Mipymes 50 Ingles2 Mar Abr 2011_90

Five years after CAFTA: Positive results Dr. Claudio M. Rosa President SICONSULTA El Salvador The Free Trade Agreement negotiation in Central America between Dominican Republic and the United States, CAFTA - DR, had a good number of people opposed to it because it’s ideological reasons, more than those opposed to it because of a solid economic foundation. This is how after some time, many myths have fallen to the reality that show the statistics of the external sector in El Salvador.

Since the effective entry of CAFTA-DR five years ago, total exports in El Salvador increased from 3.418 million USD in 2005 to 4.549 million USD in 2008, equivalent to a 33.1% increase in three years. This expansive cycle was broken by the world recession, in large part originated in the United States of America.

In 2009 suffered a decline, from which they recovered mostly in 2010. This allows us to affirm that two measures of economic policy related to the external sector permitted to sustain the expansion of Salvadorian exports, dismissing the arguments that: (i)"dollarization" would restrict exports and (ii) that the FTA would have a negative impact in the external sector, as affirmed by those who oppose both measures.

Another important phenomenon registered in these five years was a meaningful change in the exports structure of El Salvador, where the ones destined for the rest of the world (among which are those that go to the U.S.) went from representing 13.2% (911.4 million USD) of the total in 2005, to 23% (1503.4 million USD) in 2010. 
 It should be noted that such exports are mostly industrial products with a significant added value. This has allowed El Salvador to move away from primary exports and bet strongly to those with significant levels of manufacturing.

Exports to the U.S, excluding maquila industry, increases 108% in five years Salvadorian exports to the U.S, as a percentage of the total, shrank from 53.2% in 2005 to 48.3% in 2010, because of many factors. First, the severe recession that hit the U.S. Subsequently, El Salvador has been expanding its foreign market to the extent as it diversifies its exportable offer and expands its markets through other Free Trade Agreements (FTAs). The most relevant aspect of the Salvadorian foreign trade is the increase in exports of various products to the U.S. -excluding maquila-.

These exports passed double, from 263 million USD in 2005 to 546 million USD in 2010. A large portion is related to the so-called demand for nostalgic products, associated to the preference Salvadorians in the U.S. have for processed food, which promises a further increase in the extent that it reduces unemployment in the American Union.

Undoubtedly this is a highly beneficial result that follo ws directly from the CAFTA-DR.

For its part, Salvadorian exports related to the maquila, which employs more than 72000 workers, had a 20% increase between 2005 and 2008 before the global recession, largely because the benefits of CAFTADR. After the decline in 2009, maquila exports recovered and increased a 21% in 2010 and have a very favorable outlook of increasing another 15-20% in 2011. This is expected as a reflection to the increased U.S. demand since its economic recovery, and a structural change in the way of doing business.

Foreign investment also increases by TLC U.S. Investment has increased 56.2% between 2005 and 2010, from 1.359 billion USD to 2.123 million USD, this is 764 million in five years, representing 29.4% of total foreign direct investment (FDI). FDI, which had a high rate of increase, registered a slowdown in 2009, because the global recession with its uncertainty of political and public safety, and the decline in key indicators of competitiveness. This has limited private investment in El Salvador in general.

In 2007 the largest investment increase was registered, while the Salvadoran banking system was purchased mostly by large banks of Canada, Colombia, England and the U.S., where U.S. investment wasn't enough to compensate the large investments done by other competing banks.

It is also important to emphasize that much of the foreign direct investment in El Salvador is related to companies that already have or that seek for a base to enter with their products or services to the world's largest economy with tax privileges derived from the Free Trade Agreement. Therefore, CAFTA -DR has also acted as a major attraction for many foreign investors, who now have a larger base or a new commercial trampoline to break into the U.S., where, besides the added value, involves

a significant contribution to the employment generation in El Salvador.

As it is evident from external sector statistics of El Salvador, despite the global economic recession, the CAFTA-DR has brought important benefits to this Central American country, and opens the door to a growing contribution of the export sector in its economic recovery and job generation. In addition, the upcoming visit of U.S. President Barak Obama to El Salvador, can bring other important news for this country, because it has been selected to be part of a small group of countries in the world to join the "Partnership to Grow", which will seek to achieve a greater growth rate, as a way to reduce poverty. The challenge is facing the Salvadorians and if they know how to respond this can have a double economic benefit, with significant social impact.

Libya Sra. Teresa Weintraub Presidente y CEO “Fiduciary Trust International of the South” USA It seems unlikely that the events that have been developed in Libya may cause the oil prices reach again its highest level of 147.72 USD a barrel, as it occurred on July 2 of 2008. This, as some media has affirmed, could cause a recession.

Global surplus capacity of petroleum remains above recession during the years 2007-2009.

the lowest

points that

existed

before the

The price increases will attract the market surplus.

According to the Bloomberg statistical chart suggestions, the rise in oil prices occurred in March was influenced by global economic recovery much more than it was influenced by the political problems in Libya or elsewhere in the Middle East.

Prices began its rise during the last quarter of year 2008, which was the lowest point of recession, when it was clear that central banks would aggressively support commercial banks, avoiding economies to weaken and falling into a negative spiral.

The traders anticipated correctly the recovery that actually happened. Only the recent ascending movement in prices from $ 99 to $ 114 a barrel, between February 17 and today, could be attributed to the situation in Libya and to the instability that began in Tunisia and spread to Egypt, Yemen, Bahrain Jordan and Syria.

The sudden and complete suspension of oil production in Libya is actually very harmful, especially to Europe. For example, Italy receives about 30% of its oil from Libya. Libya's oil is exceptionally low in sulfur, therefore is highly desired as a basic ingredient in the production of motor fuel, especially diesel, the preferred fuel for transportation in Europe.

The actual risk is not actually Libya itself, but rather a possible rebellion throughout the Middle East. That violence can become so raw and uncontrollable that encourages Iran to carry out acts of terrorism in order to destabilize the other Gulf States, especially Saudi Arab ia. In this case the

result could be a protracted instability resulting in increases in energy prices. The high-risk assets, being these stocks or bonds, would result in a higher risk premium. We'll see.

In short term, the price of oil is subjected to an abrupt correction. NATO's intervention clearly emphasized the relative military capacity of the opponents who face Gaddafi. In fact, they might succeed, but it is still too early to know for sure. Everyone ignores what's to come if they manage to get Gaddafi off the power, and this uncertainty causes great anxiety. However, the fact that a military intervention could happen suggests that a civil war is unlikely to occur and that the existing chaos extends, as some observers suggest may happen. We can only wait and see. The vulnerability of oil prices increased due to the speculative position in which currently the oil futures market is. The traders have tripled their bets that prices will rise, causing speculation in the future that have risen over the last two months from 5% to 15% of open interest. If they win the NATO and the opposition against Gaddafi, probably will take place a drastic drop in prices followed by a return to tendency led by an increasing global demand.

(BCA Diagram showing the net speculative positions versus Brent's price of crude oil)

 Conclusion, even if violence is altering the impact on oil supplies and oil prices, it seems to have little to do with Libya. The determining factor is the increase in global demand, and there is little evidence that this will change, not to mention a possible conflict across the Gulf that threatens Saudi Arabia.

Thank you ATPDEA JosĂŠ Vicente Maldonado Former Minister of Industry and Commerce Just this morning when I began writing these thoughts for MIPYMES magazine, about the ATPDEA, I read the interview done by newspaper El Comercio, to the Coordinating Minister of Economic Policy. Not surprisingly, what first called my attention was the title, especially because it comes from the highest official of the National Government's Cabinet of Ministers in economic matters. The title says, quoting the Minister: "America is no longer so important", and the interview focus precisely on the commercial trade reduction with that Nation and it's declining share percentage in world trade. Certainly, I'm not sure if her appreciation is based on world trade current statistics, but anyway, the headline and interview that appeared today in the newspaper gives me the opportunity to start this article in a different way, because as it highlights the importance the U.S. economy has in the world today (20% of world GDP), it allows me to start this article with information linked to the efforts (public and private) that should be done to achieve competitive access to the largest consumer market of our products. I emphasize this in commercial terms: the United States as an importing country, consumer of our products, services and goods, even in complex circumstances in which Ecuador does not achieve to renew an instrument of encouragement and development (ATPDEA) , granted unilaterally two decades ago by our main trading partner. Also expressing our concern since the dialogue has been lost and reduced to the lowest level of diplomatic relations, ties of cooperation and exchanges with this American nation.

