Revista ROE - ECUADOR COMMITTED WITH A TRANSPARENT AND STABLE ENVIRONMENT FOR INVESTMENTS

N.3- 2016

2016 INVESTMENTS SUMMIT

A portfolio with more than USD 40 billion in investment projects, Opinions by international investors, Habitat III.

THE PUBLIC SECTOR IS BEST

Efficient citizen services. Ecuador, a country with an improved quality of life.

BOSTJAN SKALAR, WAIPA DIRECTOR

ECUADOR COMMITTED WITH A TRANSPARENT AND STABLE ENVIRONMENT FOR INVESTMENTS

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AVENUE OF THE VOLCANOES

As a scenic route along the Ecuadorian Sierra, the “Avenue of the Volcanoes” is a magnificent tourist attraction in the country. The route lets us admire massive mountains covered by millenary glacial peaks and perpetual snow, such as the Chimborazo Volcano, “the closes spot to the sun.” ROE

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ublic investment, policies, and accomplishments in the last decade, which we like to call “The Gained Decade”, have placed the country at the forefront of Latin America. Ecuador now has the best productive platform of its history that grants competitive advantages, opportunities for progress and wellbeing. Beyond natural events or external economic factors, the country’s progress is non-stop. After social, educational, institutional, touristic, infrastructure, health, connectivity, energy, human capital development comes a new challenge: to make the country a productive power. Ecuador has all the necessary resources to achieve it.

The country has doubled its clean energy production capacity: from 4.070 MW in 2006, to 8.569 MW in 2017, which generates estimate savings of USD 1 billion; contributes to the productive sector and reduces fossil fuel consumption, in favor of the environment. In relation to roads, the country now has 6k of roads in good conditions resulting from sustained investments of USD 8,761.61 million.

The World Economic forum records Ecuador as the country with the best road quality in Latin America; besides significant investments in sea and airports, all of which is translated into time and fuel savings for producers, and the potentiation of logistic competitiveness and tourism.

In telecommunications the country increased its optical fiber network form 2.100 miles to 37,000 miles, and multiplied the network speed 40 times. Multi-purpose projects were built for an efficient administration of hydrological: 450,000 integrated acres and 350,000 acres protected against floods. The Primary sector and agro-cattle breeding chains have been strengthened with investments in productive infrastructure, collection centers, silos, micro reservoirs, irrigation channels, etc. According to Unesco, Ecuador is the country with the main educational progress in Latin America, with investments of more than 2% of its GDP in higher education. Around 400 productive transactions and 52 general transactions have been simplified in the first semester of 2016. For an optimal use of its capacities, Ecuador has included its actions in a new industrial policy based on five essential pillars: Innovation, Quality, Productivity, Investment, and Markets. ROE

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VARIETY OF ORCHIDS

With a geographic location on the planet’s tropical belt, the Equator, Ecuador is the country of orchids – it concentrates 60% of the South American orchids, of which 2,999 species are shelters at the Yasuni National Park. ROE

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CONTENTS NEWS

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TIME MACHINERY

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SANTAY ISLAND

The construction is supported on 16 monotubes buried 100 ft. deep (150 ft. are visible) in the Guayas River. At the beginning of the bridge, in the citadel of Abel Gilbert, a 4-level ramp, 115 ft. long, welcomes the pedestrians. ROE

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SPACE MACHINERY

61 INTO THE FUTURE POCKET SLANG

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63.5% OF NATIONAL EXPORTS IN 2015 WERE NON-OIL GOODS, ACCORDING TO FIGURES OF THE CENTRAL BANK OF ECUADOR.

Photo: Francisco Jarrín

MORE AND

BETTER QUALITY PRODUCTS ECUADORIAN INDUSTRIALIZED PRODUCTS, LIKE CHOCOLATE, LEATHER, COFFEE, OR CONFECTIONERY, ARE INCREASINGLY GAINING MORE SPACE IN THE INTERNATIONAL MARKETS AS A RESULT FROM JOINT PLANS AND ACTIONS PERFORMED BY THE GOVERNMENT AND THE PRIVATE SECTOR.

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62% WITH THIS MARKET SHARE, ECUADOR IS THE WORLD’S MAIN FINE AROMA CACAO. BESIDES, IT ALSO PRODUCES CHOCOLATE BRANDS THAT ARE RENOWN INTERNATIONALLY FOR THEIR QUALITY.

NATIONAL PRODUCTION WAS FAVORED WITH EMBLEMATIC PROJECTS BY THE ECUADORIAN STATE, SUCH AS THE REGION’S ROAD NETWORK, PORTS, COMMUNICATION & HUMAN SKILL DEVELOPMENT, CLEAN LOW-COST ENERGY, AND INVESTMENT CREDITS.

by the Government and the private sector are evident. National products, like organic chocolate Pacari, are winning new markets and are internationally recognized (14 prizes at the International Chocolate Awards 2015), and the leather and shoe industry exports to Italy, France, Portugal, Spain, United States, China, and other Latin American countries through companies like Curtiduría Tungurahua.

By changing the productive matrix, the private sector has received incentives and systemic competitiveness has been strengthened (the region’s best road network, ports, airports, communication, technical advisory, human skills, investment credits, clean and low-cost energy, and others), Ecuador is promoting the development of new and better industries, technologies and quality products that, besides satisfying the local demand, are internationally positioned and contribute to strengthen its exports with products with value added supported by technology and knowledge.

To this end, in 2011 the country started operating the Ecuadorian Quality System through the Ministry of Industries and Productivity. This entity basically works on two sides: to strengthen industry (local production and exports) and promote national product quality.

The results of the actions developed

Photo: Courtesy of Pacari

Approximately 3.500 FARMER FAMILIES are suppliers for the firm Pacari Chocolate.

CHOCOLATE Fine Ecuadorian chocolate brands include Republica del Cacao, Kallari, Kaoni, Hoja Verde Gourmet, etc.

LEATHER Curtiduría Tungurahua increased from 52 collaborators in 2006, to 187 in early 2016, while it duplicated production.

Cultivated in the province of Imbabura, coffee from La Rafaela farm is traded in important coffee shop chains in the United States. Gourmet sauces Don Joaquín are winning spaces in the most demanding European and Latin American markets. Confectionery products, like Confiteca, and Edesa faucet products have found niches in countries like Peru and Bolivia, and others, are currently recognized around the world. ROE

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ECUA DOR SEAT

DURING 4 YEARS, ECUADOR HAS DEVOTED USD 41 MILLION TO THE NATIONAL PLAN ON HIGH PERFORMANCE OF INTERNATIONAL LEVEL ATHLETES. USD 104 MILLION IS THE AVERAGE ANNUAL INVESTMENT MADE BY THE ECUADORIAN GOVERNMENT IN SPORTS. THE 2016 SALINAS WORLD TRIATHLON CUP IS THE ONLY EVENT OF THE KIND TO BE HELD IN SOUTH AMERICA IN THIS YEAR.

OF INTERNATIONAL COMPETITIONS SPORTS PROMOTING POLICIES IN ECUADOR YIELD THEIR REWARDS. THE COUNTRY HAS HELD INTERNATIONAL COMPETITIONS, LIKE IRONMAN 70.3 AND THE WORLD TRIATHLON CUP. Increasingly higher numbers of the best athletes are holding the name of Ecuador at international events and in high-level competitions that Ecuador is holding. Such is the case of Ironman 70.3, an event of 70.3 miles that includes swimming, cycling, and athletics that take place since 2015 in the city of Manta, in the coast province of Manabi. According to the organizers, Ironman series competitions mobilize around 100,000 athletes per year around the world. Because of its natural conditions, beauty, and sports infrastructure, Ecuador was the seat of other three important triathlon competitions in 2016: the Pan American Cup held in Salinas, province of Santa Elena, between April and May; the Continental Cup held in Ibarra and Galapagos between July and October; and the World Triathlon Cup held in September also in Salinas. The latter was gathered representatives from 37 countries and made an investment of approximately USD 120,000 between management and direct State investment. The international sports events held in the country includes the 2013 World Masters Surfing and the 2014 World Adventure Championship, that included mountain cycling, kayak, hiking, rappelling, and others. ROE

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PROMOTING AND TRAINING IN THE PRODUCTIVE SECTOR

14,000 TOURISM OPERATORS CARRY OUT THEIR WORK CAPACITY CERTIFICATION PROCESS. 350 SYSTEMS AND MARICULTURE WORKERS WERE THE FIRST TO BE CERTIFIED.

ECUADOR TRAINS AND CERTIFIES WORK SKILLS TO IMPROVE ITS INDUSTRY AND COMPETITIVENESS. THE FIRST SECTORS THAT ARE BENEFITTED ARE PRIORITY SECTORS SUCH AS TOURISM. Ecuador is developing public policies and training plans for workers with the aim to improve the productive sector. In January 2016 the Coordinating Ministry of Human Knowledge and Skills created the Technical Secretariat of the National Professional Qualification and Training System (SETEC) to this end. SETEC’s field of action includes worker training and certification with dependent relations or not, micro entrepreneurs, public servers, popular and solidary economy stakeholders, priority car groups, and citizens in general.

Achievements include the creation of the National Qualification Log, with 426 occupational profiles, and the goal to classify other 416 profiles by the

end of 2016, and 661 more in 2017. As part of the system, up to date 722 Training Operators (natural or juridical persons) have been registered in Ecuador, which in their turn generate 6,500 jobs in different areas. Advisory and accompanying is provided to 83Consistency Evaluation Organizations (technical and technological institutes, universities and private entities) that are in charge of certifying work competences in priority sectors, such as tourism, communication, construction, metal mechanics, informatics, mariculture, mining, child development, arts, security services, public sector, and inclusive classification. ROE

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SAFER LATIN AMERICAN CITIES

ACCORDING TO THE 2016 BRAZILIAN IGARAPÉ INSTITUTE HOMICIDE MONITOR, QUITO, AMBATO, AND CUENCA ARE THE SAFEST LATIN AMERICAN CITIES TO LIVE IN. THE REGION’S SAFEST CAPITAL IS QUITO.

Public actions and policies aimed to improve the quality of life and safety in Ecuador show positive results.

International organizations ratify the goals reached by the country in security matters. In a report published in 2016, the Brazilian Igarapé Institute Homicide Monitor reveals that the Ecuadorian cities of Quito, Ambato, Cuenca are among the region’s safest. The investigation was based on a rate of homicides per every 100,000 inhabitants.

1.9%. The investigation also reveals that Quito is the safest Latin American city.

As part of the deep change that the country underwent almost a decade ago, Ecuador deems security as one of the core axes for development and the people’s wellbeing. With this reasoning, in 2011 the country implemented amendments to the National Police aimed to strengthen the institution, train and provide its personnel with the necessary skills and technical equipment for a more efficient job closer to the people.

Photo: Courtesy of the Ambato Municipality

According to the Igarapé measurements, Ambato is the third safest city to live in Latin America with a percentage of 1.7%. Quito, the capital of Ecuador, holds the fifth place with a rate of 1.9%; and Cuenca holds the seventh place also with

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MILLION

IN 2016, THE ECUADORIAN STATE INVESTED AROUND US53 MILLION TO MODERNIZE THE NATIONAL POLICE: NEW VEHICLES, VESTS, WEAPONS, CRIMINALISTICS LABORATORIES, AND FORENSIC SCIENCES.

ECU 911 Integrated Security System was created in 2012 with more than 2,700 surveillance video cameras throughout the country. In 2015, through the Ministry of the Interior, around USD 1.500 million

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amending the Integral Organic Criminal Code (COIP) And the General Organic Process Code (COGP.) It trains judicial servers at all levels in the Judicial Function School and has enhanced the resolution of cases through Oral and Mediation procedures.

