Revista en ingles marzo abril 15

PANAMA HAS BEATEN ON THE FUTURE

The unprecedented summit held from the 10th to the 11th April in Panama marks a different step.

There are two blocks in Latin America, one small that bet on the past, and one majority that bet on the future.

As I stated in a previous issue of the Mipymes magazine, "The agreements, however difficult they are, they generate prosperity". In that sense, we must turn the page from a repetitive freezing past to find a new path.

My reading is that Cuba and the United States begin to design a Free Trade Agreement drawing a twenty-first century highway that will generate prosperity with a different magnetism: To achieve it you must look forward. Looking back it would paralyze any future agreement. Insults have given way to the agreements.

In Panama a milestone was marked when it appeared a radical change in US and Cuba relations; they are two countries with different ideologies.

The second issue of this meeting is to have marked a significant difference to show the world that a small Latin American country like Panama was put on the map when handling with excellence the summit of 34 countries. This international meeting covered various forums about the civil society, business, political/presidential, youth, among others. Without neglecting safety, this complex event was coordinated in which 2,000 journalists participated to cover it. The only black mark were the isolated riots caused unfortunately by "bars" or hideout clash mainly entered by countries that want to live tied to outdated past and which were promptly resolved by local authorities.

We congratulate President Varela, the Panamanians and Latin America in general; we expect that all this is the beginning of a change of course in our Latin America. This new path must point to peace, equity, justice and prosperity. Let's abandon the populist and demagogic America. Let's build a continent with a sovereignty based on sustainable and pragmatic development but not on the divisive speech.

Let's go forward to the future in action.

STAGES OF AN ANNOUNCED PROBLEM

Dr. Pablo Lucio Paredes Director of the Institute of Economics USFQ

1) The philosophy of the Citizen Revolution is very clear: the government is the center of the social activity, therefore, it must intervene, regulate, control, minimize the private sector, compared to a state that should grow and spend everything he can because the political interest (which supposedly is accompanied by the common interest) should prevail over economic decisions of individuals and businesses ( apparently only based on self-interest).

2) It is achieved to deepen that vision because the environment help with an oil price that regularly rises (except for one semester around the world crisis of 2008). Moreover, it stabilizes at very high levels (around $ 100 per barrel until September 2014). The weight of the government exceeds 40% of GDP (before it was a third less) while the private investment falls from 16 to 13% of GDP. These figures are clearly the trend.

There are two observations by criteria, but that are false. a) "The contribution of oil to GDP has not grown; therefore, the drivers of the economy are not the oil and the consequent public spending." Genuine and false. Oil in production volume (the measure taken in real GDP) has increased slightly, but the increase in oil revenues (for the price factor) is the one that has spread and pushed the economy. b) "The private sector has been active, and businesses have sold and earned as ever." True and false. The private sector has moved in the measure that has been pushed by the state, but is very different an individual action driven by the growth of public spending that the same action leading growth based on productivity, risk, etc. The first one just generates apparent economic activity, the second power development.

3) Despite the increase in external revenues in the economy, the results have been slim: growth has been below 5% per year (as in times of lower foreign bonanza), and poverty reduction very similar to the previous years.

4) The government strategic mistakes have been numerous. Significant progress in mining exploration in the past were given, and the table was ready to boot the large-scale mining but a drastic law was approved that did not attract investment and only now is changing the legal framework for that to be possible. Regarding oil, until 2012, it was insisted that Petroecuador (in partnership with PDVSA) could be the great engine of production, and only then it was realized that it did not work to make way for a more private participation. In foreign trade, for years was held the position that we would negotiate with Europe outside the "neoliberal" framework imposed by Colombia and Peru. In the end, we came back to the negotiating table, and we fell into the same frame. In all cases, there were years lost by a lack of understanding of the real world.

5) What happened to the Ecuadorian economy is clear: a larger state, a cornered private sector, and especially the additional external resources that almost directly will go to imports without generating more growth and more productivity (they also make a couple of points in the inflation rate trend, which is not much but accumulated, in a dollarized economy, it is a problem). Therefore, due to the pressure of public spending on the aggregated demand a very high non-oil trade deficit remains. It is incorrect the analysis of the government that the gap reflects the loss of competitiveness caused by dollarization. It is wrong because any statistical analysis shows that the correlation between oil-public spending and imports, and this is also quite evident because it was a period of the undervalued dollar.

6) Apparently the economy is experiencing a boom of certain goods, mainly tourism, cars, and construction. They are increases that generate visible, political satisfaction, but they are not creating more productivity. In particular, the state activity contributes very little. There are 150,000 additional employees (public employment reaches 12% of the urban EAP and 24% of the EAP full employment) whose productivity is very small but negative because some of their functions are on intervention and regulation. Moreover, part of the state investment is also low quality (Refineria del Pacifico whose end seems dark, airports, too expensive roads, etc.).

7) In 2015, the price of oil falls at a time, and unexpected magnitude (though at some point it should be fit) and the whole equation is reversed. Now there are fewer resources to push the state apparatus and therefore, the economy. As a first strategy, the government maintains what had been doing since 2012: to compensate oil by debt. Indeed between 2012 and 2014 when oil prices stagnated at a level of $ 96 per barrel, the debt increases to maintain the upward trend of public spending: the external debt goes from 12,000 to 20,000 million and the domestic from 8,000 to 12,500 million, in total from 19% to 32% of GDP. Moreover, the total debt service is approaching 7% of GDP. For 2015-2016, the total debt is around 40% of GDP and annual service by 8 points of GDP. 8) To the oil problem, it has been added to the appreciation of the dollar in the world. Certainly any exchange movement has two sides of the coin: it hinders exports (although it forces exporters to become more efficient), and it makes imports cheaper, but in the current environment the first factor is definitely more powerful.

9) Apparently, everything is aggravated by excesses in the economy: there are no savings funds, public spending is very high, the debt increases since 2012 with high oil prices, the basic salary is unrelated to productivity; it is worse in the public sector (50% higher salaries than in the private sector), there is immense labor and financial inflexibility, there is little private investment and even worse the external, there is over-regulation and legal uncertainty, etc. ...

10) The second strategy of the Government (which actually was implemented over two years ago when oil was at $ 100 per barrel), is to curb imports via tariffs, safeguards, quotas, voluntary agreements, technical standards, etc. ... That is to say, the government maintains its thrust (spending) on the economy (not with oil but with debt) and then it slows spending level of private ones (individuals or companies) that import. This strategy has a serious consequence fundamentally: a vast state of low productivity is maintained, and different activities are added which protected by the competition will make money without worry or quality, productivity or price.

That is, not only the economic activity falls, but it is even more severe, the average productivity falls while the debt increases that must be paid with private productivity in the future (because the state does not create wealth), and also, as productivity is the foundation of economic development.

FROM JAGUAR TO HUNGRY KITTEN

Alberto Acosta-Burneo, Ec. The recent decline in oil prices and the dollar appreciation have laid bare the biggest problems of the Ecuadorian economy: the high dependence on oil revenues and low productivity.

For nearly a decade, Latin America experiences a favorable external scenario. China's growing demand for commodities raised prices and allowed the region enjoy significant foreign exchange earnings. Ecuador was no exception. The oil bonanza entitled to double the size of the State which reached 44% of GDP; ten years ago it was only 20%.

The results were immediate: roads, hydroelectric, more bureaucracy and subsidies. The number of poor was reduced, and the middle class was strengthened who bid to improve their standard of living through consumption.

The government, proud of their achievements, said that this was the result of an intelligent public administration. President Correa echoed voices hinting that Ecuador would be the "Latin American Jaguar" in analogy to rapidly growing countries in Southeast Asia called "Asian tigers.�

However, at the moment of greatest revolutionary euphoria, oil prices plummeted losing 45% of its value. The problems appeared soon. The proud and sovereign jaguar became a hungry kitten.

It was found that the momentum of the economy in recent years was a result of high oil prices. More than half of exports and about a quarter of tax revenue was oil.

The growth policy prioritizing domestic consumption (endogenous growth) proved to be incompatible with the dollarized monetary system. This model fed the economy with abundant resources that ended in the hands of citizens who increased their consumption including imported products. The trade deficit was the result of the explosive combination of endogenous growth and dollarized economy.

