Revista ROE - ECUADOR, IT IS A COUNTRY CALLED FOR INVESTIMENT

ECUADORTODAY

Ecuador is the country that has best invested its oil wealth, has duplicated its economy, and strengthened competitiveness.

TOURIST DEVELOPMENT

N.2- 2016

Morgan Doyle IDB Representative in Ecuador

IT IS A COUNTRY CALLED FOR INVESTMENT

Promotion to the tourism sector, National System on Protected Areas, interviews, statistics, and more.

2 A NEAR FUTURE

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3 A NEAR FUTURE

DARWIN & WOLF MARINE SANCTUARY

Ecuador has a marine sanctuary located on Darwin and Wolf islands, inside the Galapagos Marine Reserve, which is the second largest in the world. The sanctuary shelters the largest global shark biomass. ROE

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4 EDITORIAL

I

n addition to its immense natural and cultural heritage, Ecuador is a solidary and cohesioned country that strives to seek national goals and has learned to use its resources on s strategic and sustainable basis in favor of its citizens. International Statistics and studies, like that of US consultant The Boston Consulting Group ratify this, as well as the development in the fields of health, education, connectivity, social inclusion, productive structure strengthening, tourist promotion, incentives of local and foreign investment, and strategic sector development.

Ecuador’s economic and social enhancement in the last decade is proof of this. The achievements are brad, but the national goals need new challenges that are reachable only by adding wills and efforts between the State, private company, and citizens who are able to improve every day in order to make the country a real productive power with a long-term and proud view of the present and future achievements.

Republic of Opportunities is a proposal to reach this goal based on clear policies, decisive actions, and 10 strategic pillars: a country of innovators that focuses effort on science, technology, and human skills; a country that produces quality jobs; a productive country that adds value to their production, a country of exporters that makes the difference from their competitors because of quality of origin; a self-sustainable, modern, and green country of strategic energy and infrastructure, and produce; a country that sees in its basic industries the platform for development; a country with integral security hat develops reliable surroundings; a country that provides efficient, agile, kind, ant transparent public services; a touristic power with high self-esteem and a long-term vision.

This is the Republic of Opportunities that we are building. ROE

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ECUADOR SELLS GREEN DESTINATION

For the fourth consecutive year, Ecuador was awarded with the World’s Leading Green Destination at the 2016 World Travel Awards, also known as the Oscars of tourism. ROE

6 CONTENTS

CONTENTS NEWS

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08

TIME MACHINERY

SPACE MACHINERY

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41

7 CONTENTS

LOS CARAS BRIDGE

With 1230 miles, Los Caras Bridge, inaugurated in 2010, connects San Vicente and Bahía de Caráquez, and is the longest bridge in Ecuador. ROE

SOCIONAUTS

63

53

INTO THE FUTURE POCKET SLANG

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8 NEWS ROE

ACCORDING TO FIGURES OF THE MINISTRY OF TOURISM, IN 2015 ECUADOR’S INTERNATIONAL TOURISM GROWTH WAS 4.7% WITH AN INCOME OF USD 1,557.4 MILLION.

ECUADOR IN THE EYES

OF THE WORLD

www.youtube.com/ watch?v=qf4f-nAbngo

LOVE IS IN THE AIR IS THE NAME OF THE NEW ECUADORIAN TOURISTIC PROMOTION PHASE INCLUDED IN THE INTERNATIONAL CAMPAIGN ALL YOU NEED IS ECUADOR. THIS AMBITIOUS CAMPAIGN HAS EXHIBITED THE COUNTRY’S WONDERS TO AROUND 455 MILLION PEOPLE AROUND THE WORLD.

In July 2016 Ecuador officially presented the new phase of touristic promotion campaign All You Need is Ecuador, which in its first phase reached around 455 million people in the planet’s main cities and positioned the country’s natural wonders globally. Now, Love is in the Air highlights the beauty, exuberance, and wonders that Ecuador shelters in its four worlds: Coast, Sierra, Amazon, and Galapagos, and emphasizes on love that is not only found in its people and cultures, but also in its wonderful landscapes. Through international TV chains and social networks, Love is in the Air has reached countries like the United States, Brazil, Spain, Germany, and others, with an estimated target of 446 million people. The touristic sector in Ecuador generates 353,000 jobs and

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represents 2% of the GDP directly. The campaign All You Need is Ecuador sets an unprecedented landmark in the history of Ecuadorian tourism. It started in February 2014 in social networks and, barely one month later, it had more than 228,000 followers in Twitter, Facebook, Instagram, Vimeo, and Youtube. With the slogan Like nowhere else. All in one place. So close, this initiative invited global travellers to visit the country’s unrepeatable touristic attractions. Its international impact and outcome favorable to Ecuadorian tourism, All You Need is Ecuador has attracted the interest and recognition of important publications and tourism organizations like CNN, The New York Times, USA Today, Lonely Planet, Rainforest Alliance, World Travel Awards, just to mention a few. ROE

9 NEWS ROE

8 90 ENERGY WITH ITS

MEGAPROJECTS OPERATING 100% IN 2017, THE COUNTRY WILL EXPAND ITS ENERGY GENERATION

WITH AN INVESTMENT OF USD

6,015

8,678

MILLION MADE BETWEEN 2007 AND 2015, ECUADOR PROMOTES ITS STRATEGIC SECTORS AND IS WALKING TOWARDS CHANGING ITS ENERGY MATRIX.

MW PER YEAR.

IN 2017,

%

OF THE ECUADORIAN ELECTRIC GENERATION WILL DEPEND ON RENEWABLE SOURCES AND AN ESTIMATED SAVINGS OF USD 1 BILLION PER YEAR WILL BE GENERATED WITH FOSSIL FUEL IMPORTS.

EXPORTING COUNTRY

TODAY ECUADOR NOT ONLY PRODUCES ENERGY IN AN EFFICIENT AND RESPONSIBLE WAY WITH THE PLANET. BEFORE CONCLUDING ITS EIGHT NEW MEGA ELECTRIC GENERATION PROJECTS, ECUADOR IS CURRENTLY EXPORTING CLEAN ENERGY TO NEIGHBOR COUNTRIES, LIKE PERU AND COLOMBIA. Responsible planning and investing generates quantifiable results, and today Ecuador is a leader in producing clean energy in the region. Toachi Pilatón (254 MW), Manduriacu (65 MW), Coca Codo Sinclair (1,500 MW), Mazar Dudas (21 MW), Quijos (50 MW), Sopladora (487 MW), Delsitanisagua (180 MW), and Minas San Francisco (270 MW) are the electric generation mega projects in which the country has been working for nine years. Ecuador has increased its production capacity in around 50% (from 4,070 MW in 2007 to 6,010 in 2015) and it is now selling energy to countries like Peru and Colombia. Ecuador’s first electric energy export to Peru took place in May 26, 2015, and we hope that

by the end of 2016 the country will be exporting electricity to Colombia for approximately USD 200 million. As part of its energy matrix change, Ecuador is also promoting efficient ways of electric consumption aimed to reduce the dependence on oil and its derivatives. Until 2015, hence, 300,000 Ecuadorian families had recorded changing their cooking source from liquefied petroleum gas (LPG) to induction cooking (with electricity); initiatives included replacing 82,000 old refrigerators and 15 million incandescent bulbs for models with less electric consumption that benefitted the country with an estimated savings of USD 600 million. ROE

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10 NEWS ROE

HIGH PERFORMANCE

SPORTS CENTER MODERN RESEARCH AND TRAINING SPACES FOR THE COUNTRY’S NEW SPORTS STARS. AS PART OF ITS HIGH PERFORMANCE PLAN, ECUADOR SENT ITS LARGEST HISTORIC DELEGATION TO THE 2016 OLYMPIC GAMES IN RIO, WITH 38 ATHLETES. Ecuador believes that both the assimilation of knowledge and keeping a healthy body are important for an integral formation and, therefore, promotes the development of sports activities and contributes to forming elite athletes through its new High Performance Training Centers (CEARs.) The people of Carpuela, Durán, Cuenca, Río Verde, and Macas are now enjoying these modern spaces that offer comfort, state-of-the-art technology, specialized professionals, and quality facilities to train Ecuadorian and foreign athletes. The Ecuadorian Government, through the Ministry of Sports, has built and rehabilitated these five high performance centers located in strategic zones around the country. Two of these spaces are used for research and three are exclusively devoted to sports training and development, which is complemented with the National High Performance Plan that provides athletes with economic resources, gear, and multidiscipline equipment required for their formation and competitions both inside and outside Ecuadorian borders. ROE

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ECUADOR HAS INVESTED

USD60.4

MILLION IN BUILDING AND REHABILITATING ITS NEW FIVE HIGH PERFORMANCE TRAINING CENTERS.

INVESTMENT IN THE 2016 HIGH PERFORMANCE PLAN FOR ECUADORIAN ATHLETES IS

USD11.3

MILLION, WHICH BENEFITS 312 COMPETITORS IN 27 DISCIPLINES. IN THESE NINE YEARS OF ADMINISTRATION, THE ECUADORIAN STATE HAS INVESTED MORE THAN

USD270

MILLION TO DEVELOP SPORTS IN THE COUNTRY.

11 NEWS ROE

EXCHANGE AND GENERATION OF

KNOWLEDGE

ECUADOR OFFERS ITS STUDENTS AN INTERNATIONAL HIGH SCHOOL GRADUATE SYSTEM, SCHOLARSHIPS TO THE WORLD’S BEST UNIVERSITIES, AND EDUCATIONAL PLANS FOCUSED ON EXCHANGE AND GENERATION OF KNOWLEDGE.

500 ECUADORIAN PUBLIC SCHOOLS WILL OFFER THE INTERNATIONAL HIGH SCHOOL GRADUATE SYSTEM BY THE END OF 2017.

The country has enhanced its educational system at all levels and has provided students with formation tools at international standards. Today in Ecuador there are more than 200 public schools that offer the international high school graduate certification (BI), granted by Swiss organization International Baccalaureate; and the number is expected to grow to 500 by 2017. This certification, recognized by universities around the world, promotes the development of skills and knowledge required by modern societies. From that standpoint, Ecuador

PROMETEO PROJECT SEEKS TO STRENGTHEN RESEARCH, TEACHING, AND KNOWLEDGE TRANSFER IN SPECIALIZED TOPICS

BY LINKING FOREIGN RESEARCHERS AND ECUADORIAN RESEARCHERS LIVING ABROAD.

has strengthened its universities and inaugurated emblematic institutions, such as Ikiam, Yachay Tech, Uniartes, and Unae.

The country also has the largest scholarship program in Latin America, which has benefitted 18,900 students with scholarships in the world’s best universities. Through Prometeo Project, it promotes research and knowledge transfer by incorporating foreign researchers and national researchers living abroad. With this system 1,034 research and teaching projects were developed between 2011 and 2016. ROE

18,900 NATIONAL STUDENTS HAVE BEEN BENEFITTED WITH SCHOLARSHIPS FOR THE WORLD’S BEST UNIVERSITIES.

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12 NEWS ROE

GAS TRO NO MIC DIVERSITY

WITH MORE THAN 4,750 VARIETIES, ECUADOR HOLDS THE WORLD’S SECOND PLACE WITH THE HIGHEST NUMBER OF SOUPS. THE COUNTRY’S NATURAL AND CULTURAL DIVERSITY IS ALSO EXPRESSED ON THE TABLE. Broths, creams, aguados, locros, sancochos, ajíes, are some of the ways of preparing Ecuadorian soups with diverse typical ingredients from the Sierra, like potatoes, corn, quinoa, and grains, to green banana, cassava, and peanuts from the Coast and the Amazon. After 15 years of traveling around, gastronomist Édgar León has collected the history of more than 4,750 types of soups.

Each preparation is linked to geography, social conditions, and traditions of the peoples of Ecuador. During his trips he also revealed that soup is the dish that identifies the country, since only China has more recipes in the world. The investigation is summarized in the book Sopas, identidad del Ecuador, acknowledged with the second place by the Gourmand World Cookbook Awards. ROE

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THE WEALTH OF ECUADORIAN LANDS AND FARM PRODUCTS COMBINED WITH THE INFLUENCE OF ITS CULTURES ARE PART OF A LIVE HERITAGE THAT IS SHOWN TO THE WORLD.

13 NEWS ROE

FOR EXPORT

SMALL-SCALE FISHING

Photo: Fishing Port Jaramijó at night.

