Diario las Américas., 1958-02-14
Know thv
Nei9h.borI
BY ANTONIO RUIZ

ECUADOR - The economy of
Ecuador is shaped in part, and the
problems of the country have their
roots, in the unalterable geogra-
phic division OF the nation into
three distinct and isolated sections,
which constitute an almost insuper-
able obstacle TO the economic as
well as the political unity of the
country. This factor, and the dis
triDution of Ecuador'S natural re-
sources and agricultural products,
have resulted in a split economy
composed of the agricultural SUBJ
sistence crops Of the highlands,
which are grains and vegetables
produced mainly for domestic con-
sumption, and the commercial crop
of the coastal lowlands, including
cacao, coffee, bananas, etc, from
which the Republic derives the
bulk of her national income ,
through foreign trade.
The seemingly insoluble problem
of migrating these two sectors of
the economy and of providing a
better distribution of national in
come, has plagued the chief execu-
tiyes of the Republic since its es-
Enlistment. More recently, the ma
tional economy of Ecuador has
been strengthened by the creation
of the National Economic Council,
as well as by legislation regulating
the monetary system and by a law
OF l949 creating the Institute of
Production Development, with its
two strong arms: the Economic
Development Corporation and a
chain of Development Banks.
A development program of three
years was directed toward four
principal sectors of the national
economy: agriculture, livestock, in.
dustry and tourism. Rejecting in
part those reforms and the favor.
able market for the country'S pro
ducts, Ecuador ended the year 10
81 with a record breaking agri
cultural production, greatly in
creased exports and a favorable
foreign exchange position. Exten
sive programs Of public works anC
the continuation of the develop
ment policies have increased the
progress of the nation since then
! Wheat, corn, barley, fruits, pota
toes and other vegetables are pro
duced in Ecuador mainly for do
nestle consumption. With the ex
ception of cotton, and tobacco
these crops are raised in the cen
tral highlands. Larger crops anc
improved types have resulted in re
cent years from the Development
Corporations program to increase
production by way of mechanical
farming, irrigation and drainage
projects. Supplementing this pro
gram is the system of State De
velopment Banks, which provid,
agricultural loans and credits, ant
a new company formed by the In
ternational Basic Economy Corpor
alton to offer mechanical agricul
tural services to farmers on a low
fee basis.
Colonization and distribution O
farm lands are also important fact
ors in the agricultural program
of the Development Corporation
There are about 11,480, 900 acres O
land under cultivation in the coun
try. Ecuador's principal crops, al
produced in the coastal lowlands
are cacao, coffee, bananas and rice
Banana exports now exceed thos,
of cacao, which had been for man,
years the country's chief CONNER
cial crop and principal export com
modify. Called "Pepa de Orc" O
Golden Seed, by Ecuadoreans, ca
Gao brought great wealth to tn,
country until reduced by destruc
tive blights and at the same time
created a one crop economy. Tn,
goal of a more balanced produc
ton is now being achieved.
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