WHAT A TERRIBLE RECIPE
THE CAPITAL WILL NEVER ACCEPT TO BE IN A CAGE, they are free, they control themselves by the minute and any perception of uncertainty or a bad environment they stop investing in that market and fly to another one, they go to countries where citizens not only inhabitants. That is why I say give us the recipe for how they will attract capital. It aims to increase the tax on capital outflows, that heading of "capital flight" includes interest payments, foreign loans, imports, services payment, etc, etc. That is, people need to know that it is not that who takes money abroad but is being punished, but the pockets of the people is, and that increased taxation is what it does punish people's income, or is it that the only recipe that has this country continue to borrow inappropriate interest with China, or it is to prevent people to borrow or bring foreign money for housing projects that generate jobs and decent housing options for the middle class? Who advises that badly? Because far from boosting exports that bring U.S. dollars they decide to invest and teach in Venezuela how to produce the products of our sectors that generate more manpower and money. I mean the flowers, bananas, cocoa, shrimp, so that them compete by creating jobs over there and removing these from here. And what about what the new increased rate in electricity, or the taking of the BLOOD BANK. That is not a reason to lower the quality of life and continue to transfer money from the pockets of people to the giant State, which is to think of Ecuador or treason to the Nation. We conclude that this is not a recipe for prosperity, but to kill the future of the people. UNTIL WHEN!
IWF International Congress held in Rome from 25 to 27 of May 2011, called "The Art of transforming the world"
Conference: Fashion Design - Fashioning Our World: from left to right: Sandra Benalcazar - Maria del Pilar Chiriboga - Ilse Meinlschmidt - Sara Benalcazar Patricia Isaiah Estrada (Ecuador IWF Forum members)
Dine Around Reception: from left to right: Adele Adelphi Gagliardo (Member of the Forum Italy) Marina Romualdi Vaccari (Italy IWF President) Angela Diorio Dinacci (Host and a member of Italy Forum) Rebecca Eljuri of Kronfle (member of the Ecuador Forum )
The IWF Ecuador chapter Forum members enjoying the different events that took place in Rome
New stage for leaders and politicians
Dr. Claudio M. Rosa Columnist, La Prensa Grรกfica El Salvador
"Unfortunately, the comfort, the convenience to keep a business with the government, the fear, and the little use of reason, are drowning human dignity and corroding the principles, and when facing with these situations you do not raise your voice, values weaken and society recedes". For some reason it is not easy to understand that when human beings have more freedom, which comes from access to information and knowledge, politicians refuse to admit that there is new stadium for the political role and the exercise of power. Many just search how to hold on to power, without getting the message of the movement of spring 2011 that continue in the Arab world, putting in crisis and deposing dictatorial governments settled for decades, seeking freedom, democracy, and the right to choose and not be subjected to the arbitrary will and unquestioned of a few. Is impressive to see that everything is has been manifested spontaneously, where communications technology has played an important role. In many countries, laws were passed before, decisions were made in a small space of power, where few people had access to information and less had the ability to generate opposition. But the technological revolution has changed the scenario of political actors, and the communication via messages and social networks can generate opinion and organize movements at the speed of light. Now nothing is a secret, so the demand that politicians face now
is that they must act and always on the "right" side". Otherwise, societies will move quickly to "punish" them with a rejection that is not easily reversed. But now the media also isn't able to manipulate the information and present half-truths, because social networks uncover them and put them in questionable situations that can discredit their actions. Business associations and trade unions are also open to face the scrutiny of society in social networks, where nothing is left without comments and question. There, not all think alike, but anonymous freedom unleashes the individual thought, raises awareness and, as an idea is spread to the majority, It becomes a force that shapes the perceptions and thinking of society. Unfortunately, human stupidity and power blinds many rulers, who are sick of "messianism" and come to believe they are the "chosen", the "only" the "irreplaceable" to interpret their people and find the way solve problems. They grow the State, impose new laws, new taxes and they go curtailing freedom gradually, a fundamental condition for encourage initiative and productive creative genius human being. So, as we observe what many rulers are doing, especially in Latin America, and making use of reason and freedom, it is inevitable to analyze the thoughts of Ayn Rand, RussianAmerican philosopher, who developed the "objectivism." She holds that men are "rational beings", for whom "reason" is the only means of knowledge, on which depends the choice made by the individual. Using reason and knowledge, we must match Rand, who notes: "When you notice that in order to produce you need to obtain permission of those who produce nothing; when you find that money flows not to those who traffic in goods, but to those who traffic in favors, when you notice that many grow rich by bribery and influences rather that by working, and that the laws do not protect us against them, but on the contrary, it is them who are protected against you. When we realize that corruption is rewarded and honesty becomes a selfsacrifice, then you can say without fear of being wrong that your society is doomed"
Aware of the evil lead by direct authoritarian systems, she said: "There is no difference between communism and socialism, except in the way of achieving the same ultimate objective: communism proposes to enslave men by force, socialism by voting. This is the same difference between murder and suicide " Unfortunately, the comfort, the convenience to keep a business with the government, the fear, the little use of reason, are drowning human dignity and corroding the principles, and when faced with these situations you do not raise your voice values are weakened and society recedes. I reiterate that unfortunately, we forget that "without 'freedom' is hard to find 'truth,' and without it there is no 'justice'". It is inconceivable how this new era of humanity, of the knowledge society, many nations regress, insensitive to "freedom gives life to democracy, but when she abuses ends up killing her mother freedom, unaware that with that she will eventually die too". The worst thing is that in many cases judicial systems end up giving the final thrust to the system of liberties, forgetting that "who in the name of justice limits the exercise of freedom makes a mockery of justice and does not deserves to be called judge but an executioner". It is time to return using the reason to defend freedom, to facilitate the development of creative and productive genius of the human being, to generate wealth and jobs, because these are the means by which the human being will progress with dignity, and to increase the State's income, without
limiting the freedom with more taxes to fund health and quality education that create equal opportunities. The opposite carries the wrong way, is closing our eyes to the reality of human history.
ECONOMICAL PERSPECTIVES OF LATIN AMERICA IN 20112012 Econ. Luis Oganes Head of Research for Latin America - JP Morgan
LATIN AMERICA: GDP GROWTH ABOVE THE POTENTIAL Latin American growth is slowing but remains above potential, Argentina, Chile and Peru will grow 6 to 8%.
Latin America: Projected real GDP growth 1Q
2Q
3Q
4Q
%oya
1Q
2Q
3Q
4Q
%oya
%oya
Potential GDP %oya
Argentina
15.2
12.5
2.7
10.5
9.2
6.5
5.0
6.0
3.0
6.5
4.8
3.5
Brazil
9.0
6.5
1.6
3.0
7.5
5.3
4.5
3.8
3.7
4.0
3.8
4.0
Chile
-8.1
20.5
9.0
4.2
5.2
5.4
6.0
5.5
3.5
6.5
4.0
4.2
Colombia
7.1
5.3
-1.9
7.9
4.3
7.6
3.8
3.7
4.2
4.9
4.0
4.5
Ecuador
1.0
7.9
8.4
11.0
3.6
3.5
2.5
1.5
1.0
4.5
3.5
3.0
Mexico
1.3
8.4
2.8
4.6
5.4
2.1
3.1
11.5
4.0
4.5
3.8
2.5
Peru
7.4
12.8
7.5
8.3
8.8
6.6
4.0
3.0
8.0
6.6
5.5
6.0
Venezuela
-0.8
4.6
0.6
-1.8
-1.4
10.0
2.0
2.0
2.5
3.0
3.0
3.0
Latin America
5.8
8.4
2.5
4.8
6.0
5.1
4.0
6.0
3.8
4.5
3.9
3.6
-
-
-
-
4.1
-
-
-
-
4.3
4.9
-
2010
Central America & Carib.
2011
2012
Source: JP Morgan.
Domestic demand is recovering faster than supply in most of Latin America countries. Output gaps are closing.