SAILING BETWEEN THE WAVES, READING THE DESTINATION OF SHOALS IN THE STARS, THE MILLENARY ACTIVITY OF SMALL-SCALE FISHING IN ECUADOR WILL CONTINUE AS USUAL, BUT EFFORTS WILL BE IMPROVED. In the darkest hours of the night, fishermen see a challenge in the hazy horizon of the nocturnal sea. Where our eyes only see darkness, fishermen retrieve sea fruits amid the waves of the ocean: their eternal source of wealth. Years later they had ice, tools to rescue the white flesh of fish, and gasoline – small changes that contributed to their battle with apparently hazardous streams. At present around 60K small-scale fishermen live off this

activity, representing 300K families. Five small-scale fishing ports, 23 facilities, and multiservice centers are being built in the country to offer gas supply, docks, workshops, trade and administrative zones, as well as a cold chamber system. Having reduced hazard to the waves, their production has improved for them to supply the world with Ecuador’s sea wealth obtained through efficient non-industrialized practices. ROE WWW.PUERTOS. VICEMINISTERIOAP.GOB.EC

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14 NEWS ROE

ECUADOR 2016 INVESTMENT SUMMIT

ECUADOR PRESENTS ITS BEST INVESTMENT OPPORTUNITIES TO THE WORLD AND OFFERS A SPACE TO STRENGTHEN LINKS AMONG NATIONAL AND INTERNATIONAL ENTREPRENEURS AND THE PUBLIC SECTOR. Ecuador is focused on changing the productive matrix and promoting public-private relations; and is now generating suitable spaces to show the world the best investment opportunities in its strategic sectors. To this end, the country, for the first time in its history, is holding the Ecuador 2016 Investment Summit, a real milestone in national and international investment attraction. Ecuador’s business climate, investing sectors, economic and social indexes, public and private projects are some of the topics that investors will learn in this Summit through an experience that includes fora, conferences, field visits, success cases, exhibits by the representatives in charge of public and private initiatives,

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and other key elements to know where and how to invest in the country. Ecuador 2016 Investment Summit is also an opportunity to strengthen commercial links and is also an opportunity and get to know the representatives of Ecuadorian public and private projects who will present investment opportunities in Agroindustry, Strategic Sectors, Tourism, Infrastructure, Logistics and Real Estate, and Agroforestry. The event will take place on October 25-26, at Unasur headquarters, in Quito, and will be attended by around 200 national and foreign investors, entrepreneurs with decision power, and Ecuador’s main political leaders. ROE

15 NEWS ROE

FINE AROMA CACAO, ALSO KNOWN FOR ITS APPELLATION OF ORIGIN, CACAO ARRIBA, IS THE WORLD’S MOST VALUED VARIETY DUE TO ITS QUALITY.

ECUADORIAN CACAO

BIO ROUTE Ecuadorian cacao was the star product at the VI Gala Edition Against AIDS/HIV organized in Barcelona, Spain, by Spanish singer Miguel Bosé. The qualities of emblematic Ecuadorian products, like roses and chocolate, were highlighted in this international event, and were offered as gifts to the audience who contributed to this event. The country, through public company Ecuador Estratégico, is also promoting the development of the Cacao & Chocolate Bio Route, which includes promoting and creating tourism infrastructure in several traditional

Ecuadorian cacao-growing zones. With a planned investment of USD 8 million, the Cacao & Chocolate Bio Route promotes tourism and productive development of Amazon communities in Tena, Archidona, and Carlos Julio Arosemena Tola, in the province of Napo. Through this initiative, those who love the world’s best chocolate will be able to get to know the manufacturing processes and culture related to cacao growing in different towns of the Ecuadorian Amazon. ROE

WITH AN INTERNATIONAL SHARE ABOVE

63%,

THE WORLD’S BEST CACAO IS ECUADORIAN. IT HAS BEEN TRADITIONALLY GROWN BY RURAL COMMUNITIES IN THE AMAZON AND THE COAST. ECUADOR PROMOTES TOURISM DEVELOPMENT OF THE AREAS DEVOTED TO THIS ACTIVITY THROUGH THE CACAO & CHOCOLATE BIO ROUTE.

ECUADOR IS THE WORLD’S MAIN FINE AROMA CACAO EXPORTER.

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16 NEWS ROE

CASES OF FAIR

TRADE ACCORDING TO FIGURES ISSUED BY THE MINISTRY OF FOREIGN TRADE, APPROXIMATELY

150,000 ECUADORIAN SMALL PRODUCERS ARE DIRECTLY AND INDIRECTLY INVOLVED IN FAIR TRADE BASED ON POPULAR AND SOLIDARY ECONOMY ORGANIZATIONS.

SMALL ECUADORIAN PRODUCERS, IN LINE WITH THIS TRADE ALTERNATIVE THAT PLACES HUMANS AT THE CORE OF THEIR ENTERPRISE, EXPORT THEIR PRODUCTS TO THE WORLD. FROM 2010 TO 2015, THE ANNUAL VOLUME GROWTH OF NATIONAL EXPORTS UNDER THIS MODALITY IS 49.2%.

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17 NEWS ROE

Photos: www.runa.com.ec

In order to promote the development of a social, sovereign, and solidary economic system, Ecuador, through the Ministry of Foreign Trade and different voices linked to fair trade, started the 2014-2017 Ecuadorian Fair Trade Strategy – a public political proposal focused on trade incentives, promotion, and regulation framed in respect and sustainability with international incidence. More than 230 stakeholders collaborated in this initiative, including producers, craftspeople, importers, academicians, designers, social trade companies, national and international fair trade networks, public institutions, and international cooperation organizations.

Fair Trade is recognized throughout the world for promoting a reciprocal relation between consumers and small producers, who receive adequate surplus for their products

and, at the same time, guaranteeing good labor conditions and environmentally friendly practices. Between 2010 and 2015, Ecuador has shown peak export figures under this modality with an annual growth in value of 24.97% (FOB) and 49.18% in volume, according to the Ministry of Foreign Trade.

The main Ecuadorian products exported under this modality are bananas (44%), cacao (25%), and flowers (21%), followed in a smaller percentage by juices, fruits, jams, coffee, nuts, quinoa, crafts, cosmetics, spices, medicinal plants, and others.

Today in Ecuador 21 certified small producers are benefitting from this type of international trade from which 3,376 jobs were created as of 2014; 93.86% of products exported through fair trade reach the markets in Europe (54.52%) and the United States (39.34%.)

OTHER BENEFITTED PRODUCERS: BRANDS LIKE PACARI (ORGANIC CHOCOLATE), CAFÉ VÉLEZ OR CAFÉ PIEDRA ARE ALSO IN LINE WITH FAIR TRADE THAT PLACES HUMANS AT THE CORE OF THEIR ENTERPRISE; AS WELL AS SEVERAL SMALL NATIONAL PRODUCERS LIKE: CAMALI Produces and exports granulated brown sugar, quinoa, rice, barley, crafts, etc. It involves 7,000 families.

CANOPY BRIDGE Its main products traded in International markets are cacao and byproducts, brown sugar, coffee, quinoa.

It has 60 producers involved nationwide.

MINKA Exports quinoa, barley, corn flower, textiles, jewelry, ceramics, and crafts. 20 national producers are involved in this organization.

SUSTAINABLE DEVELOPMENT Through community initiatives, such as that of Runa Foundation, Ecuadorian guayusa tea contributes to sustainable development of the people who live in the Amazon. Known by its energizing properties, this ancestral beverage is sold in fair trade around the world. The brand Runa is currently positioned as one of the fastest growing trademarks in the United States and even one of the favorites among several Hollywood celebrities. Actor Leonardo DiCaprio, convinced of the product’s qualities

and, above all, in helping more than 3,000 farming families that participate in this initiative, decided to invest in it. In May 2016, Runa announced actors Marlon Wayans and Adam Rodríguez, tennis players John Isner and Steve Johnson, actor Channing Tatum (one of the first to invest in Runa), and Oscar winner Leonardo DiCaprio among its investors. As a way of philanthropy, DiCaprio offered to donate his earnings from this initiative to environmental projects in the Ecuadorian Amazon. ROE

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18 NEWS ROE

CHIMBORAZO

THE FARTHEST POINT FROM THE CENTER OF THE EARTH THE CHIMBORAZO VOLCANO IS SURROUNDED BY THE FAUNA PRODUCTION RESERVE THAT BEARS THE SAME NAME; IT IS LOCATED ON THE ANDES CORDILLERA AND EACH YEAR IS VISITED

BY HUNDREDS OF EXPERIENCED MOUNTAINEERS. EXPERTS BELIEVE THAT THE LAST ERUPTION OCCURRED 1,000 YEARS AGO.

CHIMBORAZO IS ECUADOR’S HIGHEST VOLCANO AND THE CLOSEST SPOT TO THE SUN, MORE SO THAN MOUNT EVEREST. THE III FRENCH GEODESIC MISSION AND THE ECUADORIAN MILITARY GEOGRAPHIC INSTITUTE PERFORMED THE STUDY. The record goes to the less active Ecuadorian volcano, as confirmed in April 2016 by the III French Geodesic Mission headed by scientists from the French Institute for Research and Development (IRD) and from the Ecuadorian Military Geographic Institute. With 4,000 miles of distance, the Chimborazo Volcano is the most remote point from the center of the earth and, thus, is the farthest point from the center of the earth or the closest spot to the sun, 1.2 miles closer than Mount Everest. The news went around the world. For measurement accuracy, the French and Ecuadorian scientists climbed to the top of the volcano, located in the

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Ecuadorian province of Chimborazo, and measured the distance from the highest glacier with GPS technology connected to 15 satellites in different latitudes throughout the planet. Although Mount Everest (29,029 ft. above sea level) exceeds Chimborazo in altitude, the researchers explained that the Ecuadorian volcano’s advantage is the form of the earth: flattened at the poles and bulged at the Equator. Located in the center of the world, the Chimborazo Volcano is, from remote times, a cultural and sporting reference, not only for Ecuadorians, but also for the thousands of visitors and mountaineers who arrive to admire it every year. ROE

PART I

TIME MAC HINE RY

20 THIS IS ECUADOR NOW

ECUADOR HAS DUPLICATED ITS ECONOMY BY STRENGTHENING ITS STRATEGIC SECTORS, MULTIPLYING ITS COMPETITIVENESS, REDUCING POVERTY, INVESTING IN EDUCATION, CONNECTIVITY, HEALTH, HOUSING. IT IS A COUNTRY OF OPPORTUNITIES.

AXES OF CHANGE

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#EcuadorYaCambiรณ

A Constitutional, Ethical, Economic, Social Revolution for the Latin American Integration, and Judicial, Environmental, Urban, Knowledge and Culture transformation, are the axes of transformation assumed by Ecuador in 2007.

21 THIS IS ECUADOR NOW

E

cuador has gained one decade. The Ecuadorian State’s political will, planning, and the decisions show positive results and the country changed from being one of the least developed nations to a Republic of Opportunities. This is a prosperous territory that duplicated its economy from USD 46 billion in 2006 to around 100 billion in 2015, which is reflected in investments made mainly in strategic sectors aimed to the country’s development and, above all, to the people’s quality of life and welfare.

The country’s development level reached in the last decade is supported on its 10 transformation axes since 2007: Constitutional, Ethical, Economic, Social Revolution for the Latin American Integration, and Judicial, Environmental, Urban, Knowledge and Culture. The country has also established an efficient tax collection culture generated and is one of the countries with the lowest tax percentage in the region and, through strategic investments, records approximate savings of USD 3.6 billion per year in the sectors of transportation, justice, public acquisitions, hydroelectric industry, etc., which contributes to its economic growth and strengthens its competitiveness.

Figures show a clear panorama.

From 2007 to 2015, the country has invested around USD 8.9

billion in roads, USD 7.2 billion in hydroelectric stations, USD 8.5 billion in social security, USD 3.8 billion in housing, sanitation, and social infrastructure, USD 2 billion in agricultural and irrigation projects, USD 4.1 billion in works performed by public companies, and more than USD 20 additional billion in local governments, among other important items.

Therefore, in spite of external factors like the international oil price drop, the earthquake that destroyed the Ecuadorian Coast, its economic model remains one of Latin America’s most successful models with an average growth of 3.9% recorder between 2007 and 2015, while the regional average is 2.9%.

After almost one decade of radical transformations, according to opinion poll Latinobarómetro, today Ecuador has the best Latin American infrastructure; from 2009 to 2015 reduced multidimensional poverty in 16.5; it has drastically reduced negative factors like corruption (as perceived by 52% of the population); and ranks second in Latin America in public administration transparency, among a long list of achievements. ROE

USD 3.6 BILLION IN ANNUAL SAVINGS, APPROXIMATELY THIS REPRESENTS THE CITIZENS AND THE PUBLIC AND PRIVATE SECTORS, AND INVESTMENTS MADE BY THE ECUADORIAN STATE SINCE 2007.

AROUND 1.9 MILLION OF ECUADORIANS LEFT POVERTY BETWEEN 2009 AND 2015 (16.5 POINTS LESS), ACCORDING TO MULTIDIMENSIONAL POVERTY DATA FROM THE NATIONAL STATISTICS AND CENSUS INSTITUTE.

3.9% AVERAGE GROWTH PERCENTAGE OF ECUADOR’S GDP BETWEEN 2007 AND 2015, VERSUS 2.9% OF THE REGION’S IN THE SAME PERIOD. ACCORDING TO UNESCO’S STATISTICS INSTITUTE, BY INVESTING 2% OF ITS GDP, ECUADOR IS THE LATIN AMERICAN COUNTRY THAT INVESTS MORE IN HIGHER EDUCATION. THE ECUADORIAN PUBLIC BANK HAS GRANTED USD 5 BILLION HAS GRANTED CREDITS TO PRODUCTION, BETWEEN 2007 AND 2015.

THE FIGURE FOR POOR DISABLED CITIZEN CARE PASSED FROM 5,039 TO 128,652 WHO RECEIVED AN ASSISTANCE PENSION BETWEEN 2006 AND 2015.

