Diario las Américas., 1958-05-28

.Neighboti
nj ~
by ANTONIO RUIZ

ECUADOR - The economy of
Ecuador and its major problems
have their roots ir the u~nalterable
geographic division of the coun-
try INTO three distinct and isolated
sections, which constitute an al
most insuperable obstacle to the
economic, as well as the political
unity of the country. This factor
and the distribution of Ecuador's
natural resources and agricultural
products, have resulted in a split
economy composed of agricultural
subsistence crops of the highlands,
mainly grains and vegetables, pro-
duced mostly for domestic con-
sumption, and the commercial or
export crops of the coastal low.
lands, such as cacao, coffee, bana-
mas, ETC., from which the Republic
derives the bulk of its national
income through foreign trade.
The seemingly insoluble pro.
blem of migrating these two sec.
tors of the economy and of provid.
ing a better distribution of ma.
tional production has plagued the
chief executives of the Republic
since its inception. More recently,
the national economy of Ecuador
has been strengthened by the crea-
ton of the National Economic
Council, as well as by legislation
regulating the monetary system,
and by the Law of 1949 creating
the Institute of Production Deve-
lopment, with its two strong arms,
the Economic Development Corp
Grafton and a chain of Develop
ment Banks.
The development program of
three years was directed toward
four principal sectors of the ma
tional economy: agriculture, live
stock, industry and tourism. Re-
fleeing in part those reforms and
the favorable market for the coun-
try's products, Ecuador ended the
year 1852 with record-breaking
agricultural production, greatly
increased exports and a favorable
exchange position. Extensive pro-
grams of public works and the con-
tinuation of the development poll
cies have increased the progress
OF the nation since then.
Wheat, corn, barley, fruits, pota-
toes and other vegetables are pro-
duced in Ecuador MANLY for do.
nestle consumption. With the ex.
ception of Gotten and tobacco,
these crops r raised in the CEN
trail highlands. Larger crops and
improved types have resulted in
recent years from the Develop
ment Corporations program to in
crease production by way of me-
chanlzed farming irrigation and
drainage projects Supplementing
this program is the system of State
Development banks, which pro-
vide agricultural loans and credits.
and a new company formed by the
international Basic Economic
Corporation to offer mechanical
agricultural services to farmers for
a small fee.
Colonization and distribution of
farm lands are also important fact.
ors in the agricultural program of
the Development Corporation.
There r about 10000 900 acres of
land under cultivation in the coun.
try. Ecuador's principal crops, all
produced in the coastal lowlands,
are cacao, coffee, bananas, and
rice. Bananas displaced cacao in
1852 as the main export crop of
Ecuador after 1t had the first
place for many years. Called "Pepa
de Oro,' or Golden Seed, by Ecua-
doreans, cacao brought great
wealth to the country, until re-
duced by destructive blights and,
at the same time, created a one
crop economy. The goal of a more
balanced production Of CONNER
cial crops is now being achieved.
Spanish Version Page 3