We have not had an aggressive trade policy that ensures that Ecuadorian products have preferential access to major world markets. We reject an agreement with U.S., and it took several years to concrete one with the European Union.

Foreign investment could have been an important source of foreign exchange to offset the deficits in the trade balance. However, the ruling found that foreign investment in some cases could even be harmful. So not a suitable environment for investment was generated.

The appreciation of the dollar brought another harsh reality. We had not worked on increasing productivity and competitiveness. We remain unproductive regarding the leading world producers.

Our products pay higher fees to enter markets like the U.S. than those that neighboring countries pay.

None of this mattered when we had abundant oil dollars. However, when oil wealth was over, the government was forced to adopt austerity measures to shrink the consumption of imported products to the new level of income for the economy.

The application of trade restrictions is not new. In previous years, the government said it was a mechanism for transforming the productive matrix by substituting imports.

However, 2015 marked a change in government priorities. It stopped being a priority import substitution as a tool for changing the production model. The urgent thing was to curb the outflow of currency to prevent the economy loses liquidity and, incidentally, to get resources from a very needy treasury.

Restrictions on imports included: an increase in tariffs on capital goods, import quotas, exchange safeguard and ultimate balance of payments protection.

Safeguarding affected a third of the imported goods. Faced with a reduced supply of imported product the new equilibrium is obtained through an increase in prices in each market. The magnitude of the increase depends on the ability to have local companies to increase production immediately.

The winners in the short term are the national industries that have a captive market in which the sale is guaranteed without worrying about the quality. They even may have extra income by higher prices.

The losers are consumers that will have less choice and higher prices. It is a transfer of resources from consumers to producers.

This "effort" of users is useless because it will not help the productive transformation. Companies to have captive markets have no need to invest in better technology and improve production. In the long-term restrictions on imports they hurt domestic production because they become "idle".

Productions designed for undemanding consumers (because they have no other options), with inefficient technologies and higher prices than the imported price.

The mechanism for transforming the productive apparatus is just the opposite such as opening markets that force companies to compete, to invest in global markets and achieve economies of scale; businesses that are challenged to be efficient and have world-class products or disappear.

Ecuador has many strengths and competitive advantages. We can not fear competition. Consumers should not bear the cost of productive inefficiency and anachronistic economic policies.

REPRODUCTION OF THE INTERVIEW WITH WRITER CARLOS ALBERTO MONTANER CONDUCTED BY ATTORNEY MARIA JOSEFA CORONEL, PUBLISHED IN THE “SEMANA� MAGAZINE OF DIARIO EXPRESO, MAY 3, 2015.

Interview with Carlos Alberto Montaner "In politics nothing is more important than being compassionate."

Personal data Date of birth: April 3, 1043, in Havana, Cuba Living in: Madrid (Spain) and Miami (United States) Nationalities: Cuban, American, Spanish Occupation: Journalist, writer, politician His wife: Linda Political party: Cuban Liberal Union Religious beliefs: Atheist Twitter: CarlosAMontaner.

Maria Josefa Coronel mariajosefacoronel@hotmail.com He was a father at 17; he is a well run grandfather with his granddaughters with whom he has a political discussion. They not always think alike, but it is normal. "I remember that when I was 15 I had also a social democratic vision and in a book I published in 1976 about Cuba I declared myself social democratic. I corrected myself later when I discovered the liberal thought." He believes that all people evolve. The only ones who do not do it are the stones, he says. He is an expert in literature, and he is a professor and through his talks he just want people to understand the world, so be it through the art of literature. He does not understand when certain artists believe that having that quality they have no ethical responsibility and maintain a polite deal with tyrants. It is impossible to choose the best phrase to introduce our guest today that for many he is one of the most important intellectuals of the region, but also a human being betrayed by political ideology in which he believed. He chose not to judge and prefers writing books to better understand the world.

How do you overcome the betrayal of the political project and friends that knowing in what that project is converted, they rather stay?

That happened when I was young. The revolution triumphed when I was 15 and when I left Cuba I was 18. In those three years everything happened. They were three years of an intense social and personal life. I married at 16, and I was a father at 17 and at that age fell prisoner. I was sentenced to 20 years in prison, but I managed to escape and was able to leave Cuba. In three years, a personal revolution took place, beyond the revolution in Cuba. I saw friends and if now you ask me, some with whom I shared some kind of criticism of the regime chose to stay and join. I even remember that one of them, who was a young student leader, felt obliged to attack me when I was arrested. I remember seeing in jail a small newspaper of small circulation, but it was a newspaper and through him, the young boy, as I was then, attacked me politically.

How to understand why people change?

I decided many years ago not to make judgments of intent. I don't know why people do things.

Sometimes I don't know why do I do them! I have a hard time to judge.

What led you to that?

I don't know, and the truth is that he changed his mind and stayed with the regime. He became an ambassador to Cuba and finally fell awkwardly to the revolution; he was a prisoner but due to a crime of passion. He killed his wife's lover and ended up in jail. A tragic story. I imagine that he will

have had time to think what life would have been if he had left the country or had faced the regime.

And while we ended up in jail, some were able to leave.

Much tells about you not to make value judgments, but to what point it is important to reveal these motivations when these impact from the public in the social order of the people?

There are different types of motivations; there are ideological, people who choose to understand the world differently, and people who benefit and find a justification. It is always possible to find a justification for any conduct. The worst murderers find it. These people always have an alibi to explain things they do. The problem is to say heart inside, that it is very difficult to know. One is aware of dissonance, that is the feeling of discomfort that occurs when we believe in one thing and do another, or when we believe in one thing and we say another. This dissonance often leads to problems. Solvent Psychologists say that behind that produce a psychic malaise that ultimately destroy the personality of the individual.

In this regard, to begin to understand the human side that unfolds behind the political scene that seems to have the same rate in countries such as Venezuela, Argentina, Bolivia and ours, who started as claimants voices and today, for many, the are the new offenders.

The way to rectify the errors, according to them, is run by others. Turn it down as if it were a sock, so it works the mentality of a revolutionary, which is the worst of attitudes, because he believes that is absolutely right, who knows everything, has all the answers, who knows what price you have to sell things, what has to be produced, what is the source of the problems. Nothing is mysterious or opaque. To those people, who understand everything and know it better than anyone else and how they are convinced of that, they find it easy the more damage to adapt reality to what they believe.

Moreover, the mentality of the supporter of the revolution is the accomplice, who abdicated the power to think; it attributes to the leader all the possibilities of thinking for us. That is, they waive any judgment. I remember in Cuba, it suddenly appeared signs put in thousands of houses that read "If Fidel is a communist, put me on the list." What he meant was that this person no longer thought of itself, what was right or what was wrong was what the chief did, the leader. That is the worst that can happen to a society since it becomes a perpetual wait that the benevolent action of a group of enlightened brings us the solution to our problems.

An ancient evil then, as the old societies that wait for a good king able to give a real life or punishment. Is it that serious?

Of course. As told by a Nobel laureate in economics, Douglas North, a great thinker who concluded that since human beings organized themselves socially to live in modern state ten thousand years ago, there have been two ways of organizing society and the State: one, calling unlimited access organizations, which is what exists in Ecuador for example; and the other, called open access societies like the US, based on personal merit and competition, and not in collusion of elites. In the first, you can easily see how a social class agrees with the leader to divide the income, to have a kind of big cake to serve each one and where it is hard to incorporate people and rulers relay because there is no merit.

Moreover, how these superstructures crumble?

It is necessary that institutions be more important than people so you can transfer persons according the merits under a not breached and sacred democratic method; it is a government of laws where we are all under the authority, and an independent judiciary system punishes those who do not do it. Sovereign powers are not a whim. Otherwise, as Madison said in its definition of tyranny, this begins in the social environment where who makes the rules is who enforces them and punish. There is a tyranny. You have to get an institutional framework that will enable the Ecuadorian society to not depend on enlightened leaders who can be good or bad, but ultimately they hurt.

What makes the difference between who is abused by politics and is bitter forever and who in their long struggle for justice feels free and ready to go?

In the Cuban case, there are tens of thousands of political prisoners. I have friends who have spent 10, 15 and even 28 years in prison, who fell when they were 18 or 20 and get out of it when they were adults. Others did not come out because they died in prison. The strange thing is that people who have suffered most are the most willing to forgive. It is a curious phenomenon, and these are the people, let's say, more tolerant and prouder of their nature, those who resisted the most.

