2024-08-22 00:47:35
Economic analyst Oswaldo Landázuri said that the lack of information is hindering the country’s development, starting with President Daniel Noboa. In an interview with Teleamazonas, he also said that “the president burned bridges in a very visible way and it is difficult to reverse the closure of the ITT.”
He explained that Ecuador’s problems are a mix of structural factors and political influence on the economy and development. “There are several ingredients involved. The first is a poorly informed population and an environment that starts from the Constitution, which is used to interpret many things,” he added.
According to the analyst, the closure of the ITT block is not a simple matter and he indicated that President Noboa cannot reverse his decision to support this process because “he has already burned all his bridges.”
This is how Oswaldo Landázuri believes that, to face the lack of resources, the most logical thing would be to eliminate subsidies if “the country decided to contribute to the environment and leave the oil in the ground.” However, he emphasized that this measure must be accompanied by investment in sectors such as health, education and employment, while “demanding efforts from society,” such as raising fuel prices or increasing VAT.
“Ecuador’s problem lies in its structural issues, which prevent foreign investment,” he added, explaining that these problems are related to the regulatory framework, labor and financial rigidities, and the conduct of unscrupulous politicians who make campaign promises that they later fail to fulfill, making the country less competitive.
For the analyst, Ecuador should be very attractive for investment because it is dollarized, but “the Constitution, with its fixed rates and interest rates, together with politicians who take advantage of a poorly informed or poorly educated population to promise salary increases, interest rate reductions and subsidies, ends up affecting the country’s economy.”