A north for the Ecuadorian economy, although with a still diffuse signal

A north for the Ecuadorian economy, although with a still diffuse signal

The Economic Productive Sector Council of Ecuador has proposed to President Lenin Moreno the incorporation of the country to the OECD, a dream still far away for which the Andean nation will need to improve a lot, if it wants to enter that exclusive club of development.

When presenting the proposal on Thursday, the Economy Minister, Richard Martinez, said that the Organization for Economic Cooperation and Development (OECD) could serve as a seesaw to promote the best economic practices in his country, according to those who maintain their 36 member countries, among the richest in the world.

"In the OECD we will be able to approach the best global practices in areas of public policy, in favor of the citizens", and above all to intrude the country into the big leagues of investment, transparency, social policies and environment, said the secretary of State.

For him, the inclusion of the country in the OECD could be "a new sign that we are growing in the right direction, with pragmatism".

And this organization, founded in 1961, offers coordination among its members on economic changes and helps measure productivity and global flows of trade and investment.

In addition, it sets international standards within a wide range of public policy issues and, in turn, better guides the relationship of its members with multilateral credit agencies.

For a long time, this organization was conformed only by countries of the first world, reason why it was known like the "Club of the rich", although with time it acquired a greater balance.

Germany, Australia, Austria, Belgium, Canada, Chile, Colombia, South Korea, Denmark, Slovenia, Spain, the United States, Estonia, Finland, France, Greece, Hungary, Ireland, Iceland, Israel and Italy are part of the OECD.

Also Japan, Luxembourg, Latvia, Lithuania, Mexico, Norway, New Zealand, the Netherlands, Poland, Portugal, the United Kingdom, the Czech Republic, the Slovak Republic, Sweden, Switzerland and Turkey.

In addition, other non-member countries are close to the OECD guidelines, including Argentina, Brazil, Costa Rica, Egypt, Jordan, Morocco, Peru, Romania and Tunisia.

The entry of Ecuador into this organization, for now, is a projection of the current authorities, although there are those who believe that the Ecuadorian economy is not prepared for it.

Rather, it could be a strategy to bring the country even closer to the orbit of the International Monetary Fund (IMF), analyst Pablo Dávalos told Efe.

And it is that "the conditionalities" that the IMF usually requires the countries that ask for loans, "are others when it is part of the OECD," added the economist, who believes that, in addition, the Ecuadorian economy is very small and faces many difficulties to enter the forum.

Ours, he said, is an "economy too small to be part of that OECD, which brings together the strongest economies in the world" and therefore, the announcement of trying to enter the Organization could be "a kind of distraction" political by part of the Government.

In Ecuador "there is a lot of unemployment, poverty, public disinvestment" and for December the government will face "serious liquidity problems", since it will have to pay significant outlays of current spending and the payment of its external debt, the expert added.

Therefore, Dávalos insisted that "it is very difficult to accept Ecuador" in the OECD, although touching that door can legitimize the economic policy discourse that attempts to strengthen the government, the analyst added.

However, for the analyst Mauricio Pozo, the position of the Ministry of Economy is correct, since the OECD is an institution that demands rigor in the management of the economy.

The announcement to try to be part of that organization is a positive message for investors, since it expresses the interest of the Government to strengthen the transparency and solvency of its economic policy, according to Pozo.


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