Quoting statistics from the WTO, the United States continues being the leading importer of goods with 16.7% of world trade, and a consuming population of 440 million people, with an income per capita of 36 354 USD . By the way, in recent years we are witnessing a very interesting economic transformation trend in emerging countries like China, India, Brazil, among others. Our country might as well use theses markets. However, nowadays we must take a more realistic and pragmatic lecture and, therefore, take the right decisions for the country. It should be clear that the interests of Ecuador simply cannot despise a big consumer market and trading partner such as the United States. It's not an easy task to replace such market, furthermore what should be done to improve and expand our presence in markets such as Europe, Latin America or Asia. In fact, in terms of foreign trade, state policy, and in convergence with the productive sectors, should be: expand and diversify in all markets with the ability to buy our exports, this should be our strategy. Certainly, there is no point presenting as a helpful result reducing our presence in the U.S. market. I remain convinced that our foreign and integration trade with the world will be the main instrument of growth and development.

It is there where we will see our efforts to accomplish the growth of our economy, to achieve higher levels of productive investment, to reach full employment for the population, to effectively reduce poverty and enable the desired sustainable development of Ecuador. These are examples of development models (sustained in foreign trade) from countries in Asia, Europe and closer to us, in countries like Chile. Therefore, considering the benefits it has had for Ecuador, this article has sought to focus on the ATPDEA, an instrument to promote trade and exportable production investment which has been operating for 18 years for the benefit of Ecuador and is likely not to be renewed this year. This will gradually generate a major injury in the "macro" and "micro" levels of our economy. We believe that will particularly affect the large population of workers and their families, and small businesses involved in the production chain for export to the United States.

Here are some arguments that explain the real importance American market have for our country. Ecuadorian exports to the United States grew $ 6,046.6 million in 2010 (29% of total), an annual average growth rate of 16% in the last 10 years. On this same period, non-oil exports to the United States increased from $ 894 million to$ 1,590 million. The oil resource, from

which the external sector of our economy is highly dependent on, Ecuador exported U.S. $ 4,456 million to the United States. Finally, the trade balance surplus with the U.S. is largely favorable for Ecuador, reaching $ 857 million. Therefore We affirm that the United States is not only the country that purchase the most of our current export supply, but also is that country with which have a beneficial business relationship. Based on this preliminary information let us analyze the meaning and possible negative effects of not renewing the ATPDEA program, Andean program of trade preferences.

The ATPA becomes effective for the Andean countries in July 1992, however Ecuador achieved its full membership in 1993. In this process acted two governments of different trends: started with Doctor Rodrigo Borja and ended with Sixto Duran Ballen, showing that this program was driven into the country as a pragmatic and positive state policy, of two ideologically different governments. This program was intended to promote new economic opportunities by opening the market of the United States and became part of the concept of fighting together against drug production and trafficking, unavoidable commitment to our country. 

 In the case of Ecuador the program to promote exports under the protection of a preferential tariff had a slow start but with a steady growth. Thus, of the total sales to the United States during the first 7 years of the ATPA, a 13% average annual income came under the program of tariff preferences. In recent years, the component of Ecuador's exports covered under the ATPDEA has come to represent 24% of total non-oil exports, and the main products are flowers, tuna, broccoli, wood, sugar cane, pineapple and preserved banana products.

Unfortunately, there have been internal and external factors that have difficult the renewal of this cooperation mechanism on trade and unilateral investment. This final aspect also needs to be highlighted. The influential factors are (i) political: In the U.S. there is a complex political scene, resulting from a new correlation of forces in the Congress, and (ii) trade and cooperation: the priority that governments of the United States have given to the negotiation of trade agreements (FTAs). It happened first with Central America, and now with the Andean neighbors Colombia and Peru have already signed the Commerce Treaties. As an internal aspect, we note the weakened institutional support with other foreign policy priorities, which have inevitably affected and influenced this other commercial and productive areas, which should be indifferent to the diverse incidents addressed by the Foreign Office in bilateral or multilateral relations of the country. By the way, analyzing this factor I argued at the time opposition to the reform that made possible to the Foreign Ministry to take over Ecuadorian foreign trade. I believe we must recover an institution specialized in foreign trade for the state, to be responsible of the negotiations and, at the same time is closer to the productive sectors and Ecuador exportable offer and competitiveness.

The non-renewal of ATPDEA will have a gradual decline effect in the market as "the combined effect of: loss of market, payment of fees on exports and the opportunity cost of stop growing in the next years." The Foreign Trade Observatory analyzes this gradual trend of trade diversion by estimating an annual fall of 12% and 370 million dollars in 5 years. If the nonrenewal was expected we should have had advanced discussions with the United States to jointly explore other mechanisms that would at least consolidate the achieved progress through the ATPDEA and avoid the current problems facing our exports to this market.

Now, after 18 years of existence of the Andean preferences, I will mention the most important effects the program has had for our country: (i) employment, certainly this element of analysis is of great importance. ATPDEA has had a huge effect especially in the level of productive investment made in the agro-industrial sectors, so the opening to the U.S. market opening triggered a renewed investment especially in the Ecuadorian Sierra, having a transformative impact in certain rural areas (considering the agribusiness production is the main beneficiary of the investment activity and therefore we refer to the inhabitants of Ecuador's rural sector). Precisely, it is there where the highest levels of poverty in the country settle. As a notable example there is the case of the flowers: there are 4,400 hectares of flowers that require a rate of 15 jobs per hectare. If we add indirect jobs linked throughout the supply chain to this number, we could say that only the flowers have created approximately 200,000 new

jobs. Broccoli has directly generated employment for 11,000 people, only in the province of Cotopaxi. If we refer to pineapples, papayas, mangos, tuna, wood, textiles and many other sectors, we could say that the ATPDEA program in the country has generated about 400,000new jobs. Quoting Dr. Luis Gallegos, our great Ambassador to the United States, who in the last five years has made the greatest efforts to achieve the successive extensions of the ATPDEA. (ii) Investment. Effect achieved since the ATPDEA was created, along with the general process of trade opening and integration to the world started that in 1992.

During this period the employer changed culturally, particularly the businessman of the Sierra. This benefit is difficult to quantify. The productivity and competitiveness concepts were strange to the priorities of the employer, and to political and public officials thought the country. The country was seeking an "inward" growth. Protectionist policies the employer had, limited their operational ability. The model didn’t work because of the accumulation of inefficiencies in the economy, due to the permanence of protection State mechanisms. The addition of a new legion of entrepreneurs to foreign trade, willing to risk and innovate competitively, is also a result of the ATPDEA and the openness policies. To refer to amounts invested under the protection of the ATPDEA, considering only 2% of GDP annually during this period of validity, we could refer to investments that exceeded 3.8 billion dollars. I wish I could dedicate more space to write extensively on the benefits brought by the ATPDEA for two decades. I lack the space to do, so this time only includes among others (iii) higher wages and family income, (iv) technological innovation, (vi) diversification of export supply, (vi) intensification and greater efficiencies in the use of productive areas, (vii) increase in exports, (viii) improves in productivity and quality and, finally, note also (ix) the commitment and state policy in the fight against drug trafficking. This last effort shared with the United States, and this aspect has been the main objective of the ATPDEA, and in which Ecuador, governments, the armed forces and police have played a major role. We must persevere.