LATIN AMERICA: INFLATION WILL REACH ITS PEAK DURING THE THIRD QUARTER OF THE YEAR Inflation continues to accelerate in Latin America, but it will not return to the inflation rates it had before the global financial crisis of 2008-2009. Inflation in food and energy will still depend on the evolution of the prices of commodities, but for now these have stopped rising. Inflation is above the midpoint of the target range in Latin America, but hopes that it reaches its peak between the third and fourth quarters of the year. Brazil, Chile and Colombia will continue to raise their interest rates in coming months, Peru has ended its tightening cycle and Mexico will not do until 2012
Latin America: CPI inflation - Design and Goals 2010
2011
%Dec/Dec
4Q
Apr (%m/m)
1Q
2Q
3Q
4Q
%Dec/Dec
Inflation Target (%)
Argentina1
10.9
11.0
0.84
10.5
11.0
10.5
11.0
11.0
…
Brazil
5.9
5.6
0.77
6.1
6.8
7.5
6.5
6.4
4.5 (±2)
Chile
3.0
2.5
0.32
2.9
4.0
4.9
5.5
5.3
3.0 (±1)
Colombia
3.2
2.7
0.12
3.3
3.1
3.3
3.4
3.2
3.0 (+1)
Ecuador
3.3
3.4
0.82
3.4
3.7
3.8
3.9
3.7
…
Mexico
4.4
4.2
-0.01
3.5
3.6
3.7
3.7
3.7
3.0 (±1)
Peru
2.1
2.1
-0.02*
2.4
2.9
2.2
2.8
3.0
2.0 (±1)
Venezuela
27.4
27.3
1.31
29.1
24.4
25.9
29.0
30.0
…
7.0
6.7
0.50
6.9
6.9
7.4
7.3
7.3
4.9
4.6
0.39
4.6
5.1
5.5
5.1
5.0
Latin America Inflation targeters
2
*CPI data for May 1. Forecast is for official inflation m easure. 2. Inflation targeters include Brazil, Chile, Colom bia, Mexico and Peru
Source: JP Morgan
RISK IN MONITORING: U.S CHINA, EUROPE AND EXCHANGE INTERVENTION Risk monitor # 1: Growth in the U.S U.S. economic indicators are going through a phase of weakness, but it is expected to be temporary. USA: Economic Activity Index (EAI) .
JP Morgan Proyections: interest rate
Fuente: JP Morgan
Risk monitor # 2: Growth in China: The terms of trade in Latin America are closely linked to China's economic cycle. Indeed, China is already one of the main destinations for exports, especially traditional from Brazil, Chile, Colombia and Peru. Latin America: Profile of exports (% of total exports) Exports to:
Argentina
Total Exports (% GDP)
Com m odity Exports
US
EU
China
Japan
18.7
59.7
6.8
16.5
9.0
1.3
Brazil
8.7
55.4
10.6
23.7
16.9
3.9
Chile
35.1
74.8
9.7
17.7
24.4
10.5
Colombia
14.2
56.9
42.5
12.5
4.9
1.3
Ecuador
31.0
80.9
34.8
12.9
1.9
2.9
Mexico
28.7
20.9
83.5
4.8
1.4
0.6
Peru
23.1
77.7
19.9
21.2
12.1
6.0
28.6
99.9
49.4
7.9
9.8
0.2
20.7
47.8
42.3
13.9
9.3
2.5
Venezuela Latin America
1
1. GDP-weighted average; Exports data for 2010.
Fuente: JP Morgan
Risk monitor # 3: Spread of the crisis in Europe: trade and investment ties in Latin America and the European periphery are relatively limited
US$ billion With US With EU
Latin America : Exports to EU and Spain Latin America: Balance of Trade
2006
2007
2008
2009
2010
128.8
116.9
108.9
90.6
127.1
Latin America 7.5
8.1
4.0
3.3
-2.3
With China
-21.8
-28.3
-41.3
-24.2
-31.5
With Spain
4.6
5.3
6.0
1.1
2.3
With Japan
-9.6
-9.5
-13.5
-8.8
-9.4
Latin America ex-Mexico With US
47.0
34.1
27.7
18.1
19.9
With EU
25.8
28.0
26.6
18.1
15.9
With China
0.9
-0.5
-8.7
5.5
8.9
With Spain
5.0
5.4
5.8
1.6
1.9
With Japan
4.1
5.0
0.7
1.0
3.3
2
% of total exports
EU
Spain
Argentina
16.5
3.3
Brazil
23.7
1.7
Chile
17.7
2.2
Colombia
12.5
1.5
Ecuador
12.9
2.3
Mexico Peru Venezuela Latin America
1
4.8
1.1
21.2
2.7
7.9
0.1
13.9
1.6
1. GDP-w eighted average. 2. Including Spain.
Source: JP Morgan.
Risk monitor # 4: Intervention exchange: currency appreciation pressures will remain with high prices of commodities and interest rate differentials. Latin American authorities are trying to contain the appreciation of their currencies increasingly aggressive measures, but success will be limited
Latin America: Exchange Rate Forecast
End of Period
2Q11
3Q11
4Q11
1Q12
USD/ARS
4.10
4.15
4.35
4.45
USD/BRL
1.62
1.62
1.60
1.60
USD/CLP
470
455
455
450
USD/COP
1,8
1,8
1,775
1,775
USD/MXN
11.60
11.60
11.80
11.80
USD/PEN
2.72
2.72
2.70
2.70
USD/VEF
4.30
4.30
4.30
4.30
Source: JP Morgan.
Knowledge Park (Parcon ESPOL) The Knowledge Park (Parcon ESPOL) is the most important university project that will contribute to modify the structure of the national production of goods and services, known for being primary exports. It will also strengthen the National Science, Technology and Innovation System, which must generate and transfer the knowledge that the development of the Ecuador demands, and will help improve the system of higher education, which should form the advanced human talent, to make significant research and articulate teaching and research to actual and potential demands of society. Before the Republic in 1830, the economy of the “Old province of Guayaquil" was agroexporter, and it was the most dynamic production in Ecuador. The agro-export had two strongly marked phases: the cocoa, which took place until 1925 -during the nineteenth century, and represented 80% of exports, and the banana phase, whose biggest boom decade was the 50's. Before the oil boom (1972) the agricultural sector generated 84% of exports. Since 1972 Ecuador is an agro-primary exporter. In 2008 oil and traditional exports accounted an 80% of total Ecuador exports. The National Science, Technology and Innovation System, according to the indicators provided by SENACYT is characterized by: • The very low investment in R & D that only represented the 0.06% of the total GDP in 2005, while in Peru was 0.14%, in Colombia 0.18%, in Argentina 0.46%, and in Chile 0.68%. • The reduced number of researchers, as while the year 2005 recorded 815 in Ecuador, Peru had 4965, Argentina 39,556, and Chile 18,531. • The small number of patents granted, since the year of reference Ecuador granted 42 patents, Peru 537, Colombia 250, Argentina 1798, and Chile 637. • The small number of doctoral programs and the low number of master's degrees in science and engineering by the Ecuadorian universities.
At the same time, the 2009-2013 Development Plan recognizes that Ecuador has a "lag" in research and that "it is essential to link the research produced in universities to public research institutes to create synergies that provide added value to the domestic industry. "
In the knowledge society and development of the territory, in order to the education-researchproduction triangle to works properly and to have a positive impact on the community, it requires the investigation to focus on the key issues in the community - in our case Guayaquil, Guayas province, Region 5 and the Ecuador, in the context of an increasingly interdependent economy, while incorporating the new issues of this knowledge society, by taking in consideration the policies and lines of research of this community. For Parcon ESPOL these are defined by the National Science and Technology Secretary, and the ones of ESPOL, in the context of national and local development. Thus, national and global levels are interrelated, they are interdependent and allow production to help the development, to be the way for a country - Ecuador - to achieve the objectives of the regime of development, where research and quality higher education act as the main agents of knowledge: generation, diffusion and transfer with enforcement purposes. The Parcon ESPOL is, thus, a strategy for the education-research-production relationship to work satisfactorily, with a particularity: high value-added and environmentally sustainable. It is within this context that Parcon ESPOL purpose should be understood:
Promote the creation of small and medium-sized technology based and nature friendly companies. Increase business productivity Improve the competitiveness of the country Strengthen the National System of Science, Technology and Innovation Promote the "culture of innovation" Diversify regional and local economy, strengthening activities related to the "new economy" Improve the quality of the academic activities of universities and polytechnic schools in Ecuador Incorporate highly skilled professionals to technology companies Reduce the "brain drain". According to the Budapest Declaration "there should be conditions to help reduce brain drain and reverse this trend"
ďƒź
Place in national and international markets Ecuadorian products through certificates or seals of approval (national brand).
What benefits will generate Parcon-ESPOL? The benefits and beneficiaries of Parcon ESPOL are: Economically, the substantive achievement will help modify the structure of production, so that the production of goods with high added value gain percentage weight, and to have a transition from a primary export economy to an economy based on knowledge. From this significant transformation there will be collective benefits, such as increased productivity, competitiveness, diversification of exports, exporters and global destinations. Just as a "selective import substitution" (National Development Plan2009-2013). This will generate a new tributary reality for the country, which will impact positively on the General State Budget. In business, the achievements are related to entrepreneurship, to creating technology-based companies, to the emergence of a new generation of entrepreneurs, a new relationship between production and natural resources and between production and knowledge. In export activities and food security, in the first case products such as bananas, cacao, coffee, shrimp, they will have on the new knowledge, innovation, the main tool to gain sustainability and positioning, as several problems faced currently are more scientific and technical about management than of the market. And, for food security the contributions in favor of organic farming and knowledge to improve food productivity and mass consumption use in agro-business will be essential.