Also, where are you located?

I did not suffer. I was convicted to 20 years in prison, I escaped after a few weeks. I was convicted in January and in March I was free. Besides, at the age when these things happened, they seemed more adventure than reality.

However, it is an age at which witness executions and walk among corpses should have denoted you ...

That is terrible. I spent nights with friends who were going to be shoot the next day. I felt a tear. The death of Julio Antonio Yebra is unforgettable for me, he was an exceptional guy. It was a terrible case, as when I was arrested I did not know he was conspiring; I was a boy, and we did not meet before. We met at the prison to which we were taken that night, and there were also other of his companions. He was arrested first and maybe that is why some who were with him falsely believed that he had betrayed them because when they arrived Julio is arrested. I remember they met. Then when the trial began, Julio decided to assume all the responsibilities and show others that he was innocent.

How did he show it?

He said he intended to kill Fidel Castro. The night before Julio was shot I spend the time with one of the colleagues who accused him, crying on my shoulder with all the pain of the world because he felt guilty about what happened. At the same time, I knew that that court that was sentencing Julio was going to condemn me the next day. I thought that I was also going to be shot. I remember I had a book, some soaps, toothpaste, a couple of things, and I distributed them. I went to trial, thence to the chapel where you could hear people crying. You could not see them, just hear them. I was sentenced to only 20 years, and when I returned to the cell, I asked them to gave me back my stuff. They answered no because I was technically dead.

I think of what he tells me. I try to imagine the social upheaval that such trials caused to the Cuban society and the parents of these young and wounded prisoners for government treason. As if he reads my mind, Carlos Alberto continues and answers the question that I did not do ...

I was not a believer, I had lost faith since childhood, but I remember that the whole prison, with about 150 prisoners, prayed the rosary with excitement. I tried to pray, but I could not. That pain of not being able to believe, was annoying, because I did want to think, but I could not. I watched that full galley silently, how some were crying. We all had affection to Julio.

Could you could never believe?

I am agnostic. That is, I do not know. I have no idea. I would like to believe, but I do not get it. I know that people who believe, make things easier.

A characteristic of these governments is to call to exercise revenge, class struggle, division.

Do you see it like this?

These forces are negative. I remember a phrase of a president who was not good, but did some things well. Jimmy Carter, in 1980, before leaving office faced the Mariel exodus, thousands of Cubans on rafts looking forward to reaching the US. A navy chief said that he will solve it

immediately bombing a few boats, and the problem would finish, that after, so no Cuban would be encouraged to leave. 130,000 people came to the shores of Florida. Carter said something that rescues him and that hopefully Mr. Correa understand: "If power is not a place from which you can exercise compassion, I do not care."

From your experience, what is the role of the press?

The function of the press is to criticize, the role of the press is not to obey.

What needs to happen for a leader allows other options?

The economic crisis, leaders are sold as large problem solvers, and when these are not resolved, if they have not mounted the apparatus of social control efficiently, somehow, they disappear from power. They think they know everything. If a problem arises, they can blame others, the US, the Empire, France, whom they please, but there comes a point where none of that works and disappear.

If so, why would a government like Maduro's that only blames others, is still held by the people?

The people did not keep it, but the political police, the fear, assigning privileges because there are resources for at least 15% of the population that the others are not receiving.

Does corruption sustain him?

The forms of patronage networks that work there but not the people, if there were free, real elections, organized by a not contaminated electoral power, Maduro would loose, because Venezuelans are not different from every human being; they may not want a government of a man who talks to birds and that has the country undersupplied, and that is also a disaster; a guy who says nothing but nonsense. In Venezuela, there was progress, unfortunately, in the social control.

Why the international order has failed to press and accomplish the release of political prisoners in Venezuela as Leopoldo Lopez?

The order received from 35 presidents to release Lopez was not enough; it should be perhaps because there is an old tradition in Latin America: indifference to others' pain. Central Americans and Mexicans lived with their back to 40 years of Somoza. Argentine, Uruguayan and Chilean 30 years of Stroessner. That is, the idea of international solidarity and cooperation for the defense of human rights, first of all, is something new in America. It begins to run from Carter. He is the man who brings the human rights issues in its confrontation with Russia and with him changes the focus of the political confrontation and the debate begins putting human rights as something that is not negotiable. People have rights that can not violate any government in any way. In Latin America, this conception has stalled with the strength that it should and the proof is what happened at the summit in Panama.

USA is not the one who has signed more human rights treaties ...

USA is not subordinated to any international tribunal.

It does not endorse any document or the American system.

Do you know why? Because Americans tend to honor the agreements they sign; we sign anything, and we do not meet it. In Lima, we signed the charter of human rights in 2001 and nothing happened, and they do not care what is going on in Ecuador or Venezuela.

When I ask a leftist why he does not protest for the deaths of Fidel or for the young Venezuelans with the vehemence he claims for Pinochet deaths, some do not answer; others (the believers) say

life is sacred and not touched, except by an issue of political projects and others, that must understand that if they claim Venezuela the opposition may be grown and damage the project, including Minister Patino, who was always close to the social protest, said something similar.

They do not mind a dead if thousands are saved with the revolution?

They do not mind if it is one or thousand, provided the revolution succeed. Remember the book "Leaves of Grass" by Walt Whitman, there is a verse that is repeated several times when these things are discussed. "I contradict myself and what?"

What future do you see for the rapprochement between the US and Cuba?

Maybe Cubans may live a little better, but there will be no political change.

Until the Castro are gone?

Yes, and it will also depend on the stimulus that the heirs of the Castro have for political change.

Maybe they do not have any because they have received all the rewards, the indifference of Latin America, the US, so there is no incentive to make changes. China has been going for 40 years, and they do not discuss issues of freedom or democracy.

How do you see Putin's intentions in the world political order?

I think that Russia does not return to the communism, but to the tsarist. It is a country with imperial vocation. 多Putin will act according to that vocation?

Putin and many Russians.

Is the US approach to Cuba part of the strategy to care for the continental block of the Russia's aspiration?

No, one attributes to America a depth in their decisions that they do not have.

So what is the motivation?

For the first time, the US does not have a framework for reference for its foreign policy. I wrote it. A historian friend, after reading it said that I was wrong, that the US has a framework of reference and told in a book entitled "How to become friends with an enemy". I would say a dangerous simplicity because it proposes to give the enemies all they want.

Talking about left and right is anachronistic, but we need minimal ideological to live better.

Combine individual freedoms and economic development.

Is it true that you sent one of your books to President Correa, and he handed it back?

Yes. He has invented several things about me, like the partnership with companies and organizations that I do not know.

Perhaps with the CIA or Chevron?

Not, with the human rights body that seems respectable, but I have nothing to do with them. Now he invented that I was in Panama. I do not care have gone or not, but I was not. He invented a connection with the protests of September 30th.

How do you relate it to that?

He tries to attribute me a responsibility. From Miami, an alleged conspiracy with Lucio Gutierrez. I did not even knew what was happening. After seeing the pictures, I realized that there was no coup. What happened was a public outcry and a rather irresponsible attitude of the president.

Also, from the police too, I think.

I think the same thing, a very irresponsible behavior.

Moreoever, why did you give him a book?

I thought he had a better sense of humor. He laughs at others but not at himself. He sent me a fierce and rude letter, instead of using the anecdote in a positive way, but it seems that this is not part of his calculations or personality.

Will the correismo end in 2017?

According to the polls, he should lose if the opposition can present a united front and coherence of proposals. Correa should lose. Besides, in the last election he lost in the major cities, which means that his political project lost because his position was not at stake but his project.

Does he fear retaliation?

I do not think anything will happen. The repression has been with national journalists, not with foreign writers.

What we need politically speaking to be better?

There are fundamental issues that need to be treated in education. One is the economy, to know how wealth is generated, how it is wasted and how it is preserved. We must review a civic component, prepare ourselves for public life and assume responsibility in society. Another issue is the hedonistic side of life, the fun part of all, and they do not teach us to enjoy the leisure, the culture of life and the professional issue.

To chat with Carlos Alberto Montaner was an adventure, a vivid, enriching lesson, those that life gives a surprise, without warning. Thank you for allowing it!