And just one final comment to prove I trust the Ecuadorian businessman capacities. The current scenarios require more of their vast creativity. The employer must make greater efforts to innovate technologically and reduce costs, train and collaborate closely with the worker to improve productivity in their companies. You cannot give up in this effort to overcome current difficulties of privileged access to markets, without loosing the trust that sectors of government also make theirs the aspirations of thousands of Ecuadorians to trade with foreign countries. Productivity and competitiveness are one of the major national objectives to eradicate poverty, achieve sustainable development and improve the quality of life of the population.

After 18 years, we must learn to recognize that U.S. cooperation in this matter, the ATPDEA as a preferential and unilateral trade mechanism in favor of Ecuador, has had an extraordinary impact on the economy and the development of our country. However, in the current scenario of nonrenewal of this mechanism, we must think calmly, pragmatism and vision to explore with the United States, the promotion of new trading instruments to consolidate the advances until now, that make possible the greater durability of agreements. We also must have the element of predictability and eliminate the uncertainty in the business relationship between the two nations.

Nostalgic Markets: growth factor of MSMEs Dr. Armando Calder贸n Sol Former President of El Salvador Our fellow countrymen living outside are a key factor for the socioeconomic development of our countries. The family remittances sent to support the maintenance of their families constitute a substantial amount for many Latin American economies. While this may seem paradoxical, the poorest people, those who couldn't find opportunities in their countries, are the ones who help maintain the progress of their countries.

Clearly, we have two incomes per capita for our countrymen. The one they have in our countries, which ranges from two thousand to eight thousand dollars per capita, and the one income enjoyed by our Latin American brothers living in the United States, Spain, Italy and other developed countries, which is several times more. Although this indicator ignores the distribution of income, there are cases such as in El Salvador, where the industrial minimum wage is slightly higher than 200 USD. In USA reaches up to $ 1.700 per month, depending on the states, about 9times higher. Because these workers often strive to have another job or do extra work per hour, rising their purchasing power and the saving to send to their families.

This reflects that our fellow countrymen living outside the country have a greater purchasing power than their relatives in their home countries. Added to this, often times there are several impediments to travel freely to their countries, creating nostalgia; this is a desire to have something that reminds them warmth of their homeland. Because of this and the increasing use of communications, nostalgic or ethnic markets have gained importance in the generation of local wealth and employment, as they represent a substantial number of consumers with greater purchasing power and demand for products. Here is where the name nostalgic goods or ethnic groups come from.

In this context, the micro, small and medium enterprises (MSMEs) have a tremendous opportunity to grow and develop, satisfying a market that claims their ethnic or nostalgic products. Many of these products are popular manufactures such as tamales, candy, cheese, brown sugar, herbs, lentils, corn, dried fish, sausages, coffee, chocolate, crafts and more. This explains the importance of supporting MSMEs to strengthen its growth and expansion in our countries, which will translate into more jobs, economic growth and greater national wealth.

A good deed, which should be a duty of government, is to support MSMEs growth, implementing pubic policies that facilitate the development and strengthening of these businesses by: (i) appropriate credit support, ensuring attention in credit institutions oriented to promotion and development, (ii) provide the capital necessary to produce, sell and resist until they get paid, (iii) to train entrepreneurs to commercialize, look for the most attractive presentations and search appropriate markets to the size of their production, (iv) teach how to accomplish the certifications and specifications required by the different countries where they hope to sell their products, (v) develop and offer training programs and intensive courses to improve business and administrative capacity, introducing new technologies to create a new business culture capable to face with a foreign demanding market , and (vi) promote the association of micro and medium enterprises, and even allow the association with large companies to reduce costs, achieve higher levels of scale production, and achieve best quality productions. Everything mentioned before contributes to increase competitiveness. All of this could transform MSMEs, slowly, into a large companies.

This challenge is not only for the governments, but also is an obligation to business associations, to the various Chambers of Commerce and Industry, to the export trade associations, to business

schools and our universities, and to all the organizations involved in business activity, trade union and learning centers.

One great example of success in conquering markets and increase substantially it's export capacity has been Chile, with strategic support and commitment has represented PROCHILE, an agency of the of International Economic Relations general direction of the Ministry of Foreign Affairs of that country. This institution works closely with Chilean entrepreneurs, regardless of their size, supporting micro, small, medium and large businesses to enhance their exporting capacities. But the most important was the consistency over time, always thinking about what might be best to Chile, leaving aside circumstantial positions of individual governments. This is one of the secrets of the Chilean success: having maintained the wisdom and clarity that the work should be continuous, setting as the objective of the nation, with the primary goal of achieving sustained growth in Chile. Globalization was not a threat but an opportunity that they have successfully taken advantage of, obtaining impressive results in conquering the most demanding and diverse markets in the modern world, knowing to take advantage of comparative and competitive advantages.

This is one of the greatest challenges Latin American governments face: to understand the characteristics of the new world we live in, the challenges of globalization and new market conditions imposed by the telecommunications revolution, and the ease to reach remote markets. Without understanding this would be like swimming upstream, every day is harder to generate jobs and investment when there is political populism and demagoguery generating mistrust, creating insecurity and instability, and causing national and foreign capital flow to where opportunities are given, whether they are states providing legal security, social stability and in democratic and free governments.

Perspectives of the Ecuadorian Economy Economist CĂŠsar Robalino Gonzaga The Ecuadorian economy has been showing serious failure in its economic expansion. Real growth (without inflation) of 3 - 3.5% per year is becoming a normal rate of Ecuador's economical system behavior. The Government has been estimating a slightly higher growth, without real basis or support, not theoretical or academic proof. For example this year, official authorities estimate a growth of 5.1%.

We estimate a real GDP growth of 3 to 3.5%. If to this figure is reduced the population growth, per capita growth of the country gets weaker.

Modest growth in per capita income does not allow fight successfully against poverty and social inequities. Distribution policies of national income and wealth in weak economy and few opportunities countries such as Ecuador encourage unnecessary social and political tensions, sometimes very difficult to control, fostering an unfavorable atmosphere to social stability and maintenance of democracy.

The Development Plan and the Program of Good Living, gives priority to economical and social policies that do not allow to create the right conditions to stimulate domestic private investment or foreign investment. Create social and economic progress in our society requires many factors not only infrastructure, but essentially a systematic increase in productivity. At the same time, this depends on fixed investment, modern technologies applied to production processes (substantial increases in capital formation), and well prepared and healthy labor force, talented entrepreneurs, market opening, flexible markets, etc., but also non hostile policies for the creation of wealth by private entrepreneurs.

Ecuador cannot continue basing its future growth in oil and mining. These sectors that generate and will continue to generate substantial financial resources for the country, must be used by public power to create factors that will assist the private sector to use their talents, their savings (internal and external), and technology to develop private and non-extractivist activities. This development cannot occur in an autocratic process, but instead, taking advantage even with all the risks involved, the opportunity globalization gives to Ecuador. We require encouraging private non-oil goods and services exports, with all the internal linkages that allow a greater multiplier effect of one-dollar exports, as of investment.

National Government Internal policy should abandon confrontation and the growing hostility felt by the country's private sectors. An alliance between the Government and the private business sector to build confidence, stability and legal conditions for investment is needed. If this does not happen, and the government policy remains intact, we fear that the Ecuadorian economy will grow modestly (3 to 3.5% annually).

The country needs to grow at rates not lower than 5% per year, in per capita terms, for about 20 years. Development plans should be developed with this goal, identifying the necessary instruments to achieve that goal. But growing up is not enough; we need a social and development policy that pays attention to the marginal areas of the country. Education and health must be extended to a higher percentage of Ecuadorians. The potable water services, sewerage and electricity, should be expanded, not only by population growth, but because the future well-being demands it.

Savings rates and domestic and foreign investment rates should increase radically, and therefore, there must be a tax policy that does not punishes the Ecuadorian businessman with high taxes. We must open up to foreign investment, so it can assist the country in financing and promoting the development and welfare of Ecuador. Autarkical policy is not viable and requires free trade agreement negotiation, enforcing the national interest.

Playing hide and seek Mr. Alberto Medina MĂŠndez

It is hard to understand how we got here. But really you might say that much of this was more than predictable.