Simultaneously, joint actions have been performed by the Ministry of the Interior and the National Police to disarticulate bands, struggle against common crime, drug traffic, and different types of crimes. were invested in security to continue with the process of enhancing and improving the Police’s technical level.

Based on an integral security perspective, the country has also improved its justice system by

The citizens also perceive these achievements. In an opinion study published by Latinobarómetro in 2015 with more than 20,000 surveys in Latin America, Ecuador appears as the region’s second safest country to live in. ROE

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STAR

PRODUCTS MADE IN ECUADOR

The variety of climates and natural regions of Ecuador, its biodiversity and the entrepreneurship of its people have made the country a historic reference related to quality and is positioned in international markets with several products.

Banana, roses, cacao, coffee, and shrimp are only some of the country’s traditional products with which the industry has earned prestige around the world. These exports are several of Ecuador’s most significant non-oil income items that generate jobs for thousands of people and satisfy the most challenging international demand.

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ECUADOR STOOD OUT IN THE 2016 WORLD TRAVEL AWARDS WITH A TOTAL OF 16 TOURISM AWARDS IN THE CATEGORY SOUTH AMERICA.

HISTORICALLY, ECUADOR IS THE EXPORTING LEADER IN CERTAIN PRODUCTS THAT ARE LARGELY ACKNOWLEDGED IN THE WORLD. BANANA, SHRIMP, FINE AROMA CACAO, ROSES, AND COFFEE ARE SOME OF THESE STAR PRODUCTS WHERE THE ECUADORIAN INDUSTRY MAKES THE DIFFERENCE.

BANANA

With a 30% annual margin of the world production, Ecuador is deemed the planet’s main banana exporter, which also represents 10% of the country’s total exports – 530,000 acres of the national surface are devoted to harvesting banana in the different provinces of the Ecuadorian Coast, from automatized plantations and international certifications. Besides being a fruit that is appreciated by millions of consumers around the world, Ecuadorian banana production is a source of income for around 2 million people linked to the different stages of the value chain, and is the country’s main non-oil export item.

ROSES

For their beauty, lifetime, and unparalleled characteristics: long stems, live colors, Ecuadorian roses are considered the world’s best. Among more than 300 varieties of flowers that are produced international the country, the most valued internationally are Ecuadorian roses. Ecuador is one of the main flower exporter in the world.

Its main markets are the United States, Russia, Netherlands, Canada, Italy, Ukraine, and Spain. Ecuador currently has more than 6,200 acres devoted to growing flowers.

CACAO

Cultivated in the Ecuadorian Coast and Amazon regions, cacao is one of the traditional products that highlight

national quality. The country currently produces two varieties: CCN-51 and fine aroma cacao, which is the most valued internationally for its flavor and fruity characteristics. With a share of 62% in 2015, Ecuador remains the world’s main fine aroma cacao exporter, which has favored the development of fine Ecuadorian chocolate brands, such as Pacari, Kallari, Caoni, República del Cacao, Hoja Verde Gourmet, and many more.

COFFEE

Ecuador produces and exports different varieties of coffee, including washed Arabica, Natural Arabica, and Robusta.

For its privileged location and diverse climatic floors, the country shelters one of the most demanded coffee in Europe.

The crop areas are located throughout the national territory, including the Galapagos Islands where volcanic coffee is grown. The main markets for Ecuadorian coffee are: Colombia, Germany, Poland, and Russia. At present, around 100,000 families are devoted to producing Ecuadorian coffee.

SHRIMP

In relation to aquaculture, Ecuadorian shrimp is the second most important non-oil exporting item. Worldwide acknowledged for its quality, the national shrimp industry is one of the world’s greatest. Its main international markets are: United States, Vietnam, Spain, Italy, France, China, and Russia.

According to Pro Ecuador data, the country exports an average of 252,000 tons of shrimp per year. ROE

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AGILE AND MODERNIZED

JUSTICE

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THE REVOLUTION OF JUSTICE IS ONE OF THE 10 PROGRAMMATIC AXES PROPOSED

BY THE ECUADORIAN GOVERNMENT SINCE 2007.

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IN APRIL 2018, QUITO WILL SHELTER THE XIX LATIN AMERICAN JUDICIAL SUMMIT. THE COUNTRY CURRENTLY HOLDS THE PRO TEMPORE SECRETARIA OF THE SUMMIT, WHICH SHOWS THE COUNTRY’S PROGRESS IN JUSTICE.

ECUADOR HAS AN AGILE, EFFICIENT, AND TIMELY SYSTEM OF JUSTICE THAT GUARANTEES ACCESS TO ALL CITIZENS AND COMMUNITIES. THE TRANSFORMATION OF JUSTICE STARTED IN 2008, WITH THE NEW CONSTITUTION. The transformation of the Ecuadorian judicial system started with the 2008 Constitution. It was strengthened with the new Organic Code of the Judicial Function in 2009 and through a popular referendum; amendments were passed in 2011 to reach an effective modernization of the Judicial Function and citizens security. A process of comprehensive renewal started that, with its positive outcomes, has placed the country as a global benchmark. New courts, judicial complexes and units with state-of-the-art technology and public servers that offer dignified services were created throughout the country. Based on merit

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contests, from 2010 to 2016 the country increased the number of justice operators from 1,152 judges to 2,064; from 599 public prosecutors to 848; and from 156 public defenders to 729. Likewise, two legal bodies became effective and enable fast and improved processes: the Organic Integral Criminal Code (COIP) and the General Organic Code of Processes (COGEP.) New procedures such as oral proceedings and mediation have also improved the settlement processes and drastically reduced the average expiration time of pretrial detention from 17.8% in 2008, to 0.03% in 2015. ROE

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CODE OF SKILLS: PROMOTING KNOWLEDGE

INGENIATEC IS ANOTHER PROJECT DESIGNED TO PRIORITIZE ECUADORIAN CREATIVE SKILLS AND IS AIMED TO REPLACE IMPORTS IN A SMART WAY BAND GENERATE AROUND 370 MILLION DOLLARS PER YEAR.

THROUGH NEW REGULATIONS, ECUADOR HAS TAKEN A GREAT STEP TOWARDS PROMOTING AND GENERATING KNOWLEDGE, TECHNOLOGY, AND INNOVATION. THE NEW SKILLS CODE IS PART OF A PARTICIPATIVE PROCESS THAT INCLUDES THE CONTRIBUTION OF EXPERTS AND SEVERAL SECTORS. The Code of Inventions & Creations will promote the pass from a primary exporting economy to an economy based on knowledge and creativity.

In five years, the number of investigators and scholarship grantees increased above 370%, from 2,413 in 2009 to 11,410 researchers in 2014, an indicator that shows how our country is aiming to an Ecuador of Knowledge based on its creative skills.

incorporated to WikiCoesc and received 3,142,300 visits and was edited 38,200 times. This regulatory body seeks to break our technological dependence with absolute respect of international standards; it facilitates technological transfer; democratizes access to knowledge; creates the conditions for corporations and citizens to innovate and research; guarantees rights to whoever finances works, and to their creators and users as well.

In this sense, the recently passed Code of Inventions & Creations has a critical role because it institutionalizes what until now were Government policies issued by the Secretariat of Higher Education, Science, Technology & Innovation, and turns it into a State policy.

Even internationally acclaimed personalities, such as Ha-Joon Chang, professor of Economics at Cambridge University have called it the future of intellectual property, since the Code of Inventions & Creations conceives it as a tool for development that generates wealth and wellbeing for Ecuadorians.

The Code was developed in a democratic and participative environment, with the contribution of several stakeholders of the Ecuadorian society lined to the productive and academic sectors, from society and the State. For the first time in the country, citizens relied on wikilegislation to develop a law. The Code was

On the other hand, in the cases of biopiracy that Ecuador has confronted, The Code provides the defense of biological and genetic resources through articles that were proposed during the pre-legislative consultation in which 4,000 personas contributed to such formulation from different territories. ROE

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SOLIDARY

COUNTRY THAT RESPONDS IN EMERGENCIES ON APRIL 16 A DEVASTATING EARTHQUAKE SHOOK THE ECUADORIAN COAST. THE COUNTRY UNDERWENT THE TOUGHEST NATURAL CATASTROPHE IN THE LAST 67 YEARS, A TRAGEDY THAT TESTED THE WILL, PUBLIC POLICIES, AND DEVELOPMENT REACHED BY ECUADOR IN THE LAST YEARS.

9,800 CREDITS FOR MORE THAN USD 74 MILLION WERE CHANNELED BY STATE FIRM BANECUADOR B.P. TO REACTIVATE PRODUCTION IN THE AFFECTED PROVINCES OF MANABÍ AND ESMERALDAS, UP TO THE FIRST TWO WEEKS OF NOVEMBER, THE WORK AXES TO CONFRONT THE EARTHQUAKE WERE: OVERCOME THE EMERGENCY THAT STABILIZED 100%; RECONSTRUCTION OF THE AFFECTED ZONES AND ECONOMIC REACTIVATION.

Photo: Francisco Jarrín

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The earthquake that took place on April 16 tested the achievements made by the country in risk management, road infrastructure, communications, logistics, etc. – 7.8 degrees on the Richter scale shook up the Ecuadorian Coast and caused material losses estimated in USD 3 billion and around 700 casualties. The efficient State intervention confronted the crisis. In 72 hours urgent matters were controlled and, thanks to a quick reaction, 113 people were rescued alive among the wreckage. Ecuador had the necessary material and logistic resources to overcome the emergency – aircraft, trucks, ambulances, roads, bridges, communications, hospitals, etc. the Government declared the state of exception in all the country and mobilized around 10,000 militaries and 4,000 policemen; around 600 firemen and 12 international teams also participated in rescue work.

The country’s resilience is the product of years of sustained investment in strategic sectors, where the Government has invested more than USD 36 billion between 2007 and 2015. Investments in mega hydric constructions, electric stations, telecommunications, hydrocarbon developments, mining and environment generated more than 35,000 job sources. According to data from the Ministry of Strategic Sectors, these actions have contributed to the country’s GDP with USD 16 billion, which represents 16% of the global GDP distributed in goods and services. The fruits of these investments were used

during the emergency. In 10 days, 92% of electric services in urban areas and 90% of telecommunications were recovered.

Besides, timely medical and sanitary care avoided epidemics. The Ecuadorian State also channeled civil society’s solidarity and contributions. One day after the earthquake people offering assistance at the collection points were unquantifiable.

Hundreds of tons of humanitarian aid were collected and sent. This people is now helping reactivate the zone’s touristic activities and the affected sites were reinstated to sustainable economic development with the assistance of the World tourism Organization (WTO.)

EARTHQUAKE FIGURES VERSUS RESPONSE ACTIONS FIGURE

ACCTIONS

663 DECEASED PEOPLE

22.000 bonds paid for house reconstruction or repair

9 PEOPLE DISAPPEARED

6,000 repaired houses

6,274 WOUNDED PEOPLE

17.000 built homes

28,775 AFFECTED PEOPLE

260 houses build for disabled people 25 built shelters USD 600 million collected by the Law on Solidarity and Citizen CoResponsibility with the Earthquake

6,998 DESTROYED BUILDINGS

USD 200 million invested in reconstruction USD 8.3 million invested to build health centers in the affected provinces 26 provincial schools in the affected provinces

Source: *Information updated as of August 30. Reconstruction Committee Data

RECONSTRUCTION In order to guarantee an effective response to the earthquake, Ecuador created a reconstruction committee composed by the coordinating ministries, the National Secretary on Planning and Development, Autonomous Decentralized Governments, and the private sector. Additionally, the National Assembly passed the Law on Solidarity and Citizen Co-Responsibility with the Earthquake. The regulation guarantees the incentives necessary for the productive reactivation of the affected zones in the provinces of Manabi and Esmeraldas.