WHAT HE DID • He was a Professor at universities in Latin America and the United States. • He has published some 27 books and several are translated into other languages (mainly English, Italian, Portuguese, Russian) Among the best known and reissued are: o

Journey to the Heart of Cuba

o How and why communism disappeared o

Freedom, the key to prosperity

o

The other firing squad (published in 2011 by the Eirignal editorial in the United States)

o

Two of his most controversial and publicized trials are the best sellers "Manual of the Perfect Latin American Idiot" and "Manufacturers of misery", both written by Plinio Apuleyo Mendoza and Alvaro Vargas Llosa.

o

His last two works are the novels "Scoundrels time" and "Goodbye Again", published by Alfaguara (Santillana).

THE BEST SHRIMP IN THE WORLD

Roberto Bolona Paez General Manager of Alimentos S.A.

They are more than four decades in which visionaries of Ecuador "discovered" that the shrimp grows in captivity. Stories are varied and full of memories, full of action, work, effort and risk. With due apologies there are surnames as Kayser, Laniado, Grunauer, Moreno in the province of El Oro; Jimenez, Mourini in the province of Esmeraldas; Cevallos, Due単as in the province of Manabi and Quirola, Sola, Vanoni, Moeller and hundreds more. They risked everything to develop an activity that in their sustainable life has brought the country billions of dollars and transformed unsuitable land in an endless source of employment and prosperity to the areas where the shrimp farming are.

The development of cultivation techniques, always respecting nature has allowed that our shrimp industry is sustainable and has developed real hatcheries that are the beginning of the activity.

Educational institutions as ESPOL, University of Guayaquil, Technical University of Machala and other universities of the country have graduated technicians who continue learning how to cultivate shrimp at Ecuadorian style without chemicals, antibiotics, etc., i.e. an organic shrimp that is desired in the best restaurants in the world and requested by gourmets, who always prefer the best. In all menus of the best restaurants in the world there is a line that says "Ecuadorian shrimp" and this is the effort of the Ecuadorian shrimp exporter as well as the larva producer, the manufacturer of balanced meals and finally the exporter who does the necessary marketing for our shrimp reach all parts of the world.

It was not easy to get to places where the Ecuadorian shrimp is. There are always terrible low prices (like the present), threats of diseases such as EMS and others. We have learned to live with the white spot and we are surrounded by other conditions worldwide, but the shrimp sector through their efforts, without the help of anyone, has managed to get ahead s and has overcome all threats.

Despite all the evil that surrounds the sector, thanks to the efforts of it, I have an example with which I want to offer my respect and admiration to a sector that was about to disappear in 2000 when during that year the country exported 58 million pounds (in one month). That is called producing, transforming a problem into a challenge and I think there are other sectors such as that of the shrimp one and I'm sure there are, with a government that supports it with bright ideas which mean to produce in peace. Ecuador can overcome the crisis caused by cheap oil, the cheap price of shrimp, cheap banana prices, etc.

All together we produce the best shrimp of the world; all together we will have a better country!

LABOR REFORM PACKAGE ON THE HORIZON

Fabrizio Peralta Diaz, Lawyer Partner of Consulegis Abogados; Lawyer, Universidad Catolica Santiago de Guayaquil; Master in Computer Science and Law, University Complutense de Madrid; Professor of Civil Law, Universidad Catolica Santiago de Guayaquil

Under the heading "Organic Law for Labor Justice and Labor Recognition at Home" (the Project), last November the Executive put into the hands of the National Assembly a legislative proposal. If adopted without further debate, it will reform almost one hundred articles of the Labor Code (CT).

The project also includes the reform of the Social Security Act (LSS), to extend its benefits to people who perform unpaid domestic work. This article restricts to the analysis of the aspects that correspond to the first named legal bodies.

1. The general rule of the contract The individual contract of indefinite duration will henceforth be the general state of recruiting workers.

This rule specifically will result in the elimination of the employment fixed time contract that, according to Article 184 CT still in force, can not exceed two years; and, at the same time, it suppresses from the CT the minimum stability of a year intended for "every contract of fixed time or indefinitely."

However, the general rule does not entail the abolition of other contracting systems that lack stability, such as temporary, casual and seasonal contracts, to the extent that they are used to meet directly the objectives they pursued in the context in which is possible to celebrate them, but not to defraud with simulations a contractual relationship to be subject to the general rule of the indefinitely time.

2. Removal Hand in hand with the "stabilizing" tone of the employment relationship, the draft makes clear that the removal, as a way to terminate the working relationship, can only be used by the employee and not by the employer.

It further emphasizes the fact that the removal proceedings will no longer require the acting of a Labor Inspector, but it will simply be enough that the worker submit a written notice directly to the employee. This, of course, does not eliminate the right of the removed worker receives from his employer the corresponding bonus equivalent to twenty-five percent of the last salary received, multiplied for each year of service.

3. Benefits There are several innovations inherent to the benefits that bring the project, as detailed below: 3.1. The benefits in any case may exceed twenty-four basic unified wages of workers in general. Anything exceeding that limit should be "given to the regime of solidarity benefits of the Social Security". If the project is approved, the limit to the distribution of the profits will go into effect as of January 1, 2016.

3.2. Assuming that one or more enterprises would belong to a same economic group, and if they also share productive, commercial and service processes within a value chain, the

Ministry of Labor Relations (MRL) is authorized to consider all of them as if they were one, for the purpose of sharing profits. In this regard, the MRL may proceed ex officio or upon request. This is what the project titled as "unification of profits."

3.3. To decide whether or not consider as one company to all those who adequate to the circumstances described above, the MRL should make use of the linking factor which the project introduces to the CT, whereby "they shall be considered companies linked to natural persons or corporations, domiciled in Ecuador, where one of them participates directly or indirectly in the management, administration, control or capital of the other; or where a third party is an individual or company established in Ecuador, directly or indirectly participant in the direction, management, control or capital of these." As a result of this criterion, all linked parties involved are jointly responsible for fulfilling their obligations to their workers.

3.4. The draft states that if there is any firm and enforceable determination of Income Tax practiced by the SRI, the MRL should have to pay the profits and the employer must comply with the order within thirty days. Their payment must include the interests calculated at the maximum benchmark lending rate from the date of the not fulfillment. The MRL is given, even, a coercive power to collect, which is not subject to administrative or judicial challenge.

3.5. Those profits that were not collected will be deposited in several accounts of the national financial system opened in the name of the workers entitled to receive them. The amount received is verified within thirty days after the due date, but the employer must also publish by the press the list of beneficiaries and the amounts that correspond to each one.

A year since the deposit was verified, unclaimed assets will be considered as public funds and shall be deposited in the account specified by the MRL. It is worthwhile to note that if the deposit made by the MRL is not ready within fifteen days after the employer is instructed, a fine equal to twice the not collected amount will be applied. This fine may even be collected by coercive means.

3.6. As already established, the employees of the companies of complementary activities are entitled to participate in the profits of those users who have received advantage or benefit of their work. The project provides that, in that particular case, the profits allocated to them are given to such enterprises, therefore, they will be the ones who make the appropriate allocation.

4. Wages bill ceilings Conceived as a "limit on remuneration gaps", the project establishes a ceiling on salaries paid to CEOs or senior executives of private companies: in no case it may exceed the amount obtained by multiplying the perceived lower pay within the respective company in the amount established annually by the MRL. 5. Inefficient removal The project establishes as something unpublished in the Ecuadorian labor legislation: the careless removal, which the government has also called "a null removal".

The ineffective dismissal action specifically covers two groups: the " working people (women) who are pregnant" and "union leaders while exercising such functions."

The ineffective dismissal action will confer to the judges the power to order the return of persons who are included in such groups, for which purpose the workers covered by this institution will have fifteen days maximum to sue that they are restored to their positions.

As contemplated in the Project, this special trial should be summarily conducted. If the ruling declares the ineffectiveness of dismissal, "it means that the labour relationship has

not been interrupted (...) and the payment of outstanding wages are ordered with a 10% surcharge".

However, it can also happen that the worker who won the speedy trial can, voluntarily, decide not to continue the labour relationship. If so, he will be entitled to receive the equivalent value of a year of the last payment he was perceiving, and, as it is now, it will be cumulative with the general compensation for unfair dismissal.

However, if the employer fails to abide the order of restitution ordered by the court, he could be punished for the crime of breach of legitimate decisions of competent authority, under Article 282 of the Integral Organic Criminal Code(COIP), it is punishable by imprisonment of one to three years.

6. Dismissal by discrimination The project adds a special allowance for whom it be dismissed by discriminating; this compensation, which amount equals one year of the last pay he/she received when the dismissal occurred. To proceed with the payment, it is necessary that the discriminatory act is based, for example, on the condition of disabled of the worker or because of his/her status of senior, sexual orientation state, among others.

The reason for paying this compensation is based on a particular fact, which should be tested by the person who claims it: discrimination. So, from my point of view, who is dismissed for any purpose beyond the circumstances described in the draft, should be compensated according to the general or special rules that in this case are applicable.

Because one thing is to fire someone for poor performance and, another, do it because of their sexual orientation, to somehow gratify him.

The project clarifies, in any case, that whoever is fired for discrimination has no right to request restitution to his job.

7. Workers' organizations.

The project makes it possible for those workers who are not part of the union can, however, be candidates to integrate its Board of Directors. To vote, in any case, may attend all workers, including non-members, as long as they have completed at least sixty days of work.

8. A monthly payment of the thirteenth and fourteenth salaries.

It will be possible if this is requested by the workers, that the thirteenth and fourteenth remunerations are prorated and payable monthly.

As it has happened with other legal reforms in recent years, it is clear that the project does not contribute to the creation of more jobs but, on the contrary, it will enforce greater regulations within a legal framework which is inflexible enough.

THE FIVE FUNDAMENTAL QUESTIONS

Giovanni Ginatta, Eng. F.I.E. CEO Companies and organizations in general often forget to think about their reason for being. Why do they exist? Whom does it serve? What are they good for? This that sounds basic questions is the core of what sophisticatedly is called "strategy". This seems as complicated as "strategic planning", but is actually based on common sense on the definition of general and concrete objectives of an institution and how to align these goals with its structure and concrete action plans.

To better target this line of thinking, it is important to revise the guidelines of great sages of organizational thinking as Peter Drucker, Frances Hesselbein, and Joan Snyerd Kuhl. There is an elegantly simple reading book published in 2015 entitled: Five Most Important Questions; Enduring Wisdom for Leaders Today's that grant a clear direction line on how to think about the role of institutions and organizations.

Create a passionate life full of meaningful content, passion, transcendent meaning and significance do not sound like an expression of companies and organizations. In the initial positive comments of this book, are the expressions of Sanyin Siang of the Fuqua School of Business at Duke University.

In my view, these are crucial expressions to focus the discussion. The company has to have meaning, direction and significance. The historical origins of the company are closely linked with people. In fact, many brands were born after the name of influential founders of businesses and enterprises that changed the course of history thanks to the vision and tenacity of people who had the push to generate substantial changes in humanity. It may be that on the path they have made mistakes and abuses but mostly within the context of their times. However, no one can not acknowledge the effort of people to change the finance, transport, communications, industrial production, technology for the simple and strong push to pursue a mission that tormented them 24 hours a day.

The book begins by recalling the five fundamental questions that if Peter Drucker were alive, would also do today: a. What is your mission? b. Who is your customer? c. What value your client? d. What are our results? e. What is our plan?

Complex or simple questions? We all will agree that they are reliable, essential and relevant to any modern organization.

The mission is what you want your organization will be remembered in the future. It is the sense of purpose. The company can not aim to "make money". However, that is an obvious result of doing things right. But what is this "doing things right?� Moreover, for whom? The mission inspires, guides and sets the direction. After this is clear, other questions become actually operative to measure, how well we are doing things?

The fulfillment of the mission of its strategy and operational tactics means to achieve the vision. The vision is how do I look in the future? Where do I want to arrive at a particular time?

The beneficiaries of this process, on the one hand, are the customers that will be "touched" by the organization and also to others as employees, shareholders and other "stakeholders" of the organization. The people who run the organization must look into them and within their

organization, identify strengths and weaknesses, embrace change, look inside and outside the scope of their organizations.

The above mentioned about groups applies correctly to people. Peter Drucker frequently asked his collaborators: Why do you want to be remembered? The current generation of "millennials" and the "Generation Y" born between 1980 and 2000 are the largest, most educated and most diverse generation in history. Despite today's religious and cultural conflicts, there has never been as diverse as now. It's just a matter of seeing workplace diversity in main cities like London, New York, Paris, San Francisco, among others to see the creative coexistence of people from multiple sources with the usual contributions that their different personal stories can generate. In that sense, this melting pot of nationalities that come together in an organization must share the same desire to collaborate to meet the objectives of organizational importance. It is the primary role of top leadership of those human enterprises to keep alive and clear the sense of accomplishment and contribution.

In general these "Millennials" see the world in a positive outlook, with a desire to help and serve, and are undoubtedly, the first generation truly globalized. These "Millennials" are hungry for "guidance" to focus and accomplish their goals. According to Drucker, self-evaluation is the cornerstone of leadership. How these ancient questions raised by Drucker (R.I.P), remain relevant in this era of "Millennials"? The answer is simple. The lack of typical corporate job requires Millennials, more than any other generation, to start their businesses or institutions. However, a Bloomberg survey finds that one in every eight new businesses fail for lack of focus, and therefore, these Millennials, more than ever, need to have on hand the response to these five questions.

John Adams, the second President of the United States, said, "If your actions inspire others to dream more, learn more, do more, be more then you are a real leader." This current generation plagued with incentives and media stimuli that persevere to spend time online in social networks and other unproductive activities; need to be inspired by new forms of leadership. They need selfevaluation, and those Drucker questions are vital.

This evaluation process is not an "event". Self-evaluation is an ongoing process, as continuously sharpen the pencil, as a form of continuous discontent that takes us out of our comfort zone and brings us one step further.

Despite the strong desire for freedom and independence present in this generation of "Millennials", they have a strong desire to be governed by guiding principles, by a guide that gives them meaning and purpose. The question is whether personally they are reviewing and self-assess themselves asking them these basic issues to walk under organized and targeted schemes. Time will tell us if this hyper contacted, hyper communicated and globalized generation can meet the challenges that today's world presents not only in labor but socially and morally.

PART II THE TWILIGHT OF THE MIDDLE-CLASS In Spain, one of the opposition parties, Podemos, has launched proposals for the regional elections that includes increasing the tax rates incomes higher to 50,000 per year. According to the daily ABC, "in the 215 measures announced, Podemos maintain significant own initiatives of the most drastic left and populism in its most grotesque Bolivarian forms. It proposes measures based on a Soviet philosophy of the state, with a style nationalization, an active interventionism, the absolute control of the government and the pursuit of private initiative. But above all, it attacks shamelessly the foundations of the middle classes to settle a fiscal panic, which, under a false vision of protective welfare state imposes a tax collection system based on statist usury, destruction of savings, consumption disincentives and finance finishing as a punitive big brother. ¨(ABC, May 7, 2015).

It is not the interest of this note to evaluate the Spanish politics nor contrast their current candidates. It is my desire to talk about the middle class and what happens to it in much of the planet. Unfortunately, these models of some developed countries where the vast "social cohesion" based on the creation of a consolidated middle class are running out. If we analyze countries considered of the first world like Italy, France, Spain, Portugal, among others, the multiplication of a model welfare state created a scheme of social services of education and health very active initially, but they were slowly degenerating (each country with different cases) in inefficient systems that gradually consumed more resources transferred to the citizens through taxes. The result of this spiral of state fattening ended in projects where small businesses would pay more than 65% of their income in taxes. What incentive is there to create and grow their businesses when the state takes a higher proportion of the income of the one produced?

The result of this exaggerated system are countries where private creative initiative is diminished, in which health and education services decline because there are no incentives for efficiency and in which a middle class especially young fails to generate revenue not even to leave the parents' house by the inability to assume the costs of maintaining one's home.

Another important element is that growing bureaucracies are insatiable. They seek with good intentions increase the scope of laws and regulations that just run counter to the ease of doing business for most small businesses. I've always said that the excessive complication of legislation and regulations bothers everyone but, large business have accountants and lawyers to address them relatively quickly. In contrast, small and medium businesses are drowned in terms of time and resources to solve them.

Social health, social peace, social cohesion are anchored in the consolidation of a large middle class capable of producing, creating and working for a dignified life for their families. That middle class is the one that create, build homes and demand quality services. That middle class is the one that build equality and solidarity partnerships. That middle class also becomes the protector of democracy because, having much to lose, they do not trust in false leaders or warlords who use demagoguery and populism to remain in power.

Chesterton said that bureaucracy and plutocracy are two sides of the same coin. In one case, an elite of public servants has the monopoly of power and on the other an elite of plutocrats. The saddest thing is that sometimes, history shows that both sides say they are against, but it seems that they dance together, disputing the power but also sharing it. None of them appears to suit an economy of small owners nor small businessmen.

In short, thinking in Latin America, it is important to defend models that strengthen the middle class.

It is hard to establish a formula to determine the right size for the weight of the state. No one can think of the absence of a State to provide health services, education, security and infrastructure.

However, the explosion of a hyper state controller, hyper spender, and hyper regulator can not be the measure of development. The middle class is now the constrained class in many countries. To defend it is to support the development, prosperity, freedom, and democracy.

THEY ARE NOT INTERESTED TO SOLVE ALMOST ANYTHING Alberto Medina MĂŠndez Journalist. Private communications consultant (Argentina)

There is still too many people who confuse what they want to happen with what happens. The political class cares little or nothing to solve problems. They consume their time by doing politics, thinking about how to retain or gain power. The rest is just circumstantial.

Although the statement may be brutal, all that they do is aiming for a large number of accessions and build a space that allows them to manage their current power and increase it in any environment.

Who hold an opposite view shall handle the stressful task and challenge to find particular cases to prove it. Of course, there are some nuances and some fit into this picture and others a bit less.

However, in the big leagues of politics all tend to resemble the original description.

In the second, third and subsequent lines, there are still vestiges of that recited vocation to serve the society, of that genuine intention of many people to contribute ideas and efforts to their community.

In the recent history abound chronicles that confirm that power is only dedicated to concentrating decisions and sustain a system of political control. The significant transformations to which society aspires, and that inexorably are part of the discourse of many leaders are just "siren" and do not bear of their deep convictions.

Serious surveys show, in detail, the most sincere wishes of society. People want an efficient, agile and independent justice, a demanding quality education, a more humane health system, to live in peace and harmony in a community where crime victims are not as criminals, just to mention some examples.

None of that is resolved because politics of any color, the actual, the one before and probably that of those who come, do not choose to take the "bull by the horns" and do something concrete about it.

There is an implicit decision not to advance in a line of right action. Some even believe that they do not know what to do, that they do not have an idea, that they lack creativity and ability to solve those issues.

That would be a very benevolent and overly pious vision. It is not dismissed outright that hypothesis against smaller domestic, routine issues that require some of that ingenuity that rightly is called.

However, in the transcendent and relevant matters, this is not the dilemma.

The problem combines, in varying proportions, i.e. the lack of courage and the strict electoral convenience. To get out of this actual vicious circle, obliges all the society to build, as a first step, an accurate diagnosis. Without a careful look at what is happening it can hardly be routed to the next stage.

It is not less true that today there is a great civic resignation about what happens every day. It is as if people observe how it happens all around, record these immoralities, identify them clearly, but then they will remain paralyzed to act and say it is enough.

Probably there were many decades dedicated to defending a system that, in its imperfections, contains so many deadly traps socially speaking. It has installed the idea that it can not be challenged, and that, perhaps, is a major impediment to correct and perfect it.

The democracy conceived as the regime that should be deified, unquestionable, only leads to sanctify the electoral process as if they were the source of all solutions. Clearly, it remains less efficient than other known that do not solve anything, at least not with acceptable tools for modern living.

However, make it immaculate could be a higher sin. His flare, distortion, and manipulation can lead to his final and unwanted disappearance and his replacement by authoritarian schemes much vile than current. In fact, many countries resort to that course appealing to roam ruthless maneuvers that only lead to the abyss.

Democracy is only a system of social and political organization. Minimize, ignore or deny the defects will not achieve rescue. Today, politics follows his plan to the letter. The leaders have a testing at the polls with tight deadlines, and that pushes them to consider only those decisions that have a modern impact on identical times. Anything that requires many years and involves to pay political costs now to reap rewards in the distant future is not of interest to them and is discarded outright.

The underlying problem is that the giant reforms that are needed, in justice, security, health or education, just to mention the most urgent topics, require significant structural revisions that can demand decades to bring up their first results. This is not compatible with the political times that the personage in duty disposes to be featured in the next electoral turn.

"Statesmen", politicians with grandeur and generosity, willing to do whatever necessary for the sake of future generations, who can forget the temptations posed by the electoral dynamics of democracy, are needed. With the current rules, that will not happen. If today's paradigms are not revised, those that citizens defend without question, since you can only hope to have more of the same or, at best, a less cruel version than this.

Individuals work, almost always, according to the incentives they perceive around them. Today, electoral politics have short-term stimulus, they display them and act accordingly. To expect otherwise would be irrational, naive and childish. In this scenario, under this dynamic and context, it is said quite forcefully that contemporary political class is not interested to solve almost anything.

INSUFFICIENT COMMITMENT Magical thinking seems to rule society. There are many citizens who believe that being part of a civic mobilization, raise isolated claims or express their anger publicly, can change reality. As in life itself, nothing major is obtained without effort. At least not with spasmodic reactions or fleeting anger.

The structural transformation, that which should come to stay, requires real discipline and perseverance to test everything, unusual in societies like this one. There is some correlation between the fantasies in which many individuals believe and their daily activities. Most citizens convinced that with a little honesty on the part of officials and some common sense, the country can grow vigorously and become an example to the world.

That legend is not consistent with reality. The nations that have made progress, societies that today experience a higher welfare and life conditions worthy of imitation, have made an enormous effort.

Those successes are not achieved with alchemy or simply irrelevant twists. To achieve ambitious goals you should work hard for generations, and it is possible that only the last one can finally enjoy, at least a portion, of the result of the sacrifice of so many others.

It is not so difficult to understand it. However, this story does not appeal to almost anyone.

Contemporary society is intended that soon everything is great and think that soon it could take advantage of the benefits of these sound policies.

The truth is that with the current imprint, change has not even started. What follows next only promises to be an attenuated version of the current list of misguided policies, which will find some sense about this, but are far from being necessary.

The key may lie in what people think if you dream of prosperity without sacrifice since you should not expect anything else from politicians, empty promises, offering the electorate "snake oil."

If people really aspire to change reality, we must assume that it is vital to start a stage of great effort and that's why we will have to work hard. Above all, for a long time, but the results can be displayed as clearly in the very short term.

Only with that horizon you can get on the road, at least if we are to come to fruition. All attempts to go for the easy solutions shortcut failed one after another, and they only managed to reiterate frustrations that remove strength, enthusiasm, and even hope.

To carry out a different scheme, it takes much more commitment than today. Far more that what has been seen so far. It is important to mobilize, it is valuable to have the attitude of claiming against injustice and impunity. It is also very healthy to argue for truth and transparency, however, it is insufficient.

The commitment can not be translated into isolated behaviors. At least not if the goal is to achieve genuine reforms. Many people say they can not do more because they do not have time since their job duties do not permit it, or their families require more attention. Then they say they do not want to divert energies to issues like politics.

That individual position is meritorious, highly reasonable coming from people who know they cannot delegate central issues of their lives in third parties. It is equally true that that posture, indifference, civic apathy, citizen apathy, does not lead to anything good.

If this argument is valid, then you will have to resign. To believe that the political leadership can act by itself, seriously and responsibly, under the guidance of abstract concepts and without citizen control, is not understanding the essence of the political activity.

It is not enough to what is done today. It takes a lot more than this. It's time to engage with determination. Otherwise, we should expect that what bothers now perpetuate in time and deepen.

Nothing will change if each citizen tomorrow does the same as yesterday. It requires a reflective, absolutely individual, self-critical task. Without it, it is unlikely that something positive will happen.

Albert Einstein used to say that "if you want different results, do not always do the same."

There are many ways to participate. There is not only a way of doing things. Political parties can be integrated. It is a perfectly legitimate way. It is possible that you may have to get into the mud, and the alternative is to be an active part of that group willing to untangle the web.

However, you can also search for other variants, such as join organizations of civil society, being the protagonist in institutions that gravitate in the process of community decision. Even it is appropriate to think about creating new ones to complete the board. It can provide work, but also time and even money for these worthy causes in which everyone believes that can advance steadily.

The range of possibilities is almost infinite. What is irrefutable is that if everything happens for joining a march every three months, rant using social networks and getting angry at the family table, well, it is good to know that that road leads nowhere. As sad as it is, however, cruel it may seem, recent events only confirm that everything will continue spinning in circles and that the commitment is inadequate for now.

PRODUCTIVITY REVOLUTION Jose Vicente Maldonado, BA Former President of the CIP

The working meeting held in the Carondelet Palace last March between the public sector and representatives of the Chambers and productive sectors of Ecuador, gives me the opportunity to write - and comment as well - about some of the published analyzes that has been the essence of thought maintained since the representation of the productive sectors and our ongoing concerns about proposals such as the sustainability of the growth model, the country's integration with the world, investment and innovation, competitiveness and productivity of the country, the role of the government, individual freedom and private initiative as essential elements for eradicating poverty and achieving the growth and development of the country in a sustainable way.

In recent years the public policy has been conducted in the middle of a (i) constant system instability and excessive issuance of regulations on productive activities; (ii) the institutional weakness of the State in the formulation of public policies for the promotion of investment and exports; and (iii) the weakening of the republican institutions. All this, in my opinion, has created a negative environment that has not encouraged the participation of the private sector in national development. On the contrary, it has created a climate of mistrust towards the presence of the State determined to proclaim the state over the private; the State on individual liberty; even the unacceptable claim that since the state institutions it must "correct the human nature distorted by capitalism". The consequence has been the stagnation of the productive private investment and the reduction of its share in the national GDP. However, in recent years the state has benefited from the provision of enormous economic resources from the largest oil boom in Ecuador's history, which has enabled the Government to compensate the financing needs of the immense growth through the massive public spending.

Thus, the country has grown at above average rates in the region, and it is true; although insufficient to reduce the problems of poverty and unemployment. This year 2015, by the presence of external factors that were predictable, the country's growth will be limited and once again we show concern about the uncertainty generating our economic vulnerability.

In this regard, our position as Chambers of Production was always insistent on the need to reflect on fundamental concepts such as "sustainable growth and development" and the need to improve the business environment in the country, to attract productive investment and achieve a quality economic growth; i.e. sustain growth in increased productivity and competitiveness of the country and the productive sectors and in the development of economic activities with benefits to the population through the generation of permanent employment. Indeed, in this period of prosperity we had projected extraordinary growth scenarios for the country if we had the appropriate complementarity with the participation of public and private investment.

In October 2014 the Chamber of Industries and Production, on the anniversary of the House, we announced our thinking about the end of the cycle of prosperity for the region and the impact that this new scenario would have in the Ecuadorian economy; about the lack of diversification of production and vulnerability that showed the external sector of our economy, leading to the need to review relevant issues such as the prioritization of public spending, promoting private investment and greater participation in development. With the participation of renowned international and national speakers we put particular vehemence on the urgent need for the country to diversify production and exports with better tools to access international markets, seeking higher productivity and competitiveness of the country. Finally, we made the necessary emphasis for the public and private sectors work together in formulating policies that would promote investment and employment under conditions in which investment could flow properly; a model that recognizes especially - the value of individual freedom and ability to create, innovate and generate progress.

With this precedent and under the current scenario of the world economy, we raised the possibility of organizing a workshop and a public-private dialogue. Thus, through the Business Committee and the Federation of Chambers of Industry it was sought to promote the dialogue with the President of the Republic in a friendly environment and democratic participation, where they could express themselves and discuss relevant aspects to the country's productive development. We consider necessary that Ecuadorians give us a new opportunity to discuss jointly the development opportunities; it was time to prepare and present what is summarized in 37 proposals aimed at achieving higher levels of productive investment and the creation of quality employment as a national priority.

It was a first meeting, I think it has been very positive for the development of proposals and the possibility to discuss them. It is still pending for the future to build an agenda and run it between the public and private sectors as part of a growth model that is sustainable, with the contribution that can be achieved by investment and employment, innovation and increased productivity; a model to look towards the future of the country without political pollution, long-term vision and that will benefit all Ecuadorians.

The proposals were summarized in five themes on which the productive sectors have supported specific proposals for discussion between the public and private sectors, being the backbone to promote private investment as a tool for development. So, it was put into consideration: (i) efficiency and agility regulations, (ii) the tax environment, (iii) the promotion of suitable employment, (iv) strengthening the external sector and promotion of exports; and (v) incentives for productivity, knowledge, technology transfer and innovation for productive improvement.

I agreed to write these thoughts to emphasize especially the opportunity that we have given between Ecuadorians to the dialogue. We have done it on values of respect and tolerance, but we keep our dissent. The National Government and all sectors of society: workers, unions, universities, entrepreneurs, etc., etc., should value this final thought that I wanted to do to rescue the democratic principles and the recovery of our ability to dialogue to debate and discuss about development. I am convinced that Ecuadorians can replicate and extend these efforts thinking on the great national goals of eradicating poverty and ensure sustainable development. Ecuador should go after national agreements on those state policies; i.e. those national objectives that surpass ideologies, periods and situational leadership.

This is the reason of the title of this article, it reflects our true thinking and keeps the distance from others with others who hinted that employers will save the citizens' revolution. Thinking about our country, from the business sector we have made only a renewed proposal, that of "productivity revolution and sustainable development".

POPE FRANCISCO AND EDUCATION

Dr. Bolivar Jaramillo P. Azanza,

SDB

In a changing world, where more importance is given to Have rather than to Be, it is crucial to highlight the need for a humanistic education that seeks to train people holistically, helping learners in this way to be useful members to themselves and for others in the society that currently favors individualism.

It is also necessary to the academic aspects to emphasize the teaching of norms, values and beliefs that promote respect and tolerance between people, without these I think we could not talk about education concepts.

Already in the last century, some educationalists as Pestalozzi said: "We must remember that the ultimate goal of education is not perfection in schoolwork, but preparation for life; not acquiring blind obedience habits and prescribed diligence, but a preparation for independent action”.

If education at the public level is a challenge, for the Church is even more considering that we were created for fulfillment as human beings, be happy and make others happy.

About this, Pope Francis tells us that: "Education is a significant construction site always changing".

This is one of the most significant challenges right now that we have as educators.”

The Holy Father with a sense of humanism that characterizes him, with the feeling of brotherhood to build the world where love and understanding prime, invites us to foster "the value of dialogue".

This is an openness of mind and spirit to welcome with open arms to people who do not have the same way of thinking, either by their beliefs or principles. It calls us to be more inclusive, not just through words, but above all through the witness of life. "It can not grow, it can not educate without coherence.”

It is also important to realize that "education is aimed at a generation that is changing and, therefore, every educator is called to change the way of communication with young people".

When we talk about communication, we talk about social interactions that are a product, both of the interplay between teacher and students as among students themselves.

When the teacher and a group of students participates daily in the same educational processes, they share feelings and experiences of their environment. These are core issues in the integral development of every person and prepare them to develop socially.

From this view, the professional in the area of education, can reflect on the need for flexibility in the conduct of his work, as this will allow him to have more contact with the students to achieve relations impregnated of greater affection, security and understanding to them. These feelings will influence to the educational environment reigns a climate of confidence, which, besides being suitable for learning, is for himself and the students, a place of peaceful coexistence.

The educator besides having a solid professional training in the art of education must be imbued with a great sense of respect, reflection, be considerate, sensitive, perceptive, unobtrusive, polite and caring, have "the pedagogical tact”. This will make the difference between relationships with students because it assumes the responsibility to protect, educate and assist students and "mature psychologically."

At this point in history, in a globalized world whose technological advances are moving very quickly, the educator can not stay stagnant, it is paramount regularly update in this field of social networks,

because this will allow the exchange of various innovative experiences, a good level of efficiency, successful teamwork, etc. Social networks are tools that enable us to show us as we are, logically using them correctly.

Finally, I want to emphasize what Pope Francis says: "Education is an act of love, is to give life.

Moreover, love is demanding, it asks to find the best resources to awaken passion and begin a path with patience with the young."