The most innocent, would say that citizens understood that some tasks could not be solved without the existence of a neutral, equidistant, objective institution. This is how the state utopia was born, that monster that would solve what humans could not by ourselves. It would handle the tasks assigned, but for this, funds were required, funds that could only be financed by taxes, taken from the citizens, their money.

From that innocent beginning to the present hostilities have passed centuries, and in that road what was presented as a necessary evil, seems to have magically become the cure on the altar of the benefits.

But the atrocities of the increasing state development, the permanent vocation to appropriate resources and freedoms of others, now we can add how they dare to conceal the use of the money obtained.

As governments progressed, sophisticated, and became more complex, they have invented a tangle of rules, perfidious and strange ideas and arguments, which mysteriously exempts them to show what they do with public money, the one they previously took away arbitrarily from each of the citizens, or how they like to call them, "contributors".

We already know that when money is compulsively taken away from someone, is called theft, but when it snatches it, also by force, it is the State only calls it "tax", appealing to that morally acceptable old euphemism.

It is clear that politics and corporations have made a pact of impunity, an accomplice silence. Nobody seems to have much interest in revealing the essentials and making it right. It is about not revealing such resources, and not telling how they apply those funds.

Concealment, misinformation, and dark numbers, allows them to work without brakes, to arrange with no explanation, to not held accountable reports, and even more, to use that money with a questionable criteria, most of the time making politics, and sometimes in the verge of crime, if not illegal.

To do this they have generated a battery of creative schemes, strange mechanisms, and twisting tricks to teach nothing, to not reveal any figure numbers clearly. And when all that is not enough, they appeal to their specialty: ignore the popular claims until the community runs out of civic perseverance.

When using "borrowed" funds that come from the pockets of citizens, who earned their money with effort and work, taken under the cruelest tax collection mechanism, the least you can expect is seriousness and some responsibility.

Especially if we consider that those who spend that money do it on behalf of others, not their own.

They are merely managers, not owners of these resources. They should behave as such.

Many will say that the budget approved by the legislatures is enough. It is wrong to believe that by publishing a few lines with generic, ambiguous and diffuse concepts, can achieve to meet the basic

precepts of any healthy democracy. These are just generalizations, tricky of course, and elegantly presented and disguised as technicalities, that hide more than what they reveal, which means each assignment.

Us citizens have a right to know every single detail of expenditures each division and each state office of the public sector does. We are the legitimate owners of these funds, and the least we can hope is that those elected to manage them don't hide anything.

This isn't about an overstated claim. In any situation whatsoever information concealment involves an absurd and indefensible immoral act. And people should not demand it; this information should be posted in visible places, especially in these times of unlimited technological availability. Everyone's money isn't to finance the state's propaganda, or to praise contemporary political characters.

Republican austerity should prevail as criteria for state spending, but the visibility, transparency, and the absolute clarity of the management of these resources, cannot even be discussed.

To those who use someone else's money continue defending euphemisms to label budget allocations, you should justify reserved expenses, and remember that some public safety culture and education always helps.

The pathological issue is that citizenship, plundered via taxation, confirms such violation, and is not even able to demand the minimum civic respect that they deserve. Your right is to know the truth to be aware of where every penny goes.

This grotesque state activity not only has supporters, most of them living at its expenses. Now the argument has been refined, and they seem to try to convince us that not only you must spend a lot, but also that presenting accountable reports isn't their responsibility, hide everything and never do the right thing.

Politics continue to pay its own discredit, almost in free-fall. Neither nor the other, those who are here nor those who aren’t, not even those intend to be here tomorrow, are willing to promise something as simple and basic as transparency. Do not expect miracles, only the civil society can demand what politics is not prepared to offer. They should have every reason not to. It seems best not to ask too much. They are skilled, able to delay committed responses to infinity. They specialize in playing hide and seek.

Peru under de 21st century socialism Carlos Sanchez Berzain Constitutional lawyer, Bolivian politician and political analysts (Bolivia) On June 5 the Peruvian people will elect President. Again Peruvian citizens are under the harassment of a transnational undemocratic project, which has tried for over a decade to seize political power in Peru, by means of violence and through elections. The 21st century socialism, that seeks to incorporate to its domain a country that has resisted defending its democracy and the path of progress so far, that makes it one of the most successful in Latin America.

The 21st century socialism, also called Bolivarian project or group of ALBA (Bolivarian Alliance for the Americas), born from the alliance between Caracas and Havana, recreated at the beginning of this century the Castro foquismo, in the early sixties, and turned it into electoral foquismo, replacing it eventually for the management of elections. As a result of the alliance between Caracas and Havana, Castro earned revenues of money and oil that saved him from the economical agony he suffered in the late nineties, and Hugo Chavez obtained security, the political project and experience (know how) of the oldest and most lasting dictatorship in the hemisphere.

Latin American Democrats take long to receive this transnational, neo-imperialist and authoritarian project. Still today, many politicians, businessmen, academics and citizens do not see the true nature of a regional political power controlled dictatorially by Cuba, and by destroying democracies is leading Venezuela, Ecuador, Bolivia and Nicaragua in that way. It tried, and continues trying, to take over Honduras. The projection the other hand, has a great influence on other countries that, like Argentina, have been subjected to their economic and populist discourse and mechanisms.

An essential characteristic of socialism in the 21st century is that it comes disguised as a democracy, with popular presentation, and a speech that pretends to end the exclusion, poverty, racism, or any other element that applies to the reality of the country in operation. His fundamental speech (anticapitalist, anti-imperialist and anti-American) is disguised as democracy until they take power. Their statist and centralist policies seek only the total concentration of power and indefinite permanence in it, through the constitutional reform, under a model provided by pseudo academics of a Spanish university, those who have articulated even a PhD in Constitutional Law in Havana.

Among the means of action used by this "socialism of the 21st century" there are the smear campaign of the political party system, seeking their removal, the creation or exploitation of crisis, and the exacerbation of internal or external conflicts, such as the recent case in Nicaragua. After gaining power, is unleashed the persecution of politicians journalists, businessmen and anyone who has a projection.

The object is to intimidate them with terror, take over companies, media and resources, in order to cut economic and expression freedoms, and forbid funding for democratic initiatives. The instruments used include, among others, the politicization of justice to persecute and nullify the opposition, creating crimes and processes in the hands of a self and / or servile justice.

These countries, controlled by the Cuban-Venezuelan project, hold political prisoners, persecuted and exiled. Seize the media and restrict freedom of the press, ignore the property rights and human rights are systematically violated in the name of seeking permanent revolution, despite its economic, social and political failure.

The result includes a new class of wealthy people, friends with power, and increased inequity, since the "revolutionary nomenclature" has access to resources unreachable for ordinary citizens. Increase of corruption, economic crisis, and alarming levels of insecurity. The drug trade takes over turning the

states into quasi-failed. Thanks to this process, these countries have retreated 30 to 40 years in its democratic, social, institutional and economic progress.

Under this scenario, Peru faces a huge challenge. As the second round has been configured appears as a decision that Peruvians will have to choose between two, the less evil: Ollanta Humala and Keiko Fujimori, Peru Wins and Strength 2011, respectively. A few weeks ago, Toledo seemed like the winner.

The first candidate, a former military coup leader, committed to "socialism of the 21st century" led by Chavez, which prevented him from coming to power in the election running against Alan Garcia. Peru at that time chose what was considered the less evil and did well: the country has shown great economic growth rates, inflation control, exports and foreign investment.

The second candidate is the daughter of Alberto Fujimori, Ex Peruvian President who was convicted for offenses that occurred during his government, a regime that has been repudiated by the Peruvian people and international society.

The latest IPSOS poll shows an intention of 42% to vote for the candidate Humala and 36% for Keiko Fujimori. The undecided and those who have announced their blank vote represent approximately 22%, and will probably tilt the balance of electoral by one candidate.

How to choose between two evils?