The State’s efforts have been acknowledged by several international entities. The United Nations Secretary General, Ban Ki-moon, praised the work of the authorities for their leadership versus the earthquake. ROE

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WORLD HERITAGES

THE HISTORIC CENTERS OF QUITO AND CUENCA, GALAPAGOS, THE SANGAY NATIONAL PARK, THE INCA ROAD, MARIMBA, AND TOQUILLA STRAW WOVEN HATS ARE PART OF THE NATURAL AND CULTURAL HERITAGE THAT ECUADOR OFFERS TO THE WORLD. Ecuador is the home of unique natural and cultural marvels.

Located in the middle of the world (latitude 0°0’0’), it has four regions (Pacific Coast, Andes, Amazon and Galapagos Islands), diverse indigenous nationalities, languages, and cosmovisions, paramo, jungle, and beach landscapes, beautiful cities, celebrations, and traditions; the beauty preserved in its Historic Center (the largest in Latin America) earned the country’s capital, Quito, Unesco’s acknowledge as the First World Heritage in 1978, an honor it shares with Polish city Krakow.

Years later, in 1999, Unesco awarded the Historic Center of Cuenca, capital of the province of Azuay, with the same

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honor for its culture and colonial buildings. The exuberant and unparalleled flora and fauna of the Galapagos Islands were also designated World Heritage in 1978. Unesco awarded this same designation to the National Sangay Park in 1983, for its numberless lakes, birds, biodiversity, and three volcanoes (two still active.) The network of Inca roads that crosses Ecuador, Colombia, Peru, Bolivia, Argentina, and Chile, Qhapaq Ñan, is also included among Unesco’s designated World Heritages, as well as the culture that surrounds Afro-Esmeraldas music known as marimba, and traditional toquilla straw hats from the province of Manabi. ROE

IN 1989 UNESCO DESIGNATED THE NATIONAL YASUNI PARK IN THE ECUADORIAN AMAZON A BIOSPHERE RESERVE. THIS SANCTUARY IS DEEMED THE MOST BIODIVERSE SITE IN THE PLANET.

PART I

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22 THIS IS ECUADOR NOW

ECUADOR NOW IS BUILT AS A PRODUCTIVE POWER. A COUNTRY THAT GENERATES WEALTH UPON THE SYSTEMIC COMPETITIVENESS THAT HAS STRENGTHENED ITS NATURAL RESOURCES, TOURISTIC POTENTIAL, STRATEGIC SECTORS, AND HUMAN SKILLS AS NEVER BEFORE IN ITS HISTORY.

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ased on the systemic competitiveness built for one decade through strategic plans, public policies and significant investments, Ecuador now bets on productive development. The country promotes the generation of value added, efficiency, employment generation, and economic stability. Thus the importance of joint work between the public and the private sector, between investors, entrepreneurs, small and medium producers, and other stakeholders in the value chain.

It is a Republic of Opportunities open to local and foreign investment that promotes public-private alliances, new entrepreneurships, innovation, tourism, quality, and the development of strategic sectors. A territory that generates through the vision of a renewed country and includes 10 essential goals. ROE

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1. PRODUCTIVE COUNTRY ECUADOR NOW PRODUCES MORE AND BETTER. IT SEEKS THE BEST PRODUCTIVE YIELD, COMPETITIVE GROWTH BY ADDING VALUE AND LEARNING FROM THE BEST.

23 THIS IS ECUADOR NOW

2. A COUNTRY OF EXPORTERS THAT DIFFERENTIATES BETWEEN QUANTITY AND QUALITY OF ORIGEN; THAT CONQUERS MARKETS AND SEEKS AGREEMENTS THAT GENERATES TRUE OPPORTUNITIES, BUT KEEPS ITS PRODUCTION.

3. COUNTRY OF ENERGY STRATEGIC INFRASTRUCTURE SELF-SUSTAINABLE, MODERN AND GREEN. WITH LOGISTIC, PRODUCTIVE, AND COMPETITIVE FACILITIES, CRITICAL CONTRIBUTIONS FOR SYSTEMIC COMPETITIVENESS.

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50 YEARS. THIS IS THE USEFUL LIFE PROJECTION OF THE ROADS BUILT IN ECUADOR.

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ECUADOR IS THE PLANET’S THIRD COUNTRY WITH THE HIGHEST NUMBER OF SCHOLARSHIP GRANTEES ABROAD. SINCE 2007 THE COUNTRY HAS GRANTED SCHOLARSHIPS TO MORE THAN 18,900 STUDENTS TO THE WORLD’S BEST UNIVERSITIES.

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THE FIBER OPTICS NETWORK IN THE COUNTRY WAS EXTENDED FROM 3,500 TO 59,861 KM AND THE NETWORKS’ SPEED WAS INCREASED 40 TIMES. THE ACCESS TO INTERNET WENT FROM 3% IN 2006, TO 50% IN 2015, I.E. 1 OUT OF EVERY TWO ECUADORIANS NOW HAVE ACCESS TO INTERNET.

7. INNOVATING COUNTRY GENERATOR OS SCIENCE, TECHNOLOGY & HUMAN SKILL. A COUNTRY THAT PROMOTES TRAINING, ACADEMIA-CORPORATE, AGREEMENTS, FINANCING, INCENTIVES.

10. A COUNTRY WITH SELF-ESTEEM AND LONG -TEAM

VISION THAT BELIEVES IN ITSELF, THAT IS AND FEELS GIFTED. A COUNTRY THAT THINKS BIG, THAT UNDERSTANDS THAT IT WOULD ONLY REACH THE GOAL OF BEING A PRODUCTIVE POWER BEING UNITED.

PROMOTION OF THE PRODUCTIVE APPARATUS

5. FIRST ECUADOR

8. TOURISTIC POWERS

PRODUCING QUALITY GENERATING JOBS, INNOVATING, SUBSTITUTING, POSITIONING LOCAL PRODUCTION, GENERATING EMPATHY AND PRIDE.

A COUNTRY THAT OFFERS EXPERIENCES & EXCELLENCE SERVICES, TURNS TOURISM IN ITS MAIN AND MOST EFFICIENT SOURCE OF MONEY AND WEALTH.

4. BASIC INDUSTRIES

6. INTEGRAL SECURITY

9. THE PUBLIC SECTOR THE BEST

THE PLATFORM TO REACH DEVELOPMENT THROUGH THE SO-CALLED INDUSTRIALIZING INDUSTRIES: PETRO CHEMICAL, STEEL, PULP, SHIPBUILDING INDUSTRIES.

DEVELOPING TRUSTFUL SURROUNDINGS, BUILDING SAFE CITIES WITH EFFECTIVE SYSTEMS & RELIABLE INSTITUTIONS.

A COUNTRY WITH AGILE, KIND, AND TRANSPARENT SERVICES, WITHOUT USELESS TRANSACTIONS, ALIGNED TO ITS PRODUCTIVE GOALS IN AN EFFICIENT AND EQUAL BASIS.

WITH AN INVESTMENT OF USD 5.5 BILLION IN 8 HYDROELECTRIC PLANTS, ECUADOR HAS DUPLICATED ITS ENERGY CAPACITY IN THE LAST DECADE: FROM 4,070 TO 8,569 MW.

ECUADOR HAS INVESTED USD 8,761.1 MILLION IN ROADS SINCE 2007.

THE COUNTRY NOW HAS 9,750 KM OF GOOD ROADS. THIS FAVORS PRODUCERS WITH FUEL AND TIME SAVINGS, AND PROMOTES TOURISM.

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THE COUNTRY OF GOOD LIVING

Expat Insider Survey 2015 places Ecuador as the second country in the world with the best quality of life; the third with the best infrastructure to establish; and the first to make friends. ROE

25 LEADING DESTINATION

ECUADOR, A COUNTRY WITH AN IMPROVED LIFE QUALITY ECUADOR IS THE COUNTRY OF GOOD LIVING. BESIDES ITS NATURAL WEALTH, IT IS THE HOME OF DIFFERENT CULTURES THAT HAVE A COMMON DENOMINATOR: HOSPITALITY, EXTRAORDINARY CUISINE, AND GREAT DIVERSITY THAT SEDUCES BOTH NATIONALS AND FOREIGNERS.

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xpat Insider Survey places Ecuador among the Top 10 countries chosen by expatriates to live in 2015. The country holds the first place above Mexico, Malta, Singapore, Luxemburg, New Zealand, Thailand, Panama, Canada, and Australia. The elements for the designation include cohabitation, personal finances, easy to establish, and low cost of life. Even with external factors, such as the international oil price fall, 80% of the expatriates living in the country are very happy with their financial situation and 91% are satisfied with the cost of life, according to the aforementioned survey. This is because Ecuador presents great advantages, such as the level and quality of life and the quality of cost-free public services. The country has the best road network in Latin America; very good public health services; and expatriates can establish in a dollarized country where the cost of life is lower than in their countries of origin.

Ecuador is the country with the highest biodiversity per square meter in the planet. In Ecuador you can have breakfast next to the Pacific Ocean; have lunch at the foot of the Cayambe, a majestic snow-capped mountain in the Middle of the World; climb to the Chimborazo volcano, the most remote peak from the center of the earth; and have dinner in the Amazon forest. All this in a single day. If this weren’t enough, the next day, at 1.5 hours from the capital, Quito, or one hour from Guayaquil, you may visit the Galapagos Islands. Lately, cities like Cuenca have received international awards as the best place to retire. This is why thousands of foreign retirees are increasingly choosing Ecuador as their place to live. ROE

BETWEEN 2007 AND 2016, IN ECUADOR, AN EMBLEMATIC WORK HAS BEEN INAUGURATED EVERY 15 DAYS. THIS TALKS ABOUT ITS COMMITMENT TO SOCIAL WORK.

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According to Expat Insider Survey 2015, Ecuador holds the second ranking in quality of life in the world.

Ecuador is the third country in the world with the best facilities to establish and the first where it is easier to make friends, according to Expat Insider Survey 2015.

According to the Ministry of Tourism of Ecuador, income from tourism increased from USD 492.2 million in 2007 to USD 1,691.2 million in 2015, i.e., an annual average growth of 13%.

BEST QUALITY OF LIFE According to Expat Insider Survey de 2015, regarding quality of life, Ecuador is above countries like Austria, Switzerland, Portugal, Spain, Japan, Czech Republic, and Germany.

Expatriates in Ecuador value the available options for leisure, accessible medical care, travelling facilities, security, and transportation infrastructure. The study also reveals that the country is the first in the world to offer personal happiness.

Foreign residents are satisfied with their social relations, who is not surprising because the majority values the nationals’ personal satisfaction and even rely on the Secretary of Good Living to guarantee their quality of life.

EASY TO ESTABLISH Expat Insider Survey places the country among the world’s top 10 where expatriates are very happy with the kind people. The country is known for offering a sensation of being welcome, where it holds the first rank thanks to its development model

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that places humans at the forefront. In Ecuador, expatriates can value a model where the laws are made with and for the people. A participative society that has attended more than 108 itinerant cabinets performed with the citizens, with more than 13,000 acquired commitments. The basic investment in this development model is devoted to education, science, knowledge, technology, and innovation. The goal is to promote human skills to build a society with equal opportunities and based on the only unlimited resources: the human mind.

THE FRIENDLIEST COUNTRY Ecuador is known for its capacity to adapt to the visiting tourists’ cultural tastes and diversity. In this regard, the country has managed to combine expats’ needs and customs with their own idiosyncrasy without denying their soul and identity. In 2015, the country received 1,560,429 tourists. According to data issued by the Ministry of Tourism, Ecuador’s most frequent visitors come from Colombia (23.64%), United States (16.66%), and Peru (11.27%.)

