Lack enforceability

Statements were optimistic last week's economic cabinet members. In part, that optimism is based on the damage caused by the rains would not have been as devastating as initially envisaged.

A month ago, the Government talked to import rice. Today it is exporting, in circumstances that the price is paid to domestic producer is well below the current market.

But the main thing is the tax bonanza. "There has been best financial year in the last twenty years as the current," said Minister of Economy, who believes that the GDP will grow more than 4%, and stressed that there are more than 2 billion dollars to deal with any adverse economic situation.

The Transport Minister, Jorge Marun, announced a plan in which lightning is invested 3,600 million dollars in the reconstruction of twelve channels nationwide, which were destroyed by the rains. It is assumed that the tracks will now be better quality because of the tax bonanza.

There are silver, but the problem lies in implementation. Although the Government wants to invest state funds accumulate in the Central Bank. It exceeds 5 billion dollars.

The central government planned to invest 2,500 million dollars this year. By April 15, that is, after 28.7% of the year, everything that was achieved invest $ 104 million, 4.2% of the amount invested in the year.

If you include the amounts advanced to central government entities that have not yet been spent, the amount reached $ 190 million, 7.7% of the total, hardly anything more than a quarter of what used to invest in the same period.

It has been fifteen months, and the government still shows no sign of efficiency in investment.

Almost not a week goes by without that ensures the first stone of a new project, but there does not pass. It gives new meaning to the expression that the road to hell is paved with good intentions.

As the plan lightning, the Ecuadorian construction firms are unable to pursue a pace of activity that allows invest 3,600 million dollars a year. In 2008 alone will invest a small fraction of this amount.

The need to revive public investment is much greater, as when private investment is paralyzed as a result of the changes that are taking place, the more that are advertised, which spoil the environment for business.

With regard to foreign investment, in the last quarter of 2007, and according to official statistics, there has been a disinvestment of 295 million dollars, bringing the net foreign investment in 2007 was $ 179 million, thanks to the first quarter, which was very good, and represents a drastic reduction compared with $ 271 million in 2006. In 2004 and 2005 was around 850 million dollars.

The Government raises create state-owned enterprises in telephony, electricity and mining. It should put more effort in improving governance capacity.