Humala seeks to take distance from Chavez, but does not answer or explains how or who has financed his electoral campaign, which has lasted more than 10 years (is no minor detail the existence of a hundred ALBA houses in Peru, as stated in the Interamerican Institute for Democracy). He does not want to be identified with Chavez and is changing his speech. Last Monday he said that if he won the electoral duel he intends to strengthen relations between Peru and Brazil, Chile and the United States.

He denies having any intention to include his country within the Bolivarian Alliance for the Americas (ALBA) and claims that his model is "Lula's Brazil". If the Peruvians decided to believe, Humala will be the next president.

The other candidate, young women, may be paying the price for being the daughter of Alberto Fujimori, theme that the Bolivarian propaganda has turned into a stain and a major sin, but can not ignore the fact that this was an element for her release. To make things worse, Keiko defends wrong and in a radio interview in Lima Radio programs has said almost desperately: "I'm not Alberto Fujimori. The children do not charge the responsibilities of their parents. Those who know me know I have similarities, but also great differences with my father " The campaign against Fujimori's daughter has at large component of discrimination for being a woman, for her youth, and being the daughter of her father. A person is responsible for their own actions and not those of their parent. The successes or failures cannot be inherited, and even less is a matter of an electoral campaign. In 2006, Keiko Fujimori reached the highest vote in the history of the country for the Congress, and there is no information that Keiko has made actions against democracy under her responsible policy.

Anyway, it is the Peruvian people who will decide, say, for the less evil. Those who observe the processes that already occurred in Venezuela, Bolivia, Ecuador, Nicaragua and other attempts, and have listen Humala's speech, repeating that of Chavez, Morales, Correa and Ortega, we can only alert those who believe. That speech falls within the self-delusion of socialism in the XXI century, which is so necessary for their electoral access to power.

We only wish that the observation of the reality in neighbor countries by Peruvian citizens, enable them to avert the risk that Peru is taking, so instead of voting for the less evil against evil, vote against known harm against irreparable harm.

Hopefully they will choose wisely.

UTPL is 40 years since started an educational program from Ecuador to the world (April 21, 2011) Loja Technical University (LTU) began its academic career in 1971.Its founders, the Maristas Brothers, developed a vast educational work in the province of Loja, and on 3 May of that year the current President, José María Velasco Ibarra, signed the executive order creating an institution destined to become Alma Mater for the Ecuadorian society of the XXI century.

Five years after its creation, September 2nd, 1976, the Open and Distance Learning Modality is created in order to serve a large segment of the teaching profession that until then never had access to university education. LTU was the first university in Latin America to offer the Distance Learning modality, and today reaches the 24 Ecuadorian provinces with 92 academic centers, plus 3 abroad in New York, Madrid and Rome.

A new era was born over the immense work of the Maristas Brothers. In 1997 the Missionaries Identes Community takes charge of driving this wonderful dream.

During its 40 years LTU has been scene of some of the major achievements and changes that have been focused on institutional development in the fields such as research, knowledge management, and international relations, academic life and service to society.

• 2008: received Institutional Accreditation by the National Council for Accreditation of Higher Education of Ecuador Cone as a quality university.

• 2009 received from the CONEA, the university category A qualification.

• 2010: schools of Social Communication, Architecture and Accounting Sciences are accredited.

• 2011: School of Electronics and Telecommunications receives ISTEC-GRANA certification.

• 2011: appears on the international Webometrics ranking as the second university in Ecuador, eleventh in the Andean Region, 65 in Latin America and 1096 in the world.

The teacher training has undoubtedly been one of the top concerns. Currently over 235 teachers are preparing their timeshare training programs PhDs at universities in America, Europe and Asia.

As a result of this process, in November 2010a total of nine PhDs were incorporated to the LTU team, a total of 16 doctors working at the University. The fourth level teacher training has strengthened the development of applied scientific research, allowing teachers to be part of international scientific congresses and conferences each year, while at the same time provides institutional presence in indexed journals and informative magazines.

Convinced that the university should be of the city and of the world, the LTU maintains an aggressive internationalization program that includes student mobility and active participation in networks. It has chaired several regional associations, standing out the Inter-American Organization, which represents four hundred universities from the three Americas. It also is home of shelter the American Institute of the Family, Campus of OUI program that seeks to build the Latin American and Caribbean Higher Education Area and the American Institute for Peace Education (IIEPAZ). In recent years it has hosted more than twenty major international conferences on topics such as electronics, architecture, distance learning, social communication, chemical engineering, among others.

The years are passing by and the university has revolutionized the system of higher education not only in Ecuador, but also in Latin America. Its progress does not stop and continues to build an education that complements effectively the academic and scientific research.

Why are we here (part II): The roots of the Ecuadorian problematic Franklin L贸pez Buena帽o Retired professor from Tulane University, New Orleans On my previous post argued that the social, political, and economical system that exists in a country at anytime is a product of cultural values that have become throughout history. Particularly, I argued that the arriving to power of individuals like Hugo Chavez, have psychological roots as distrust, envy, and sentimentalism. I affirm that ideology plays a decisive role in getting us to where we are. Those socioeconomic policies that have been implemented and the poor results obtained are the product of the ideology of the left that has imposed itself over time.

The role of ideology The dominant ideology is perhaps the most appropriate illustration to explain the economic, social and political situation of a nation. Ideology is a set of beliefs and ideas about how the social relations system operates. These beliefs - about freedom, social equality and national glory have psychological, philosophical, ethical or religious roots, and lead individuals to apply some collective action as the formulation of the political system (Republican, presidential or parliamentary) or strategies regarding the administration of public matters (regulations, taxation and government incentives).

Among the reigning ideology beliefs that shape what governs us, is faith in that the governors and leaders can change the social, political, and economical system. This is known as constructionism.

But this faith cannot be attributed to the Ecuadorian and Latin American countries only because it is a prevailing belief in the world. What is important is to note that constructionism means the offers that those who aspire to govern and the leaders we choose propose to us. The myth that constructionism is behind the creation of new ministries and new state agencies, explains even the establishment of the world organization, including the United Nations agencies, government-togovernment foreign aid, or bureaucratic planning.

This belief is in our core, and not because bad intentions, ill will, but because the idea is that you do not need a "computer" so that there is an order is not yet fully understood. In an uncertain, insecure, and petty world, when problems arise it is natural to ask and even demand something to be done. Thinking that the problem will fix by itself seems foolish or irresponsible. Thinking that the best thing that could happen is that the government did not intervene allowing the system to recover the balance, generates in people an unacceptable sense of chaos and confusion. That's why during crisis government and state projects strengthen and grow. This belief is hard to banish, because it has psychological origins, and when ideology has psychological roots, as explained in my previous post, it is extremely difficult to change the status quo.

Constructionism is nothing but the government intervention to "fix" society. Interventionism cannot be attributed only to the left, but also to the right parties. But as the reigning political project is said to be "socialist", I focus my criticism and forecasts to those who daily proclaim to be "left" and proclaim that the lift to a higher moral plane, not realizing that many of their ideas will have ethical and political consequences of poor caliber. My argument is that constructionist ideology of the left is wrong; therefore, the results inevitably end up being harmful to society.

The traps of a misguided ideology.

Clearly bad ideas generate and bad actions and wrong policies, resulting in poor economic performance. Unfortunately, the poor economic results instead of leading to good ideas, take people to seek refuge in worse ideas with increasingly damaging results. This

process means that, sooner or later, it will lead to extremist regimes and deep economic crisis. This is precisely what happened in Ecuador. Bad ideas that began with ECLAC in the sixties have resulted in a regime that proposes a political project aimed at throwing the economy off a cliff.

The process by which a country falls into the trap of bad ideas is extremely complex. Let us see a hypothetical case, although not far from the truth. A bad idea is the one that maintains that employers exploit workers by paying low wages. To correct the problem, imposing a minimum wage (a bad measure). If the employer can transfer this increased cost to consumers he will (poor economic consequence). The price increase is attributed to speculators who supposedly monopolize the product (bad idea). Then this leads to price control (bad measurement). Price control leads to poor quality products, smuggling or black markets (bad economic consequences). Such evils are attributed to the lack of morals of the citizens, or the lack of social consciousness of employers (bad idea). In order to remedy the poor quality regulations, standards, and supervisory authorities are established (bad policy). These measures increase even more the production costs (bad economic consequence). This wrong ideology makes the company enter into a vicious circle hard to break.