27 LEADING DESTINATION

Progress made in this sector are reflected on the country’s success with the World Travel Awards (WTA), called the Oscars of Tourism, with a total of 16 awards in the South America category. Ecuador was chosen, for the fourth consecutive year, as the Leading Green Destination of South America, and Quito was appointed the region’s Leading Destination.

development positions to design and implement new products and services; business intelligence focused on learning from direct and indirect competitors through benchmarking; customer service; environmental management and ecosystem protection, among other areas.

Successful public policies have reduced unemployment rates in Ecuador below the Latin American average and countries like Brazil and Uruguay. In these last months Ecuador’s Economically Active Population recorded a growth of 400k people of which 320 found a job.

(See graphic on page 76).

Besides investment in security, infrastructure, quality of services, and other aspects, at present Ecuador is promoting universal tourism access. To this end, it signed an inter-institutional agreement with the National Council for Equality of Disabilities and the National Federation of Ecuadorian Citizens with Physical Disabilities aimed to perform joint actions that contribute to social integration of people with disabilities and for them to enjoy egalitarian tourism.

PERSONAL FINANCES

EASY PLACE TO WORK Ecuador is also a Republic of Opportunities for expatriates in what concerns job offers. Expatriates place it in the top 10 rating in the subcategory of Work and Career, according to the 2015 Expat Insider Survey. The State and the private sector share the social responsibility of generating stable employment and promote entrepreneurship with dignified, quality, and safe job environments, with the possibility of developing careers, revaluate human skills and keep competitive in the long term.

An increasing number of Ecuadorian companies incorporate in their organizational structure research &

According to Expat Insider Survey 2015, Ecuador holds the world’s first place in relation to best cost of life.

In 2015, a positive balance was observed in the tourism balance estimated in USD 650 million as compared to 2007, which showed a deficit in the tourism balance of USD 106.7 million.

In 2015, the average expenditure of foreign tourists in Ecuador is estimated in around USD 1,200.

In Ecuador migrants are also highly satisfied with their financial situation.

Expat Insider Survey 2015 place the country as the world’s first with improvements in personal finances, mainly due to the low cost of life.

In the top 10 the country is above Luxemburg, Mexico, Philippines, China, Indonesia, Vietnam, Thailand, India, and Nigeria. Likewise, 8 out of every 10 resident expatriates are satisfied with their financial situation in Ecuador - 26% said they are completely satisfied with their personal finances in the country, as compared to 15% worldwide; 63% of the expatriates interviewed by Expat Insider Survey consider their available income to be more than enough. Among the respondents to the survey around the world, 23% feel they have insufficient income, while in Ecuador this figure is 9%. ROE

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28 ECUADOR HABITAT III HOST

SUSTAINABILITY & URBANISM ECUADOR HABITAT III HOST ECUADOR WAS THE SEAT OF INTERNATIONAL SUMMIT OF HABITAT III - 167 INTERNATIONAL DELEGATIONS GATHERED IN QUITO TO BUILD THE URBAN DEVELOPMENT AGENDA FOR THE NEXT 20 YEARS.

ACCORDING TO THE ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN, ECLAC, THE RELATION OF THE 10% AVERAGE ECONOMIC INCOME OF THE RICHEST POPULATION REGARDING THE 10% POOREST DROPPED 42 TIMES IN ECUADOR.

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29 ECUADOR HABITAT III HOST

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he United Nations General Assembly chose the Ecuadorian capital, Quito, to hold the first International Habitat Summit performed in Latin America. The city was appointed the seat of this event, which is performed every 20 years, for its high touristic worldwide exposure, its recent acknowledges, and great international representation.

The first international conference of the kind was performed in Vancouver, Canada, in 1976. For 1996, Istanbul, Turkey, was selected. And now it was Quito’s turn, in October 2016. Habitat III is a milestone of sustainable development in the world because it was the first United Nations conference after the 2030 Sustainable Development Agenda. This time Ecuador told the world its perspectives on the National Plan for good Living with a projection to integral urbanism and the right to the city, with social inclusion and the vulnerable groups in mind. Casa de la Cultura Ecuatoriana Benjamín Carrión

PLANNING & URBANISM

sheltered the third United Nations Conference on Housing and Sustainable Urban Development, Habitat III, for four days. There the international community adopted the New Urban Agenda for the next two decades. Among the first stakeholders were presidents representatives of the UN Member States, civil society, the academic sector, the private sector, technicians specialized in urban development, among other important representatives.

Ecuador took advantage of the event to formulate the three basic principles of its public urban development policy: Good Living, the Right to the City, and the City’s Social and Environmental Function.

Ecuadorian President Rafael Correa thanked the UN for the honor of having chosen the country’s capital as the “seat of this conference that will leave a mark on history. As the world becomes increasingly urbanized, we must think on new alternatives and new solutions,” he said. ROE

According to the UN, 7 out of every 10 people in the world will live in urban zones this century. This made urban planning a global challenge. ROE

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30 ECUADOR HABITAT III HOST

EQUITABLE CITY Ecuador is in the process of consolidating as a mainly urban country with strong impacts on production and consumption, social mobility, internal migration, etc. In view of this, the Constitution provides the right to safe and healthy habitat, adequate and dignified housing, and the right to the city.

The latter means the right to dignified and adequate housing and the efficient provision of environmental friendly basic services; the right to adequate quality of life; social, individual, and psychological welfare; as well as to the creation and revitalization of the public space in order to promote citizen participation and co-responsibility.

THE LEGACY OF HABITAT III Habitat III contributed greatly to accelerating the Ecuadorian economy. Around USD 34 million of which USD 25.5 million were destined to the event’s construction and operation, and more than USD 92 million will return in the next years.

Additionally, the country had global coverage and expanded its image and positioning. It is estimated that around 25,000 direct and indirect jobs were created in the areas of hostelry, tourism, construction, transportation, services, and corporate solutions.

The legacy of Habitat III also includes investment in the country’s infrastructure. Casa de la Cultura Ecuatoriana Benjamín Carrión was permanently intervened and its infrastructure and services were substantially improved according to the special requirements. The interventions

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ENSURE ALL PEOPLE’S ACCESS TO HOUSING AND GOOD BASIC SERVICES AND ACCESSIBLE INSURANCE TO IMPROVE MARGINALIZED NEIGHBORHOODS.

GIVE ACCESS TO SAFE, ACCESSIBLE, AFFORDABLE, AND SUSTAINABLE TRANSPORTATION SYSTEMS TO ALL AND IMPROVE ROAD SECURITY, IN PARTICULAR

BY EXPANDING PUBLIC TRANSPORTATION AND PAY SPECIAL ATTENTION TO THE NEEDS OF PEOPLE IN VULNERABLE CONDITIONS, WOMEN, CHILDREN, DISABLED PEOPLE, AND SENIORS.

INCREASE INCLUSIVE AND SUSTAINABLE URBANIZATION AND PARTICIPATIVE, INTEGRATED, AND SUSTAINABLE PLANNING AND MANAGEMENT OF HUMAN SETTLEMENTS.

DOUBLE EFFORTS TO PROTECT AND PRESERVE CULTURAL AND NATURAL HERITAGE.

GIVE ACCESS TO GREEN ZONES AND SAFE, INCLUSIVE, AND ACCESSIBLE PUBLIC SPACES, IN PARTICULAR FOR WOMEN AND CHILDREN, THE ELDER AND DISABLED PEOPLE.

31 ECUADOR HABITAT III HOST

involved an approximate area of 21k square meters. An investment of USD 6.6 million was made in these works.

AROUND 30K PEOPLE, 18K NATIONALS AND 12K FOREIGNERS, ATTENDED HABITAT.

ACCORDING TO THE BEHAVIOR OF TOURISTS IN THE COUNTRY IN THE LAST 10 YEARS, IT IS ESTIMATED THAT ONE POTENTIAL TOURIST COMES AFTER EVERY FIVE FOREIGN TOURISTS WHO VISITED THE COUNTRY.

EVERY BUSINESS TOURIST SPENDS APPROXIMATELY USD 898 IN A 3-DAY CONGRESS.

TOURIST VISITS RANGE BETWEEN ONE AND 15 DAYS. AN AVERAGE OF SEVEN DAYS FOR TOURISM AND FOUR DAYS FOR BUSINESS IS ESTIMATED, WITH AN AVERAGE DAILY EXPENDITURE OF USD 300 BY FOREIGN TOURISTS AND USD 150

BY NATIONAL TOURISTS. THE IMPACT ON POTENTIAL TOURISM AND TOURISTS WHO RETURN TO THE COUNTRY AFTER HABITAT III EXTENDS TO FIVE YEARS, AFTER WHICH THIS NUMBER IS RESIDUAL.

IT IS ESTIMATED THAT EVERY TOURIST WHO VISITS THE CITY GENERATES 1.2 DIRECT AND INDIRECT JOBS.

ACCORDING TO ILO, 40% OF THE PEOPLE MOBILIZED FOR BUSINESS TRIPS RETURN TO DESTINATION.

SUSTAINABLE CITIES CAPABLE OF OVERCOMING ADVERSITY In spite of the fact that countries like Ecuador produce less Greenhouse Emission (GHE) rates as compared to industrialized nations, these will be the most affected by the impacts of climatic change. The Ecuadorian Government, hence, makes efforts to reduce the vulnerability of its social, economic, and environmental system, and simultaneously identifies economic sectors that can take measures to reduce GHE nationwide.

To confront climate change, the Ministry of the Environment, in 2012, conducted the National Strategy for Climate Change for 2012-2025. This document aims to coordinately guide and require actions and measures that Ecuador needs to promote in order to confront extreme and more intense and frequent climate events. It also defines actions to reduce the level of greenhouse emissions in the strategic productive and social sectors. In relation to the vulnerability to natural disasters caused by humans, articles 389 and 390 of the Ecuadorian Constitution includes risk management and establishes a national decentralized system to this end. Besides, in 2008 the Government created the National Secretariat of Risk Management focused on integral management to reduce risks and handle emergencies and disasters. ROE

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32 PHOTOGRAPHY

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33 PHOTOGRAPHY

ECUADOR: THE COUNTRY OF HUMMINGBIRDS

Ecuador is a paradise of diversity. It shelters approximately 1,600 bird species on the continental and insular territory. In spite of its small size, it is the home of 132 hummingbird species, 39% of the planet’s species. ROE

Photo: Yasuni-ITT

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EL INGA SUBSTATION

It evaluates and distributes energy from Coca-Codo Sinclair Hydroelectric Station. It is the country’s substation with the largest transformation capacity and is part of the new transmission system of 500 kilovolts (kV). Electric power will be improved and guaranteed for Quito and the provinces of Imbabura and Carchi. ROE

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35 PUBLIC IS BETTER

PUBLIC IS BETTER INSTITUTIONAL EFFICIENCY ALMOST ONE DECADE AGO, THE COUNTRY STARTED TRANSFORMING THE QUALITY OF PUBLIC SERVICES WITH SOCIAL POLICIES IMPLEMENTED BY THE NATIONAL GOVERNMENT. TODAY PUBLIC SERVICES ARE KNOWN FOR THEIR EFFICIENCY, DYNAMISM, AND RESPECT TO THE CITIZENS.

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cuador has changed. The National Government started a radical renovation and strengthening process started by the National Planning and Development Secretariat (SENPLADES) and later continued by the National Public Administration Secretariat (SNAP) the first entity developed the capacities of transforming, democratizing, and upgrading the State; and SNAP works together for institutional efficiency. This is how the country presented this new planning and

development scheme that must come with new institutionality and regulations, to efficiently structure two programmatic work areas: Planning for Good Living and Democratic State Transformation.

The new work plan’s assumptions were: decorporating national development for a new approach of public matters as politics’ reason to be; breaking public-private administration segmentation, and work the great national

ACCORDING TO THE LAST SURVEY ON LIFE CONDITIONS IN ECUADOR PERFORMED BY THE NATIONAL INSTITUTE OF STATISTICS AND CENSUS, INEC, POVERTY RATES IN THE COUNTRY DROPPED 32.6% BETWEEN 2006 AND 2014.