BETWEEN 2007 AND 2015, ECUADOR CLIMBED 14 POINTS IN THE GLOBAL COMPETITIVENESS INDEX OF THE WORLD ECONOMIC FORUM, 57 POINTS IN INFRASTRUCTURE FOR ROAD QUALITY, 15 POINTS IN INTERNET ACCESS IN SCHOOLS, 47 POSITIONS IN INNOVATION FOR COLLABORATION BETWEEN COMPANIES AND UNIVERSITIES, AND 27 POINTS IN INNOVATING CAPACITY.

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SMART & RESPONSIBLE EXPLOITATION

Ecuador is a world reference in the efficient use of natural resources and, particularly, responsible oil exploitation, which is translated into investments in favor of sustainable development and quality of life.

23 RESPONSIBLE EXPLOITATION

THE COUNTRY THAT BEST INVESTED ITS OIL WEALTH IN THE WELLBEING OF ITS CITIZENS A REPORT SUBMITTED BY US FIRM THE BOSTON CONSULTING GROUP RATIFIES THAT ECUADOR IS HAS TURNED OIL WEALTH INTO GROWTH AND WELFARE FOR ITS CITIZENS.

T

he current Government’s planning and implemented policies have quantifiable outcomes. Today Ecuador is a world benchmark in the efficient use of natural resources and, particularly, responsible oil exploitation that is translated into investments that favor the citizens’ welfare. And international organizations such as the World Bank or the Economic Commission for Latin America and the Caribbean (ECLAC) ratify it. Also, international firm The Boston Consulting Group, in a study called ‘Why welfare should guide growth strategies. 2015 Sustainable Economic Development Assessment’. ROE

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24 RESPONSIBLE EXPLOITATION

In this study The Boston Consulting Group defines welfare according to three essential parameters: Economic (GDP, unemployment, wealth), Investment (education, health, infrastructure) and Sustainability (equity, governance & environment.) Based on the World Bank figures it carefully analyzes the situation of 46 oil countries (with oil extraction incomes above 10% of their GDP.)

Ecuador’s oil exploitation income has been mainly devoted to sectors linked to transforming its energy matrix, construction of hydroelectric stations, strengthening and potentiating hydrocarbon activities, improving the road and connectivity system (air and sea ports), etc. According to the US consultant analysis, thus, both investments and the increase of public goods and services provision financed with resources from

EVALUATION OF SUSTAINTABLE ECONOMIC DEVELOPMENT (SEDA) SEDA MEASURES WELL-BEING ALONG THREE ELEMENTS THAT COMPRISE TEN DIMENSIONS

ECONOMICS

WEALTH 1 THE QUALITY OF ENVIRONMENT; POLICIES AIMED AT THE ENVIRONMENTAL PRESERVATION

INFLATION; GDP VOLATILITY INCOME

ENVIRONMENT

ECONOMIC STABILITY

EFFECTIVENESS OF GOVERNMENT; TRANSPARENCY; STABILITY; FREEDOM

GOVERNANCE

EMPLOYMENT

SEDA

INTERGROUP COHESION; CIVIC ACTIVISM; GENDER EQUALITY

CIVIL SOCIETY

HEALTH

INCOME 2

SUSTAINABILITY

EDUCATION

EQUITY

INFRASTRUCTURE

INCOME DISTRIBUTION

EMPLOYMENT; LABOR FORCE PARTICIPATION

3

WATER, TRANSPORTATION, SANITATION, INFORMATION AND COMMUNICATION TECHNOLOGY

SOURCE: THE BOSTON CONSULTING GROUP ANALYSIS 1. Wealth is measured as GDP per capita, which in turn is measured in terms of purchasing-power parity in constant dollars 2. Sustainability is defined from environment and social inclusion. Social inclusion comprise governance and income equality 3. Income distribution is based on the Gini coefficient.

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ACCESS TO HEALTH CARE; MORTALITY AND MORBIDITY

INVESTMENTS ACCESS TO EDUCATION; EDUCATION QUALITY

25 RESPONSIBLE EXPLOITATION

responsible oil extraction allowed reaching goals in different fields related to the citizens’ quality of life, social inclusion and protection of vulnerable groups by improving education and health indexes, reducing poverty and inequality levels, inter alia. In spite of being the smallest member of the Organization of Petroleum Exporting Countries (OPEC), Ecuador has proved to be the country that has best invested its oil income.

According to the same report, it has reduced social inequality at an average annual rate of -1.7% and extreme poverty index below 10%.

Regarding improvements in education and social inequality reduction, the Ecuadorian leadership was also highlighted by the United Nations Development Programme (UNDP). ROE

OIL COUNTRIES ARE RELATIVELY WEAK IN CONVERT WEALTH AND ECONOMIC GROWTH IN WELFARE.

GROWTH-TO-WELL-BEING COEFFICIENT

1.6 1.4

Ecuador

Republic of Congo

1.2 Saudi Arabia

Chad 1.0

Angola

Nigeria

Iran

Russia Azerbaijan Algeria

Oman

Gabon

0.8

Kazakhstan

Iraq Trinidad & Tobago

0.6

Bahrain

Qatar Kuwait

0.4

Yemen United Arab Emirates

0.2 Libia

0.0 0.4

POPULATION

0.6

0.8

EUROPE AND CENTRAL ASIA MIDDLE EAST AND NORTH AFRICA SAHARAN AFRICA

1.0

1.2

LATIN AMERICA AND CARIBBEAN SOUTH AND EAST OF AFRICA

1.4

1.6 WEALTH-TO-WELL-BEING COEFFICIENT

SOURCES: WORLD BANK DATA, THE BOSTON CONSULTING GROUP ANALYSIS Oil-rich countries are defined as countries that received rents from oil that are equivalent to 10% of GDP in 2012.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

400000

500000

600000

700000

800000

10200000

40

CARCHI

43

14

ESMERALDAS

27

18

ZONA NO DELIMITADA (LAS GOLONDRINAS)

20

1100000

Colombia

37

10200000

10100000

-500000

1000000

30

16

-700000

900000

10100000

300000

IMBABURA

11

15

PICHINCHA

3

10000000

10000000

10000000

10000000

17 22

SUCUMBIOS

SANTO DOMINGO DE LOS TSACHILAS

24

10

26

9900000

0

Meters

100.000

12

2

19

-500000 50.000

31

ZONA NO DELIMITADA (MANGA DEL CURA)

NAPO

MANABI

200.000

ORELLANA

9900000

Scale: 1:4.000.000 -700000

28

9800000

9800000

8

COTOPAXI

38

4 9 TUNGURAHUA LOS RIOS

BOLIVAR

48

44

CHIMBORAZO

7

GUAYAS

32

SANTA ELENA

25 42

39

ZONA NO DELIMITADA (EL PIEDRERO)

21

CAÑAR

MORONA SANTIAGO

9700000

46

9800000

PASTAZA

9700000

9800000

Pacific Ocean

23 5

36 GUAYAS

1

AZUAY

47 1 29

9600000

33

9600000

35 EL ORO

13

Peru

34

LOJA ZAMORA CHINCHIPE

9500000

9500000

6

45

41

Scale: 1:1.500.000 0

300000

400000

500000

600000

LOCATION OF THE STUDY AREA REGARDING SOUTH AMERICA. COSTA RICA PANAMA VENEZUELA

GUYANA SURINAM FRENCH GUIANA

Pacific Ocean

COLOMBIA

ECUADOR

BRAZIL PERU

BOLIVIA

50.000

100.000

200.000 Meters

700000

800000

900000

LEGEND HERITAGE OF NATURAL AREAS OF THE STATE. 01, Cajas National Park 02, Cotopaxi National Park 03, Galápagos National Park 04, Llanganates National Park 05, Machalilla National Park 06, Podocarpus National Park 07, Sangay National Park 08, Sumaco Napo-Galeras National Park 09, Yasuní National Park 10, Limoncocha Biological Reserve 11, Galápagos Marine Reserve 12, Antisana Ecological Reserve 13, Arenillas Ecological Reserve 14, El Ángel Ecological Reserve 15, Cayambe Coca National Park 16, Manglares Cayapas Mataje Ecological Reserve 17, Cofán Bermejo Ecological Reserve 18, Cotacachi Cayapas Ecological Reserve 19, Los Ilinizas Ecological Reserve 20, Mache Chindul Ecological Reserve 21, Manglares Churute Ecological Reserve 22, Pululahua Geobotanic Reserve 23, Chimborazo Fauna Production Reserve 24, Cuyabeno Fauna Production Reserve

25, Manglares El Salado Fauna Production Reserve 26, Pasochoa Wildlife Refuge 27, Manglares Estuario del Río Muisne Wildlife Refuge 28, Islas Corazón y Fragatas Wildlife Refuge 29, Isla Santa Clara Wildlife Refuge 30, La Chiquita Wildlife Refuge 31, El Boliche Natural Recreation Area 32, Lago Park, Natural Recreation Area 33, El Cóndor Biological Reserve 34, El Zarza Wildlife Refuge 35, El Quimi Biological Reserve 36, Manglares El Morro Wildlife Refuge 37, Manglares Estuario del Río Esmeraldas Wildlife Refuge 38, Pacoche Wildlife Refuge 39, Puntilla de Santa Elena Fauna Production Reserve 40, Galera San Francisco Marine Reserve 41, Yacuri National Park 42, Isla Santay Natural Recreation Area 43, El Pambilar Wildlife Refuge 44, Los Samanes Natural Recreation Area 45, Cerro Plateado Biological Reserve 46, Playas de Villamil Natural Recreation Area 47, Quimsacocha Natural Recreation Area 48, El Pelado Marine Reserve

DECENTRALIZED AUTONOMOUS SUBSYSTEM 01, Muncipal Siete Iglesias Ecological Area of Conservation

CHILE

1000000

Provincial Division

Colombia y Peru

SOURCE: THE MINISTRY OF ENVIRONMENT

1100000

27 PROTECTED AREAS

THE NATIONAL PROTECTED AREAS SYSTEM INCLUDES CONTROL AND CONSERVATION OF 51 NATURAL RESERVES IN ECUADOR. AROUND 20% OF THE NATIONAL TERRITORY (19.1 MILLION HECTARES) IS PART OF THE SYSTEM.

E

cuador is the world’s most biodiverse country per square foot – a privilege that entails huge responsibilities. Accordingly, it was the world’s first country to recognize nature in its Constitution (2008), and give priority to the integral care of life and its different ecosystems, precaution measures, restriction to harmful activities, and the communities’ right to benefit from their surrounding natural wealth, besides effective restoration mechanisms in case of environmental impact.

The Ecuadorian environmental legislation provides the highest protection for diverse zones defined in its National Protected Areas System, which includes four categories: State Subsystem for Natural Areas, Private Subsystem

for Natural Areas, Protected Community Areas, and Protected Areas of the Decentralized Autonomous Governments.

15

CONSERVATION: NATIONAL PROTECTED AREAS SYSTEM

This system includes zones of great biological wealth and ecosystems that nourish urban and rural populations and are globally recognized for their landscape beauty and ecological importance that are part of the system. The Ministry of Environment is in charge of the environmental policies and processes to manage and control these resources. The Ministry works with local governments, communities, and private sectors to preserve the country’s invaluable natural heritage. ROE

ACCORDING TO FIGURES OF THE MINISTRY OF ENVIRONMENT, EVERY YEAR 15 MILLION TOURISTS VISIT THE AREAS PROTECTED BY THE ECUADORIAN STATE.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

28 PROTECTED AREAS

PROTECTED AREAS NATIONAL PARKS

Galápagos, Machalilla, Cayambe Coca, Cotopaxi, Llangates, Sangay, El Cajas, Podocarpus, Yacuri, Sumaco-Napo-Galeras, and Yasuni.

National parks are defined as conservation areas of landscapes, full ecosystems, and species.

Their environments must be altered the least possible, with the least human presence. Priority activities are related to environment research and monitoring, with the possibility of developing nature tourism to support natural resources conservation.

MARINE RESERVES

Galera San Francisco, El Pelado, Galápagos.

The National Protected Areas System defines Marine Reserve as areas of variable size with marine ecosystems and species related to this environment as areas of priority conservation. The human presence in these places is related to intense fishing and must be adjusted to conservation needs and the zoning defined on the management plans.

ECOLOGICAL RESERVES

The following mangroves: Cayapas Mataje, Mache Chindul, Manglares Churute, Arenillas, El Ángel, Cotacachi Cayapas, Antisana, Los Illinizas, Cofán Bermejo.

These are spaces of variables sizes with scarce human intervention; areas with outstanding natural resources or sites of species with great national significance. The main goal is to preserve genetic matter, ecological diversity, scenic beauty, special phenomena, environmental phenomena, and education. Recreation and touristic activities are permitted in limited areas provided the resource’s characteristics allow them.

BIOLOGICAL RESERVE

Limoncocha, El Cóndor, El Quimi, Cerro El Plateado, Colonso Chalupas.

The main goal is the conservation of complete ecosystems and their species with minimum alteration and human presence. In these reserves the priority activities are biological, ecological, and environmental research, with the possibility of environmental education as a secondary activity.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

29 PROTECTED AREAS

The Ecuadorian State has established different categories for an adequate administration and regulation of 51 protected areas according to each zone’s characteristics as defined by the National System on Protected Areas (SNAP) and the specific needs required for their

preservation. The SNAP, therefore, lists National Parks, Marine Reserves, Ecological Reserves, Biological Reserves, Flora & Fauna Production Reserves, Natural Recreation Areas, Wildlife Refuges, and Geobotanic Reserves.

