I've made this point before, but it bears repeating. I doubt if President Correa reads our little board, but someone on his team probably does - or should. This, in my opinion, is what they ought to be doing:

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Once your mining industry is up and running, all royalties from operating gold mines should be paid in gold directly to the national treasury. Let copper pay for the pressing social needs - the larger issue facing Ecuador is the decline in the US dollar and what that implies for international trade and the nation's foreign reserves. Furthermore, a strong position in gold will help Ecuador establish itself as a significant member of El Banco del Sur, once that program is fully underway. These steps must be taken, if only as insurance against a possible collapse of the dollar and, as a result, international trade. These are serious issues that must be addressed. You cannot continue to allow the USA to determine national monetary policy. You MUST have a plan B.

Study Hugo Salinas Price's Silver Libertad program in Mexico as a possible model for national savings, and eventually a circulating currency. Honest weights and measures are something the people will understand. Do NOT peg the value to some arbitrary number as this will lead to hoarding. Let the market determine the value, using daily closing prices to set the exchange rate of the circulating coins. Let the rise in the value of silver offset rising food prices. Once the people catch on, they will forgo interest on shrinking dollars in favor of payment in silver. Make that available through a national mint.

Internally, you need to establish a sound method of savings and investment at the local level. Study the program of Catherine Austin Fitts as it applies to local initiatives financed through community savings. Let the people, not the big banks, manage their own finance and investment. This can be done. Let Catherine show you how: http://www.solari.com

In the resource sector. Look to a future in which Ecuadoreans take an ever increasing role in developing the nation's resources. Establish a national mining school and scholarship programs to supply your future skilled labor and professional needs. This should be a foundational element of any long-term agreement with foreign companies. The theme is technology and skills transfer. Your models are Japan, Korea and China.

Finally, cut the foreign investor a fair deal. A smaller slice of a big pie will carry you much farther than a big slice of a small pie. Think long term. Establish lasting relationships in good faith and the money will come back in the form of reinvestment. Also, bear in mind that many of us are Canadian and fully understand the need to protect our small economies from the impositions of much larger, dominant ones. We share many things in common with the people of Latin America, including a sense of pride and a deep desire for personal freedom and national sovereignty. Let this be the model for 21st Century Socialism and you'll have our unconditional support and friendship.

ebear