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36 PUBLIC IS BETTER

development goals in order to create inter-sectorial public policies; propose optimized perspectives for Good Living as the main regulations that guide public action; and incorporate to society discussion on public institutionality and its regulation as the core of the new development approach.

Optimizing public services is one of the best proofs of Ecuador’s change in the last decade. Thanks to the National Government’s social policies, today public services are known for their efficiency and respect for citizens. One of the aspects that helped achieve this change is good planning at administrative levels after having identified the necessary works for each sector in the country. For example, decision is made on the planned construction of Community Police units, health centers, child Good Living centers, education Millennium Units, etc. Also services that were formerly offered in the cities of Quito and Guayaquil, are currently decentralized to guarantee access to all citizens.

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CITIZEN CARE CENTERS HAVE CAFETERIAS, REST SITES, AND ALL COMFORT. THEY EVEN HAVE RECREATION SPACES FOR CHILDREN TAKEN BY THEIR PARENTS WHILE THEY DO THE PAPERWORK.

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THE BENEFITS OF THESE CENTERS INCLUDE REDUCING DISPERSE OFFICE MAINTENANCE AND OPERATION EXPENSES.

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THE DESIGN OF NEW CITIZEN CARE CENTERS HAS BEEN STANDARDIZED. THE INVESTMENT FOR THEIR CONSTRUCTION WOULD BE AROUND

55

USD

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MILLON

CITIZENS CARE CENTERS There is no question that public services improved with the construction of the Citizen Care Centers. Tenths of public institutions are located in a single building, where contact between the citizens and the public officials is

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IN A REPORT DEVELOPED BETWEEN 2011 AND 2014, THE INTER-AMERICAN DEVELOPMENT BANK STATES THAT ECUADOR IS THE COUNTRY THAT HAS BEST IMPROVED ITS PUBLIC SERVICES. AT PRESENT THE COUNTRY IS AMONG THE SIX COUNTRIES WITH THE BEST PUBLIC SERVICES IN THE CONTINENT.

37 PUBLIC IS BETTER

more effective. This type of infrastructure responds to the Government’s initiative to improve public services and create a new and improved image of the State. The works are executed in coordination with decentralized sectional governments in order to contribute with the process of expanding public service coverage, recover the role of the State, and provide quality and warm services. This has to do with a new model of deconcentrated State model in the territory for people to have easy access to efficient and timely services. At present Ecuador has four large Citizen Care Centers in the city of Latacunga, Lago Agrio, Santa Elena, and Azogues. The next centers will be located in Milagro, Guasmo Sur (Guayaquil), Ibarra, Santo Domingo de los Tsáchilas, and Tena.Ciudadana en las ciudades de Latacunga, Lago Agrio, Santa Elena y Azogues. Los próximos estarán ubicados en Milagro, Guasmo Sur (Guayaquil), Ibarra, Santo Domingo de los Tsáchilas y Tena.

LESS PAPERWORK From the beginning the Government took on the task of reducing unnecessary tasks for citizens and its institutions.

The word is simple: use the new technology to reduce the users’ time investment and consequent public resources.

Ecuador now has one of the region’s best post offices and offers facilities for transactions that need the users’

physical presence. The country now has dynamic and operative public services, and public servers who offer care based on a philosophy of efficiency, quality, and friendliness. The government created the webpage www.tramiton.to as a tool to promote paperwork reduction and citizen participation where the citizens can suggest improvements for public transaction processes.

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In order to simplify the access of citizens and companies to State services, the National Public Administration Secretariat published webpage DirEc Virtual, Single Transaction Site.

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The webpage DirEc represents the multichannel strategy to present State services, as the single brand for all service and contact channels.

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The E-Government Survey is calculated according to three indexes: online scope and quality services, development of telecommunications infrastructure, and human capital.

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In 2014, Ecuador signed a cooperation agreement with Korea to determine the corporate architecture (software, hardware, servers, policy and regulations) on information technology.

ELECTRONIC GOVERNMENT Ecuador takes firm steps in electronic administration.

Proof of this is the National Plan for Electronic Government that shows the political decision of working towards excellence, by promoting the optimization of citizen paperwork and the public sector’s transparency. According to the UN E-Government Survey 2016, the country ranks 74 among 193 countries in E-Government implementation. This measurement is made every two years and evaluates the governments’ work efforts in providing quality public services, a transparent administration, and increasing society’s participation through information technologies, as well its citizens’ capacity. Since 2012, Ecuador has shown a favorable evolution in measurements by advancing 28 positions. ROE

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38 PUBLIC IS BETTER

SOCIAL INCLUSION •

In Ecuador, the Executive Function demands a participation of at least 40% of women; the Judicial Function 50%, and the Legislative 43%.

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According to data issued by the National Assembly, private businesses and entrepreneurships, 48% of the managers or owners are women.

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The Ecuadorian State performs permanent controls to private companies and public entities in relation to the inclusion of disabled people.

Ecuador is one of the countries with the best representation of women in the Legislative Function, several ministries, and State institutions. With a rate of 43% of women in the Assembly, this figure is only an example of the country’s concern for gender equality and inclusion. Ecuador has worked for gender equality with laws and codes that rule parity in public server candidacies and appointments; non-compensated housework is acknowledged, the right to social security for those who perform it, and allows both men and women to share newborn baby care. Also, the State protects the rights of people with diverse sexual orientation by implementing the Integral Public Policy for GLTBI people.

LABOR INSERTION The country has worked to include disable people, which has been broadly recognized in the world. In Ecuador the

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insertion of disabled people to work is a constitutional mandate. Article 47 of the Constitution guarantees dignified jobs for historically excluded groups. It ensures that disabled people access the labor market in equal conditions. The Ecuadorian Government’s policy of labor inclusion has allowed more than 83,463 disabled people to be part of the country’s productive and labor force until 2015. A milestone of this initiative is public company Petroamazonas, which seeks massive labor inclusion of disabled people. From 2010 to 2015, according to Petroamazonas data, the Integral Labor Service incorporated 12,364 people with some type of disability to stable and sustainable jobs, both in the pubic and private sectors. For these policies to remain in time, the country has a regulatory and programmatic framework, such as the Organic Law on Disabilities, the National Development Plan, the Social Development Agenda, and the National Equality Agenda for Disabilities.

39 PUBLIC IS BETTER

PRODUCTIVE SERVICES Economic activities need efficient product service networks for them to be a positive factor in the generation of wealth and employment. For this reason, the social sector is a key factor in Ecuador. In the last nine years, the Government has inaugurated one emblematic work every two weeks and has lifted 1.5 million people out of poverty. From 2006 to this date the social sector’s investment and budget was multiplied fourfold; this has directly influenced the country’s transformation. Recovering the direction of the entire social front resulted in every sector assuming specific responsibilities and this, in its turn, allowed citizens to recover their confidence in the public sector.

A Government emblem is providing services that guarantee essential citizen rights by committing to contribute to build a better Ecuador, with new education, health, and social security services with a strengthened public administration.

RENEWED INSTITUTIONS In 2007, the Government started a process of historic change and reorganization of the State structure. One of the most relevant is undoubtedly the integral renewal of Vital Records, an entity that is currently efficient, modern, and offers quality services to the citizens.

Another emblematic case is the transformation of the National Traffice Agency (ANT) that now has simplified paperwork. In June this year, ANT was acknowledged by the National Secretariat of Public Administration for having reached the second level of maturity in the Ecuadorian Excellence Model. ROE

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NATIONAL YASUNI PARK

Ecuador is mega diverse. The country is acknowledged in the world for its wealth and variety of endemic flora and fauna species per square meter as it concentrates 10% of all the world’s flora species.

ROE Photo: Eduardo Naranjo

PART II

SPACE MACH INE RY

ROLDAN VINICIO ALVARADO ESPINEL THE COORDINATING MINISTRY OF PRODUCTION, VINICIO ALVARADO, SHARES THE COUNTRY’S VISION ON DEVELOPING ECUADOR’S PRODUCTIVE PLATFORM AND INCENTIVES TO STIMULATE INVESTMENT AND PRODUCTIVITY.

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“ECUADOR REPUBLIC OF OPPORTUNITIES: THE COUNTRY’S VISION FOR THE PRODUCTIVE SECTOR”

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inicio Alvarado Espinel holds a masters degree in Business Administration from Instituto de Desarrollo Empresarial, a doctorate in Social Communication from Universidad Nacional de Loja, and Bachelor in Social Communication from Universidad Laica Vicente Rocafuerte de Guayaquil. During his political life he has served in several important positions, such as Public Administration Secretary, Minister of Tourism, and Minister of Industries, a.i. On October 15, 2015, he was appointed as Coordinating Minister of Production, Employment, and Competitiveness through Executive Decree No.800. ROE

ECUADOR IS THE HEMISPHERE’S LEADER IN IMPLEMENTING EFFICIENT INTEGRAL SECURITY POLICIES AS ACKNOWLEDGED BY A REPORT FROM THE ORGANIZATION OF AMERICAN SATES, OAS.

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44 INVESTMENT

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45 INVESTMENT

What has been Ecuador’s main contribution for investments generation in public policy?

The current public policy’s environment and instruments have turned Ecuador into a platform that welcomes investment, but particularly long-term investments with the conditions for systemic competitiveness developed in the country in the last years. Ecuador is building its own development model based on essential precepts such as justice and equality, respecting individual rights but emphasizing on everyone’s welfare, especially those who have always been excluded. With political stability, integral security, energy generation and exports, the region’s best road system, human skills, firstlevel airports, and universities that bet on an innovating and technological development, Ecuador has created a platform of systemic competitiveness that has powerful incentives to attract the investments provided in the Organic Code of Production, Trade and Investment (COPCI), as well as he Law on Public-Private Associations (APPLICATION.) The COPCI offers investors income tax exemption for five years for priority productive sectors and imports substitution; 10 years of basic industries in urban zones; and up to 12 years in border zones and tariff reduction for capital goods related to new investments and free transfer of profit abroad, exempted from the Currency Outflow Tax.

Through COPCI 95 investment contracts were executed for USD 6.624 billion, with which 8,807 direct jobs will be created. It is important to underline that 75% of investments are foreign. Regarding APP Law, we have registered three contracts under this modality for the construction of the Posorja and Puerto Bolívar ports and the Huaquillas-Río 7 Road. The total amount of investments is a USD 2.615 billion. Under this modality companies will be treated in the same way as a public company for foreign trade taxes, exempted from the Currency Outflow Tax, and a 10-year exemption on income taxes.a.

What sectors have invigorated the country in the last decade?

We have focused on rational, sustainable, and efficient management of strategic sectors for the correct development of our local industry. We pay more attention to mining, hydrocarbon, and hydric resources, and the effective provision of public services like telecommunications and electricity, which has generated a maximum social benefit aimed to guarantee the rights of the population. In this sense, 9,000 km of excellent roads, seven multipurpose mega projects, and eight new hydroelectric stations stand out.

What does it mean for Ecuador placing human beings as the core of

“ECUADOR HAS CREATED A PLATFORM OF SYSTEMIC COMPETITIVENESS THAT HAS POWERFUL INCENTIVES TO ATTRACT INVESTMENTS AS PROVIDED IN THE ORGANIC CODE OF PRODUCTION, TRADE, AND INVESTMENTS (COPCI.)”

developing improved plan management and public policies?

Ecuador definitely started a new road and is building its own development model, a deep transformation project that has placed human wellbeing at the core of its policies.