FLORA & FAUNA PRODUCTION RESERVE Puntilla de Santa Elena, Manglares El Salado, Chimborazo, Cuyabeno.

Medium-sized areas which conservation goals are scarcely altered ecosystems and species subject to management with a high level of human presence (who depend on local biological resources.)

Priority actions are related to wildlife sustainable management, environmental education, ecosystem restoration, and nature tourism.

WILDLIFE REFUGE

La Chiquita, Estuario de Río Esmeraldas, Estuario de Río Muisne, El Pambilar, Isla Corazón y Fragatas, Marino Costera Pacoche, El Zarza, Manglares El Morro, Isla Santa Clara, Pasochoa.

Small area whose main goals are threatened species and related ecosystems. The area’s conservation status must be scarcely altered, with minimum human presence. Conservation actions are related to habitat and species management, research, and environmental monitoring, ecosystem restoration, and environmental education.

NATURAL RECREATION AREA

Playas de Villamil, Parque Lago, Los Samanes, Isla Santay, El Boliche, Quimsacocha.

Medium-sized areas which conservation goal is natural landscape that can be somewhat altered and has average human presence. Tourism and recreation, ecosystem restoration, and environmental research and monitoring are its main activities in this type of areas.

GEOBOTANIC RESERVE Pululahua

This is a species germplasm bank for endangered flora and fauna species. It is an area devoted to wild flora conservation and geological resources The goals of this categorization is to protect the natural status of areas with diverse ecosystems, landscapes, and exceptional geological formations in order to assure the continuity of evolution and natural processes and, at the same time, recover areas altered by human intervention. It offers recreational and educational opportunities.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

30 PHOTOGRAPHY

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

31 PHOTOGRAPHY

CRUISE TRAIN

The Ecuadorian Cruise Train runs from the Pacific coast to the Andean highlands. In the 2016 World Travel Awards it was designated South America’s Leading Luxury Train. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

ECUADOR IS CURRENTLY THE COUNTRY WITH THE HIGHEST PUBLIC I NVESTMENT IN LATIN AMERICA, WITH 11% OF ITS GDP.

33 INVESTMENT

EFFECTIVE PUBLIC POLICIES THAT ATTRACT INVESTMENT AND PROMOTE EMPLOYMENT, STRATEGIC PROJECT DEVELOPMENT; SOCIAL, ECONOMIC, AND EDUCATIONAL TRANSFORMATION; AS WELL AS ITS PRODUCTIVE ENERGY MATRIX MAKE OF ECUADOR A COUNTRY THAT OFFERS GREAT OPPORTUNITIES.

E

cuador’s sound and intelligent economic politics overcame the world market difficulties to become one of the few countries with growing investment in Latin America. The data of the last report issued by the Economic Commission for Latin America and the Caribbean (ECLAC) place it among the five countries in the region with the highest direct foreign investment, with a growth that reached 37%. The country’s results are more relevant if we consider that Foreign Direct Investment in the region dropped 9%, since 2010. ROE

TAX INCENTIVES AND STABILITY FOR INVESTMENTS

32

INVESTORS’ GUIDE

CONTRACTS WERE APPROVED FROM JANUARY TO OCTOBER 2016, FOR USD 1.7 BILLION, WITH WHICH 2,847 DIRECT JOBS WILL BE GENERATED.

To invest in specific sectors and basic industries above USD 100 million, investors may choose tax stability in Ecuador’s income tax, capital outflow taxes and other direct national taxes. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

34 INVESTMENT

93 FOR 2017,

%

OF THE COUNTRY’S ENERGY WILL COME FROM RENEWABLE SOURCES. CLEAN LOW COST ENERGY WILL BENEFIT PRODUCTIVE PROCESSES.

Ecuador records an average GDP growth of 4.2%, the highest in Latin America (2.8%.) This growth rhythm has allowed reducing the country’s poverty to historic levels. Thanks to the implemented public policies and adequate investment, from 2009 to 2015 multidimensional poverty – poverty’s most complete criteria – dropped in 16.5 points, which means 1.9 million Ecuadorians left poverty.

6,624 8,807

4

10

2015

5

2016

DIRECT JOBS

MILLON

2014

WHY SHOULD YOU INVEST IN ECUADOR? ECUADOR’S PROFILE: SOCIAL DEVELOPMENT

USD

2013

At present other areas are under the spotlight – the so-called industrializing industries that have the capacity of generating other productive chain processes, as well as the small industries that surround them.

With them Ecuador expects to rise the Industrial GDP/total GDP coefficient to 25%, i.e., at the level of developed countries.

INVESTMENT CONTRACTS EXECUTION – RESULTS UP TO DATE

2012

Ecuador’s achievements are the fruit of the country’s political stability, a responsible government plan and actions that also reflect economic growth. Inflation shows a single digit, the lowest Latin American average.

In 2015, Ecuador’s GDP was duplicated in relation to 2006 thanks to the income generated by the responsible exploitation of natural resolution, mining investments, and hydroelectric energy exploitation.

44 32

95 Investment Contracts.

44 investment contracts have been approved (cutoff date of October 2016) and are administered by Minister Vinicio Alvarado Source: Coordinating Minister of Production, Employment, and Competitiveness

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

35 INVESTMENT

STATISTICS INVESTMENT CONTRACTS IN ECUADOR 2012 - OCTOBER 2016

HUMAN TALENT DEVELOPMENT

Ecuador has the region’s highest investment in education, with 2.12% related to the GDP. From 2007 to 2015, 18,900 scholarships were granted in the world’s best universities. And more than USD 1 billion were invested in new universities in order to achieve a social economy of knowledge.

INVESTMENT AMOUNT (MILLION USD) 2.500 2.500 2.000 2.500 2.000 1.500 2.000 1.500

Ecuadorian labor’s experience in mega projects performed in strategic sectors makes it highly productive and with great learning capacity. Ecuadorian working wages are competitive as compared to other countries. Ecuador has one of South America’s lowest unemployment rates around 4.5%.

1 , 71 2 ,771 2, 7 72 7

0

2 , 22 4 ,222 4, 2 24 2

5 0 00 0

1 3 81 3 1 83 8

500 1.000 500

4 7 64 7 4 67 6

2 , 02 4 ,202 4, 0 24 2

1.000 1.500 1.000

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

2012

2013

2015

2016

014 DIRECT 2JOBS

5.000 5.000 4.000 5.000 4.000

2.500

3.000 4.000 3.000

2.000 1.500

50

3.000

2 , 82 4 ,782 4, 8 74 7

1,727

2016

2012

2013

2014

2015

2016

2014

2015

2016

0

4

1 0 1 01 0

0

4

5

100

40

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

4

50

5

10 20 10

3 2 3 23 2

20 30 2013 20

4 4 4 44 4

2,847

30 40 30

20

10

44

32

4

0

5

10

2012

Foreign investors are increasingly putting the stakes on the development of industries in Ecuador. Their motivations include regulations that include incentives to investments and simplification of processes. One of the Government’s main milestones was to reduce the approvals and execution of investment contracts from 106 to 50 days. The sectors benefited with contracts include fresh food, frozen and industrialized products, renewable energy, oil services, metal engineering, petrochemical industry, foreign trade logistic services, tourism, cement manufacturing, soap manufacturing.

2016

2015

4,202

2012

30

INCENTIVES TO INVESTORS

2015

2014

309

0

2014

2013

40 50 40

2.000 1.000

2013

2012

No. OF APPROVED CONTRACTS

50

4.000

507

Two new airports have been built and other existing airports have been streamlined. The port system includes 7 State ports and 10 private docks for general and oil load. Fluvial transportation is consolidated through several sailable rivers. Ecuador has installed 23,000 miles of fiber optics, and has an annual Internet access growth rate of 32.8%.

2016

2012

2014

2015

2016

INVESTMENT PER SECTOR (MILLION USD) 2013

MINE & QUARRY EXPLOITATION

1,368

MANUFACTURING

297 4,404 276 203 75

ELECTRICITY SUPPLY TOURISM TRANSPORTATION & STORING AGRICULTURE, CATTLE BREEDING, AQUACULTURE & FISHING

Source: Coordinating Minister of Production, Employment, and Competitiveness

5.000

2015

4 , 24 0 ,224 0, 2 20 2

0

2014

9 4 29 4 9 24 2

. 0 0 00 2 0 1 3 0

3 0 93 0 3 920, 294 2

2 0 1 21

138

1.000 2.000 1.000

942

0

5

500

5 0 75 0 5 70 7

2.000 3.000 2.000

1.000 2,042

Ecuador is strategically located in terms of infrastructure and logistics. According to the Ministry of Transportation and Public Works, transportation infrastructure includes 27,00 miles of roads, the main transportation means.

476

CONSOLIDATED INFRASTRUCTURE NETWORKS

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

36 INVESTMENT

LAWS THAT PROMOTE INVESTMENT Most incentives to attract investment are set forth in the Organic Code on Production, Trade & Investments (COPCI) and the Law for Public-Private Association (APP). The purpose of the COPCI is to regulate productive process in the phases of production, distribution, exchange, trade, consumption, management of external factors and productive investments aimed to Good Living; and the purpose of APP are projects where a public entity delegates the execution and management of services of general interest under its responsibility to a private entity.

ORGANIC CODE OF PRODUCTION The Organic Code of Production includes incentives for foreign investors and public foreign investment.

The main rights granted by the Organic Code of Production are: •

Equality of conditions and protection to national and foreign investments and investors.

•

Protection to investors’ property.

•

Prohibition of any type of seizure.

•

Freedom of production, commercialization, imports and

exports of goods and services in accordance with the current Constitution, laws, and regulations.

•

National and foreign investments are subject to the same Tax Regime.

•

Execution of investment contracts that provide stability upon tax incentives.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

•

Free transfer of profits abroad and investment (upon compliance with tax obligations and other responsibilities as provided by the law.)

37 INVESTMENT

Organic Law on Incentives for Public - Private Association and Foreign Investment With this law, if a private national or international corporation associates with the State, it shall be treated as a public company. In other words, it will be exempt of foreign trade taxes on materials or equipment used in the infrastructure. Additionally, they will have a 10-year income tax exemption.

The rule promotes capitals from abroad invested in the national financial system through the profit produced from such capital and withdrawals without paying taxes.

IMPORTS TAX EXEMPTION

TAX INCENTIVES • •

10-year income tax exemption as of the first year of operation.

•

Project-related imports duty exemption.

•

Project-related imports VAT exemption.

SECURITY •

Legal stability for essential aspects of the investment’s development and applicable incentives.

vOverseas remittance tax (5%) exemption on imports, financing, and dividend payment.

FIRST APP APPROVED PROJECTS APP RÍO 7HUAQUILLAS ROAD

PUERTO POSORJA

PUERTO BOLÍVAR

DATE OF APPROVAL

June 2016.

Mayo 2016.

May 2016.

PURPOSE

Design, financing, construction, operation, and maintenance of the Río 7 – Huaquillas Route.

Private development of the first deepwater port (50 ft. draught) of the first deepwater port in Ecuador. The project includes building a new heavy traffic road.

Design, financing, equipping, additional work execution, operation, and maintenance of the port terminal in Puerto Bolívar (El Oro.)

ESTIMATED INVESTMENT

USD665 million.

USD1,274 million

USD750 million.

JOBS GENERATION OF NEW JOBS

3,000 new jobs are expected 2,000 new jobs are expected during the construction during the construction and 1,000 and 1,000 jobs during the operation. jobs during the operation.

600 direct jobs, 1,800 indirect jobs

PARTNER

CONSUR, a Colombian – Ecuadorian consortium composed

by Colombian firm LATINCO and Ecuadorian firm FOPECA S.A

Turkish firm Yilport belonging to YILDRIM Holding present in several industrial sectors, including mining, energy, naval construction, fertilizers, logistics, and port management.

DP World, a corporation with a portfolio of 77 operating seaport and internal terminals in 40 countries in the 5 continents. It manages around 62 million TEUs.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

38 INVESTMENT

INVESTMENT PROJECT CATALOG The Government has designed a catalog of projects to orient national and international investors and financial institutions on public and private investment opportunities in Ecuador. The projects are divided in: See graph on page 65.

STRATEGIC SECTOR PROJECTS

USD

The Constitution of the Republic of Ecuador provides that energy in all its forms, telecommunications, non-renewable natural resources, hydrocarbons, biodiversity, the genetic heritage, radio electric spectrum, water, and others are the nation’s strategic resources. The investments catalog in these sectors, between public and private, amounts to USD 28,745 million.

28,745MM

STRATEGIC SECTORS

BASIC INDUSTRIES

3,910MM

*MINING

113MM

OIL

BIOENERGY

17,034MM 1,155MM

HYDRIC RESOURCES

727MM

RENEWABLE ELECTRICITY & ENERGY

5,786MM

*Several mining projects are in the prefeasibility phase and, thus, no specific investment amount has been determined yet. *Cutoff date of October 7, 2016

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

39 INVESTMENT

PUBLIC-PRIVATE INVESTMENT PROJECTS LOGISTICS INFRASTRUCTURE Ecuador is the entrance door to the Andean market, which has an approximate population of 100 million people. To guarantee an Intermodal and Multimodal National Transportation System supported on a transportation network with international quality standards. The projects include high capacity roadways, seaport and airport operation, and port logistics development.

