Ecuador Public policies for good living
However, Ecuador is in the midst of a serious economic crisis. The government has received a loan from the International Monetary Fund (IMF) amounting to 4.2 billion US dollars and has undertaken to cut public spending in return. The reduction of fuel subsidies introduced in the 1970s is part of the commitments.
Moreno therefore presented a corresponding austerity programme in October 2019, which included the cancellation of subsidies for gas, petrol and diesel. As a reaction to this, there were violent mass protests and confrontations with security forces throughout the country and especially in the capital Quito. Subsequently, the government agreed with representatives of the Confederation of Indigenous Peoples (CONAIE) to withdraw the controversial austerity decree and thus the cancellation of the above-mentioned subsidies. Further economic reforms are, however, considered necessary by the government.
Germany is one of the largest bilateral donors in the field of development cooperation with Ecuador. This cooperation focuses on environmental protection and the conservation of natural resources, and on efforts in the area of governance, democracy and participation.
German development cooperation with Ecuador
Germany is one of Ecuador's main bilateral donors. At the government negotiations held in October 2018, Germany committed 48.9 million euros in new funding for development cooperation, comprising 32.4 million euros for Financial Cooperation and 16.5 million euros for Technical Cooperation.
German support focuses on two priorities:
- Protecting the environment and natural resources
- Governance, democracy and participation
In addition, the Federal Ministry for Economic Cooperation and Development (BMZ) contributes to an innovation fund that is used, among other things, to finance pilot projects in the area of vocational education. Support is also being provided to a programme to prevent violence against women.
Moreover, Ecuador is part of several regional programmes under Germany's development cooperation. For example, a regional project of the special initiative on displacement addresses the Venezuelan refugee problem on the northern border with Colombia. The aim is to enable state and civil society actors in the border region to receive and care for refugees and migrants in a socially acceptable and employment-effective manner.
In the field of non-governmental cooperation, the BMZ finances measures by civil society and church organisations on a large scale.