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Noboa betting on international trade as armed conflict overshadows economic policy

Latin America

The fight against organized crime is the main focus of the government, and its clear and organized rhetoric against gangs brings Noboa support. But the lack of a clear line on the economy provides grounds for criticism.

Louis Bretkelli, Reporter for Latin America Reports

Source: Source: latinamericareports.com

«This is how we raise the country.». . . . — Ecuador’s Daniel Noboa said last month that he had just completed a stronger trade deal with the United States.

Seeking to show that the internal armed conflict in Ecuador does not absorb all his attention, Noboa, who soon has the anniversary of his re-election, unleashed a real blitzkrieg of trade deals. On Tuesday, the United States also announced the launch of joint military operations with Ecuador to combat drug trafficking at home.

On Monday, the Ecuadorian delegation signed a $3 billion agreement with the United Arab Emirates. In January, Ecuador became the first country to sign a sustainable investment agreement with the European Union.

Joselo Andrade Rada, executive director of the Ecuadorian Institute for Political Economy, says in an interview with Latin America Reports that Noboa's focus on international trade deals is slowly opening Ecuador's economy to foreign investment, marking itself «The beginning of the economic recovery of Ecuador». . . .

Nobo's big plans

While gang-related bloody murders and street violence dominate newspaper headlines, Noboa's string of trade deals — This is an attempt to purify the image of your country abroad.

«If we start to signal changes — political stability, stimulating a growing economy more integrated into the world — and improve our perception, the country will be able to progress». . . . — adds Andrade.

But trade deals can only improve the Andean nation's financial position to a certain extent. In his election campaign for re-election, Noboa promised massive economic progress.

He promised to expand access to universities, jobs and career growth for young people. He promised greater financial support to young families and the restructuring of Ecuador's declining health system.

To boost the economy, Noboa promised to boost investment in oil exploration, mining and nuclear power. As the anniversary of his re-election approaches, many of those promises remain unfulfilled.

Inconsistency of expectations Mm-hmm.

Critics of the president point to areas where he does not live up to expectations, including health care, youth opportunities and energy strategy.

In recent weeks, images of a health system in crisis have appeared on the front pages of Ecuadorian newspapers, as funding deficits exceeding 100% leave hospitals with understaffed equipment and personnel. More than 3,500 newly graduated doctors work without a fixed income.

Sergio Ruiz, president of ThinkTank Ecuador think tank, calls Noboa youth promises «Short-term solutions»which are the «exhausting public finances». . . . Ruiz says government employment programs, such as the February 26 program that promised 160,000 jobs to people under 29, are consistently failing because of short-term contracts.

He suggested that, frustrated with both informal employment and short-term official work, young people easily succumb to the temptation of criminal gangs that promise more attractive income and stability.

«The government does not take into account the need to prevent crime by providing alternatives to young people, students. They do not provide opportunities in education, sports, culture or employment that would prevent young people from succumbing to the temptation of gangs.». . . . — Ruiz said that.

Since the establishment of the organization in December to implement the new nuclear strategy, progress in the creation of Ecuador's first nuclear reactor has stalled. Andrade considers the implementation of any nuclear industry «A very distant prospect because of the countless difficulties Ecuador faces in trying to do something so revolutionary.». . . . Instead, Andrade thinks Noboa should focus on oil exploration, which he describes as a "float" «The main source of stability, growth and foreign investment» countries.

Changing the situation in these problematic areas of policy, where progress has stalled, would be «product and consequence» Addressing the structural weaknesses of the economy, Andrade says, is a huge challenge that cannot be solved by international trade deals alone.

«We need reform of labor legislation, pension reform, reduction of the size of the state and its expenses. We need a financial reform that will allow Ecuador to fully integrate into the global financial system.». . . . — says Andrade.

Armed conflict dominates

Despite improving macroeconomic performance, Ruiz says positive economic changes «They are not felt in people’s daily lives.». . . . In fact, the economy is constantly being sidelined in opinion polls, giving way to internal armed conflict, security and crime.

ThinkTank calls 2025 the bloodiest year in Ecuador's history, with more than 9,000 violent deaths documented. Ruiz says: «As long as people feel victims — Violence, extortion, kidnapping — They'll be reluctant to say they got better under Noboa.». . . .

On Monday, Noboa's government imposed a two-week curfew in four provinces and extended the state of emergency in nine, announcing that the armed conflict was shifting to a two-week curfew. «The next phase»This will include increased police activity and greater involvement of neighbouring countries. Ecuador's interior minister urged people: «Stay in your homes. We're going to war.». . . .

Late on Tuesday, the U.S. Southern Command announced the launch of military operations in conjunction with Ecuadorian forces in the country.

The fight against organized crime is the main focus of the government, and its clear and organized rhetoric against gangs brings Noboa support. In addition to security issues, Andrade says the lack of focus and a clear line on the economy is «The most serious problem facing the government». . . .

«It is not clear what the government's efforts are or what the country's guiding star is.». . . .

Signing trade deals and handshakes with world leaders may make Noboa's Instagram feed spectacular, but attention to tangible economic improvements is overlooked as the president's attention diverts the escalation of violence.