INDUSTRIAL SECTOR This sector seeks to generate favorable conditions for Good Living by transforming the industrial specialization pattern. The main projects are the eco-industrial park, engineering and matrix material center, irradiation plant, ceramic product manufacturing, and biogas plant.

AGRO-INDUSTRY The agroindustrial sector in Ecuador is quite broad. Several products that are mainly grown mainly for internal consumption stand out, such as corn, rice, and sugar. The main exporting agroindustrial products include African palm and broccoli. Other investment projects include fish and oyster production, grape and avocado crops, semi-processed or finished goods.

AGRO-FOREST SECTOR Because of its geographic situation and climate diversity, Ecuador is a forestry paradise with available land and strategic location for demanding markets. The sector has special incentives through the State’s forestry incentive program ready to disburse and/or reimburse part of the costs of establishing and maintaining forestry plantations.

TOURISM The main goal of this sector’s project catalog is to turn Ecuador into a tourism potential, some of which are focused on real estate with hotel or touristic potential, construction of natural touristic resorts, river transportation, and one interactive museum.

REAL ESTATE INFRASTRUCTURE The real estate sector seeks to contribute to the country’s development through projects that guarantee a National Human Settlement System.

Urban development plans, housing programs and plans, an autonomous system for commercial centers, the Government Platform, citizen service centers, surveillance units, and community police units are highlighted.

PUBLIC COMPANIES AND AUCTIONS The President of the Republic Rafael Correa confirmed the sale, merger, diversification of capitals, and liquidation of at least 16 institutions – including goods – with the aim to optimize the public apparatus.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

REHABILITATION REFINERIES

In the period 2007-2015, Ecuador received more than 25 billion dollars in public and private investments. The country saves 358 million dollars per year to reduce byproduct imports with the repowering of the Esmeraldas Refinery, one of the sector’s most emblematic plants. ROE

PART II

SPACE MACH INE RY

THE FOUR WORLDS

Ecuador is the world’s most biodiverse country per square feet. It has four natural regions in a geographically small territory (approximately 283 sq. km), which helps going from one region to another in short periods of time. ROE

43 TOURISM

TOURISM QUALITY DEVELOPMENT IN THE LAST DAYS ECUADOR HAS RECEIVED MORE THAN 145 INTERNATIONAL RECOGNITIONS AND AWARDS FOR DEVELOPING THEIR TOURISM CAPACITIES AND QUALITY. IT IS THE RESULT OF STATE POLICIES AND PLANS FOCUSED ON POTENTIATING THE COUNTRY’S INNUMERABLE ATTRACTIONS.

I

n the last decade Ecuador has undergone unprecedented tourism development. Road and airport connections, communications promotion, the country’s promotion outwards,

besides strategic investments, development plans, and strengthening such sector’s capacities currently place the country as one of the Latin American countries with the highest touristic growth. ROE

TOURISM IN ECUADOR BECAME A NATIONAL PRIORITY THAT IS INCLUDED IN THE AGENDA OF EVERY MINISTRY AND STATE ENTITY THROUGH THEIR DIFFERENT STRATEGIC LINES.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

44 TOURISM

Ecuador’s touristic growth has taken efforts. The result is a government plan and public policies focused on making of this activity one of the core axes for development.

Tourism, hence, became one of the national priorities that are included in the agendas of all ministries and State entities through different strategic lines. The sequels of this administration are evident. In the area of tourism, Ecuador’s growth was three times faster than the world average and two times faster than the rest of Latin America, with a 47.4% foreign tourism increase rate in the period between 2010 and 2015.

ECUADOR THE ROYAL TOUR In April 2016 Ecuador launched The Royal Tour, a 60-minute documentary that shows the country’s charms in its four regions: Coast, Sierra, Amazon, and Galapagos. This video was performed by US journalist Peter Greenberg with the participation of Ecuadorian President Correa, who guides the director in a trip through the country’s natural and cultural wonders. Andean landscapes, humpback whale watching, sea lion herds on the Galapagos islands, the centennial Ecuadorian railroad, indigenous tissues and crafts at Otavalo’s Poncho Plaza, the cupules of Quito historic center’s churches, and a flight over Cotopaxi Volcano are some of the scenes that appear on this documentary financed by private investments.

12

ACCORDING TO THE MINISTRY OF TOURISM OF ECUADOR

.1%

IS THE AVERAGE ANNUAL INCREASE OF THE COUNTRY’S CURRENCY INCOME BETWEEN 2007 AND 2015 ON ACCOUNT OF TOURISM ACTIVITIES.

2015 IN

THE COUNTRY RECORDED A 47.4% GROWTH IN FOREIGN TOURISM ARRIVALS IN RELATION TO 2010.

492.2

THE COUNTRY’S TOURISM INCOME PASSED FROM

MILLION TO 1,557.4 MILLION BETWEEN 2006 AND 2015, WHICH REPRESENTS AN AVERAGE ANNUAL GROWTH OF 13.7%.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

45 TOURISM

USD 765 million was invested in new tourism projects and extensions recorded in Ecuador between May 2015 and May 2016.

Ecuador declared 2015 as the Year of Tourism Quality, which encouraged companies, hotels, and restaurants related to this activity to improve the quality of their services.

According to the Ministry of Tourism, 1 out of 20 jobs in Ecuador depends on the touristic sector.

STRATEGIC DEVELOPMENT In order to take advantage of Ecuador’s great potential, the Government has made permanent efforts to strengthen this sector and turn it in the first source of non-oil source until 2018. The Ministry of Tourism, through a budgetary investment 10 times higher than in 2006, has started numerous strategic plans based on five essential pillars: Security, Quality, Connectivity, Destinations & Product, and Promotion.

Ecuador has worked upon these strategic axes for almost one decade to improve the quality of its touristic services, to stimulate national and foreign investments, and strengthen local and international promotion. At this point, the campaign All You Need is Ecuador marked an important milestone in the history of promoting the country’s natural and cultural charms and reached around 455 million people

around the world.

Likewise, through the National Touristic Training System focused on improving service quality in this sector, 10,017 people were trained at operative and administrative levels, 728 companies were awarded with the Q Brand, which endorses touristic quality, and 5,532 people received a diploma of excellence in Labor Competences.

Ecuador achieved, for four consecutive years, a surplus in its tourism balance, which in 2015 was estimated in USD 650 million. According to data of the Ministry of Tourism, the average annual increase of this item between 2007 and 2015 is 12.1%, which proves the investors’ increasing trust in the country and in undertaking tourism and hospitality projects (Please see tourism figures on the right column.)

AWARDS & RECOGNITIONS Ecuador’s efforts have not gone unnoticed by international organizations that promote tourism development in the world. In the last years the country has received more than 145 recognitions and international awards in events such as World Travel Awards (WTA), deemed the Oscars of Tourism, World’s Leading Green Destination for four

consecutive years, and Leading Destination in South America, besides recognitions from Rainforest Alliance, Lonely Planet, National Geographic, and a long list of awards that highlight the country’s quality of touristic products and services. Below (next page) are some of the awards received:

20 tourism projects in construction were recorded

by May 2016. For 2017, the Ministry of Tourism plans to consolidate other 30 projects with national and foreign investments.

In 2015, the Ministry of Tourism participated in 20 international tourism fairs and events.

With an investment of USD 3.8 million, Ecuador became the first country in advertising a tourism promotion video in the Super Bowl in February 2015.

According to the Ministry of Tourism 1.5 million of foreign tourism visited Ecuador during 2015.

According to studies of the World Economic Forum, Ecuador is part of 25% of the world’s countries with the main touristic potential.

In 2007, in Ecuador, 285,322 direct and indirect jobs were generated in Ecuador related to accommodation and food and beverage services. For the fourth quarter of 2015 this figure reached 434,249 jobs.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

46 TOURISM

• In 2015, Ecuador received 15 prizes at the WTA Latin America and 16 prizes in 2016.

The country was internationally acknowledged for the fourth consecutive year as South America’ Leading Green Destination, and its capital, Quito, was also recognized for the fourth time with the region’s Leading Destination award.

• In 2016 the city of Guayaquil was awarded with the WTA South America’s Leading Business Destination; and the Cruise Train was acknowledge as South America’s Best Luxury Train (2014, 2015 & 2016.)

• In 2016, WTA recognized Mariscal Sucre International Airport of Quito as South America’s Leading Airport (2014, 2015 & 2016.)

• Ecuador was elected member of the Executive council of the World Tourism Organization for the period 2014–2017.

THE COUNTRY OF THE FOUR WORLDS You will find I all in only one place. Coast, Andes, Amazon and the Galapagos Islands, on a geographically small territory (approx. 110,000 sq. miles), which facilitates visiting the country’s touristic marvels in short periods of time and change in a few hours paramo or volcano landscapes in the Andes Cordillera to the exuberant tropical Amazon forest, to heavenly beaches on the Pacific or unique flora and fauna on the Galapagos.

Ecuador has also been internationally recognized as the world’s most megadiverse country per square meter.

In its territory it concentrates around 10% of all the planet’s plant species, more than 1,600 types of birds

(36 of which are endemic to Galápagos), 324 varieties of mammals, 350 species of reptiles, 400 amphibians and the most diverse Amazon forests that shelter more flora and fauna species per hectare than all Europe or the United States.

If we add its privileged location in the middle of the world (latitude 0º0’0’’), the cultural wealth of the native peoples, the European influence reflected on its colonial architecture and mestizo processes, and the combination between heritage and modern that is evidenced in the cities left, we can better understand the recognitions obtained by the country in the last years.

STAR PRODUCTS 1. CRUISE TRAIN

• Airport Service Quality Awards 2014 recognized airports José Joaquín de Olmedo of Guayaquil and Mariscal Sucre of Quito as the best in America and the Caribbean.

• The World Tourism Organization acknowledged advertising spot All You Need is Ecuador, launched in April 2014, was recognized as the Best Video in the Americas.

Ecuador’s centennial railroad is a master’s work of engineering and an invaluable historic piece that crosses ravines, paramos, lakes, rivers, and mountains from the Andes to the Pacific Coast. Upon its recovery process that started in 2008, it has become once again the symbol of national unit and has received relevant international awards. Its most important product, the Cruise Train, is

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

deemed one of the world’s 10 best touristic railroads. In 2013, the British Guild of Travel Writers awarded it with the Wider World Project. And in 2014 and 2015, it was named South America’s Best Luxury Train at the World Travel Awards. The Cruise Train’s full route includes around 280 miles that reach altitudes of 20,00 ft. above sea level and rides to the sea.

47 TOURISM

2. GALAPAGOS ISLANDS

3. YASUNÍ NATIONAL PARK

It is one of the country’s main touristic and scientific attractions. The Galapagos Archipelago was declared Human Heritage in 1978. Unique plant and animal species live there, including giant turtles, the world’s smallest penguin, the only non-flying cormorant, 13 types of finches, large colonies of sea lions, and others. Galapagos has the planet’s second largest marine reserve with a protected area of 52 sq. miles.

With more than 500 bird species, 173 types of mammals, 62 varieties of snakes, 100 species of amphibians, and 655 types of trees per hectare, the National Yasuni Park is the planet’s most biodiverse site. With 2.5 million acres, Unesco declared it a Biosphere Reserve in 1989. This natural sanctuary also shelters native peoples who live in harmony with the Amazon forest.

1

2

3

4

4. QUITO, GUAYAQUIL & CUENCA

Quito, capital of Ecuador, has the largest and best preserved Historic Center in Latin America, which Unesco declared first World Heritage. It shelters marvels like the Railroad Station, innumerable churches, convents, El Panecillo Virgin, and others. Guayaquil is the country’s largest and most economically developed city (approx. 2.5 million people.) Its main attractions include Simón Bolívar Dock and Las Peñas Neighborhood. Known as the Athens of Ecuador, Cuenca is the third largest city declared World Heritage in 1999. Its colonial-republican architecture, beautiful Historic Center, and broad cultural offer make it a mandatory destination. Its touristic offer includes Puente Roto (Broken Bridge), Calle Larga (Long Street), the Cathedral, and Cajas National Park. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

ONE ROAD NETWORK THAT CONNECTS THREE REGIONS COAST /ANDES /AMAZON

49 INFRAESTRUCTURE

50

SYSTEMIC COMPETITIVENESS: KEY FOR DEVELOPMENT

Years is the useful life projection of the roads built in Ecuador.

From 2007 to 2015 the national economy grew 4% and has shown sustained stability in policies with a clear goal: to encourage foreign investment.

THE CONTINUOUS IMPROVEMENT OF ROAD, SEA, AND AIR CONNECTIVITY HAS INFLUENCED ECUADORIAN COMPETITIVENESS ENHANCEMENT. THE GOVERNMENT IS LEADING A NEW MANAGEMENT MODEL BASED ON TECHNOLOGICAL DEVELOPMENT AND INNOVATION.

E

cuador is the fastest growing country according to the World Competitiveness Ranking. According to the Global Competitiveness Index Ecuador has scaled 27 positions in the last eight years. To achieve this, government policies were mainly focused on investing in R&D companies, intellectual property protection, and economic market development.