To simplify let, us analyze two bad ideas and their consequences: (1) market failures and (2) the fallacy of the acquisition of wealth as a zero-sum process. This does not imply that there are no external Risk factors harmful to third parties - or that there is no evil, naive entrepreneurs or inept. Nor does it mean to ignore the great disparities of wealth and income existing among countries and their population. This evil does not lie in the existence of these problems, but in the explanations of their causes (these are bad ideas). The trouble is that misunderstanding the causes; the remedies being applied are the wrong ones.

Bad idea 1: Market failures It is true that we live in an imperfect world, nature is not perfect, man is not perfect, the democratic republic is not perfect, and the market is not perfect. Yet, we keep dreaming of solutions and problems to disappear, or rely on utopias developed in academic boards, or gatherings in romantic bohemian cafes. We easily dismiss that actually nothing comes for free, everything has a cost, and what we have to do is to remedy the imperfections at the lowest possible cost. Consider, for example the problems that are attributed to market imperfections.

The "flaws" of the market usually refer to externalities or information asymmetries. Every business transaction affects more people than those actually involved in it. These side effects are called externalities, which often benefit others (positive externalities) and sometimes harm others (negative externalities). To correct the externalities the State is called as the remediate of the problem, but this involves a missing step of logic. This means, it falls into the delusion to believe that the coercive power of government can internalize the externalities, without rethink that the governors are not omniscient, and that the don't know exactly what or how to do and that they are not entirely altruistic when acting, because they don't put aside their personal interests to concentrate on the common good. Just assume that state remedies are free.

Here are some examples of these missing steps of logic. Apparently environmental pollution lies in the greed of employers. Motivated by pecuniary profits they are unconcerned about the quality of the environment, then it's said, they lack social consciousness. According to the ideology of the left, the farmers' greed leads them to deforestation, burning and planting, the fishermen's to fish indiscriminately, the industrialists' to pollute the waters, in other words, it is believed that neither farmers nor industrial nor fishermen or are interested in future generations, but only in their temporary gains. Then, it is concluded that the pursuit of self-interest rather than care of common welfare ends up hurting everyone. This is how the causes of environmental problems are identified.

To remedy the environmental issue it is concluded that selfish behavior should be"punished" or "controlled" with the coercive power of the government. Consequently, proliferates what is known as the regulatory-command system. This is a set of prohibitions, bans, standards, fines and penalties for breaching regulations. However, when evaluating the results, deforestation continues, the predation of

marine resources is rampant, and the ecological crisis worsens. And the sad part is that instead of identifying the actual causes, they seek further enforcement action.

A neater reflection identifies the problem of externalities with the lack of rights of private property. The chickens are not endangered because they have owners. The river that belongs to everybody belongs to nobody, so it is polluted. The property in the hands of government cannot be well managed because the rulers and the bureaucrats are not owners, and therefore they are not motivated to manage resources efficiently.

Bad idea 2: Wealth as a zero-sum phenomenon The second trap of bad ideas begins with the assumption that prosperity is achieved at the expense of harming others. This scam takes many forms. For example, according to the dependency theory, wealth in developed countries (center) is due to the exploitation of poor countries (periphery).

According to the theory of labor value, employers extract surplus value from the workers because they charge for their product more than the value of labor cost incurred in its production. It also ensures that speculators monopolize and charge excessive prices in times of shortage, and so they win at the expense of consumers. Or that free trade favors the rich and impoverishes the weakest.

Again, the left seeks to remedy these situations through the use of the coercivestate system. To match the income a progressive tax system is imposed (whoeverearns more, pays more). To avoid dependence imports must be replaced, and must "protect" domestic producers through high fees or import tolls. To remedy the exploitation of workers, "progressive" labor codes and "worthy" wages should be established. To prevent speculation price controls must be establish. But in the end, the progressive tax system encourages tax evasion, double or triple accounting. Import substitution ends up creating monopolies, inefficient industries and crony capitalism, practices that retard development.

Tariff protectionism encourages smuggling, over-invoicing or under invoicing on international transactions. Restrictive labor codes consolidate the inflexibility of the labor market and obstruct investment. Price control encourages smuggling, black markets, basic products shortages and poor quality of them.

In summary, it has fallen into the trap that bad ideas and bad practices, and instead of improving the poor economy situation trap has caused, has spread inequalities in income distribution, and forced hundreds of thousands of Ecuadorians to leave the country.

The tragedy is that left has managed to attribute these evils to a supposed neoliberalism, attribution that exempts them of guilt and allows them to keep preaching the same ideas and that already failed, not realizing that recipes the deepening in bad ideas and bad recipes leads inexorably in the election of demagogues and the deepening of populism and authoritarianism.

Conclusions Constructionism is merely the proposition in which you can design a prosperous economic order "from above". For example, Assembly member, Cesar Rodriguez, maintains in a televised interview that it's time to change old structures that have held power "... the text of the law is not in dispute, what is disputed are the forms and traditions that some are resisting to change. Here is a model that seeks to build a country with equity, and another that seeks to return to the past". This shows that he has a blind faith in the government's power to shape society according to their scale of values. But history is not is on their side, constructionism is doomed to fail. In its most radical form, Marxism sought to build a new man and it took 70 years trying. In Cuba, the Communist Party of the Castro brothers has now been 50 years and haven't accomplish nothing.

The failures are obvious. Hugo Chavez has spent 10 years in the effort and what he has accomplished is food shortage, rising crime, polarization of the country, and other evils that the press is continually unfolding. Unfortunately, in Ecuador there is no shortage of believers. President Correa admits that his "political project" will take 30 years to bear fruit. Can we afford to experiment with an ideology that we know will not work?

OPINION Rafael Rosenthal The year 2010 reflects the end of the first decade of the new millennium, and as such, leaves some milestones that will mark the course of the next decade. If the decade that began in 1990 marked the fall of the former Soviet Union and the end of Communism as a political-economic system, the decade ending in 2010 has meant to the United States the confirmation of its decline as a "superpower", and the birth of a new form of "state capitalism". The term "superpower", coined by French political analysts, determined the period that began with the dissolution of the USSR, and which gave the U.S. the role of the only world power. But between 2008 and 2010, three circumstances have demonstrated the end of this situation: in the military, the withdrawal from Iraq as defined by Bush and from Afghanistan by Obama, have shown the limits of the superpower in the military. The mortgage crisis in 2008, which precipitated the 2009 recession and the uncertainty that fails to resolve, have been the limit to the role of U.S. as the hegemonic economic power, and Wikileaks showed the limit to the power generated by the scientific and technological supremacy.

Simultaneously, the U.S. and Europe financial crises between 2008 and 2010 marked a new trend, by which the states intervene of as last resource lenders or shareholders, but within a capitalist and free market system, in which the state participates as any other player. The rescues of General Motors, AIG, Citibank, Lloyds, Fortis, AEGON, AXA, and Allied Irish Banks were channeled through emission of shares (ordinary and preference shares), and bonds that were subscribed by the states and then traded in the market. It is expected that an eventual crisis in Spanish companies will be resolved similarly.

The year ending has also shown the crisis in Europe, both politically and economically. The post-war welfare of the state that characterized the European model and that initially did not cause the failure of communism has become unviable because of the globalization, and especially because of the economic protagonism of China and emerging Asia. If only everyone adopted it, the state welfare could be sustained as a viable model. But now Germany is exporting more to China than to France, its main trading partner in the continent. On this situation, the financial crisis of the PIGS (Portugal, Ireland, Greece and Spain), remains uncertain about whether some EU countries will enter into default, and if any of the eurozone will be forced to abandon the common currency to devalue. In 2009, China overtook Germany as the third largest economy, but this remains the leading European economy and recovers more than the average of the continent. The German decision to limit the amount of rescues reflects the weight of public opinion reluctant to pay the imbalances in other European countries more disordered. In 2010, managed to save the euro, but has not resolved the uncertainty about what will happen to the debt of the PIGS. Asia, led by China, has established in 2010 as a growing economical and political player. The year ended with China announcing it will buy the sovereign debt of European countries to avoid financial crises of the old continent, being Portugal the first country to benefit from this decision. Governments in Asia fear repetition financial crises such as the one in 2008, and are taking measures to avoid it.