Therefore, education is a precious commodity that we must care; and leaving out the modalities and the names that this has according to the time in which we are; its priority should be to train people integrally.

In a word: Education should ensure every member of the Society an adequate training to continue studying independently and permanent, and join the labor market, but also primarily provide the necessary ethical principles that allow the Society where they live an environment of tolerance, respect, and solidarity. Without this, education will have failed, and Society will be lost.

IS IT TIME TO FOCUS ON VENTURE CAPITAL?

Santiago G. Castillo Pino, Eng. IESE Business School MBA Independent Financial Adviser Professor at Universidad Santa Maria "Investing should be very like watching paint dry or watching grass grow. If you want excitement, then take $ 800 and go to Vegas".

Paul Samuelson Over the past five years, the private sector has been undergoing a series of fluctuations in the market, which has increased the risk of new investment and thus slowed growth. Employers have been very cautious and even suspicious seeing that the size of the state has grown, and the number of restrictions on trade and imports has also been increasing.

Also, controls on banks, which have traditionally been the primary source of external financing have intensified, creating a defensive environment and with most difficulties for credit operations. If so, where does the money to invest is taken out? Go to the market is an option but limited, as it moves based on the purchases of emissions made by the Ecuadorian Social Security Institution (IESS).

Now (following the government's financial needs) is not buying at the rate of a few years ago.

Given this situation, apparently we have a macroeconomic meter that allows us to assess how the world sees us in terms of our opportunities: Foreign Direct Investment (FDI). Over the past seven years until 2013, FDI has remained around 0.7% of GDP. This amount is negligible, considering that Colombia and Peru in 2013 received US $ 16.772 million and $ 10.172 million, about 4% and 5% of GDP, respectively.

FDI in Ecuador (in US$ million) 1,7%

$ 1.900,0

1,6% $ 1.700,0

$ 1.500,0

$ 1.300,0

$ 1.100,0

1.057,8 0,4%

0,8% 0,5%

$ 900,0

0,2%

0,7%

0,8%

1,1%

0,6%

643,8

$ 700,0

584,9

728,3 0,1%

307,8

$ 500,0

$ 300,0

194,2

165,5

-0,4%

$ 100,0

($ 100,0)

2007

2008

2009 IED

2010 2011 % IED / PIB

2012

2013

-0,9%

Source: Central Bank of Ecuador Elaboration: Own But the amount looks even smaller considering that, for example, the purchase of 87.37% of the capital of Tonicorp by Arca Continental of Mexico was estimated at US $ 350 million (48.0% of all FDI in 2013); and the purchase of 75% of the capital of Gisis by Nutreco Holland was estimated at

US $ 100 million (13.7% of all FDI in 2013). That is, two acquisitions were of the same amount than the 61.7% of all FDI in the country in 2013.

We realize likewise that these opportunities are also limited, and not all businesses have access so that a giant is interested in absorbing them and invest in them. With this, what are the alternatives for the companies to expand operations or to pay all or part of their investment? For an economy like ours I see two words: risk capital.

The development of the venture capital in Latin America Since late 1980 and early 1990, seeing how government reforms opened new opportunities (e.g.

Brazil, Argentina, Peru and Colombia chose liberal presidents) individual families with much wealth developed platforms to raise capital from third parties and seize these opportunities. Thus in this way funds as GP Investimentos in Brazil or Argentina BISA were born. The initial focus were SMEs. By the end of 1990, US funds as Advent International, TPG and General Atlantic entered the market. During 2000 new companies entered and left the market because of the roller coaster of economies; but since 2005 it began to show greater stability guided by Brazil. This security gave greater confidence to investors and by 2011 Advent and Southern Cross rose US $ 1,000 million.

From there this new kind of asset has become crucial, having more than 100 regional funds.

Capital raising for venture capital in Latin America 10,3 8,1 5,8 4,7

3,4 3,7

0,1

0,8 0,8

1,5

1,8

2,6

2,3

3,2

4,1

0,6 0,4 0,4 0,7

Source: LAVCA Elaboration: Own If we focus more on the close position to Ecuador, during 2013 the Peruvian market had a good fundraising focused on companies in various sectors of Colombia and Peru. For example, the NG Capital Partners II fund raised US $ 600 million, Carlyle CrediCorp Peru Fund raised $ 308 million, and Altra Private Equity Fund raised $ 356 million. With this, we see that the activity in this type of investment is significant (not to mention Brazil which is the most important destination of these investments).

Venture capital and Ecuador If we think about the benefits of venture capital for an economy like Ecuador's, you can highlight (1) the creation of a more liquid market for the purchase and sale of shares of private companies, (2) open the possibility of obtaining funding for businesses or projects considered too risky by commercial banks, (3) ability to generate a partnership with an experienced investor and that

provide the best and most professional operation of the local company, based on international standards, and (4) a more dynamic economy led by increased foreign investment.

What is holding the funds of venture capital to enter into the Ecuadorian market opportunities? Within the difficulty of determining more specific reasons than the obvious ones such as instability and mistrust generated by government policy, and lack of seriousness of the judicial system to honor contracts; Doctors Heinrich Liechtenstein and Alexander Groh of IESE Business School and Emilyon Business School, respectively, they have developed an index that collects more than 300 sets of data from different sources, handling more than 200,000 individual data.

"The Venture Capital & Private Equity Country Attractiveness Index" aims to consider all relevant factors between countries to determine its relative position compared to other states in terms of its attractiveness as a destination for venture capital investment. The summary evaluation metrics are (1) economic activity, (2) capital markets, (3) taxation, (4) investor protection and corporate governance, (5) human and social environment, and (6) entrepreneurial opportunities.

Of the total of 118 countries evaluated, the top 5 are for the United States, Canada, Singapore, United Kingdom and Hong Kong. The first Latin American country to appear is Chile (No. 23), followed by Colombia (No. 36), Mexico (No. 39), Brazil (No. 40) and Peru (No. 47).

Ecuador appears No. 73, having improved nine places since 2012. This improvement is due to the primary reason the country could be a good destination, and is an increase in economic activity (although guided mainly by government spending), the human and social environment by improving educational opportunities for young people in local and foreign universities, and increased entrepreneurial opportunities.

Evaluation metrics for Ecuador (Over 100 points)

1. Actividad Econ贸mica 100,0 80,0 6. Oportunidades de Emprendimiento

60,0 40,0

2. Mercado de Capitales

20,0 0,0 5. Ambiente Humano y Social

3. Impuestos

4. Protecci贸n al Inversionista y Gobierno Corporativo

Latinoamerica Ecuador

Source: The Venture Capital & Private Equity Country Attractiveness Index Elaboration: Own

As not everything is rosy, there are compelling reasons why the country has not received venture capital investment. The first and most important reason is the lack of investor protection and corporate governance. In recent years there have been unilateral changes in contract terms by the government, defaulted on debt considered "illegitimate" and ad-hoc tax reforms without notice. It is understood then why are our neighbors who receive all the investment and develop the productive sectors, and not us.

The second reason is the difficulty of entering, and the size of the Ecuadorian market values. At present, only big business have the volume necessary to meet the requirements and transaction costs so that financing through market instruments is attractive. Many medium-sized enterprises, having growth opportunities, do not have the financial muscle to make them happen.

In summary, two conclusions can be drawn: the first is that capital funds local risk are a source of existing and significant financing in the region and would be interested in opportunities in Ecuador, since it is similar to the economy of Colombia and Peru. The second conclusion is that these investments will not take place unless stability conditions improve and "rules" that remain in the country for foreign investment.

Considering this second point, there is a small glimmer of hope in the improvement in view of the meeting that took place from the private sector businessmen with President Rafael Correa in early March, to discuss issues related to trade, entrepreneurship, work, production development, taxes, among others. It was also proposed to streamline the existing red tape in the country, and revise the Law on Labor Justice.

Finally, we can say that all these initiatives are useful but insufficient for the development possibilities (if they are not latent requirements). Other routes as external debt and FDI have been evaluated, and they have not been able to resolve the issue of productive development in the heart of the private enterprise. Therefore, is it time to focus on venture capital? Can we structure a clear, dangerous legislation and with a long-term vision to attract such capital? Personally I keep a duality in judgment, since I am neither skeptical nor optimistic, but I think the opportunity to do so is on the table, and if the government thinks of the future it may become a very interesting alternative investment.