In other words, this development model respects individual rights but emphasizes on common wellbeing and seeks to reach a cohesive society with national goals that builds the best scenarios for entrepreneurship. On the other hand, human being’s integral development influences the productive chain – this is why we have more than 15 Ecuadorian students studying with scholarships in the world’s best universities who are returning to the country to be part of its productive development and corporations. The country’s poverty levels dropped- more than 1.9 million Ecuadorians were lifted out of poverty between 2009 and 2015.

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46 INVESTMENT

“ECUADOR IS BUILDING ITS OWN DEVELOPMENT MODEL, A PROJECT THAT HAS LOCATED HUMAN WELLBEING AS THE CORE AXIS OF ITS POLICY. A MODEL THAT RESPECTS INDIVIDUAL RIGHTS BUT EMPHASIZES COMMON WELLBEING.”

What criteria has Ecuador used to improve its productive platform?

Ecuador went from being an energydeficit country, with shortages that depended on energy imported from its neighbors Colombia and Peru, to an energy-exporting country – eight new hydroelectric stations that are starting to operate and guarantee constant and sufficient supply of clean energy from renewable and sustainable sources, that allow planning investments in areas that were unthinkable before, such as steelmaking, pulp, aluminum, and other basic industries that, of course, avoid interruptions and damage to the current industrial processes. This creates huge savings to society in relation to capital outflow for fuel imports in thermoelectric stations and energy imports, the cost of generators for the companies, subsidy savings, the costly suspensions and consequent machinery damages and the huge pollution avoided.

Additionally, seven mega projects will protect agriculture zones from floods in the rainy season,

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and integrate hundreds of new hectares with irrigation, which not only guarantees water in times of draught, but also duplicates and even triplicates production capacity all year round.

More than 9,000 kilometers of optimal roads are acknowledged as the region’s best road system; five international airports and twelve other refurbished airports around the country make part of a firstorder logistic network that, besides seven State ports and 10 private docks for general load and fuel, are part of this productive platform that is essential for development.

The land is ready for national and foreign entrepreneurs to get the best results.

Regarding the amount of investments, from 2007 to 2015 Ecuador has invested around USD 8.9 billion in roads and USD 38 billion in mobility by 2030; USD 7.18 million in hydroelectric stations, USD 8.5 million in social security, USD 3.8 million in housing, sanitation and social infrastructure, USD 2 billion in agricultural and irrigation projects,

and more than 20 billion in local government budgets.

How has generating clean low-cost energy contributed to the country’s productivity?

On one hand we produce energy in an efficient way, and on the other hand we produce it in a responsible way with the planet.

At present, the country’s energy matrix exceeds 95% of clean and renewable energy production.

Building eight hydroelectric stations saved the country significant amounts in fuel imports, generators, subsidies, and others. With these eight mega projects operating 100%, we estimate that in 2017 Ecuador will expand its energy capacity in 8,678 MW per year. Additionally, by the end of this year the country is expected to export approximately USD 200 million in electricity to Colombia.

What are the country’s possibilities in becoming a productive power?

Ecuador has become a Republic of

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Opportunities thanks to the tax incentives and its new productive platform. Besides, the country has one of the region’s strongest economies: 4.2% annual GDP growth and 24% poverty reduction in Ecuador. Let’s not forget that we have an egalitarian access to education, dignified and stable work, and social security. We have competitive advantages and first-level infrastructure.

entities is essential. With the Ministry of Industries and Productivity, we have presented the New Industrial Policy, which is based on five essential pillars: Innovation, Quality, Productivity, Investment & Markets, and one of its main goals is to implement opportunities generated by public investments and to attract more private investment to contribute to quality jobs.

How is productivity projected in Ecuador in the medium and long terms?

The impact of implementing the new industrial policy in the country proposed for the period 2016-2025, is expected to generate 251k new jobs, an investment of USD 13.6 billion, positive contribution to the trade balance of USD 1.2 billion and 10 percentage points more in the country’s GDP. ROE

Ecuador is aiming at is main exports market because it is rich in raw materials and inputs that are scarce in other countries. We continue working to strengthen the national production and conquer new markets for its production. Working in coordination with other

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INTERNATIONAL ACKNOWLEDGEMENT

The Galapagos Islands was internationally acknowledged as World Natural Heritage, Biosphere Reserve, Whale Sanctuary, Wetland Protection Area, and others. ROE

49 SOVEREIGNTY AND CONSERVATION

SOVEREIGNTY AND CONSERVATION ECUADOR DEFINES ITS SEA BORDERS TODAY ECUADOR HAS CLEAR BORDERS ACKNOWLEDGED BY ITS NEIGHBOR COUNTRIES AND THE INTERNATIONAL COMMUNITY. ON SEPTEMBER 9, THE ECUADORIAN PRESIDENT CELEBRATED THE FINAL DELIMITATION OF ITS SEA BORDERS WITH COLOMBIA AND COSTA RICA. Pristine Seas Projects for the National Geographic program called Galapagos and narrated by singer-songwriter Miguel Bosé

A

fter 200 years of republican life, Ecuador finally established its sea borders taking as reference the Galapagos Archipelago and the Costa Rican Isla del Coco. Such delimitation creates closer ties between Ecuador, Costa Rica, and Colombia, and opens new horizons for the sustainable use of the seas. This fact also strengthens cooperation between

the mentioned countries in matters of shares maritime interest. In the case of Ecuador, the exact determination of its sea borders will allow the country to take advantage of around 700,000 sq. km. of an exclusive economic zone in the area next to the Galapagos Islands, as well as on continental waters, calculated in other 450,000 sq. km. ROE

ACCORDING TO FIGURES OF THE MINISTRY OF HEALTH, ECUADOR HAS INVESTED USD 13.5 BILLION IN HEALTH IN THE LAST 8 YEARS – IT CURRENTLY HAS 31 NEW AND REFURBISHED HOSPITALS, AND THIS YEAR 8 MORE ARE TO BE INAUGURATED.

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50 SOVEREIGNTY AND CONSERVATION

GALAPAGOS, THE ISLANDS OF EVOLUTION Galapagos, that fantastic submarine world that today opens to the world thanks to technological progress played an essential role in the definition of the EcuadorColombia-Costa Rica ocean corridor. The islands, known for their endemic species and Charles Darwin’s studies that took him to develop his theory of evolution by natural selection, today are one of the main promoters of tourism. Several international means have documented their extraordinary beauty and scientific value. National Geographic released one of the last productions in September 2016. The documentary Galapagos,

Islands of Evolution, is narrated by Spanish singer-songwriter Miguel BosĂŠ, was made as an expedition and is part of the project called Pristine Seas, which in the last seven years has explored and documented 16 pristine (untouched) sites in oceans around the world. Of those, eight are protected as areas without any extraction, including Darwin and Wolf (Galapagos), that shelter one of the main coral reefs and record the highest number of sharks in the world, including the only migration of pregnant whale sharks. ROE REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

51 SOVEREIGNTY AND CONSERVATION

In March 2016, Ecuador created a Marine Sanctuary in Galapagos through executive decree, which contributes with 38,00 sq. km. of untouched serves to the world.

Regarding Darwin and Wolf Islands studies reveal their huge ecological value and unique conditions for the development of scarcely known life. Ecuador, Colombia, and Costa Rica manage their resources in a sustainable and coordinated way to preserve marine life within their borders. With this decree Ecuador expects the Sanctuary helps recover marine life wealth, increase the value of tourism in Galapagos, and improve small fishing. To support conservation, benefits have been established for the communities with improved fishing instruments in authorized zones to promote ecological tourism.

ENVIRONMENTAL PROTECTION Ecuador seeks to convert tourism, the third source of non-oil income source, in the mainstay of the economy. Therefore, measures have been taken to protect the natural heritage and develop conscientious, sustainable, and competitive tourism. The country has 8.2 million hectares in conservation and environmental protection protocols, equivalent to 33.26% of its continental territory; 99% of the Marine Reserve and the National Galapagos Park are

also under conservation protocols.

From 2000 to 2016, Ecuador’s protected continental territory has doubled and holds the second place in the region after Venezuela.

Between 2008 and 2015, the country duplicated its preserved or environmentally protected marine and coast surface from 356 k to 630k hectares. In Galapagos, from 2007 to 2015 USD 268,778,113 has been invested, i.e., 13 times more than the investment made between 2000 and 2006. This means more than USD 10k per inhabitant, which is probably the highest per capita investment made in all the national territory. Thanks to this incentive, the Galapagos Archipelago has new airports, a hospital, roads, two wind projects, and one photovoltaic project that will replace fossil energy. There is also ECU 911 security system, rescue helicopters, air ambulance, new coastguard boats, and a ne Galapagos Law consistent with the Constitution passed in 2008.

world’s main shark biomass. In the documentary divers explore at more than 65 ft. the most shocking shark species. This is aimed to influence thousands of potential tourists to choose Galapagos and Ecuador and, above all, make people aware of its value. The most relevant data of this documentary conducted by singer-songwriter Miguel Bosé includes the touristic value of one shark in Galapagos throughout its lifetime that will exceed USD 5.4 billion while, if fished, the amount would be USD 200. With the new Galapagos Islands zoning, Ecuador is still at the forefront of sustainable conservation and development in the planet.

WORLDWIDE KNOWN BEAUTY From 2007 to 2016, Ecuador has received more than 145 tourism awards. On July 1 this year, the World Travel Awards (WTA), known as the Oscars of Tourism, the country received the World’s Leading Green

DARWIN & WOLF These islands and their ocean surroundings are classified as the best place in the world fro snorkeling. Here the waters shelter the last coral reef of the Galapagos Marine Reserve. The documentary NatGeo shows the touristic potential and promotes the Galapagos Marine Sanctuary in foreign markets as the “Planet’s Crown Jewel” for sheltering the

Destination for four consecutive

DARWIN AND WOLF ISLANDS ARE 38,000 SQ. KM. OF MARINE SANCTUARY, EQUIVALENT TO 28% OF THE TOTAL GALAPAGOS MARINE RESERVE SURFACE. THE NATIONAL GEOGRAPHIC PRISTINE SEAS PROJECT INVESTIGATED THE GALAPAGOS MARINE ECOSYSTEM DURING 21 DAYS. THE NEW GALAPAGOS ARCHIPELAGO ZONING IS AIMED TO PROTECT THE LAST CORAL REEF IN THE ISLANDS.

years, and that capital, Quito, was designated as the Region’s Leading Destination. Additionally, the Cruise Train was awarded for the third consecutive year as the Best Luxury Train in South America, and was established as one of the country’s star tourism products. The awarded

MORE THAN 500 MILLION PEOPLE IN THE WORLD WILL BE ABLE TO WATCH THE DOCUMENTARY ON GALAPAGOS THROUGH NATGEO. A DEEP SEA SUBMARINE WAS USED TO FILM THIS DOCUMENTARY; IT ALLOWED TAKING SHOTS DEEP IN THE OCEAN AT MORE THAN 1300 FT BELOW THE WATER.

cities also include Guayaquil that was designated as a “Leading Business Trip Destination in South America.” ROE

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52 PHOTOGRAPHY

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53 PHOTOGRAPHY

CACAO PRODUCTION

Ecuador holds the sixth place in world cacao production. Thanks to temperatures and agriculture land suitable for this crop, Ecuador is the main producer of fine aroma cacao, with 70% of the market share. ROE

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BOSTJAN SKALAR DIRECTOR OF THE WORLD ASSOCIATION OF INVESTMENTS PROMOTION AGENCIES

55 ECUADOR INVESTMENT SUMMIT

ACCORDING TO THE 2015-2016 GLOBAL COMPETITIVENESS REPORT PUBLISHED BY THE WORLD ECONOMIC FORUM, ECUADOR IS THE COUNTRY WITH THE BEST ROAD QUALITY IN LATIN AMERICA.

