Fiscal Year January 1 to December 31 (as of March 31, 2010) Currency unit 1 U.S. dollar = = U.S. dollar (USD) US$1.00 Metric System Abbreviations American Petroleum Institute ATPA Andean Trade Preference Act ATPDEA Andean Trade Promotion and Drug Eradication Act Central Bank of Ecuador (Banco Central de Ecuador) CAN Andean Community CEPAL Comisión Económica para América Latina y el Caribe CEPE Corporación Estatal Petrolera Ecuatoriana CEREPS Special Account for Social and Productive Investment, Scientific Development, and Fiscal Stabilization consumer price index FAC Fund for Savings and Contingencies FD foreign direct investment FEIREP Fund for Stabilization, Investment, and Public Debt Reduction FEISEH Energy and Hydrocarbon Investment Fund Oil Stabilization Fund (Fondo de Estatización Petrolera) free on board FOPEDEUPO Fondo Permanente de Desarrollo Universitario y Politécnico Fiscal Responsibility Law, with versions I and II FTSRL Law on Fiscal Transparency, Stabilization, and Responsibility gross domestic product ICE special consumption tax ICSID for Settlement of Investment Disputes IMF International Monetary Fund kWh kilowatt-hour LAC and the MERCOSUR Mercado Común del Cono Sur NAFTA North American Free Trade Agreement NFPS Non Financial Public Sector OCP Oleoducto de Crudos Pesados SOTE Sistema de Oleoducto Transecuatoriano VAT Value added tax WTI West Texas intermediate Vice President: Pamela Cox Country Director: Carlos Felipe Jaramillo Sector Director: Marcelo Giugale Sector Manager: Rodrigo A. Chaves Sector Leader: Carlos Silva-Jauregui Task Team Leader: Christian Y. Gonzalez
Table 4.5. Policies in Chile, Mexico, and Trinidad and Tobago Policy Chile Mexico Trinidad and Tobago Gulf CC Public spending Education Good Improved coverage but still poor quality Good for male citizens. Less for the non-citizens. Infrastructure Good for copper and for nontraditional exports (agriculture) Improved but still bottlenecks at nodes Good investment for the export industry, which has effective priority over the domestic residents Good for oil and tradable service sectors Subsidies for exports No No Subsidized inputs Tax Policy Favors investment over consumption, administration strong No, except for electricity to (large-scale) agriculture General taxation weak but improved some since 2002. Yes Other policies Exchange rate Flexible Flexible Pegged to US $ Pegged to US $ Customs Free trade agreement with US; state-of-the-art administration Joined NAFTA; good for big firms; improved for small and medium enterprises, but still a delay Regulation Predictable and low cost to business, but still protects workers and customers Somewhat problematic on paper and presents opportunities for corruption and cronyism in practice, but the practice is improving and becoming more impersonal Predictable and good for HC sector. Varies across countries for tradable service sectors. Governance of the countries depends on ruling personalities, which have been friendly to business in recent decades. Mineral extraction sector Diversification Yes, copper remains top, but other minerals (nitrates) are catching up, growing from 25 percent to 80 percent of the value of copper exports No, failed to develop gas, silver and other metals faded out Yes, strong expansion into natural gas and liquefied natural gas Yes, strong expansion into downstream processing Financial support Pemex starved of investment funding since reforms of 1980s, partial fix in 2007–08 Joint ventures, with good access to financing Downstream use of mineral resources No, except for oil refining, oil used to generate electricity inefficiently and going to subsidize wasteful uses Substantial development of gas-based industry (fertilizer, high-tech steel, plastics), some further processing of these materials Substantial development – varies by country, according to extent of natural resource endowment Source: IMF 2009; Velculescu and Rizavi 2005.
Figure E.11. Annual growth of other services real GDP, 1994–2007 Annual real export growth and trends for main export products Figure E.12. Growth of banana exports, 1994–2007 Figure E.13. Growth of fish and shrimp exports, 1994–2007 Figure E.14. Growth of flower exports, 1994–2007 Figure E.15. Growth of processed agricultural products exports, 1994–2007 Figure E.16. Growth of other agricultural products exports, 1994–2007 Figure E.17. Growth of cacao exports, 1994–2007 Figure E.18. Growth of coffee exports, 1994–2007 The following series of graphs show annual real export growth and trends for main manufactured industrial products: Figure E.19. Growth of industrial exports, 1991–2008 Figure E.20. Growth of furniture exports, 1991–2008