Likewise, the Ecuadorian Government has potentiated telecommunications and sought progress in mobility, transparency of public institutions and, above all, has lead a revolution in the field of education and health. In the last

years rules have been aimed to promote national and foreign private investment, such as the Production Code, the PublicPrivate Alliance Law, the Telecommunications Law, and the Law on Incentives for the Productive Sector.

A central part of promoting the Ecuadorian industry is connectivity. The national agenda includes infrastructure that allows enhancing all the sectors of the economy by expand the access to Information and Communication Technologies (ICT), super highway construction, airport modernization, and the intervention to optimize the ports. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

50 INFRAESTRUCTURE

FIRST-LEVEL ROADS, PROMOTION TO THE PRODUCTIVE SECTOR One of the roads that lead to a country’s progress is undoubtedly based on its connectivity. For this reason, one of Ecuador’s most emblematic current works is its huge road network of 6,000 miles.

The World Economic Forum data place the country as the region’s best in roads. The excellent roads not only show Ecuador’s best face, but also help developing the productive sector.

Besides contributing to the work of farmers and entrepreneurs, they also promote tourism and save communication times between cities, which has had

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

a positive impact on the Ecuadorian economy.

Road construction also means signaling with retroreflective paint, side paths for the nearby populations, and cycle routes. For future projects service and rest areas are planned. Drivers will find parking spaces, food, restrooms, and safe and mechanic rest areas. Thanks to public-private alliances four super highways will be built: Santo Domingo-Quevedo-Jujan, Naranjal-Río Siete, Río Siete-Huaquillas, and Santo Domingo-Esmeraldas.

The projects include 332 miles of roads with an investment of USD 6,229 million.

51 INFRAESTRUCTURE

CONNECTIVITY WITH ALMOST 100 WORLD DESTINATIONS

NEW PORTS WITH POST PANAMAX CAPACITY

DEMOCRATIZATION OF TELECOMMUNICATIONS

Connectivity is one of the country’s pillars for tourism development. More than USD 287 million have been invested in rehabilitating 10 airports and build 2 air terminals, including the Mariscal Sucre Airport in Quito, which has been chosen in the top 10 by the International Airport Council. The work coordinated with airlines to promote new routes and frequencies have expanded the country’s air capacity to almost 100-world destination.

According to 2015 America Economy Intelligence, Ecuador ranks among the 10 countries with the best ports in Latin America. To increase competitiveness the Government has adapted port terminals to receive large Post Panamax ships, from the Panama Canal expansion. One of the main national milestones is the full construction of the Posorja Deep Water Port that will be one of the main ports in the South Pacific.

The country has 60,000 km of fiber optics, 17 times more than in 2006. Other achieved goals were passing from 3% access to Internet in 2006 to 50% in 2015 based on the Digital Ecuador Digital Strategy included in the National Broadband Plan, the implementation of community information centers, and school connectivity expansion. In the last nine years the country invested more than USD 7 billion in the telecommunications sector, USD 2.27 billion from public investment.

THE SECOND COUNTRY WITH BROADBAND GROWTH IN THE REGION

THE ECUADORIAN ECONOMIC PHILOSOPHY

180

The State’s goal is contributing to change the productive matrix by generating opportunities and jobs with the use of Information & Communication Technologies (ICTs.)ICTS growth has direct impact on changing the productive matrix and the social-economic development indicators. In Ecuador, for every 1% of broadband penetration there is 0.052% GDP growth. Therefore, Mintel planned to quadruplicate the current ICT production in order to reach 5% of the GDP in 2017.

-DEGREE TURN TO PROMOTE THE COUNTRY’S STEP TO SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY & INNOVATION.

2

THE PROJECT CONNECTIVITY & EQUIPPING PROVISION, PROMOTED BY THE MINISTRY OF TELECOMMUNICATIONS AND SOCIETY OF INFORMATION (MINTEL), BENEFITS 7,000 PUBLIC ELEMENTARY AND HIGH SCHOOLS IN ECUADOR.

EDUCATION INSTITUTION. SCIENTIFIC MAGAZINE NATURE MADE THIS RECOGNITION TO YACHAY UNIVERSITY TECH FOR ITS CONTRIBUTION TO SCIENCES AND ENGINEERING IN 2015.

ND

Ecuador’s society of knowledge progresses at a steady rate. Conferences, meetings, and visits to universities like Yale, Harvard, and Massachusetts Institute of Technology (MIT) are parte of an agenda oriented to strengthen academic contacts and collaboration projects. Yachay is the emblem of this changing process that promotes building a virtuous circle between the State, the academic, corporate sectors, and social stakeholders. This structure includes one sector for agriculture and biotech sciences, one zone of knowledge for the university that bears the same name, research institutes, and an area that will include an industrial complex.

ECUADOR’S

ECONOMY OF KNOWLEDGE

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ELECTRIC SECTOR

According to the UN World Energy Council, Ecuador ranks fifth place in energy security. ROE

PART III

SO CIO NAU TS

MORGAN DOYLE

55 INTERNATIONAL FIGURE

ECUADOR HAS TAKEN IMPORTANT MEASURES TO PROMOTE PRIVATE INVESTMENT. THE FIRST RESULTS CAN BE SEEN IN THE RECENT EVOLUTION OF DIRECT FOREIGN INVESTMENT AND THE EXECUTED PUBLIC-PRIVATE ALLIANCE PROJECTS.

“ECUADOR HAS POTENTIAL TO ATTRACT FOREIGN INVESTMENT” MORGAN DOYLE, IDB REPRESENTATIVE IN ECUADOR

M

organ Doyle holds a master’s degree in International Development from USA Brown University. He started serving with the Inter-American Development Bank, IDB, in 2000 as Operations Specialist in the Regional Operations Department 2, where he also served as Multi-Sectorial Specialist. Later Mr. Doyle was appointed Senior Sectorial Specialist in financial topics and Senior Sectorial Advisor for the Vice Presidency of Sectors and Knowledge. As of May 2013, he is serving as the representative of the Inter-American Development Bank in Ecuador.

How does the Inter-American Development Bank see the progress made in Ecuador?

In the last decade Ecuador was consolidated as a middle-income country that has made a series of significant social progress. Poverty dropped in almost 15 percentage points – something that rarely happens in such a short period that was performed together with a substantial improvement of wealth distribution. Other remarkable progress includes formalized labor and a significant reduction of insecurity, which is the main problem that afflicts average Latin American citizens.

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56 INTERNATIONAL FIGURE

“ECUADOR HAS MUCH TO OFFER IN THE AREA OF PUBLIC-PRIVATE ASSOCIATIONS, WHERE WE HAVE COLLABORATED VERY CLOSELY WITH THE AUTHORITIES.”

There are also important investments made in the areas of health, education and, in general, to improve human skills through ambitious scholarship programs and early childhood development. Finally, in Ecuador there is outstanding investment in human capital development, and this is reflected in reducing poverty and extreme poverty.

How does the energy matrix change contribute to generating entrepreneurships and international investments and what aspects does the IDB take in consideration to support the country’s energy sector?

The change of the Energy Matrix is Ecuador’s flagship strategic plan that resulted from the effort of investing in large hydroelectric stations

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and promoting projects with renewable energies aimed to generate clean energy, improve transmission infrastructure and electricity distribution, and expand the service coverage through expanding network to communities that did not have electricity at all or had poor electric services.

The change of the Energy Matrix included in the National Plan for Good Living is an ambitious strategy that has brought great benefit for the country. We are very much pleased to accompany this process closely by supporting the construction of more than 3,000 individual transmission and distribution projects conducted by the Ministry of Electricity and the sector’s companies, together with other institutional support.

57 INTERNATIONAL FIGURE

We like to mention Ecuador’s efforts in reducing total electricity loss in a very short period of time, which is a regional landmark. Loss reduction is 10 percentage points - 22% to 12% in 7 years.

What specific projects is the IDB currently supporting in Ecuador?

The IDB is the main source of multilateral financing in Latin America and the Caribbean, including Ecuador. Since1959, when the country executed the IDB’s constitutive act incorporation we financed a series of individual projects and provided technical assistance for technology transfer, training and knowledge projects that are at the core of our activities. Regarding projects specifically, in Ecuador our portfolio currently exceeds USD 3 billion; there are 32 projects with a significant focus on infrastructure and electricity. Other projects include improving citizen services; we have collaborated in social and education infrastructure with the millennium schools, infant centers for Good Living, and health centers. The portfolio is very broad and, in summary, includes electric, water, training, education, health early childhood development infrastructure, strengthening public institutions, etc.

How is IDB planning to support Ecuador’s corporate sector?

The IDB firmly believes in the importance of working together with the private and public sectors. The goal is to increase productivity in Ecuador and assist entrepreneurs to be more productive. The IDB Group has mobilized around US$1 billion to finance private projects in Ecuador with both IDB and third-party resources, and currently has an active portfolio of around US$500 million. Our environmental, social and other policies help other investors who wish to contribute. We have a large range of projects with the financial and agro business sectors; the latter is a central axis of our strategy

with the private sector. All this undergoes strict enforcement of environmental and social policies, but also a search for shared value where all stakeholders benefit.

for the April 16 earthquake. How is the country’s management regarding reconstructions activities and economic reactivation?

Besides the traditional products (cacao, roses, bananas, shrimp, coffee,) does Ecuador offer other attractive sectors for foreign investments?

We have collaborated closely with the authorities in the immediate response after the earthquake, but also with rehabilitation and reconstruction activities. At the request of the Ministry of Finance, the IDB had a contingent line of credit for this type of contingencies. This line was implemented and resources were transferred immediately. We were in contact with the authorities and in a few hours the resources were ready to finance the first efforts made by the Government. I must say that we also saw great solidarity and responsibility from all the Ecuadorian people, including different authorities in areas such as electricity, education, roads, electricity substations, shelters for the victims, food, portable restrooms, medical input and equipment supplies, potabilizing plants, drinking water rehabilitation systems. Electricity was reestablished very soon, 25 semi-permanent schools started operating almost with no delay – deep work was performed in several sectors, all absolutely priority for the country.

Ecuador is undoubtedly a world power in those products and that motivates us to continue working to strengthen them. We believe that there is still much to do with shrimp, cacao, bananas, coffee, but Ecuador also has much to offer in the field of public-private associations, an area where we have collaborated closely with the authorities. There is a series of infrastructure projects in this topic: road and drinking water, as well as hospitals, ports, electricity projects – a very broad range of project that are being discussed and where we see great potential for investors.

The IDB approved a line of credit

Do you believe Ecuador offers conditions for new investments?

Of course! There are very attractive activities for investors. The new industrial policy is a very interesting tool launched by the Government that identifies the sectors with the main opportunities for local and international investment opportunities. There are definitely challenges, but as the world’s most mega diverse country per square kilometer, with deep water ports under construction and improved infrastructure. I would also underline the private sector’s eagerness of doing innovating things. In general, Ecuador is a destination with potential to attract foreign investment, and I have seen this in events with international investors. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

TONI PUIG

59 INTERNATIONAL FIGURE

BETWEEN 2007 AND 2015, ECUADOR HAS GRANTED 18,900 SCHOLARSHIPS IN THE WORLD’S BEST UNIVERSITIES.

ON THE ROAD TO DEVELOPMENT, WHICH IS VERY LONG, YOU ARE RUNNING.

T

oni Puig’s city, where he has worked 32 years, is located on the Mediterranean Sea. Together with a ‘team of teams’ as he calls them, the beauty of a metropolis that had been neglected for years was revealed, and today is considered one of the most advanced, cosmopolitan, and modern European city: Barcelona. This is why when I asked him how he feels in a city placed in the middle of the mountains – Quito – he said it’s like being a little closer to heaven.

Toni is currently traveling around the world, sharing the experience of re-potentiating his city. He says he likes politics, not conceived “in the old way” but as a service provided to the people to collaborate with them with the aim to build a better city. His battle started in the 70s with the magazine called Ajoblanco (White Garlic.) In those times, he states, although they were very poorly educated, they were struggling for the rights of citizens during Franco’s dictatorship, requiring politicians to work for the people and not for themselves, and creating an environmentally-friendly, diverse society. At that time discussing such topics seemed foolish; however, forty years later, the world proved them right. During his stay in Quito, he told us that the road to development is long, but that he believes that Ecuador moves ahead at great speed. ROE

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60 INTERNATIONAL FIGURE

”I WOULD LOVE TO SEE QUITO BECOME LATIN AMERICA’S CULTURAL CAPITAL. AND IT HAS MANY POSSIBILITIES BECAUSE THIS CAPITAL IS THE HEART OF ECUADOR.”

Is this your first time in Quito?

It is the third. I don’t remember the reason for coming the first time, but I do know it was the year when they finished restoring La Compañía Church. The second time was for the European summit of political communicators that was held here and I gave a lecture at the end of the summit in this wonderful crystal house you have...

It must have been Itchimbía…

Exactly! It was wonderful, but it was very cold.

Anyway, night was falling when the conference started, and all Quito started lighting up. We felt in heaven, talking about communications, politics, and the future. That time I also saw La

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

Compañía Church finished. It really fascinates me. It’s the most interesting baroque church in Latin America.