China managed to keep the Yuan’s value, despite pressure for its revaluation. 2010 is the year in which the GDP of Japan was surpassed by the Asian power. The tension between the two Koreas revealed China's strategy, aimed at managing conflicts to weaken U.S. influence in Asia and cause its gradual military withdrawal from the continent. The trade agreement signed between China and India means that the two major emerging economies of Asia are beginning to understand that they benefit more from cooperation than from rivalry. All this makes clear that it is China with whom U.S. will share power in the beginning decade, in both, the economic and militarily. The conflict in Afghanistan, increasingly linked with Pakistan, wears out the U.S. for its lack of results, and this benefits China, as long as Muslim terrorism does not come within its borders.

In the Middle East, conflicts have not been tempered during 2010. Regarding Iran, the year closed with the possibility of reopening dialogue with the Sextet in 2011(the five permanent members of Security Council plus Germany), but without giving up for it in the development of its nuclear program.

Regarding the Israeli-Palestinian conflict, the dialogue has not advanced, and as much Hezbollah from Lebanon, and Hamas from the Gaza Strip, threaten Israel, whose government is pressing ahead with the constructions in the colonies. Washington's influence to channel this conflict is limited. In Iraq, it has taken nine months to form a government, when the Irani influence increases and the demand for autonomy of the Kurds grows. This also threatens Turkey, whose government remains practicing a moderate Islam. Signing the biggest selling military contract in history, designed to contain the Iranian threat, ratified U.S. Alliance with Saudi Arabia.

Africa and Latin America closed the year benefiting from the advantages of the emerging world in a context in which raw materials continue to increase their value. The African continent has begun to reduce poverty and one third of the countries show their ability to integrate successfully into the global economy. South Africa is the model for its economic organization. Kenya, Nigeria and Angola are the opportunity for their raw materials and, Egypt remains the key ally of the west in the northern hemisphere. At the same, time there are half a dozen of failed states such as Ethiopia, Liberia and Somalia. Civil wars like in Congo and genocides such as in Darfur in Sudan continue.

Latin America has consolidated its positive outlook. In 2010, Lula ends eight years in office as the world's most popular president, and for the first time with more people in the middle class than in the low, becoming the eighth largest economy in the world. The populist left is in crisis, being Cuba and Venezuela the two countries in recession in a continent that is growing. At the same time, the coming to power of two presidents of center (Pi単era in Chile and Santos in Colombia) confirms that the continent is moving away from populism, while Mexico is growing but without resolving the conflict of narco violence.

Ultimately, we expect again a year marked for political and economic volatility. Different electoral process of the calendar 2011 will affect and will be simultaneously marked by limited options for solving the pending economic issues. Among these the European sovereign refinancing, the U.S. fiscal deficit, and the slowdown of China inflation, which appear as the most important and decisive, as long as geopolitical or quasi-war escalation (Iran, North Korea or the Balkans) can not cause greater instability.

HISTORICAL EVENT Lawyer Eduardo Ledesma GarcĂ­a Director de AEBE

For those who have entered in the banana industry since the promulgation of the Law to Stimulate and Control the Production and Commercialization of Banana in the Official Registry No. 124 dated August 6 of 1997, we experienced the general disputes and conflicts between Producers and Exporters, usually caused by the fixation of minimum support price, lack of control over it, and abuse made by those who fail to pay producers. As a result, strikes, road closures, etc, were generated,which generally concluded with the exit of the shift Minister of Agriculture, andrevived the experiences of a new beginning with more equity and justice.

It has been 14 years, and though it is true that disputes over the minimum support price still exist, the discussions have upgraded their category. Today there are no longer insults or attitudes of superiority, much less vandalism. The discussions are very classy, and this has led to the Association of Banana Exporters of Ecuador (AEBE) to have an alliance with major Associations and Banana Growers Guilds from all provinces of Ecuador, based on a common agenda that originally included seven points, from which due to the Alliance, four have been achieved. Theses are the same as those contained in the Production Code, and reform the Law of Banana, which is the formalization of the Banana Industry, and implies: annual pricing, mandatory the subscription of contracts for producers and exporters, payment through the Central Bank, and the registration of the properties whose plantings were considered illegal. Fact that we consider historical, and which was consolidated at the meeting held on March 1st, 2011 with the Secretary of Agriculture, Rafael Guerrero, in the buildings of MAGAP, and attended hundreds of producers and major exporters Affiliated to AEBE, ratifying the consensus of the previously said. After that meeting, a press conference was held in which it was confirmed that everyone: Government, producers and exporters should make efforts so that all Ecuadorian fruit is exported under contract, and that no producer can sell if their instrument is not properly registered, as well as the penalties will be relentless for those not paying the minimum support price, and through the Interbank System of the Central Bank. This will mark a difference and if the authorities of the Ministry of Agriculture set the controls and sanctions, then we will have accomplished what we have been fighting for: the much desired formality of the Ecuadorian banana industry that will benefit the sector and country, strengthening to continue as a leading world exporter of bananas and generator of income and jobs for our country.

Fighting for business: What they do not talk about

Mr. Rodney Goodwin FIE President of the U.S. Northeast Sector

All of us, who use computers during the day, see and receive many communications on a variety of topics. For the businessperson, there are websites that call for attention in all possible subjects. With a click of a button, we are immediately connected with people on every continent on the planet. Through the messages or chat systems, we are stuck in the office of vendors and customers of any existing product. Thus we have come to what is called the "global village".

However, it would desirable that technology by itself would guarantee us that our business will be transformed instantly into profitable, becoming billionaire overnight. But the fact is that us humans are complex, and therefore the technology is no guarantee to change our behavior or our habits. We still have basic issues dealing with different cultures, languages and nationalities. To be clear and direct, we are still tied to our prejudices and assumptions about other human beings from our little corner of the world. Therefore, for those poor souls who have dared to take as truth whatever they hear, read or share on the Internet, have suffered the same disappointment, deception or simply fraud. They have felt the frustration of deception.

We know that doing business is really a set of relationships. To do business means being in contact with people we know. So, what happens? The plane flights are full of men and women crossing the globe frantically from point to point to meet face to face at key points of the planet, filling conference rooms, hotel lobbies, restaurants, convention centers, and other similar places. Each one tries to feel the pulse of each place, each market, to become the best seller, to be heard, to create his best impression. This is like the cowboy movies with the gun in his belt, ready to shoot the right time your best sales pitch speech or commercial. Instead of weapons, now are the iPads, iPhones, Blackberries, and an arsenal of electronic tools. The modern warrior is ready to land his best business by closing the contract of life.

Surprisingly, this global village is not really a village. There is no real community, since we live in a increasingly sterile, robotic, dehumanized and stressed place. Instead of looking the business partner as a partner, as a colleague, a friend who you can look across the table and right in the eye, each now rests in their tech arsenal to keep that distant and cold contact, that somehow hides behind the technology and does not faces or compromises. Even when a personal meeting can be closed, and long distances are traveled to meet the person, the modern warrior is more attentive to the sound of his cell phone that in the will to approach the person ahead.

Something is terribly wrong with the world of business that has forced us to grow distant, disconnected and almost disinterested in the counterpart in front of the table or on the phone. This huge distance gives us the notion that perhaps, can we create spaces for trick or cheat, to lie or impurity? Since there is no human or emotional bond with the person with whom you do business, they think they can operate in an unfriendly, dishonest and unconcerned way about the welfare of the client.

Business matters, like all human relationships in life, are always relationships between people.

