (tens of millions of dollars) in revenue
for the city. This money, reinvested, could support the expansion
of Ecuadorian art and entertainment, for the enjoyment of tourists
and citizens alike, through the building and renovation of museums,
craft studios, hotels, restaurants and theaters.
The economic and social benefits of tourism should be complemented
and further perpetuated by improvements in agriculture and aquaculture,
allowing for the production and export of high quality produce at
a faster rate. Ecuador is blessed with a fertile terrain of volcanic
soil-lined valleys and a temperate climate, both of which are ideal
for year-round crop development. Though crops like banana, coffee
and industries that produce shrimp are already generating a significant
income, more can be done with them and in a more environmentally friendly
way. In addition, renewed efforts should be concentrated on non-traditional
crops such as hearts of palm, sugarcane and organically grown produce.
The potential of agriculture remains largely unrealized due to unorganized
plans of development and a lacking technological partnership. Infusions
of technology and skills would maximize the output of Ecuador's lands,
including the rational exploitation of its forests.
In sum, the above proposal for the betterment of educational, tourist
and agricultural spheres in Ecuador is a win-win situation for Ecuador
and the international banks. The investment intended for OCP's oil
duct plans should be reconsidered by the banks, in order to maximize
the possibilities of an economic and social gain that is not made
at the expense of irreversible environmental loss.
Through an economic plan that includes all sectors of society,
Ecuadorians will witness a drop in unemployment and crime accompanied
with a healthy, productive rise in morale, personal pride and cultural
confidence. The government benefits from the general feelings of contentment
among its citizens, and does not have to exert efforts towards squelching
dissent against its policies. Further, the government will be able
to repay the loans given by the world banks through an increased revenue
created by revised taxation plans accommodating the rising economic
status of the country. Once the debt has been repaid, an infrastructure
and a diverse natural environment will remain intact, ensuring continued
growth of the Ecuadorian economy and inviting future investments.
While these plans appeal to the most common of senses, their actualization
will require a prolonged and intensive reconstruction of the tainted
values we have inherited as a country with a marred history of colonialism
and corrupt regimes. In order to guarantee the viability of these
investments, emphasis needs to be placed on developing powerful and
respected democratic institutions- an impartial judiciary, a free
media and officials who are receptive to voters' concerns.