What is a country brand’s function?

My opinion on country brands differs from that of most people, advisors, or professors. I respect them all, but I have a different view. I think that a country brand must be addressed to the citizens for them to participate in the country’s development; because a country progresses when all the citizens collaborate together. After this, or simultaneously, a country brand must position the country at a top category among Latin American countries.

It must place the country’s most interesting

61 INTERNATIONAL FIGURE

products to compete in the global market and, most important, to attract skills and, later, tourists. A country brand is like an accordion –it is quite complex.

How can we create a country brand that raises the people’s self-esteem?

I like your country brand, it’s good. But I think that you will have to change it in a couple of years. The brand “Ecuador loves life” is good, it is very good graphically, but is not enough because a country brand starts with the citizens’ self-esteem. I think that Ecuador is stronger now. In my opinion the country must offer many opportunities for residents, for visitors, and for people who wish to develop their skills.

Improving its quality of life – which is a key topic – makes a country with better opportunities and you are strongly achieving it.

So you believe that now Ecuador has developing potential?

Of course. You were lagging behind – and I tell you this with all my love. Your former presidents didn’t do much for the country; perhaps they worked a lot for themselves or their parties, but not for the country, for utilities, sanitation, to improve productivity, roads. Now you are on the road to development, which is very long, but you are running.

What aspects in Ecuador do you believe are in the right direction?

I really believe in cities. And when I say ‘cities’, I also mean

peoples. So I believe that you have made much progress as a government – now is the time for cities! You must have seven or ten cities with high quality of life that lead the country’s future. This network of cities must be the model and banner.

And one of the cities must lead this movement – Quito.

Quito should lead this network and join the network of cities in Latin America. I would love for Quito to become the cultural capital of Latin America. And it has many possibilities because this capital is the heart of Ecuador – the symbol of the regional north-south dialogue. We are fed up of teachings from the North; we want the South to speak up! Let’s decide how we want to live; a world for the citizens, not for the large financial groups, where differences are an advantage and not a disadvantage. ROE

What is your current vision of Ecuador?

I think that Ecuador should be among the first places in Latin America. I know it isn’t easy – there are much bigger countries – but in these last years Ecuador has created social policies and infrastructure with a Government team that believes the country must be recovered for the citizens and, based on such equality, must generate creativity and more initiatives.

How can we reach equal development by respecting diversity?

Firstly, quality utilities for all citizens and in all towns. Equality is not reached because we have better companies – and I am in favor of private sector – but because we have good utilities, education, sanitation, culture, housing, transportation in all towns, in all neighborhoods, and good communications as well, because we are living in the twenty-first century.

Everything else comes after all this – economic opportunities for medium-sized companies that manufacture very good products.

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AIRPORT MARISCAL SUCRE

Quito’s air terminal was awarded as the region’s Leading Airport at the 2016 World Travel Awards; and the Best South American Airport at the Skytrax World Aiport Awards this year. ROE

PART IV

INTO THE FUTU RE

64 INFOGRAPHICS

INVESTMENT IN ECUADOR

EXECUTION OF INVESTMENT CONTRACTS (2012-2016)

SECTOR

SECTOR

EXPLOITATION OF MINES & QUARRIES

INDUSTRY

No OF CONTRACTS

No OF CONTRACTS

3

55

AMOUNT (MM USD)

AMOUNT (MM USD)

4,404

1,368

DIRECT JOBS

DIRECT JOBS

1,302

95

SECTOR SUPPLY OF ELECTRICITY, GAS, VAPOR & AIR CONDITIONING

21

5

AMOUNT (MM USD)

276

AMOUNT (MM USD)

297

DIRECT JOBS

1,419

DIRECT JOBS

5,114

MILLION DOLLARS

No OF CONTRACTS

No OF CONTRACTS

APPROVED CONTRACTS

6,624 8,807

SECTOR TOURISM

209

SECTOR AGRICULTURE, CATTLE BREEDING, FORESTRY & FISHING

SECTOR TRANSPORTATION & STORAGE

No OF CONTRACTS

No OF CONTRACTS

6

AMOUNT (MM USD)

AMOUNT (MM USD)

75 DIRECT JOBS

596

3

203 DIRECT JOBS

167

DIRECT JOBS

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Source: Coordinating Minister of Production, Employment, and Competitiveness

65 INFOGRAPHICS

INVESTMENT OPPORTUNITIES IN ECUADOR * USD amounts are approximate *Cutoff date of October 7, 2016

BASIC INDUSTRY

LOGISTIC INFRASTRUCTURE

AMOUNT

AMOUNT

3,105 MM HYDRIC SECTOR

AMOUNT

488 MM

REAL ESTATE INFRASTRUCTURE

AMOUNT

1,786 MM

2,145 MM INDUSTRIAL SECTOR

AMOUNT

534 MM

TOURISM

AGROINDUSTRY

AMOUNT

AMOUNT

430 MM

31 MM

AUCTIONS GOODS

23MM

Source: Coordinating Minister of Production, Employment, and Competitiveness

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66 INFOGRAPHICS

COMPLIANCE W I T H T H E M I L L E N N I U M D E V E LO P M E N T G O A L S 14%

14.0%

12%

10.9%

8% 4% 2003 2%

2004

0% 2003

2004

2005

25%

2010 2011 MDG target MDG target

2012

2013

2014

7.7%

2011

8.6% 7.7% 7.7%7.7%

2010

2007

2008

2009

2010

2011

69.0%

2014

4.8%

2012

3 2011

2014

4.8% 4.8%

4.8%

64.4%

2010

61.1%

2009

65.7%

2014

2014

62.2%

2008

2013

62.2%

2007

74% 72% 70% 68% 66% 64% 62% 60% 58% 56% 54%

18.8

2012

GOAL

GOAL

14.2%

96.3% 95.1% 95.4% 96.0% 98% 94.6% 94% 98% GOAL 95% 93.5% 96.3% 95.1% 96% 95.4% 91.6% 93.2% 96.0% 96.3% 92% 96% 95.1% 95.4% 96.0% 98% 91.7% 94.6% 94% 90% 94% 94.6% 93.5% 96.3% 95.1% 89.9% 96% 95.4% 96.0% 93.5% 91.6% 93.2% 92% 91.6% 93.2% 88% 92% 91.7% 94.6% 94% 91.7% 90% 93.5% 86% 90% 89.9% 91.6% 93.2% 92% 89.9% 88% 91.7% 88% 90% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 89.9% 86% 86% 88% Goal Percentage of children registered in basic education 2011

2014 2013

2009

2007

2008

2009

2007

2011 2012

4,820

2010

4,666 2006

2010

2011

Percentage of children registered in basic education

Goal

Goal

2012

2013

2014

14.4

Goal Percentage of children registered in basic education Percentage of children registered in basic education

5,631

2006

15.1

2005

2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

15.5

2008

5,902

2005

83.1

2010

102.2

13.7%

14.8%

15.0%

86%

4

110.7

13.4%

5

109.8

96%

16.0% 16.9% 18.2%

2009 2008 0

1,000

2,000

3,000

4,000

5,000

6,000

2004 2003

7,000

0%

5%

22.1% 10%

4,007

21.8% 15%

4,178

20.4%

20%

4,477

25%

13.6

REPÚBLICAOF DEOPPORTUNITIES OPORTUNIDADES I ELCENTER CENTROOF DEL MUNDO REPUBLIC I THE THE WORLD

2005

Source: Senplades-INEC-PNUD-SNU; “Millennium Goals - Ecuador Balance 2014”; year 2015; 1st edition; Quito-Ecuador.

Cut to July 17, 2015

2010

153.9

GLOBAL MALNUTRITION (CHILDREN < 5 YEARS OLD)

2014

2008

49.2

67.6%

1990

2013

2013

2014

10% 14% 14% 12.8% 8% 12.8% 12% 6.1% 12% 6.4% 14% 6% 10% 12.8% 10% 4% 12% 8% 8% 6.1% 6.4% 2% 10% 6% 6.1% 6.4% 6% 0% 8% 4% 4% 1986 20046.1% 2012 6.4% 6% 2% 2% 4% 0% 0% 2% GLOBAL MALNUTRITION 1986 2004< 5 YEARS OLD) 2012GOAL (CHILDREN 1986 2004 2012 0%

98%

2012

2014

12.8%

12%

2006

2012

2005

2014

2004

GLOBAL MALNUTRITION (CHILDREN < 5 YEARS OLD)

2009

2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

14%

2015

2013

11.2% 8.6% 8.6%8.6%

2009

11.6% 11.2% 11.2% 11.2%

2008

13.1% 11.6%11.6% 11.6%

2007

15.4%13.1% 13.1% 13.1%

2006

1986 2004 2012GOAL GLOBAL MALNUTRITION (CHILDREN < 5 YEARS OLD)

2013

2012

MDG target

15.7% 15.4%15.4% 15.4%

2005

16.5% 15.7%15.7% 15.7%

2004

16.9% 16.5% 16.5% 16.5%

5% 2003

0% 2003

0%

During the elections of February 2013, 61% of elected candidates where men. At present, 42% of the members of the Assembly are women.

32.0%

2007 2008 2009 INDICATOR INDICATOR

21.6% 16.9% 16.9%16.9%

10%

2003

42.0%

2006

22.7% 21.6% 21.6%21.6%

15%

0% 5%

5. WOMEN’S PROPORTION OF SEATS AT NATIONAL PARLIAMENTS (IN PERCENTAGES)

2.1%

20%

26.6% 22.7% 22.7%22.7%

The National Government’s efforts seek to guarantee access to basic education for all children. In this sense, Ecuador has overcome the goal of the net registration rate in public basic education has reached 96.3%.

3.3%

2

30%

26.6% 26.6%26.6%

4. NET REGISTRATION RATE IN PUBLIC BASIC EDUCATION

3.3%

29.0

25% 30% 20% 25% 30% 15% 20% 25% 10% 15% 20% 5% 10% 15% 0% 5% 10%

GOAL 6.5%

4.2%

1.7% 5.4% 4.2% 3.3% 5.4% 4.2% 3.3% 5.3% 3.3% 2.1% 3.3% 5.3%5.4% 2.1% 2008 2009 2010 2011 2012 2013 2014 4.2% 1.7% 3.3% 3.3% 1.7% 5.3% 2.1%

INDICATOR

30%

Low weight in children under 5 years old has dropped 8% between 1986 and 2014, and this last year is at 4.8%.

6.8% 6.3% 6.3% 2006 2007 6.3%

2005

5.4% 6.8% 5.3%

INDICATOR target 2011 2004 2005 2006 2007 2008 2009 MDG 2010 2012 2013 20141.7% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2003

3. LOW WEIGHT IN CHILDREN UNDER 5 YEARS OLD

6.8%

9.9%

6%

0%

6.8%

10.9% 10.9% 9.9%6.3% 9.9%

14.0%

10%

9.9%

35.1

Extreme poverty has been reduced by a responsible plan implemented by the Government – by 2014 this figure is at 7.7%.

10.9% 14.0% 14.0%

14%

46.4

2. EXTREME POVERTY AS PER INCOME

16%

71.6%

12% 16% 10% 14% 16% 8% 12% 14% 6% 10% 12% 4% 8% 10% 2% 6% 8% 0% 4% 6% 2% 4% 0% 2%

Eradicating poverty is achieving opportunities for all. In Ecuador the population rate with income below US$1.25 per day dropped 12.3 points between 2003 and 2014 and reached 1.7% (4.8% lower than the expected goal.)

39.0%

1

16%

1. POPULATION WITH INCOME LOWER THAN 1.25 DOLLARS PPP (PURCHASING POWER PARITY) PER DAY

67 INFOGRAPHICS

2015 2015 2013 2015

2013 2013 20092013 2009 2009 2009

.7%

2015

42.0% 42.0% 39.0% 42.0% 39.0% 32.0% 39.0% 32.0% 32.0%

42.0% 39.0% 32.0%

6. CHILDREN’S MORTALITY RATE (UNDER 5 YEARS OLD)* (PER 1,000 BORN LIVE)

2008

2009

2010

2011

2012

2013

2008 2008 2008

2008

2010 2010 2010

2010

49.2 49.2 153.9 49.2

49.2 2014

2012 2012 2012

2012

2014 2014

71.6%

67.6% 71.6% 71.6%

67.6% 69.0% 69.0% 65.7%

67.6% 67.6% 64.4%

64.4% 65.7% 65.7% 61.1% 65.7%

8. SURFACE COVERED BY FORESTS (THOUSANDS OF ACRES) Ecuador guarantees the rights of nature. Between 2008 and 2014, the programs implemented for forest conservation and protected area management have increased the surface covered by forests or protecting vegetation in 47%.