Humanity cannot forget its essence when establishing significant results for business. Just because someone is dealing with hundreds of dollars, perhaps millions, there is no license to forget that the most important part of the human is its "heart", their spirit and intuition. Sometimes we call it instinct, sometimes we call it vision, sometimes we call it personal gift, but the modern view makes us hide from others and from ourselves. It is easier to hide like ostriches in our devices, than look inside of ourselves and trust our instincts. Human interaction has become enervating and scary. So, how to explain that on

the other hand we leave extensive areas of vulnerability easily open to deception and fraud in the electronic world of business?

There is so much fear surrounding our business environment that is really surprising. Of course this fear is not presented as fear itself, but is packaged as a double discourse, sophisticated terminology, complex systems, unrealistic deadlines, impatience, hidden truths or half-truths, inconsistencies, and a long list of inconsistencies and subtle messages. This fear is reflected in aggressive behaviors that take the counterpart on a defensive and over compensation status. My experience on making business in four continents and over 100 countries, in multiple languages, from Angola to Iceland, from Saudi Arabia to Nepal, is that it comes down to the individual. When you learn to operate from a "center" place, knowing your own strengths and weaknesses, you learn to present yourself as something real and true. You have time to be confident. This builds trust, closeness, and comfort. In this format you can clearly understand the business that is in front of you. Similarly, you learn to interpret when they want to put you up against the wall, meaning that the business is not correct. Thus, stress becomes calm. This lecture transcends reading emails, calls and chats. The positive energy bathes in light the business trying to be done.

There are some basic rules that need to be addressed. If the deal sounds too good to be true is because it is not true. Very few people follow their instincts and we get into trouble. This is not healthy and introduces us to a world of chaos. Robotic is that state, we focus outside of perception, feeling and intuition. How does this business feel? Was the person looking into your eyes or looking down all the time? The person wanted to minimize you and pressure you with arrogance? When you entered, the atmosphere that made you feel comfortable or uncomfortable? If there are uncomfortable perceptions, change them, move, try to change it and if not corrected, skip the business.

You always have to decide if the business is worth to follow. There is a simple adage that says: You have two ears and one mouth, to listen twice as much as you can say. When there are so many egos running around, sometimes you try to push and force situations. It is very important to listen carefully to what it is said and acknowledge the reading of the intentions and the effects on people. Listening builds trust and lasting relationships, this is the foundation of relationships, said by Canadian author Brian Tracy.

Confidence is the key to life. It is fair to say that these days, nobody trusts anybody, not even yourself.

This suggests that if you want to have solid and lasting relationship, it must rely on the participants. We should rely on our couple, our boss, the subordinate, the customer, relative, etc. This returns us the "humanity� and the "heart", the spirit and vital energy. Is there courtesy, kindness, consideration, and respect in business? If these are missing is a warning, an alarm to be alert. It was usual that a handshake was enough to close a deal. Very few can say this now. Now lawyers are in charge.

Complex contracts try to protect us from any situation of abuse. But let's be honest, how much of these contracts are actually followed? We want to litigate? Then again, it's all about confidence. They say that if you feel you must be consulting the contract each time after signing, this contract should not have signed.

When you open the door for business with a person across the world, who in spite of cultural differences, expresses genuine interest in the real aspects of your life, family, health and others, you should notice this. What is it that makes it a pleasure to pick up the phone to meet a client? Or travel to visit him? One has to discover the secret, humanity is compatible with business and these can bring out the best us. An attitude of concern and interest is what transcends in business. Is that respect, care and desire to do good to another that generates a heart to heart connection that pumps honesty, trust, confidence in business relationships and this will ensure that their relationships will last long.

PEPSICO FOUNDATION ANNOUNCES GRANT OF $ 5 MILLION TO AQUAFUND FROM THE INTERAMERICAN DEVELOPMENT BANK (IDB)

Luis Montoya, President of PepsiCo Beverages Latin America, and Luis Alberto Moreno, IDB President, signed the AquaFund agreement at the Summit International Environment (CIMA) in Guayaquil, Ecuador In the framework of the International Summit for the Environment (CIMA) held in Guayaquil - Ecuador between March 14 and 17 of 2011, the PepsiCo Foundation pledged a grant of U.S. $ 5 million for AquaFund, a fund launched by the Inter-American Development Bank to facilitate investment in water supply, sanitation, water resources, solid waste management, and wastewater treatment. PepsiCo Foundation is the first private sector donor contributing with AquaFund; sovereign governments have made all previous donations.

The public-private partnership, initiated in February between PepsiCo (NYSE: PEP) and the IDB, will finance a variety of projects, including: microcredits for safe drinking water and improved sanitation projects in Latin America, reaching approximately 500,000 people in the region, until the end of 2015.

Luis Montoya, President of PepsiCo Beverages Latin America, and Luis Alberto Moreno signed AquaFund agreement on March 17. AquaFund's first project, supported by the PepsiCo Foundation, will be released in Peru and probably can be applied in Argentina, Brazil, Colombia, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras and Mexico.

"PepsiCo and the PepsiCo Foundation are deeply committed to respect human rights, and have announced in public this partnership with the IDB to meet the global goal of providing access to safe drinking water to three million people in developing countries until 2015; "this partnership with the IDB is a step towardsachieving this goal", said Indra Nooyi, President and CEO of PepsiCo and President of the PepsiCo Foundation. "With the strength of public-private partnership with the IDB, announced in February, our contribution to AquaFund will help boost the economic and social development in Latin America."

"In Latin America, over 20% of the rural population has no access to safe drinking water, and a 45% lacks adequate sanitation," said Luis Alberto Moreno, IDB President. "PepsiCo is the first private sector organization to participate in our innovative regional trust funds for development activities, and we are looking forward to work together to expand the AquaFund initiative, who will face the growing demand for water and sanitation in the region."

Law and New Technologies

Lawyer Ordonez Luis Pineda Research Teacher LEGAL MANAGEMENT CITTES UTPL There is no doubt admitting that the current the so-called "information society" has experienced a number of developments within the social, political, economic and even the legal field. This is a consequence of this technological revolution that society has exercised from the ICTs (Information and Communication Technologies).

This way, it should be pointed that this revolution, day by day, has been increasing unevenly in relation to the law, perhaps as a result of lack of interest that individuals assign to the potential impact of technology in the legal life of society, which suggests that we should not underestimate the influence that informatics can be have over the law. This means, the technological revolution, or ICTs, has come to resize the legal-personal relationships, so that we are in a society where computing has established as a transcendental figure of our culture in the present, where the utility has come to turn a priority.

Within this context we should point out that the law, through the responsible legitimizing agent, (understand people in charge of legislating or enact laws, rules, regulations and orders), cannot ignore the progress that has developed information society, as the functionality of this science not only involves the protection of individual rights and social community, but also forces you to adapt and keep up with technology, through various computing resources that society provides.

So before the inevitable advance ICTs are experiencing by our legal system, which has always been known for being a step back in this country, it should try to fit the needs and requirements of the society in an effort to meet, advise and resolve legal problems through the use of technology. In other words, to clarify any questions or concerns regarding the procedure to follow in the various judicial proceedings, providing society with the necessary legal instruments to know what to do regarding certain problems.

And so, the Technical University of Loja implemented a mechanism of legal advice to the society taking advantage of the benefits of technology, through the "OnlineLegal Advice Website", so that people who require legal advice, will be served through the website created for this purpose, in which not only specifies the necessary resources and the steps to follow for advice, but also guarantees to all users the necessary safety measures in order to provide confidentiality in the handling of personal data of those who access this assistance.

Ultimately what is intended is that through the "ICTs" and through "law" can be provided not only legal counseling, but also educate in the legal sciences to participate actively in conflict resolution of real cases. Integrating and implementing the legal knowledge acquired with the purpose of obtaining better professional and social projection according with the profile of lawyer required by society can accomplish this. Therefore, this type of counseling seeks to eliminate barriers and integrate all components of society, in order to achieve that law is always adjusted to technological advances, and to the needs that individuals may require of professionals in the legal sciences.