The National Science, Technology and Innovation System, the Parcon ESPOL will be a great strategy to overcome the structural problems of the system and the weak relationship of the members of system with the businessmen. In higher education, because hundreds of researchers and Ph.D. of several universities will be incorporated to Parcon ESPOL , establishing a proper relationship between research and teaching. In the production/sovereignty relationship, Parcon ESPOL is model for future knowledge parks in Ecuador. It will be the laboratory for learning how to manage the knowledge park in a country with a weak National System of Science and Technology and with large economic, social and territorial asymmetries.
By giving privilege to small and medium sized technology-based companies, instead of "home-base" of the big multinationals, Parcon ESPOL makes a bet in favor of the national investor, the Ecuadorian entrepreneur, without
excluding foreign investors and foreign small and medium entrepreneurs. The exit or migration of one or more of these entrepreneurs do not produce "runs of capital", or other traumatic characteristic situations when a project of this nature is based on the hegemonic and monopolistic presence of a multinational. By diversifying and stimulating the regional economy, Parcon ESPOL will be a good reference for other "college towns" under the principles of complementarily and academic solidarity, to create specialized parks based on comparative advantages and strengths that each "college town" own.
The new Knowledge Parks can be nurtured of the experiences and lessons learned from Parcon ESPOL, which will compensate the "advantages" that it has acquired for being the first in Ecuador. The Parcon will have, in its beginnings, the building of science and engineering Postgraduate and 6 centers:
CENTER Information Center (ITC)
MISSIĂ“N Technologies
Biotechnology Research Center of Ecuador (BRCE)
Ecuadorian Center for Nanotechnology Research and Development (ECNRD)
Center for Renewable and Alternative Energies (CRAE) Research Development and Innovation Systems Center (RDISC)
Water and Sustainable Development Center (WSDC)
Provide effective tools and services to improve the productivity of people through the ITCs, leading research and development of these through partnerships with other universities, government, industry and community, to encourage the development of Guayaquil, the region and the country. Becoming a leader and an international reference of biotech research in banana -black Sigatoka in 2012. Create, innovate and transfer within the field of nanoscale science and engineering the knowledge that is developed through multidisciplinary research and education, that will allow support technological, social and productive development of the different actors in the country. To do research, development, transfer and technological innovation in renewable and alternative energies.
To generate and transfer knowledge and integrator systems of hardware and software designed to propose solutions for the country's development, through innovation and the context of the knowledge society.
Provide technical responses to water issues, including socioeconomic field, that impact the sustainable development of society, with ethics and responsibility, through research and development in connection with the community.
ELECTRICITY RATES: REALITY OR PERCEPTION OF AN INCREASE Mr. JosĂŠ Pileggi
When in 1996 was approved and took effect the then new Law of Electricity Sector Regime, a hope of solving the serious problems of electricity supply opened, which since 1992 had meant unquantifiable loss for the country as a result of the continuous blackouts that took place each year by the severity of dry season, especially in the area of the Hydroelectric Power Plant Paute (Hidropaute today). The things that can be rescued and that are relevant of this law can be summarized in the following points: a) Segmentation of the stages of production of electric power in generation, transmission and distribution, which in a horizontal structure, contrary to at the time prevailing vertical of the Ecuadorian Institute of Electrification (INECEL), would result in efficient costs, which ultimately would be transferred to consumers through tariffs that reflect management; b) Create the wholesale electricity market, where transactions would be done from the energy produced in the system, privileging via marginal costs new investments and thereby ensuring the private sector participation, especially in generation, and thus diversify risk, that is not only the State invests, who at that time was undergoing a major financial crisis since the eighties, added to their inability to contract loans and, a) By the creation of the National Electricity Council (CONELEC) to promote new public and private investment through concessions especially in generation, market regulation and approval of tariff schedules and that they reflect through the efficient cost studies roofs that can be charged to end users. The purpose of this Act did not meet, and instead was nicknamed as the "privatization" and "neoliberal" law. A similar process and in similar times happened in Colombia, and with a law with concepts very close to Ecuador's, achieved self-sufficiency and instead turn the sector into a good business, so much that we became one of its major customers along with Venezuela. In recent years has sold nearly 600 million USD just to us, which means Baba and a Mazar together.
With this background, the Constituent Assembly of 2008, by the Constitution and the Rule 15, put end to the model of the 1996 law, and instead returned to a model similar to that which caused the INECEL crisis, in which the State is who has the initiative and leads investments in the electricity sector, and from somewhere else keeps alive a law and all its regulations, making it a hybrid, in which the the regulator (CONELEC) now also has the Operator hat, this means that the State that generates, transmits and distributes electric power regulates for itself the final tariffs to consumers. In plain language plays the judge and part. Is in the middle of this scenario we have the biggest blackouts of the last 12 years, from November 2009 to January 2010, and that again put in evidence how fragile the Ecuadorian electric system is, and thus the rebirth of the sentence: "the most expensive energy available is that which you do not have ". Thereby came the purchase of the expensive generation, fuel imports in above the historical figures, energy imports from Colombia and Peru that reached values of 35 cts. U $ / KWH and rent for a year of generators that cost about $ 100 million to the Fiscal Fund. All this added to the deficit that trailed the electricity sector, and that in 2010 represented a total cost of U $ 1,400 million of the sector, taking as counterpart a final consumer billing bordering the U $ 1,000 million. The gap between what was billed and the cost is among the main reasons for the elimination of the "subsidy" to residential customers who consume about 500 KWH / month from the first of July, which was approved by the CONELEC through the resolution 034/11 on 9 June. The authorities justify the measure under the assumption that only affects the wealthiest sectors of the country, but that does not stand up to analysis if we observe in Table 1 the behavior of rates of 3 types of consumers who are socially and economically in the middle segment:
TABLE No. 1 ELECTRONIC DEVICES
POWER (KW)
AVERAGE USER TYPE A No. DEVICES HOURS
AVERAGE USER TYPE B AVERAGE USER TYPE C No. No. KWH HOURS KWH HORS KWH DEVICES DEVICES
REFRIGERATOR
0.25
1
24
180
1
24
180
1
24
180
STOVE
2.5
0
0
0
0
0
0
0
0
0
WASHING MACHINE
0.6
1
0.5
3.75
1
1
18
1
1
18
DRYING MACHINE
2.5
0
0
0
0
0
0
0
0
0
LICUADORA
0.25
1
0.2
1.5
1
0.2
1.5
1
0.2
1.5
MICROWAVE
0.5
0
0
0
1
0.5
7.5
1
0.5
7.5
WATER HEATER
1
0
0
0
1
2
60
1
2
60
ELECTRIC SHOWER
1
1
0.3
2.25
0
0
0
0
0
0
IRON
1
1
0.5
3.75
1
0.5
15
1
0.5
15
AA 9000 BTU
0.9
0
0
0
1
8
216
0
0
0
AA 12000 BTU
1.2
1
8
60
1
8
288
1
8
288
AA 24000 BTU
2.4
0
0
0
0
0
0
1
8
576
FAN
0.1
1
4
30
1
4
12
1
4
12
SAVING LIGHT BULB INCEANDESCENT BULB TV
0.02
3
4
90
6
4
14.4
8
4
19.2
0.06
3
4
90
6
4
43.2
4
4
28.8
0.125
1
3
22.5
2
3
22.5
2
3
22.5
AUDIO EQUIPMENT
0.15
1
2
15
1
2
9
1
2
9
COMPUTER
0.5
1
4
30
1
4
60
1
4
60
WATER BOMB
0.44
0
0
0
1
0.5
6.6
1
0.5
6.6
HOOVER
1
0
0
0
1
0.2
6
1
0.2
6
HAIR DRYER
1
1
0.2
1.5
1
0.2
6
1
0.2
6
KWH/MONTH
530.25
965.7
The strange thing is that what will produce this measure as a whole will reach $ 56 million, which does not solve the deficit of the sector, but it contravenes express provisions of both, the 2008 Constitution, and the Constituent Mandate 15, Regime Law of the Electricity Sector (LRSE). The LRSE General Regulations, the Regulation of Prices and especially the Regulation 006/08 of Application of the Constituent Resolution 15 which expressly in Article 11 provides: "The CONELEC will determine annually a tariff schedule which takes effect from January 1 next year of issue... ".
As background to this on March 17 of this year CONELEC, by resolution 013/11 already approved the a tariff schedule that is effective from January 1 to December 31, 2011, under section 11 and also by processes established by the Law and its regulations determines the average cost of electric service at national level in 8.925 cts. USD / kWh, based on the study of costs and that also was approved in the same resolution. In that statement the electricity tariff for consumers above 251 KWH / MONTH is ratified in 9.30 cts. USD / KWH in the case of the Electrical Unit of Guayaquil, that is, above the approved average cost, so that all residential consumers on this tariff do not receive any subsidy, but rather, as established by the approved statements, since 2004 these consumers deliver annually in solidarity a cross subsidy for the poorest, or to those who consume less, that in the case of the Coast are the users who are below the 130 kWh / month and the Sierra 110 KWH / month . TABLE No. 2 FEE RATE
SCHEME (cnts. USD/kWh)
TO PAY FOR EXCESS CONSUMPTION
1316.1
APROVED BY CONELEC RANGE OF CONSUMPTION
QUITO GUAYAQUIL
OVER 500kWh U.S. $
OTHER COMPANIES
0-50
6.80
6.80
8.10
51-100
7.10
7.10
8.30
101-150
7.30
7.30
8.50
151-200
8.00
8.00
8.70
201-250
8.70
8.60
8.90
251-300
8.90
9.30
9.10
301-350
8.90
9.30
9.30
351-500
8.90
9.30
9.50
501-750 751-1000 1001-1500 1501-2000
11.85 16.05 26.48 42.56
29.63 40.13 119.16 191.52
Sup > 2000
67.12
67,12 ctvs. FOR EXCESS OVER 2000kWh
TARIFF SCHEDULES APPROVED BY CONELEC RESOLUTION 034/11, JUNE 9, 2011
From table 2 we can see the gradual increase in the tariff from the 500 kWh / month, and that starting from 9.3 cts. USD / KWH cts go up to 67.12. USD / KWH, values that when applied produce increases ranging from 9.14%, and depending on the type of consumption can reach those who consume for example up to 2500 kWh / month up to 227% increase, as tabulated in table 3, and adjusted values of the rates from 9.3 to 50 cts. USD/KWH accordingly.
TABLE No. 3 TO PAY FOR RANGE OF CONSUMPTION ADJUSTED TO NEW RATES
RANGE OF CONSUMPTION
VALUE OF ELECTRICITY PAID NOWDAYS ACCORDING TO CONELEC BIDDING RATE
17-mar-11
VALUE OF ELECTRICITY TO PAY
PERCENTAGE OF INCREASE IN ELECTRIC SHEET
PONDERATE TARIFF cts. US$Kwh
CONELEC TARIFF (US$) 09-jun-11
UP TO
500kWh
46.50
46.50
0.00%
0.00
UP TO UP TO
750kWh 1000kWh
69.75 93.00
76.13 116.25
9.14% 25.00%
10.15 11.63
UP TO UP TO UP TO UP TO UP TO UP TO
1500kWh 2000kWh 2500kWh 3000kWh 3500kWh 4000kWh
139.50 186.00 232.50 279.00 325.50 372.00
235.41 426.93 762.53 1,098.13 1,433.73 1,769.33
68.75% 129.53% 227.97% 293.59% 340.47% 375.63%
15.69 21.35 30.50 36.60 40.96 44.23
UP TO
5000kWh
465.00
2,440.53
424.85%
48.81
NOTE: Does not include taxes, cross-subsidies, commercialization and others.
This saw in the light of efficiency costs send by the legal bodies escapes any analysis, and puts the rate in values that make them the most expensive at regional and global levels. For reference check the box 4, a comparison of rates in countries of the region where we can see that what is being paid is within the midrange of the region below Peru and Colombia.
TABLE No. 4
Comparisson of electricity tariffs
Residential Sector – Monthly conssumption of 125 Kw.h Countries Venezuela Argentina Ecuador México Bolivia Perú Colombia Brasil Chile
(cts. US$/kW.h) 0.60 3.21
9.30 6.55 8.07 10.30 11.09 12.92 19.60
www.mancozaconetti.com
The financial ills that plague the electricity sector are evils that manifest deficit in the country's energy matrix. With the recovery of loss or stealing of electricity, according to reports from CONELEC in the 2009, represent about U.S. $ 250 million a year, plus the unpaid loan recovery, totaling USD 50 million per year, with that can be financed the deficit and even the inefficiencies of the sector, especially in generation. In sequence of events, it is urgent to migrate to the use of less expensive and contaminants fuels such as natural gas, which we have in abundance in the Gulf of Guayaquil, to generate electricity in combined cycle, which would come to costs that border 3, 5 cts. USD / kWh, compared to the costs of diesel generation that exceed the 12 and 14 cts.. USD / KWH. To this we must add other numbers that increase the deficit in the energy matrix, such as importing of fuels at international prices the lack of local production, and what about the excessive spending on Liquefied Petroleum Gas (LPG), which is given subsidized without appropriate targeting and that also contributes frontier smuggling by subsidizing other economies and the proliferation of gangs in this business environment The proper targeting of the subsidy on LPG, giving it to those who do should receive it could mean annual savings to the Fiscal Fund in the order of USD 300 million. These and other measures should be thought and analyzed by the energy authorities, for their correct and rational application, and not reduce them to the
political benefit of charge everything to a sector and subjected it to public scorn for wasteful, or assume the political cost that governments fear and take action in long term, beyond the transitional project of a governmental period, because at the end of the day when the pocket is concerned, the citizen knows the difference between perception and the impact of any decision from the governmental sphere only for covering holes up.
Peru: How unpredictable is the predictable?
Mr. David Lemor Director of Corporate Affairs of PERU LNG Former Minister of State FTA negotiator with the U.S. Peru is a predictable country that had become the star of development, not only in the region but also worldwide, pre-and post-crisis, with an economic growth surpassed only by China, and with a solid future prospects. GDP growth that reached 10% per year, with a 100 months of continuous growth, low inflation within the projected levels, exchange rate stability, strong national currency, a preferred destination for foreign direct investment, and a stock exchange with international projection. For 2011 a GDP growth of 9% was anticipated. Everything led to think that there would be no possibility that whoever was elected in April and June elections (first and second rounds, respectively) would deviate from the model that successfully had allowed us to reach this expectant position in the concert world economy. Until less than six months, the candidates with the potential to reach the second round, and thus the Presidency were four: Toledo, Casta単eda, Fujimori and in less extent but not ruled out Humala. Any of the top three, all of them pro- system, defeated Humala's anti-system in the second round. Just 60 days before the first round, the former Prime Minister of Toledo, Pedro Pablo Kuczynski (PPK), becomes the outsider on the rise. PPK rises mainly at the expense of the votes of Toledo, and moves him from its "safe" first place that brought him into second round. Simultaneously, Humala receives campaign advice from those who managed the campaign of Lula in Brazil, among others also successful. And as might be expected, Ollanta Humala, with an image cleverly managed to reduce the high vote "anti" he had, he begins to rise. The result is the one everyone knows already, Humala first in the first round goes to compete in the second round with Fujimori. Toledo is left behind into fourth place beaten the candidacy of PPK, who finished third and for his own mistakes. And in the second round, Humala won the presidency of Peru, based on the errors of Fujimori's campaign, and a very good campaign, with a much more moderate speech than the one in the first round, and the one of the previous five years that made him lose the presidency before in elections in 2006, against an ever-talkative and convincing Alan Garcia. Some reasons are obvious to explain this unexpected result, which predictably has stopped dramatically the growth of the Peruvian economy, and has stalled new foreign and national investment projects, and changing the outlook for safe growth and development that was predicted. Although poverty has declined in the last ten years from more than 50% to 32%, this rate is still very high, and much more in rural areas in the southern Andes. Delinquency and urban crime have been increasing as a result of a mixture of economic prosperity, weak legal system and police inefficiency, largely due to a judicial system exceeded in its capacity, sick of corruption that cannot be denied, aggravated undoubtedly by drug trafficking. A political project that was announced as the "anti-system" and that suddenly smoothes in the
electoral combat generates, of course, uncertainty about short and medium term future. Economic agents will wait to see what the course taken by the new government is. With a deeply divided Congress and no majority, the elected president Humala requires alliances, at least one that facilitates governance, and he got that support before the second round, when former President Toledo endorsed his candidacy. Combined, the forces of both Congressmen would obtain the majority. However, Toledo repeats with insistence that its primary role in the next five years is to be the defender and guarantor of democracy and the rule of law. This iterative announcement is necessary in light of the uncertainties that the elected President has not clear yet, and will undoubtedly have some insights in his first speech to the nation this July 28, the day of his inauguration as President of Peru, and with the first measures to be announced at that time or in the days or weeks. Humala receives a country in an excellent economic situation with more than U.S. $ 5.000 billion in cash, but with a high level of social conflicts, which has been exacerbated in recent weeks, killing bloody as in the case of anti-mining protests in the Puno region. It was not necessary to the outbreak of social conflict to know that anyone who had become president in this election was required to tackle the problem of inequality growth, with an unequal distribution of its benefits. Whoever who was president had to prioritize social programs. Whoever who was president had to prioritize infrastructure works for economic development in depressed and poor areas. Whoever who was president was forced to prioritize social inclusion as the most important component of economic growth. That was and is the urgent task for a country like Peru to not throw away everything he achieved with much effort and sacrifice, especially the sacrifice of those who have less, those in the most remote and depressed that are those where germinated and grew the support the anti-system proposal that advocated Humala until the end of the first round, and that in second round first placed him first, then successfully completed in the second round, this time with his moderate discourse, unlike the one of 2006, in which he openly supported the radical discourse of Chavez and drove away the votes it needed to succeed. This time Chavez was strangely silent. We hope him to stay out and not interfere in the internal affairs of Peru. But without economic growth, without foreign and domestic private investment, especially without the last one, which is the one able to make multimillion-dollar investments required in infrastructure to close the existing gap, and for the use of natural resources responsibly, as the formal enterprise does. Without this investment we cannot reduce poverty, narrow the gap of inequality and succeed in a policy of social inclusion that we all Peruvians want.
Otherwise where from? Peruvians want Humala to succeed in his management, because on his success depends the future and the welfare of all Peruvians, which with its problems, it looked promising. Although, it is not easy to agree on what does "success" means in this circumstance.
The banking evolution marked by deposits and loans growth.
Econ. Cesar Robalino Gonzaga The evolution of the banking sector is built on the growth of deposits and loans, which have allowed the level of financial intermediation to be higher than 70% in 2011. The dynamism shown by the expansion of credit operations is reflected in the fact that more than threequarters of total deposits have been used to finance various economic activities in the country. Today, 69% of the total bank portfolio is contained in activities such as microcredit, housing, industries and productive sectors. The remaining 39% is reflected in consumer operations, which encouraging market development.
In the last year, measured between May 2010 and 2011, deposits have increased by 15.1%, this means approximately U.S. $ 2,200 million, of which 73% respond to demand deposits (monetary and savings deposits), and the remaining 27% to long-term deposits. In this same period, saving deposits grew in a rate of 25% annually, reaching a balance of U.S. $ 5,005 million, which confirms the confidence of Ecuadorians in the management of banking intermediation spread nationwide. Regarding to loans, these have reflected a sustained growth with an upward trend; example of this is that in May 2011, these present an annual variation of 25%, meaning 5 basis points more than in 2010. In that order is important to highlight that the portfolio destined to the productive sectors totaled U.S. $ 6,776 million, with an annual expansion of 17%; even higher than the growth achieved by the national economy.
In this favorable performance, we can add the low level of late payments or unpaid loans. This relationship is shown in 2.58%, and the balance of provisions is 2.2 times superior to the unproductive portfolio balance, confirming the solvency of the system as a whole. Also important to highlight the increase in the banking operational efficiency, which in the past five years has improved by 19% as a result of the high investment bank has made in developing and implementing best practices in their management. While the banking index is still below the regional average, it shows an increase of 3.7points between May 2010 and May 2011, reaching 46.53%. Nevertheless, the domestic banking system remains one of the highest averages at regional level in terms of service points per 100,000 inhabitants, thanks to the growth of branches, windows, ATMs, which offer and provide more and better services to the population, supporting their inclusion in the regulated financial system. Finally, is worth mentioning that the development of the financial system has improved the life quality of thousands of Ecuadorians, since their work is not only part of the financial sector, but it also includes social aspects, which are addressed through campaigns and activities that benefit the wellbeing of the population.
I would confirm that the Ecuadorian banking system remains solid, solvent and liquid.
OCCIDENTAL, CORREA Y PETROBRAS
Lcdo. Fernando Villavicencio Valencia Comunicador social, investigador de temas petroleros y ambientales The expiration of Occidental agreement constituted an act that moved several threads: nobles and false nationalism, political interests, international agreements and stirred old regional conflicts. To have an appreciation closer to reality it should not be ignore the analysis a long dispute between Occidental (U.S.) and Petrobras (Brazil), aimed to control valuable natural resources of the Amazon basin. The expiration of Occidental and Petrobra's absolution outline the various actors' faces, clearly identified in the upper spheres of political and economic power. When Rafael Correa was Minister of Economy of Alfredo Palacio's government, he was one of the initiators of the Occidental expiration process. Later, as a presidential candidate, he claimed election victory, assuming the OXY case as one of the unity flags of broad sectors. At that time, his speeches condemned the CIADI arbitration: "accepting that arbitration is treason against the country, and those who recognize a nonexistent arbitration, that Ecuador has not accepted and does not have to accept, will be traitors to the Fatherland," said the candidate. Once in power, the government's actions began to take other courses. In an interview with El Comercio newspaper, on June 21, 2007, in the framework of the ATPDA negotiations, former Foreign Minister Maria Fernanda Espinosa said that the government of Rafael Correa will host "whatever" the result of the CIADI is on the Oxy case. Almost three years after the declarations of the former Chancellor, and having expelled from the country the representative of the World Bank, the Government reported the Treaty of Reciprocal Protection of Investments. In early 2008, pretending to play nationalist, Rafael Correa threatened to throw the out of the country the oil companies that are not subject to the new rules of the game. Therefore, he issued a decree raising the 50% participation to a 99% in surplus of oil prices over the basic price. Simultaneously, the base price increased in 60% in favor of companies. The change to 99%, rather than serving as leverage in favor of the country, ended up generating a key element of which the companies took advantage of, that submitted millions in lawsuits before CIADI. Five years after the start of the trial of Occident and close to the final decision, for any half-informed Ecuadorian it seems strange that Ecuador ended up accepting the CIADI arbitration. Any opposite explanation seems idle and contemptible. There are the 22000 folios, each with intervention of lawyers on both sides, statements from witnesses on both sides, individual and shared expert reports, assessments of damage, almost 20 million dollars in attorneys' fees, expert witnesses and travel expenses of Ecuadorian officials; procedural steps completed, and a final hearing, awaiting for the consummation of the defining failure. Billions of dollars from the pockets of the country in the hands of three judges nominated by the World Bank, whose representative was expelled from the country by Correa. If recognizing CIADI's arbitration showed a dual speech, and was a serious mistake for the country,
much more was to have set the discriminatory treatment for the Petrobra's case, based on rendered procedures used by the Ministry of Natural Resources and Petroecuador in year 2008, which ended up releasing the mixed Brazilian company from liability and sanctifying over a decade of abuse to the Country. The mixed Brazilian company Petrobras operated Block 18 and the Camp Palo Rojo, misnamed Blue Palo, in partnership with companies Petromanabí and Cayman linked to the Isaias Dassum family. Block 18 neither had or has commercially exploitable reserves, the reserves have ranged from 5 to 2 million barrels, there is an average production of 170 barrels per day from the Pata field, while the so-called Palo Azul field (Palo Rojo) of Petroecuador recorded reserves of 100 million barrels of light oil, with an average production of 28,000 barrels per day (BPPD), this means, the block was never commercial, but through a technical fraud and apart from the law Petroecuador, the Ministry of Energy and Mines and representatives of the contractor, annexed the Palo Rojo field to Block 18, calling it Palo Azul. Once in control of millions in oil reserves, a fair of transactions on the Stock Exchange began. In April 2001, the Minister Pablo Teran authorized Cayman Petromanabí to transfer to Ecuadortlc, a paper company, a 42% and 28% of its rights and obligations under the Contract in Block 18. Ecuadortlc not accredited technical expertise or financial backing, as required by the Articles, 2 and 3 of the Regulation to Article 79 of the Hydrocarbons Law. After 14 days, Pablo Teran again authorized the transfer of 100% of the shares of the company Ecuadortlc to the Argentinean company Perez Companc, not settled in Ecuador. That ominous movement of stocks and shares was made to protect the interests of the group Isaias (Petromanabí), before a possible intervention of the Deposit Guarantee Agency (AGD). Finally, to create a regional coverage in October 2002, Petrobras took over the shares of Perez Companc. So Petrobras arrived to Ecuador, without risking anything. In the government of Lucio Gutiérrez, August 2004, the General State Attorney Jose Maria Borja, called the expiration of contracts for Occidental for having signed and transferred 40% of rights and obligations to the company ENCANA without ministerial approval. In September of that year, based on the excitatory, Petroecuador began the process by notifying the company with legal and contractual violations. In May 2006 the contract was expired. OXY left the country. On January 24, 2005, corporate headquarters Petrobras and Teikoku Oil Co. Ltd. signed an "Agreement of Sale and Association" for the transfer of the 40% stake of block 18, block 31 and Palo Azul field, without ministerial approval. On January 30, 2005, Petrobras informed the Ministry of Energy that an "Agreement of Sale Agreement with the company Teikoku Oil Co. Ltd," has been signed, and transferring 40% shares. Until then, the communication referred to a Sale Agreement between parent companies. In February 2005, the Ministry of Energy requested Petrobras to submit the above-mentioned Sale and Association Agreement, but SUSPICIOUSLY in March 2005, the copy of the "Letter of Intent" is sent, signed by Ecuadortlc and Teikoku Oil Ecuador. This last company not domiciled in the country at that time. The mentioned Letter has no place of issue and could have never have been signed in Ecuador, because during that period, the signatories (Darío Gerardo Lamanna and Shinichi Takada) did not enter the country. Why Petrobras never delivered the Agreement of Sale and Association and why the authorities of Ecuador did not demand the presentation of that private contract and settled for a Letter of Intention, obviously forged? The answer is obvious, by that date Petroecuador already began the process of expiration against Occidental for having signed a private agreement with Encana, and wanted to mislead the Ecuadorian government creating fictions and tricks contracts.
On January 11, 2007the Minister Ivan Rodriguez authorized the transfer of the 40% of Petrobras to Teikoku Oil Ecuador (subsidiary of Teikoku Oil Co.), through Ministerial Agreement 118. The effects of that Agreement were suspended because the investigation ordered by the Minister Acosta and the request for the excitability of expiration presented by the General State Attorney, Javier Garaicoa on February 18, 2008. To make the transfer possible, former President of Petroecuador, Galo Chiriboga, described the technical and operational adequacy of the company Teikoku through Memorandum No. ACP-TFL 2006, almost two years after this company signed the agreement of assignment of 40% stake in Block 18 and Palo Azul with Petrobras. Chiriboga said: "According to the analysis and as a result thereof, company Teikoku Oil Co. Ltd, has technical and operational suitability in the hydrocarbon sector." In May 2007, Minister Alberto Acosta, through the Ministerial Agreement 059, created a Special Commission to discuss contracts for Petrobras. On June 13, 2007, in a letter to President Correa, concludes the report stating: "To take a decision on the matter, we must consider the following elements: the obligation to enforce the law, which does not depend on discretionary authority, the safe use of the argument of discrimination in the process followed by the oxidation at ICSID, taken as proof of our inaction facing a similar case, and the convenience of the Ecuadorian people to recover what has been fraudulently removed with the charade of a common inexistent reservoir ". Based on that report, on February 18 of 2008, the General State Attorney, Javier Garaicoa presents to the Minister of Energy and Mines, Galo Chiriboga, the excitability of expiration, which in its central part says: "The prior agreement of Sales and Association signed by Petrobras and Ecuadortlc with Teikoku, is a private agreement that speaks of the Law, which has set the cause of expiry indicated above, not having obtained previously the ministerial authorization. It is irrelevant, therefore, whether or not to be established conditional clauses, nor has been executed or said in that agreement". And in the case related to Teikoku said: "The rating of the company Teikoku Oil Ecuador is tight with the positive regulations of Ecuador.." He adds: "From the analysis is clear that Teikoku Oil CO. Ltd., and. and Teikoku Oil ECUADOR companies were not domiciled in Ecuador at the time of signing the agreement or "Letter of Intent" in January 2005, in apparent violation of the mandate of the third paragraph of Article 6 of the Companies Act, before described, and in accordance with the requirements of to Article 12 of the Hydrocarbon Law. " Immediately positioned as Minister, Galo Chiriboga, proceeded to dissolve the Commission created by Alberto Acosta and even more, he advanced friendly criteria to Petrobras, contrary to the request of expiry recommended by Acosta. In Office 644 SPH-2007 of December 27, 2007, addressed to President Correa, he unknowns actions taken by the Minister Acosta stating: "From the technical analysis to the report of the Commission appointed by the Econ. Alberto Acosta is determined that no such report exists for the technical, economic and legal support report, and so Petroecuador has not requested the initiation of the process of expiry as noted the report of the Commission. " Based on the excitability of the Attorney Garaicoa, the President of Petroecuador, Adm. Fernando Zurita, notified Petrobras of the allegations of expiration. Then, both, the President of the State and the Attorney, were "renounced" by a higher order. Attorney and Petroecuador, properly aligned with Diego Garcia and Admiral Luis Jaramillo respectively, all procedures started to track the footsteps of Carondelet. Garcia remained silent on the excitability of expiration, while the oil tanker marine fulfilled carefully the absolution of Petrobras.
On August 19, 2008, in Vanguardia Magazine, without blushing, Jaramillo admitted that "along with the President and the people of to Petrobras" he had taken the decision not to expire the contract. In September 2008 the company hired Gaffney & Cline to read the Palo Azul field, which was shared with Block 18. On October 22, 2008, in an act of abdication, Petroecuador decided to ask the Minister not to expire the contract. He also authorized the change of name from PĂŠrez Companc to Petrobras, and the transfer of rights of 40% of Petrobras to Teikoku, pending actions since 2002. Stunned by the urgency, they took it for granted. On October 31, 2008, the modifying contract is signed, including Teikoku. But did not realize that the trial judge had not yet issued a final ruling. Recently, on November 12, 2008, Derlis Palacios, through providence, decided to deny the expiration and archiving process. The main cause for revocation of Occident wielded by the State Attorney himself, the year 2004 was the signing of a "private agreement" to transfer 40% of rights and obligations from OXY to ENCANA without authorization from the Minister of Energy. In this case was properly applied the cause of lapse defined in paragraph 11 of Section 74 of the Hydrocarbons Law, as shown in the process of OXY. For to Petrobras case, the Attorney speaks of "intent to assign a percentage (40%) of the rights and obligations", while in Occidental, the precedent condition to have ministerial approval was not intentional. Attorney Diego Garcia, has suspiciously validated the forged "Letter of Intent", with which was intended to hide the Private Agreement of assignment of rights, signed between Petrobras and Teikoku, arrays outside Ecuador, saying that the Charter was "conditioned" to ministerial approval. Article 74 on number 11 does not mention a condition if the agreement or letter of intent was signed, or transferred rights, is a cause of lapse. The Petrobras case is even more serious, since January 24, 2005 date of signing the "Agreement of Sale Agreement" with Teikoku, the Brazilian company had no rights on Block 18 and in the Palo Azul field, because It was not until October 22, 2008, the government of Rafael Correa, illegally authorized the renaming of Pecom Energy Petrobras. What Petrobras did was a crime, possession of a public asset and malicious traffic in the Securities Commission of Buenos Aires, supported with stakes in more than 100 million barrels of oil, equivalent to USD $ 9 billion dollars. On May 23, 2007, Foreign Minister Maria Fernanda Espinosa said that the Government of Brazil has sent a complaint, which states "... the concern of Brazil on the participation of Petrobras.." in blocks 18 and 31 in the Amazon. The letter made aware that following the visit of "Lady Maria Fernanda Espinosa Chancellor, and subsequently the state visit by President Rafael Correa, Brazil had understood that the Heads of State had agree". Espinosa also made known that the Brazilian government has referred to the authorization for the assignment of 40% in favor of company Teikoku, and that the case was "... very different from the Occidental company because it had met all the requirements and procedures, including before the General Attorney and the Comptroller, and that this authorization was given, but now the Minister of Energy of Ecuador (Alberto Acosta) wants to revisit the issue, what concerns the Brazilian government". Since the year 2001 until 2010, PetromanabĂ, Cayman and Petrobras, have exploded about 75 billion barrels of light crude from Palo Rojo Field of Petroecuador, meaning that they have extracted approximately 80% of the reserves, which according to participation rates, the State owns only the 50.5% the first 7 years and nearly 60% from 2009. Considering an average price of 70 U.S. / BL,
and a production cost of 10 U.S. / BL, the Isaias Dassum family (Cayman-PetromanabĂ) and Petrobras would have benefited from an amount close to U.S. $ 2,070 '000 .000 (TWO MILLION SEVENTY THOUSAND DOLLARS). Is fatally unobjectionable that the figure of discriminatory treatment created in the topic Petrobras influenced and will influence the final decision of Occidental. As data from damage assessments and assessments shared by OXY and Ecuador, in the worst case scenario a negative ruling would lead us to pay the U.S. oil company U.S. $ 2,362 million, plus interest. If the court accepts the position of Ecuador, the State must pay about U.S. $ 1,600 million, plus interest. Occidental and Petrobras are two tragedies together, that money would represent between 4 and 5 billion dollars. There is no room for false optimism or concerned pessimism. There is a diaphanous truth that points out bad procedures, discrimination, subjugation and government doublespeak of ALIANZA PAIS revolutionary movement. They will have to respond to history and to justice.
Alberto Medina Mendez Corrientes, Argentina
1. - FORBIDDEN DEBATE One of the largest samples of hypocrisy has to do with the discussions that society DECIDES not to give. Many issues make up this list, and it is worth addressing them all, but one that especially stands out. It is about the state employees, the public sector workers as some like to call them. And it is the average citizen that demands politics to make a transparency gala, but not only so that it will not rot and end up stealing, but to be intellectually honest and discuss what should be done, and not just what the rules of courtesy indicate. However, that same citizen neither is encouraged to speak up in public, in any case he manifests himself in his inner circle, discreetly, in the low, but not before apologizing for such audacity. And we must say it completely. The only way to solve a problem is facing it. Pretending it does not exist, minimizing it, reducing it's relevance, or sending it behind the scenes does not help solving it. A correct diagnosis gives us at least the chance do the right thing, perhaps gradually, but with clear direction, and the expected orientation to lead to its solution. From the ideological, many may say that the functions of the State are ground of opinion. But what clearly leaves no room for doubt, and has plentiful evidence is that it is oversized, that is inefficient, that spends more than the reasonable, that many of its employees could not hold his work in the private sector, just because it isn’t at the height of their daily work. The employment stability of public employment has become the worst enemy of the system, it is the deadly trap that the regime has self-imposed. In an effort to avoid the political spoils posed by the electoral swings, has tilted the balance towards the easiest, but also to the worst decision. The impossibility of losing their jobs make many public employees drop their dignity in the way, to relax, to stop struggling and falling in the dynamics of supporting the officer on duty, that who makes leader for some time, until the election replacement wears it and someone else comes in his place. In the process, inefficiency grows, and at the same time he invalidates professionally by staying frozen in time, believing that their stability is a reward, not realizing that he has no incentive to grow, because even with their best intentions, policy will take care of rewarding flatterers, the militants and friends before they are even considered, leaving the merit of effort and effectiveness as a reasonable benchmark to encourage him in his task.
He who does things well will make some money, and the one working badly will also get the money, no difference. A malpractice of association, some misguided social demand and an assumed sensitivity of the community will deal with talking about the need to improve their
wages by the mere fact of exercising some meaningful task for society. No one will speak in the context of the best and the worst, put everyone in the same boat and say that their status as public employees should be the unit of measure. Aspects, such as age will be awarded, perhaps a higher educational background, and will give continuity to a new generation of public employees, by the mere fact of being relatives, but is unlikely to talk about efficiency, productivity or performance. This is not fair to anyone. It is not for the one who strives and deserves more for what he is committed to daily, and neither it is for he who believes that is more clever, pretending to care, because they believe they live in a fantasy world where he thinks he has a job when in reality he is only a parasite, and receives an outrageous handout to go every day to fulfill a schedule. He may have an income, but he could hardly be an example worthy of imitation for their children. Clearly, society in general does not respect them; they are all often despised and discredited, the best and the worst, calling them apathetic, lazy and indolent, simply by being part of the state system. A false argument would say that it is a social matter, that the State fulfills the role of employer to cover the lack of job opportunities. That fallacy, which falls by itself, appeals to emotion, but contains tricky explanations. When there is stability, that excessive share of impunity to public employment, it generates an effect, perhaps unintended, that makes this human resource to abandon to itself, to stop preparing for the challenge of a better job, putting a limit that will make it impossible to overcome to provide a better future for their loved ones. It's that attitude that prevents the future; some companies may consider it as a serious chance to tell their ranks, becoming this modality the cause of chronic poverty. The substantive debate has to do with the excessive number of public employees, such stability seeks to avoid a greater evil, but only manages to become the worst stigma of this scheme, making the State grow disproportionately, become more inefficient, and make those economic costs supported by all of us. That reality is felt virulently by the poor people, by those hard-working employees of the private sector who pay their taxes and lose purchasing power by the inflation that that governments use to pay government spending. They pay the party, the apathy of many and the convenience of others. They pay it with a lot of hard work, without stability, with dignity and without anyone to do lobbying for them. This is one of many topics, which are rarely discussed because it involves going to the merits. After all, it is more friendly and less complex to discuss superficialities, to play being distracted, and put this discussion on the payroll of the prohibited debates.
2. - THE DYNASTY OF THE CONSERVATIVE
Some political tradition calls conservative those who are aligned to the right, in that ancient and debatable form that attempts to define ideology, without much sense. Those who use this terminology, most often, they do so dismissive, trying to assign that term pejoratively, a link with past ideas. There must be said that KEEP is an attitude taken only by those who seek to hold to change nothing, to everything remains the same. In fact, a conservative is someone who wants not to change course, to continue the path started by the hand of the old practices. To be conservative involves a stand on facts and not a specific ideological view. Ultimately, in communist Cuba being conservative would be quite different than the everyday meaning indicated.
Therefore, it turns paradoxical to observe how certain political sectors use this concept in a critical way, when in fact many times this meaning described them. And in that line it is worth remembering that we lived for decades, an endless continuity in which few dare to change directions. In any case they have been developed, showing the worst side of the past. Society evolves, but only for its natural mechanisms, for the spontaneous forces advancing, despite the pitfalls that propose the toughest conservative style, that which does not allows changing one single comma. Contemporary politics makes pretend, simulates revolutions, proposes pompous ideas, ambitious promises, but only plays in the chronic cowardice, because when it is about the heart of the matter there is always halfway and returns invariably to the sources.
Any dictionary that prides itself on some seriousness would say that being conservative means being in favor of the continuity of forms and adverse to shocks. This description fits many politicians and most of the supporter arch. There are few offenders, those who even dare to propose something much different. With only a superficial glance you might realize that the issues in the hands of the State continue to address routine. Safety goes through a road of no return. Ever more budgets, little ingenuity, a growing demand from society and lacking solutions. Structures remain the same as always. The politics propose only the usual, more resources, much effort, mega strategies, but the results are obvious, and there is little to say in their favor.
Justice only seems to test mechanisms that are becoming less independent. Its efficiency is questioned and sometimes even their impartiality. But the proposed solutions, the major reforms to the system are absent. All propose more of the same. The repeated formulas that we already know follow the predictable line of the obviousness.
Even in cases in which the State could not be present, such as health and education, not only nothing changes, but the crisis deepens and already systemic at this point worsens the current, takes us away from the exit to only assign more money to what we already know inefficient, inadequate and fundamentally unworkable. Not to mention corruption, privilege, and the array of endemic problems that describe us as a society on a daily basis. That list does not deserves anyone to deal with it seriously, so is also part of the list to KEEP. There are too many tests available to us to persevere with recipes already known. However much of the supply in favor offers only to insist in the past, deepening in failed strategies, selling illusions. They want that society ends up believing that it is about a better and more intelligent administration, without understanding that the perennial problems we suffer from have to do with insisting on outmoded paradigms that do not explain adequately the social behavior of this century.
Fear of freedom seems to paralyze us and then we prefer to keep appealing to the nuances, shades, small twists that do not change the current scenario, to offer hope, with the additional disadvantage of only renew frustration. On each slip, each time, us citizens are losing faith, and with it we rushed upon politics with disdain, we feel cheated, deceived, tricked. And that is not good. This is about mistaken paradigms, about political offers that set similar solutions, in traveled paths, tactics that we have used in the past, and have been a string of disappointments.
Maybe we need to break old patterns, encourage to a serious change, in capital letters, leave the fears of the politically incorrect. This vicious circle that we are moving in will not get us out of the pit, on the contrary, will continue sinking us in it, because we only try more of the same. But to do so, we must first understand that the outdated rhetoric that attempts to describe the conservatives as something tied to the past is increasingly autobiographical, because that term applies more forcefully to whom luckily have come to govern us, those from now and before, the officers, and who claim to be opponents. In short, it is an expression of the dynasty of the Conservatives.
"Peak Oil" Is it over or is there more oil to produce? "The green mirage of living in a future without fossil fuels such as oil, is like ignoring the value of technology, scientific research, innovation and application of new techniques for further extraction of about half of insitu volumes of oil or natural gas that are discovered. Rene G. Ortiz, Ex General Secretary of OPEP, OLADE Latin American and Caribbean Petroleum Conference. July 12, 2011, Quito, Ecuador " Mr. Rene G. Ortiz Ex General Secretary of OPEP, Ex - Minister of Energy and Mines of Ecuador, currently an international consultant in Investment and Energy I EXPLANATIONS According to the majority of the experts in the field of oil of internationally recognized organizations - in the first 100 years - planet earth has consumed a volume equivalent to one trillion barrels of three trillion estimated that there are underground. Similarly, according to the most reputable versions in the world - including universities and research and technology development institutions - oil production from proved reserves borders the 50% of volumes insitu discovered the first 100 years of oil production. Likewise, it is known - according to the annual reports of the major oil companies in the world and the governments of oil producing countries - more than 80% of the producing oil fields are in the category of mature fields, and almost all are already or are about to begin plans and programs of enhanced oil recovery (EOR, for its acronym in English) using one or more of the developed technologies - with their respective variants - to apply and/or extract an additional fraction of the volume oil insitu. In this context, each day there are more scientific and technological information that reveals little by little technical testing enhanced oil recovery in oil fields, which opens up other possibilities to increase proven reserves of fields in production. In any case, it should be noted that estimates of oil consumption, of proved reserves and applied technologies, best-known international analysts agree that the useful life of the proven reserves of oil fields in production are around 45 -50 years. "The green mirage of living in a future without fossil fuels such as oil, is to ignore the value of technology, scientific research, innovation and application of new techniques for further extraction of about half the volume insitu of oil or natural gas that are discovered. "
Furthermore, with the emergence of Natural Gas - another source of fossil energy, added to oil - and under the auspices of the environmental Earth Summit in 1992 in Rio de Janeiro, Brazil, has been promoted its use after declaring the Natural Gas as "the most environmentally friendly fuel." The discoveries and putting into production of natural gas have become increasingly plausible. However, despite the ecological sustainability with which nourishes the natural gas in the energy mix of world consumption (already estimated to contribute 50% less CO2 emissions) its subsidiary vis-Ă -vis nature the oil, hasn't been able to changed against the empire of oil as the dominant energy consumption mix. Moreover, in present times, "the news fly inflamed with political fervor," about the geopolitical impact nature including "independence," which are perceived within some analysts of the major importing countries of oil and natural gas - USA China and EU - who see the "board gas " or also known as "shale gas" or "Shale gas", because its name in English, as the most secure and peaceful future for energy supply for their countries, this non-conventional energy source, natural gas from shale. For some of the most enthusiastic analysts, natural gas shale is shown as the "life raft" of the most powerful economies. For these importing countries would be perceived as a way to get rid of the current energy dependence of these conventional sources of supply of oil and natural gas, which are considered riskier and more unstable. In some cases, as a historical reference, include several leaders of those countries who have publicly spoken pointing out that oil is like his "political weapon" in the struggle for a new geopolitical re-ordering. All this - as a conclusion - reveals the fragility of the global energy security equation for importers of oil and natural gas, which shows it as still cornered and uncertain, whereas the same equation, for exporters, such as organized within the framework of OPEP, should ensure the supply of oil to international markets, an essential part of compliance with the Statute of the organization. In the conjuncture, the decision of the International Energy Agency (IEA, for its acronym in English) last Thursday June 30, 2011, is just another way of confirming that weakness and lack of disagreement between producers and importers of oil. A volume of 2 million barrels per day in the market from strategic reserves of U.S. and inventories of 16 other IEA member countries will have its effect in the fall in oil prices while reactivating the global economy. Again the dialogue has been defeated! II UNCONVENTIONAL HYDROCARBONS Only scientific and technological innovation has made it possible for hydrocarbons known by the name of non-conventional hydrocarbons to reach the oil market as improved oils in their production techniques. "Oil mining" techniques - for example have been applied to process "rock-stone" and get lighter synthetic crude oil of API grade (30) to carry refining. Other extraction processes as "Steam Stimulation" have been experienced with the same purpose of converting a non-conventional oil in conventional oil of easy and
conventional transportation and refining. In the side of applied experiments the scientific and technological development of a new fuel, commercially known as the "Oriemulsion", which has managed to open a competitive niche market with a variety of the traditional conventional "fuel oils", has made Venezuela's heavy oil to reach markets. Thus, science and technology have managed to incorporate huge reserves of unconventional oil in the energy mix of global consumption.
However, "energy independence" of Gas Slate for traditional importers of fossil fuels such as U.S EU, China, Japan and Korea - in the words of Russ Ford of the Shell oil company - is the internal added in the mix of energy consumption in these countries and regions. It was in the penultimate World Conference of the Cambridge Energy Research Associates, now accredited worldwide as IHS / CERA - CERAWEEK 2010, where it was released the report on the potentiality of "shale gas" or gas shale in the U.S. and that would put this country at the forefront of drilling and exploitation of this shale gas by the world's leading companies. Now, the "Energy Intelligence Administration," in the U.S. reveals the potential of shale gas in many other areas of the world and especially in areas to which countries that at the time are large importers of oil and natural gas belong. III CONCLUSIONS The world of fossil fuels has a long-term horizon and the "Peak Oil" is just a dream of the promoters of the elimination of these fossil fuels in the energy mix of global consumption?
1st. multiplayer game For Blackberry developed in Ecuador This is the popular Ecuadorian card game called CUARENTA became the first multiplayer card game developed by Ecuadorians on the Facebook platform After a year of its launch on the social network Facebook, Club40 is proud to present its new application for Blackberry. Now you can play Club40 as many times as you want, wherever you are thanks to its mobile version. This application is nothing more and nothing less that the same game developed on the Facebook platform, but now available for Blackberry. This new version allows users to play in real time on any stage in the world and not only from their computers, but also from their cell phones, against people who are either sitting behind their computer or in their Blackberry. The companies CometBits and Zuul 2.0, developers and creators of Club40 respectively are thinking to incorporate also a mobile version for other mobile platforms such as iPhone / IPAD IOS and Android in the future. With this version now available for Blackberry, Club40 Mobile is the first multi-user online game that is developed in Ecuador. Users just need an Internet connection, either with data plan through your carrier or wi-fi to enjoy this popular game. The application is free and can be downloaded entering in the website www.playclub40.com/blackberry, or scanning the following bar code from your Blackberry. This is version 1.0 for any Blackberry with OS 5.0 and up. For any questions about the mobile application or game you can enter www.facebook.com/club40 and find more information about this.
Santiago de Guayaquil, June 16, 2011
IDENT SUPERIOR VISITED GUAYAQUIL TO GIVE A LECTURE ON CORPORATE RESPONSIBILITY AND LOVE This June 14 employers, parents and educators had a space for reflection with Dr. Jose Maria Lopez Sevillano, Missionary, who gave two lectures with the topics: ''Anthropological Keys of corporate responsibility'' and ''Pedagogy of Love, keys to parents and educators'', the same that were organized by the Universidad TĂŠcnica Particular de Loja (UTPL) along with the ID Christ the Redeemer Indent Missionaries Institute. In the conference '' Anthropological Keys of corporate responsibility'' Dr. Missionary emphasized the importance of the spiritual realm in a company and put Christ as a model of employer and employee, said:'' Love does not exclude the interest you have a business to generate wealth, what it makes is making it have a true spirit, because if there is no real spirit it will serve the selfishness of employees'' and ''If the employer is willing to have a total generosity the he will be a great father, great husband and will be a great friend of labor and workers will not work depending only on the profit but on the basis of friendship and the common good of society.'' In the lecture given in the afternoon'' Pedagogy of love, key for parents and educators" set love as the engine that defines us as people capable of devoting the other and see the common good of the family community. In this way Dr. Jose Maria Lopez Sevillano, Indent Missionary posed answers to big questions that plague the man in modern times on business ethics and the family unit. For more information about the lectures of Dr. Jose Maria Lopez Sevillano, call 090673713.
From left to right: Mr. Daniel Valenzuela, Director of the Regional Centre Guayaquil, Dr. Jose Maria Lopez Sevillano, Indent Missionary, Dr. Lujan Gonzales, Missionary Indent Deputy Head of Open and Distance mode.
Dr. Jose Maria Lopez Sevillano along with participants to the lecture: ''Pedagogy of love, key for parents and educators"