9. PROPORTION OF HOMES WITH ACCESS TO SANITATION SERVICES (IN PERCENTAGE)

46.4

INTERNET USER RATE

110.7

MOBILE PHONE SUBSCRIBER RATE

15.5

14.4 15.5 15.5 13.6 15.5 15.1 15.1 14.4 15.1

13.6 14.4 14.4

10

13.6 13.6

TELEPHONE LINE ACCESS RATE

2014

2014

35.1

2013

102.2 110.7 110.7 83.1 110.7 109.8 109.8 102.2 109.8

2011 2012

83.1 102.2 102.2

2010

15.1 83.1 83.1

2009

29.0 35.1 35.1 18.8 35.1 46.4 46.4 29.0 46.4

0 2008 2009 2008 2010 2009 2011 2010 2012 2011 2013 2012 2014 2013 2008 2009 2010 2011 2012 2013 2014

18.8 29.0 29.0

1,000

109.8 18.8 18.8

2,000

2008

61.1% 61.1% 62.2% 61.1% 64.4% 64.4% 62.2%

9

8

0

62.2%

5,902

3,000

62.2% 62.2% 62.2%

5,902 5,631

4,000

7. REASON FOR MATERNAL MORTALITY (PER 100,000 LIVE MOTHERS) In Ecuador, during the period 1990 – 2014 the reason for maternal mortality dropped in 68%. In spite of this reduction, complying with this goal is still pending for which the country has implemented the Maternal Death Reduction Strategy.

74% 74% 74%72% 72% 72%70% 70% 74% 70%68% 68% 72% 68%66% 66% 70% GOAL 66.2% 66%64% 64% 68% 64%62% 62% 66% 62%60% 60% 64% 60%58% 58% 62% 58%56% 56% 60% 56%54% 54% 58% 54% 2007 20082007 20092008 20102009 20112010 20122011 20132012 20142013 2014 56% 2007 2008 2009 2010 2011 2012 2013 2014 54% 2007 2008 2009 2010 2011 2012 2013 2014 62.2% 62.2%

5,631

4,820 5,902 5,902

4,820 4,666 5,631 5,631

4,666

4,477 4,820 4,820

5,000

4,477 4,178 4,666 4,666

6,000

4,178

4,178 4,178

7,000 4,007

7,000 7,000 6,000 7,000 6,000 5,000 6,000 5,000 4,000 5,000 4,000 3,000 4,000 3,000 2,000 3,000 2,000 1,000 2,000 1,000 0 1,000 0

1990 2014 2014 2014

1990 1990 1990

2013

71.6% 69.0%

2007

4,007 4,477 4,477

2004

4,007 4,007

2003

In 2011 Ecuador was among the five Latin American countries with the lowest children’s mortality, exceeded only by Cuba, Costa Rica, Chile, and Uruguay.

7

69.0%

13.4% 13.7% 14.2% 14.2%

2006

2003 2004 2003 2005 2004 2006 2005 2007 2006 2008 2007 2009 2008 2010 2009 2011 2010 2012 2011 2013 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0%

14.2%

13.7% 14.8% 13.4% 13.4%

2005

14.2% 13.4%

14.8% 15.0% 13.7% 13.7%

0%

15.0% 16.0% 14.8% 14.8%

5%

22.1% 22.1%

5% 0% 0%

16.0% 16.9% 15.0% 15.0%

10%

16.9% 18.2% 16.0% 16.0%

15%

15%10% 10% 10% 5% 5%

18.2% 20.4% 16.9% 16.9%

20%15% 15%

20.4% 21.8% 18.2% 18.2%

20%

21.8% 22.1% 20.4% 20.4%

25%20% 20%

6

22.1%

25%

21.8% 21.8%

25% 25%

153.9 153.9 153.9

In 2000, Ecuador, as other 188 countries, committed to comply with the Millennium Development Goals (MDGs) that include 8 objectives and 21 goals aimed to overcome poverty and improve life condition around the world. By 2014, Ecuador had complied with 20 of the 21 goals, many ahead of time and with much higher standards than that agreed.

2014

2014

Source: Senplades-INEC-PNUD-SNU; “Millennium Goals - Ecuador Balance 2014”; year 2015; 1st edition; Quito-Ecuador.

In 2012 Ecuador reached this goal by exceeding 66.2% of homes with access to sanitation services.

10. TELEPHONE LINES, MOBILE PHONE SUBSCRIBERS, AND INTERNET USERS (PER EVERY 100 INHABITANTS) Access to technologies in the country has increased significantly between 2004 and 2014. Mobile phone subscriber rate increased in 83 points while the rate of internet users increased in 43 points.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

68 INFOGRAPHICS

BUILDING EQUITY

MULTIDIMENSIONAL POVERTY RATE 60% 60% 50%

20%

35.0%

35.0%

38.7%

37.4%

37.8%

38.7%

40.7%

37.8%

30% 20%

46.1%

40.7%

40%

51.5%

46.1%

51.5%

30%

Between 2009 and 2015, Ecuador reduced its multidimensional poverty rate in 16.5 percentage points â&#x20AC;&#x201C; 1.9 million Ecuadorians left poverty.

37.4%

50% 40%

Source: INEC - ENEMDU * Statistics to December every year

10% 10% 0% 2009

0%

2010

2011 2009

2012 2010

2013 2011

2014 2012

2015 2013

2014

2015

EQUITY: RICHEST 10% VS POOREST 10% AVERAGE INCOME RATIO IN ECUADOR (NUMBER OF TIMES 2006 - 2014) 60 60

50

50

40

40

30

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

9

2008

2011 2009

2012 2010

2013 2011

2012

22.3

24.0

31.1

28.4

32.6

31.1

36.8

2010

2014

22.3

2007

32.6

36.8 2009

28.4

2008 0

39.5

10 2007

24.0

Source: INEC - ENEMDU

20

50.8

0

50.8

10

39.5

30

20

2013

2014

69 INFOGRAPHICS

60 50 40 30

36.8

32.6

31.1

28.4

24.0

22.3

0

39.5

10

50.8

20

2007

2008

2009

2010

2011

2012

2013

2014

NOMINAL GDP(MILLIONS OF DOLORES)

9 8 7

6 5 4 3

2

1

4 6,8 0 5 1, ,

6 1 ,5 6 2 ,5 69 , 7 9 7, , 8 94 0 10

0 80 2 76 20 3 5

2 5 9 77 7 25 ,9 7 6 17

2006 2007 2008 2009 2010

2013

THE SIZE OF THE ECONOMY GREW 2.2 TIMES SINCE 2006

2014

Source: Central Bank of Ecuador

2011 2012

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

70 INFOGRAPHICS

COMPANIES GROWTH OF INCOME AND IMPROVEMENT OF COMPETITIVENESS

DUPLICATED

MANUFACTURING

DUPLICATED

AGROINDUSTRIAL

TRIPLICATED

COMMERCIAL

QUADRUPLICATED

QUINTUPLED

CONSTRUCTION

Source: 2016 Report to the Nation

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

PROFIT

INCOME

PRODUCTIVE SECTOR PROGRESS (BETWEEN 2007 & 2015)

71 INFOGRAPHICS

ECUADOR’S TERRITORY CONCENTRATES 10% OF ALL THE PLANET’S PLANT SPECIES.

RANKINGS – WORLD ECONOMIC FORUM

47

Between 2007 and 2015 Ecuador has scaled the following positions in the World Economic Forum rankings

27

57

47

15

14

27

57

15 INFRASTRUCTURE FOR QUALITY OF ROADS

INNOVATION WITH THE COLLABORATION BETWEEN COMPANIES AND THE ACADEMIC SECTOR

INNOVATING CAPACITY

SCHOOL ACCESS TO 14 INTERNET

GLOBAL COMPETITIVENESS INDEX

Wholesale and retail trade; TOP 5 SECTORS WITH THE HIGHEST PARTICIPATION IN Manufacturing automotive vehicle repair, Transportation, estate, corporate, Financial TOTAL (2014)Real WITH THE INCOME SCHOOL ACCESS TO industries INFRASTRUCTURE FOR INNOVATION GLOBAL COMPETITIVENESS INNOVATING personal effects, and domestic storage & communiand leasing activities intermediation COLLABORATION INTERNET INDEX CAPACITY QUALITY OF ROADS products cation

$ 44,630

$112,288 BETWEEN COMPANIES AND ACADEMIC $THE 23,639 SECTOR

$ 8,102

$ 7,729

$ 6,955

INCOME OF ALL SECTORS IN 2014 (MILLION DOLLARS)

39.7%

Wholesale and retail trade; automotive vehicle repair, personal effects, and domestic products

$ 44,630

21.1%

Manufacturing industries

$ 23,639

7.2%

6.9%

6.2%

Transportation, storage & communication

Real estate, corporate, and leasing activities

Financial intermediation

$ 8,102

$ 7,729

$ 6,955 Corporate information of companies with income above 100.000 dollars is considered.

2014 INCOME (MILLION DOLLARS) SECTOR PARTICIPATION IN TOTAL INCOME

39.7%

21.1%

7.2%

6.9%

6.2%

Cut date: 15/Jun/2015 Source: Internal Income Service, form 101.

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

YASUNI NATIONAL PARK

Ecuador is currently South Americaâ&#x20AC;&#x2122;s Leading Green Destination as awarded by the 2016 World Travel Awards, internationally known as the Oscars of tourism. ROE

PART V

POC KET SLA NG

74 INFOGRAPHICS

TOURISM IN ECUADOR

GDP: Contribution Total $ 5,145.7 million / 5.1% of the GDP Estimated growth in 2016

GDP: Direct Contribution $ 2,124.3 million / 2.1% of the GDP Estimated growth in 2016

2.3%

2.7%

Employment: Direct Contribution 146,500 jobs / 1.9% of total jobs Estimated growth in 2016

2.7% Actual growth adjusted by inflation Note: All values are constant in 2015 (prices & exchange rates) Source: World Travel & Tourism Council

Employment: Contribution Total 353,000 jobs / 4.7% of total jobs Estimated growth in 2016 3.0%

3.0%

INVESTMENT $ 1,212.2 million / 4.4% of total investment Estimated growth in 2016

3.0% REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

Visitors exports $ 1,949.3 million / 8.7% of total exports Estimated growth in 2016

1.7%

75 INFOGRAPHICS

2.7

ESTIMATED GROWTH OF THE SECTOR’S SHARE IN 2016 GDP

%

2.4% 1.8%

2.8%

2.5%

Latin American average 2.5%

1.4%

2.4% 1.8%

1.4%

0.1% -1.4% 0.1%

Brazil Brazil

Uruguay Uruguay

-4.7%

Source: World Travel & Tourism Council

1.6%

1.% 0.0% 1.% -1.3%

Latin American average 1.5%

-1.6%

-1.2%

-1.3%

-1.6% Uruguay

Colombia Colombia

Peru Peru

Paraguay Paraguay

Brazil

-1.2%

Uruguay

1.6%

Venezuela Venezuela

1.6%

Brazil

Chile Chile

Ecuador

Colombia Colombia

Bolivia Bolivia

Peru Peru

Ecuador 1.6%

0.0%

Ecuador

-4.7%

3.0% ESTIMATED GROWTH OF THE SECTOR’S SHARE IN 2016 TOTAL EMPLOYMENT

Argentina Argentina

2.6%

Argentina Argentina

Chile

% 2.6%

Ecuador

Chile

Paraguay

-1.4%

-1.7%

-1.7% Bolivia

2.8%

3.0 4% 3% 2% 1% 4% 0% 3% -1% 2% -2% 1% -3% 0% -4% -1% -5% -2% -6% -3% -4% -5% -6%

2.5%

Venezuela Venezuela

2.8%

Bolivia

2.8%

Paraguay

4% 3% 2% 1% 4% 0% 3% -1% 2% -2% 1% -3% 0% -4% -1% -5% -2% -6% -3% -4% -5% -6%

Source: World Travel & Tourism Council

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

76 INFOGRAPHICS

ECUADOR IS ONE OF THE SOUTH AMERICAN COUNTRIES WITH THE LOWEST INFLATION RATE, 3.38%, RECORDED IN 2015.

PERCEPTION OF THE NATIONAL ECONOMIC SITUATION

ECUADOR

59.5 BOLIVIA CHILE U R U G U AY U N I T E D S TAT E S PERU BRAZIL PA R A G U AY C O LO M B I A MEXICO ARGENTINA VENEZUELA

Ecuador is one of the countries with the main progress and support from its public policies related to security, public services, and administration. This was confirmed in the 2014 report on political culture of democracy in Ecuador and the Americas performed by NGO Barómetro Latinoamericano.

EVALUATION OF THE ADMINISTRATION’S CITIZEN SECURITY MANAGEMENT

ECUADOR

62 CHILE BOLIVIA U R U G U AY MEXICO C O LO M B I A U N I T E D S TAT E S PA R A G U AY PERU BRAZIL ARGENTINA VENEZUELA

Source: Barómetro de las Américas by LAPOP, 2014

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

77 INFOGRAPHICS

ROAD SATISFACTION

PUBLIC SCHOOL SATISFACTION

ECUADOR

60.5

ECUADOR

CHILE ARGENTINA PA R A G U AY PERU MEXICO

U R U G U AY BOLIVIA ARGENTINA MEXICO C O LO M B I A PA R A G U AY

U N I T E D S TAT E S

U N I T E D S TAT E S

BOLIVIA C O LO M B I A U R U G U AY BRAZIL VENEZUELA

63.3

VENEZUELA BRAZIL CHILE PERU

PUBLIC HEALTH SERVICE SATISFACTION

U N I T E D S TAT E S U R U G U AY ARGENTINA MEXICO BOLIVIA PERU VENEZUELA PA R A G U AY CHILE C O LO M B I A BRAZIL

ECUADOR

58.1

Source: Barómetro de las Américas by LAPOP, 2014

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD