Ecuador - Current economic position and prospects

RESTRICTED Report No. WH- 1 57a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF ECUADOR April Z5, 1966 Western Hemisphere Department  CURRENCY EQUIVALENTS (December 1965) Official Rate U.S. $ = Sucres 18.18 1 Sucre = U.S. $0. 055 1,000, OOCISucres = U.S. $55,000 Free Rate (Average for 1965) U.S. $ = Sucres 18.72 1 Sucre = U.S. $0. 053  PREFACE This report was completed before the dowrnfall of the Military Junta and the installation of an interim, civilian governinent, charged with the task of pre- paring for elections. It is not yet possible to evaluate the consequences of this development, while the economic prospects for the country remain as outlined in the report.  TABLE OF CONTENTS Page No. MAP BASIC DATA SUMMARY AND CONCLUSIONS i- v I. Introduction and Background 1 II. Recent Economic Growth 2 III. Development Plan 4 IV. Agriculture 6 A. General 6 B. Bananas 8 C. Agrarian Reform 10 D. Agri-cultural Credlit 11 V. Industry and Mining 12 VI. Transport and Pomer 14 VII. Public Finance 16 A. The Central Government 16 B. The Public Sector 20 C. Revenues 21 D. Expenditures 21 E. Fiscal Reform 22 VIII. Public Investment Programme 24 IX. The Balance of Payments 26 A. Exports 27 B. Imports 29 C. Invisible Items 30 D. Capital Movements 30 X. Money, Credit and Prices 32  - 2 - Page No. XI. Creditworthiness 34 AM\W'EXES I - RECEMT DEVELOPMENTS AND FUTURE II - EXPORT PROJECTIONS III - BAN.A'U'hS - PRODBLEMS AND ?ROSBECTS  sr~~~~~~~~~~~~~~~~~~~~~~~~~x. 04 ~ ~ ~ ~ ~ ~ < I-~~~~~~~~~c ci ~ ~ ~ ~ ~ ~ ~~~S 8 0 M x D-A _J < 8 .S 0 0 ~'/ 0