THE IMPORTANCE OF DIRECT FOREIGN INVESTMENT THE DIRECTOR OF THE WORLD ASSOCIATION OF INVESTMENT PROMOTION AGENCIES (WAIPA), BOSTJAN SKALAR, VISITED THE COUNTRY. BELOW IS HIS OPINION ON DIRECT FOREIGN INVESTMENT IN THE COMPETITIVE DEVELOPMENT OF ECONOMIES AND LATIN AMERICA’S POTENTIAL. I am happy to be in Ecuador for the first time; not only in Ecuador, but also in the middle of the world. I thank you for having invited me and allowing me to share points of view on the global situation and how Direct Foreign Investment (DFI) can help solve the problems we are confronting.

The world economy’s globalization is a real situation. We are inter-connected through processes and products. In the light of this growing dependence, the world economy limits growth and intensifies the challenge of economic - this is something that affects us all. Therefore, thinking globally is crucial – more than ever. The prevailing idea before the beginning of the financial crisis that certain economies were able to detach from the effects of the global economy, now we know, is not so. We share a global business surrounding that ties our destinies. The policies we implement have global impacts and this makes us more responsible of the actions that affect the global economy. The deceleration of global economic growth prevails because of the slow growth of advanced economies, the commodity

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56 ECUADOR INVESTMENT SUMMIT

“WE SHARE A GLOBAL BUSINESS ENVIRONMENT THAT TIES OUR DESTINIES. THE POLICIES THAT WE IMPLEMENT HAVE GLOBAL IMPACTS AND THIS MAKES US MORE RESPONSIBLE OF THE ACTIONS THAT AFFECT THE WORLD ECONOMY.”

prices, low exchange flows, and capital flow reduction. There is an urgent need for structural reforms at the economic level, which is blurred by low growth trends.

DIRECT FOREIGN INVESTMENT FLOWS World Direct Foreign Investment flows in 2015 dropped in 2016. We witnessed a fall and the same is predicted for next year. Both developed and developing countries are confronting the effects of Direct Foreign Investment decline, which make us share concerns that are directing our future strategies. So we are all here to develop a plan that stimulates the global economy’s growth again; and this plan can be summarized in investment.

We must promote investments that strengthen the competitive potential of individual economies and integrates them regionally – sustainable and

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inclusive investments.

The current situation of Latin America and the Caribbean is unprecedented in the last 30 years.

Two years of contraction in the region does not summarize the economic activity that the economies have experienced at the subregional level. South America is in a recession; and slow growth is envisaged for Central America and the Caribbean.

The solution to the problems of the current world must not only focus on finding investment opportunities, but in convincing investors of taking advantage of these opportunities. We need agreements, common solutions we must strengthen and support. We have more energy requirements; we needs more job opportunities, more employment, but we also need decent jobs,

57 ECUADOR INVESTMENT SUMMIT

infrastructure, industries, and production – everything under a sustainable approach.

The challenges we are confronting today are related to our economies. Building infrastructure to transform communities, guarantee jobs, food production, and employment. But we must think on the planet we live in before investing.

To make it sustainable and to preserve it for the future generations, investments in clean energy are an essential priority. This is aligned with Sustainable Development Goal number 7 presented by United Nations and accepted by all countries last year. Renewing energy sources is a modern and efficient solution.

INEQUALITY AND ENVIRONMENT Poverty, unemployment, and inequality still prevail in the world. Around 2.2 billion people live under the poverty threshold of USD 2 per day. These people are in the first lines of our development agenda. The goals established for the next 15 years are focused on global Direct Foreign Investment flows that address matters of employment for the weakest economies, and sustainably contribute to reach a fair globalization and reduce poverty.

Our countries’ social and economic policies must be aimed to education, training, and coaching by strengthening individual capacities to confront the labor market demands. We will only be able to eradicate poverty by ensuring these work opportunities. Education is crucial to achieve this. Our growth must also have positive effects on the environment. Direct Foreign Investment flows in the emerging economies must address these areas. Latin America and the Caribbean are attractive for foreign investment in the areas of tourism, agroindustry, agroforestry, and the development of real-estate infrastructure. Investment flows in these sectors are aligned with the United Nations Sustainable

Development Agenda, and will transform the region’s communities and also take care of the planet we all share.

SUSTAINABLE AND INCLUSIVE INVESTMENTS Direct Foreign Investment flows result from the growing economic interdependences of all stakeholders at each level of the global economic system. Improvements in the business processes and investment environment attract all stakeholder ¡s to a single platform. The World Association of Investment Promotion Agencies (WAIPA) is the center of economic development through sustainable and inclusive investments. Our goal is to develop the economies by localizing the common benefits of Direct Foreign Investments within the United Nations Sustainable Development Goals.

Our 170 agencies, in 130 countries around the world are part of an investments promotion network that optimizes the collective potential of all stakeholders. We facilitate mutual dialogues, we inform for decision-making policies, we build our counterparts’ capacities to improve the investments environment. This demands attractive investors in areas that show opportunities, as those that exist in Ecuador.

To achieve this, WAIPA organizes training activities in investment promotion agencies.

These programs use tools that build knowledge on the best practices, success factors, and the ability of identifying failed matters. The economy’s transformation is only possible through informed collaboration. WAIPA provides information on what to motivates and encourages investors, which creates value added.

Where and how do investors need facilities?

What kind of post-follow up activities promotes long-term activities?

We know that information is very important for decision-making processes. This is why we have quality evaluating services that we provide through our investment promotion agencies, such as ProEcuador. By organizing the data globally, we are informed about the preferences of governments, agencies, and investors. By closing the communication gap, we create large networks to reach those goals. We are committed to being the global reference point for Direct Foreign Investment.

The Ecuador 2016 Investments Summit is a historic milestone for the country that seeks foreign support. It is an ideal place to make long-term business relations and promote investments in Ecuador, Latin America Latina, and the world. Ecuador is committed to provide the investors a stable and transparent environment that offers the type of support needed to invest in the country and the region. ROE

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INVESTMENT SUMMIT ECUADOR PRESENTS THE BEST INVESTMENT OPPORTUNITIES TO THE WORLD

59 ECUADOR INVESTMENT SUMMIT

ACCORDING TO INTERNATIONAL FIRM THE BOSTON CONSULTING GROUP, ECUADOR IS THE COUNTRY THAT HAS BEST INVESTED ITS OIL WEALTH IN WELFARE.

WHY TO INVEST IN ECUADOR? ECUADOR INCENTIVIZES LOCAL AND FOREIGN INVESTMENT WITH A PROJECT PORTFOLIO OF AROUND USD 40 BILLION. BELOW ARE THE TESTIMONIES OF INVESTORS WHO LEARNED THESE POSSIBILITIES FIRSTHAND AT THE ECUADOR 2016 INVESTMENT SUMMIT.

E The investments catalog presented by PROECUADOR contains investment options of around

USD 40

billion of which USD 29 billion correspond to strategic sectors, USD 2 billion to logistic infrastructure, and USD 3 billion to basic industries.

cuador now offers among the best business conditions in the region. The development of the productive platform that the Ecuadorian State has strengthened in the last decade is complemented with public policies, strategies, incentives, and actions aimed to quantitatively and qualitatively improve the national production, as well as the promotion of a broad investment portfolio, including more than 150 national projects in Strategic Sectors, Agroforestry, Agroindustrial, Strategic Infrastructure, Real Estate Infrastructure, and tourism.

With the presence of 26 countries, The Exports and Investment Promotion Institute PRO ECUADOR, through 31 commercial offices, promotes foreign investment

attraction. It also provides specialized services to foreign purchasers and investors interested in the Ecuadorian exportable offer..In this same line, the 2016 Ecuador Investment Summit was held in Unasur, en Quito, and gathered around 350 participants, including local business people, national authorities and foreign investors willing to know first hand the opportunities that the country is offering. In general terms, the 2016 Ecuador Investment Summit was a favorable space to create and promote personal and commercial relations among investors in different latitudes. Below are the points of view of some of the participants in relation to the country’s incentives, the sectors of highest interest, and the conditions that make Ecuador attractive. ROE

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60 ECUADOR INVESTMENT SUMMIT

Jorge Castro Abonce General Director of Technoproject S.A. Mexico

Juan Alfredo Chiriboga Pinos Operations Manager Overspeed S.A. Represents Russian firms Gradient and Rimera

“Our activity is related to hydroelectric projects. We have been in Ecuador for seven years working in engineering technology in the different projects and we are now promoting other new ones. In the seven years I have been in Ecuador, I have learned to love this country and work in it. I believe Ecuador is still unknown in the world. I must say that when we arrived to this country we were somewhat frightened for the risk. But then we started learning the rules, how you work in the country, and learned to manage the risk, as in any other part of the world. I believe that this Administration has achieved stability in the last years. In the field of my interest, energy and hydroelectricity, Ecuador offers very good alternatives, mainly because of its natural wealth.” ROE

“As an Ecuadorian company that represents Russian firms Gradient and Rimera, we hope these companies invest in Ecuador and help develop the energy sector, particularly in relation to gas and oil.

Both companies have their own energy-producing technology, hydrocarbons, with which production costs will favor the State and the organization; it will improve productivity and energy efficiency.

The CEOs of these companies visited Ecuador and showed interested in the country. Ecuador projects a good international image for investments, but we must realize them. Besides the currency (the dollar) and being a small territory, Ecuador has minerals, gold, agriculture, and hydrocarbons. The country’s new competitive platform is also attractive because it reflects less operation costs. Ecuador is a country of opportunities that must be developed to make them reality.” ROE

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61 ECUADOR INVESTMENT SUMMIT

Nelson Perugachi General Manager of Conecuakor C.E.M., Construcciones Ecuatoriana-Coreanas Korea-Ecuador

Felipe Avellán Executive President of Adelca, Acería del Ecuador C.A. A compliance with 53 years of history in the country

“We are looking forward to the Government’s opening to public-private alliances that may present important opportunities for foreign investments, with medium- and long-term returns that may be positive for the country’s economy, as well as an attractive possibility of capital return for investors who carry out their projects in Ecuador. We are basically interested in the construction and infrastructure sector in Ecuador because we are aware that this is one of the factors that generates positive development and is well founded. On the other hand, I believe the investment the country has made in energy development, political stability, and the image that it projects internationally are all positive steps. This may generate investments in other fields. Going back to energy generation, this is essential for production. For many years Ecuador had shortages in this field and now it will have surplus.” ROE

“I thank the opportunity to share the good experience of having invested in this generous country for more than 50 years. Adelca has a significant corporate history of contribution to Ecuador’s industrialization. It started in 1963, when three entrepreneurs decided to build the first beam factory for the country’s construction sector. Through the investments made by Adelca and other competitors, in the last 8 years the country generated USD 2 billion in its trade balance. The casting activity generates between 7,000 and 8,000 jobs in the scrap collection and storage field, and has a positive impact on the lowest social strata. The Government has encouraged these investments through raw material tariff protection. Thanks to innovation, technology, and reinvestment culture, Adelca’s results shows constant growth: from USD 175 million in sales in 2005, to USD 320 million in 2015; and from 438 to 1,486 workers in the same period.”ROE

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FESTIVAL OF LIVE ARTS LOJA

The First International Festival of Live Arts Loja 2016 was an important element to activate the national scenic arts.

With the participation of national and international artists and an approximate capacity for more than 90,000 people, it represented in more than half a million dollars for this city during the ten days of the festival. ROE

PART III

INTO THE FUTU RE

64 INFOGRAPHICS

CORPORATE GROWTH (2010 - 2015)

LARGE COMPANIES

INTERMEDIATE COMPANIES

INCREASE OF THE NUMBER OF COMPANIES BETWEEN 2010 AND 2015 PER SIZE.

SMALL COMPANIES

16,933 14,557

Between 2010 and 2015 the private sector has expanded significantly. In this period there are 700 corporations with an income above USD 5 million in sales.

