NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING
DONATE TODAY


  March 24, 2014

How the Ecuadorian Economy Grew in a Global Recession


Economist Bill Black discusses how the investment in education, healthcare, and infrastructure fueled Ecuador's economic "miracle"
Members don't see ads. If you are a member, and you're seeing this appeal, click here
   



audio

Share to Facebook Share to Twitter



Understanding info is a powerful thing. Thank you to all of your reporters for making a significant difference. - Nancy SmithEaken
Log in and tell us why you support TRNN


biography

William K. Black, author of The Best Way to Rob a Bank is to Own One, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics.

Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.

Black developed the concept of "control fraud" frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management.


transcript

How the Ecuadorian Economy Grew in a Global RecessionJESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of The Bill Black Report.

Now joining us is the man behind the report, Bill Black. Bill Black is the author of the book The Best Way to Rob a Bank Is to Own One. And he also teaches economics and law at the University of Missouri-Kansas City.

Thanks for joining us, Bill.

BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKC: Thank you.

DESVARIEUX: So, Bill, I know that you recently returned from Ecuador. Can you just paint a picture for us of what the economic situation is like there down in Quito?

BLACK: Yeah, I just got back on the red-eye about two hours ago. So if I fall asleep during the interview, I hope people will understand.

I gave a talk, primarily, at one of their major universities in Quito, called FLACSO, and it was very well attended. They filled not only the assembly area but the entire overflow area, where they had to pipe in the address.

The talk I gave was about the Ecuadorian economic miracle. And the super-short version of it is that I went back to what American conservative scholars were writing just before President Correa was elected in 2006, and they were emphasizing what a disaster Ecuador was and what a disaster it was almost certainly going to continue to be, that it had no stable government, that its elites--remember, this is an American conservative writing this--that its business elites had no real attachment to democracy, that they worked with the military behind the scenes to remove, unconstitutionally, elected governments, that the debt of Ecuador was crushing, and that there--really, everything that one could predict was that it was likely to get worse, not better.

Well, flash forward. What actually happened when President Correa was elected in 2006 and begins taking office in 2007, well, it gets worse in many ways. Ecuador's leading trading partner is the United States. We, of course, were slipping into the Great Recession. Oil prices do surge, which is very good for Ecuador because it's a major oil producer, but then they collapse in the latter half of 2008 as well.

And despite all these things, Correa produces and Ecuador produces, I emphasize, the trifecta of results: unemployment is down very substantially from when he took office, poverty is down very substantially, and income inequality, which is surging in most of the world, has fallen sharply in Ecuador as well.

And then I simply went through how he did it, and pointed out that part of what he did was completely consistent with an aspect of the Washington consensus, because the Washington consensus says the quintessential appropriate thing for a government to do is spend heavily on education, health, and infrastructure, 'cause those things not only improve the quality of life; they serve as investments in human and physical capital that allow growth and produce greater stability.

So President Correa is the only president who was able to serve out his term out of something like the last eight presidents of Ecuador. He's been reelected again.

And I ended by saying, while I'm sure that President Correa and his ruling party were not too happy about this, they'd also met the real test of democracy. And the real test of democracy is: can the opposition win? And they have, in a series of important municipal elections in Ecuador. And when they win, do they win? In other words, are they actually able to take office through a peaceful transition of power? And the answer is yes in both of those things.

So the proof is in the pudding. This economic miracle in Ecuador is made possible also by a social and political coming together of Ecuador that bodes well for the future as well, and that the folks of Ecuador should really be proud of what they've accomplished and look forward to the future with some idea that they could actually control their own fates to a greater extent, instead of having to depend on whatever happens in America.

DESVARIEUX: Alright. Bill Black, thank you so much for joining us.

BLACK: Thank you.

DESVARIEUX: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.



Comments

Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

latest stories

Nebraskan Landowners Resist Keystone XL By Refusing to Sell Their Property to TransCanada
Study Links Extreme Weather Events to Climate Change
Sixth Year of War in Syria Marked by Tremendous Civilian Casualties
The Protest-Resignation of UN Under-Secretary Dr. Rima Khalaf
Climate Catastrophe Is Here: 2016 Hottest Year on Record
Millions for Prisoners Human Rights March in D.C. Set for August
"Wealthcare" Defeated: Health Care For All Back on the Agenda
Defending the Climate in the Age of Trump
Baltimore Public School Funding Pales in Comparison to Private Education Spending
Rattling the Bars: Women and Incarceration
Trump-Republican Alliance in Disarray?
Baltimore Mayor's Veto of $15 Wage Protects Policy of Subsidizing Wealthy, Councilperson Says
The Truth Behind the War on Immigrants
Were Haitian Police Behind Assassination Attempt on Aristide?
New Provisions Eliminate Healthcare From GOP 'Wealthcare' Bill
Why Further Revelations on Trump's Russian Connections Might Fail to Bring Him Down
18 Million U.S. Citizens Exposed to Lead-Contaminated Water Systems
Russia vs. USA: Who is the Threat, Who is the Aggressor? (2/2)
Should Sanders Continue the Fight Outside the Democratic Party?
Fed Inflation Target Keeping Wages Low, People Out of Jobs
Is Trump Dangerous for Russia?
Was the Georgian Conflict Started to Elect John McCain President in 2008? Pt.1
Will the NDP Adopt Pro-BDS Platform?
Massive Cuts to EPA Threaten Communities Already Suffering From Pollution, Climate Change
Whistle Blower Teacher Says Charter Schools Draining Students, Resources from Public Education
Trump's Budget Targets Climate Change Spending Across All Federal Agencies
US Has Interfered in More Elections Than Any Other Nation
Maryland Democrats Push Back Against Gov. Hogan's Support for ACA Repeal
Russia vs. USA: Who is the Threat, Who is the Aggressor? (1/2)
Democrats Fail to Dig into Trump's Shady Financial Ties During Hearing

TheRealNewsNetwork.com, RealNewsNetwork.com, The Real News Network, Real News Network, The Real News, Real News, Real News For Real People, IWT are trademarks and service marks of Independent World Television inc. "The Real News" is the flagship show of IWT and The Real News Network.

All original content on this site is copyright of The Real News Network. Click here for more

Problems with this site? Please let us know

Managed Wordpress Hosting