The questions

1. What is your view of the growth prospects for the international economy in the next 12 months and how will your home country be affected by this?

2. What policies has your country recently adopted that will assist its economic development in the next few years?

3. What policies has your country recently adopted that will assist the development of its financial sector in the next few years?

4. How has the Argentine crisis affected both your country and the region? If the impact is minimal, please explain why.

5. Does the election of Luis Inacio Lula da Silva as Brazil’s president mark a new stage in Latin America’s democratic development? How much is the Venezuela crisis a step backwards?

6. What are the prospects for FDI flows in both your country and the region in the next years? What could help to improve them?

1. Since 1996, international economic crises have affected developed countries’ performance, reducing emerging economies’ growth potential. Ecuador suffered a reduction of trade, capital inflows and official development aid. No substantial change is expected in the growth of the international economy or Ecuador. Ecuador’s growth rate is projected to reach 3.5%.

2. In 2000, Ecuador dollarised its monetary system. It aims for yearly fiscal surpluses to reduce vulnerability to external shocks. This year, the president approved policies to correct unwanted trends in public expenditure. New initiatives are aimed at intensifying trade opportunities, attracting FDI and foreign aid, increasing flexibility in the labour market and raising capital productivity.

3. The guarantee of deposits is no longer a public responsibility. During 2003, the Deposits Guarantee Agency is expected to finish paying out deposits that were frozen in the 1990s. Some private banks have been closed. Next steps include the introduction of mutual lines of defence of the banks in the system.

4. Argentina’s crisis increased financial risk. With similarities between its collapsed monetary system and Ecuador’s dollarisation system, the international markets were cautious about our economic initiatives. With a positive performance in the past two years, concerns have lessened. Some structural reforms and the elimination of low price rigidities are the agenda.

5. The election of a left winger in Brazil has changed the structural view of the region in international markets. But Mr Lula da Silva shows a sense of governance that seems to be good for Brazil and the region. In Venezuela, polarisation creates uncertainty that hopefully should be resolved soon.

6. Decreasing regional risk and political instability should be a basic multilateral target in the region. Ecuador hopes the new agreement with the IMF, the presence of social partners in the government and the consolidation of dollarisation will be good signals for capitalists.