5,315 1,997

6,590

2,790

2010 Large companies: Income above USD 5,000.001.00

2015

Intermediate companies: Income between USD 1,000,001.00 and USD 5,000.001.00

Small companies: Income between USD 100,001.00 and USD 1,000,000.00

VARIATION RATE OF THE NUMBER OF COMPANIES PER SIZE

16%

24%

SMALL COMPANIES

INTERMEDIATE COMPANIES

40%

LARGE COMPANIES

TOTAL INCREASE OF THE NUMBER OF COMPANIES (LARGE, MEDIUM AND SMALL COMPANIES) BETWEEN 2010 AND 2015

2010

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20%

2015

65 INFOGRAPHICS

INTERMEDIATE COMPANIES

9%

SALES GROWTH PER COMPANY SIZE BETWEEN 2010 AND 2015 The corporate sector’s growth is also reflected in their income increase. Between 2010 and 2015 they showed a growth of 58.7%. This means more economic activities promoting the different components of demand, such as consumption and investment. Companies with an income above USD 5 million show the higher growth (89.7%)

90%

Source: Superintendence of Companies, Securities, and Insurance (own calculation)

LARGE COMPANIES

CORPORATE SECTOR´S INCOME VARIATION RATE PER SALE (LARGE, MEDIUM, SMALL AND MICRO ENTERPRISES) BETWEEN 2010 AND 2015

2010

58.7%

2015

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66 INFOGRAPHICS

TOURISM IN FIGURES

UNITED STATES

13% 5% CUBA

10% COLOMBIA

PERU

Ecuador

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VENEZUELA

23%

11%

67 INFOGRAPHICS

2% SPAIN

19 OTHER COUNTRIES

%

ECUADOR’S MAIN TOURISM MARKETS OF ORIGIN (September 2016) From the total number of tourists who arrive to the country, the main countries of origin are Colombia (20%), United States (19%), and Peru (12%).

Source: Ministry of Tourism (Monthly Bulletin 2015-2016)

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68 INFOGRAPHICS

trade balance

TOURISM LOCATION IN NON-OIL EXPORTS IN MILLION USD (JAN-JUN 2016)

1,600 1,400 MILLION USD

1,200 1,000 800

774.7

709.9

600 400 200 0 2016 Bananas

MILLION USD

500

Tourism

Other manufactures products

THE TOURIST BALANCE INCLUDES PASSENGER TRIPS & TRANSPORTATION

700 600

Shrimp

2015

The trade balance of the touristic sector shows a growing trend; by 2015 it shows a surplus of USD 650 million. This means more generation of currency that may be destined to the different economic sectors in benefit of the country. It also contributes to job generation, which, according to the World Travel & Tourism Council, by 2016 shows an estimated growth of 2.7.

Natural flowers

Cacao

650

400 300 Trade balance

200 100

0 -100 -200

2008

2009

Source: Ministry of Tourism (Monthly Bulletin 2015-2016)

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2010

2011

2012

2013

2014

2015

69 INFOGRAPHICS

0.29%

BOLIVAR

1.34% 0.90% 4.02% 2.11%

CHIMBORAZO CAÑAR AZUAY LOJA

GALÁPAGOS SANTO DOMINGO

6.98%

ORELLANA MANABÍ

1.35% 1.22% 4.19%

SANDO DOMINGO

1.11%

SANTA ELENA

ESMERALDAS

28.87% 2.56%

GUAYAS

0.51%

CARCHI

2.41% 33.69% 1.04% 3.24%

SANTA ELENA

MANABÍ

EL ORO

PERCENTAGE PARTICIPATION OF THE PROVINCIAL TOURISTIC VAB IN 2014

IMBABURA

By 2014, the gross value added of the touristic sector is 2.23%. From this, the provinces that contribute more to the touristic VAB are Pichincha (33.69%), Guayas (28.87%), Galapagos (6.98%), and Manabi (4.19%).

PICHINCHA COTOPAXI TUNGURAHUA

Source: Ministry of Tourism (Tourism Satellite Account Ecuador).

0.55%

SUCUMBÍOS

0.36%

ORELLANA

0.45% 0.41%

PASTAZA

0.23%

MORONA SANTIAGO

ZAMORA CHIMCHIPE

TOURIST SECTOR EXPORTS

2,500 2,000 1,500 1,000 500 0

1,500 1,000 500

MILLION USD

MILLION USD

According to World Travel & Tourism Council, a key factor for direct contribution to the GDP is the money used by foreign visitors in the country, which is called tourist exports. By 2015 Ecuador generated 1,949.3 million dollars on this account, which represents 1.9% of the GDP by 2015.

0 2010

2011

2012

2013

Tourist sector exports (right axis)

2014

2015

Domestic tourism expenses * (left axis) * Includes Government expenses

2016

Source: World Travel & Tourism Council

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COLLAS ROUTE

The Collas Route is a milestone in the country’s development. This road towards Mariscal Sucre International Airport is one of the best roads of Latin America that allows reaching your destination in 15 minutes. ROE

PART IV

POC KET SLA NG

72 INFOGRAPHICS

ECUADORIAN ENTREPRENEUR PROFILE

22.7%

33.6% 22.2% TOTAL EARLY-STAGE ENTREPRENEURIAL ACTIVITY (TEA) The total early-stage entrepreneurial activity (TEA) is the population percentage (between 18 and 64 years old) that are new entrepreneurs or owners and creators of a new business.

25.9%

TOTAL EARLY-STAGE ENTREPRENEURIAL ACTIVITY IN LATIN AMERICA AND THE CARIBBEAN According to the seventh Global Entrepreneurship Monitor GEM 2015, Ecuador ranked first among the Latin American and Caribbean countries that participated in GEM, with a high early-state entrepreneurial activity (TEA) of 33.6%.

Source: Escuela Superior Politécnica del Litoral (ESPAE Graduate School of Management)

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73 INFOGRAPHICS

PERCEIVED OPPORTUNITIES

2,5%

ENTREPRENEURSHIP PROFILE FOR ECUADOR AND AVERAGE EFFICIENCY ECONOMIES

2,0% 1,5% TEA: MEDIUM AND HIGH GROWTH EXPECTATION

1,0% PERCEIVED CAPACITIES

0,5%

TEA

TEA % NEED

As compared to efficiency countries*, Ecuadorian entrepreneurship shows a TEA 2.2 times higher than the average for these countries. Likewise, in these economies, the percentage of Ecuadorians that stand out in relation to capacities to recognized opportunities or start an entrepreneurship is 1.4 times higher. *South American countries, Barbados, Mexico, Guatemala, Panama, Puerto Rico, Morocco, South Africa, China, Indonesia, Kazakhstan, Lebanon, Malaysia, Thailand, Turkey, Bulgaria, Croatia, Estonia, Hungary, Latvia, Poland, Rumania, Macedonia.

TEA % IMPROVEMENT OPPORTUNITY

ECUADOR

EFFICIENCY ECONOMIES

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74 INFOGRAPHICS

CHARACTERISTICS OF ECUADORIAN ENTREPRENEURS

37 AVERAGE AGE

YEARS OLD

AVERAGE 10 TO 11 YEARS OF SCHOOL ATTENDANCE

MEN

WOMEN

Gender parity is observed in early entrepreneurship. Women’s TEA exceeds men’s in only 2%.

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Regarding income, 52% of entrepreneurs under 65 years old receive less than 450 dollars, while 32% receives between 451 and 850 dollars.

75 INFOGRAPHICS

TEA PER ZONE & MOTIVATION ZONE

TEA

TEA OPPORTUNITY

URBANA

36%

25%

11%

RURAL

30%

20%

10%

TEA NEED

The TEA evolution has remained stable in the last years with increased total early-stage entrepreneurial activity in the urban zone (36%) in the rural zone (30%.)

The GEM has identified two important strengths at the time of starting an entrepreneurship, opportunity, and need. Hence, for 2015 in the urban zone the motivation for opportunity remains the most important with a 25% TEA.

TEA DISTRIBUTION PER INDUSTRY Agriculture, forestry & fishing EXTRACTIVE Mining & construction TRANSFORMATION Mining & construction Manufacturing Use, transportation & storage Wholesale trade Information & communication BUSINESSORIENTED Financial & real estate intermediation Professional services Administration services Wholesale trade CONSUMERORIENTED Retail sale, hotels & restaurants Government, health, education & social services Consumer service activities

TEA 5% 0% 0.3% 5.2% 1.7% 6.1% 1.2% 0.3% 1.7% 2.5% 3.2% 65.9% 5.7% 1.2%

The different sectors of the Ecuadorian sectors show a higher TEA in activities related to wholesale and retail trade, hotels and restaurants, particularly those related to consumption.

Source: Escuela Superior PolitĂŠcnica del Litoral (ESPAE Graduate School of Management)

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76 INFOGRAPHICS

QUALITY OF LIFE

According to an international survey made by Expat Insider in 2015, Ecuador remains at the top ranking as the best destination abroad - 91% of the interviewees feel satisfied with the cost of life and 80% with personal finances, which places the country in the first place of these indexes.

On the other hand, in the quality of life index, Ecuador holds the second world ranking given the satisfaction of the interviewees in relation to their life and personal happiness in the middle of the world. Also, Ecuador generates a high sense of welcoming, which is another index where it holds the first place, as well as the easy friend making environment. The country of the four worlds, thus, is one of the best in the world because of how easy it is to settle here.

THE TOP EXPAT DESTINATIONS 2015

FEELING WELCOME

PERSONAL FINANCE

1 Ecuador

1 Ecuador

1 Ecuador

2 Mexico

2 Portugal

2 Luxembourge

3 Malta

3 Mexico

3 Mexico

4 Singapore

4 Spain

4 Philippines

5 Luxembourg

5 Malta

5 China

6 New Zealand

6 New Zealand

6 Indonesia

7 Thailand

7 Singapore

7 Vietnam

8 Panama

8 Canada

8 Thailand

9 Canada

9 Bahrain

9 India

10 Australia

10 Australia

10 Nigeria

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

77 INFOGRAPHICS

QUALITY OF LIFE

LEISURE OPTIONS

PERSONAL HAPPINESS

1 Singapore

Australia

Ecuador

2 Ecuador

Mexico

Costa Rica

3 Austria

Spain

Mexico

4 Switzerland

Ecuador

Thailand

5 Portugal

New Zealand

Philippines

6 Spain

Israel

Panama

7 Japan

Hungary

Portugal

8 Czech Republic

South Africa

Myanmar

9 Germany

United States

Indonesia

Argentina

Malta

10 South Korea

FINDING FRIENDS

COST OF LIVING

THE MOST EMPATHETIC COUNTRIES

1 Ecuador

1 Ecuador

1 Ecuador

2 Mexico

2 Poland

2 Saudi Arabia

3 Costa Rica

3 Czech Republic

3 Peru

4 Malta

4 Vietnam

4 Denmark

5 Romania

5 Thailand

5 United Arab Emirates

6 Philippines

6 Hungary

6 South Korea

7 Bahrain

7 Mexico

7 Unites States

8 New Zealand

8 Romania

8 Taiwan

9 Portugal

9 Saudi Arabia

9 Costa Rica

10 Uganda Source: Expat Insider 2015. InterNations

10 Indonesia

10 Kuwait For 2016, researchers from the universities of Michigan and Chicago place Ecuador as the country with the best empathy after a web survey performed to more than 104k people around the world.

Source: Michigan State University

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

78 PHOTOGRAPHY

Photo: Cortesy of DP World, Callao, Port Peru

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD

79 PHOTOGRAPHY

POSORJA PORT

Located in the province of Guayas, the integral construction of Aguas Profundas Posorja Port, one of the most important in Latin America, will be one of the main national milestones resulting from the public-private alliance encouraged by the Ecuadorian State. ROE

REPUBLIC OF OPPORTUNITIES I THE CENTER OF THE WORLD