The political discussion affects investment

Businessmen and industrialists are worried about the brakes on private investment, domestic and foreign. They say that decisions are taken inside the Constituent Assembly and from the Government itself is the cause.

Roberto Aspiazu, president of Ecuadorian Business Committee, argues that there is uncertainty in the sector by treating items such as privately owned. "It stipulates that should play a social or environmental. And who I guarantee that my investment in productive activity, not be subject to an expropriation because it supposedly does not fulfil these functions. "

And states that the Government has failed in one of the guidelines of the economic plan: confidence. That, he says, has direct effect on private investment. "It's not that businesses are failing here, only that they are expanding into other markets."

Sebastian Borja, president of the Chamber of Manufacturers of Pichincha, agrees that the chapter on private property without explanation left many edges, especially at the point of land expropriation. He noted that the private sector has put a brake on their investment while ending the Constitution.

Renato Carlos, president of the Chamber of Small Industry, acknowledged that the country requires structural changes, but that the impact has been strong, "because everything is taking place at once."

Although ensures that investment has come to the country, said it was limited. "There are groups who want to come, especially in the area refineries, but take precautions."

He added that the country must seize the demand in China and India to invest in the agricultural sector: technology, credit and elimination of intermediaries. "But there must be a rapprochement between the productive sector and the Government.

Carlos Andrade, industrial Coast, said that there were fears that must go clarification, especially on the issues of equality in the means of production. "Local entrepreneurs and foreigners must know what the new framework before taking any decision." And therefore agreed that the duration of uncertainty, investment will not grow.

Jorge Kalil, director of the Center for Economic Research at the Catholic University, explains that foreign direct investment (FDI) in the region grew 46% last year and stood at USD 105 900 million.

But in Ecuador, the total investment decreased. In 2006 was U.S. $ 1 457 million in 2007 and $ 815.2. So far, 2008 is located at USD 180 million and therefore it is expected that the trend is similar to last year.

"That is worrying, because Ecuador is losing in front of the Region. This is another opportunity that we are wasting. "

Kalil argues that the prospects are not encouraging, even more so if the political discourse continues to drive away capital.