Crisis in Ecuador and Latin America

Front

What was the economic situation in Latin America during the crisis?

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The level of debt increased, countries reduced orders for Latin American products, leading to high inflation, reduced income, and job losses.

Front

What did some Latin American politicians propose to address foreign debt?

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They proposed forming a 'debtors cartel' to negotiate foreign debt under more favorable conditions, but this alliance never materialized.

Front

What are the four adjustment measures suggested by the Washington Consensus?

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1. Privatization 2. Liberalization of capital markets 3. Introduction of market prices 4. Free trade.

Front

What was the impact of privatization in Latin America?

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Governments sold public companies and institutions to private investors, affecting sectors like oil, mining, social security, and highway construction.

Front

What did liberalization of capital markets entail?

Back

It involved reducing controls over money entering and leaving the country and demanding higher bank interest rates.

Front

What was the effect of introducing market prices?

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Subsidies on products or services were eliminated, and prices of basic necessities were subjected to market forces, impacting vulnerable populations.

Front

What was the consequence of lifting taxes and tariffs on imported products?

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Local production was left defenseless against foreign competition.

Front

What is referred to as 'the lost decade' in Ecuador?

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The economic crisis of the 1980s and 1990s, where adjustment measures failed, leading to unpayable foreign debt and severe financial crises.

Front

What were some consequences of the economic crisis in Ecuador?

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Increased costs of fuel and public services, decline of domestic industry, job losses, and inability to afford public expenses.

Front

How did the crisis affect the Indigenous community in Ecuador?

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The Indigenous community was the most affected, with 85% living in poverty at the beginning of the 1990s.