Chapter 2 Review
The Ecuadorian Context
Ecuador was chosen as a subject for study because of its many similarities to other Latin American and Caribbean nations, its notable differences from them, and because of the extraordinary amount of transnational funding it has received. Socioeconomically, Ecuador is similar to other Latin American and Caribbean nations. Its GDP, life expectancy, and access to clean water are near average. Ecuador also ranks near the middle of the road in human development and distribution of wealth.
One major difference between Ecuador and other Latin American and Caribbean nations is its dependency on income from oil exports; according to the CIA, the Ecuadorian government receives up to 2/5 of its revenue from the export of petroleum. Another difference, although a recent development, is its relatively low (and falling) levels of public debt. This makes Ecuador less reliant on foreign creditors than some other LAC nations. Ecuador also stands out in terms of environmental uniqueness. Although it is the fourth smallest South American country, (only about the size of Colorado) it makes up for in biodiversity what it lacks in size. Ecuador’s four distinct regions (the Galápagos, the coast, the Andes, and the Amazon) are home to 20,000 species, many of which are found nowhere else in the world. Unfortunately, each region has its own unique challenges. Development due to tourism threatens the Galápagos, shrimp farming is destroying mangrove forests on the coast, the Andes are facing deforestation, and the Amazon is being exploited for its oil and mineral reserves.
Fortunately, Ecuador’s high levels of biodiversity and its diverse range of habitats make it a popular choice for transnationally funded conservation projects. Ecuador’s popularity for such projects began decades ago, when biodiversity “hotspots” were beginning to be identified. These hotspots were usually areas of tropical rainforest that contained certain endemic species or areas that faced significant threat from industry, such as Micronesia, Madagascar, and Ecuador (Myers, 1988). Ecuador gained a great deal of exposure through these early projects, and has continued to receive transnational funding to help protect its natural resources. However, not all hotspot areas have been so lucky. Eleven out of 25 hotspots have lost over 90% of their original vegetation, and three have lost over 95% (Myers, Mittermeier, Mittermeier, da Fonseca, & Kent, 2000).
In the end, Ecuadorians need to make a choice about how to make use of their natural wealth. Currently, Ecuador’s petroleum industry growth is outpacing OPEC’s. Should it remain that way? Or should the country’s natural beauty be preserved and used for tourism? The oil industry hasn’t been all bad for Ecuador. Money from oil exports helped pay for much of the development seen in the country today. Oil profits helped pave roads, build schools and raise literacy rates, and lift people out of poverty. However, as time went on, things started to decline. The number of bureaucrats inflated to over double the number of workers. Loopholes were exploited to explore protected land for petroleum. The people blamed government, oil companies, and foreign banks for this overexploitation of natural resources.
Ecuador is also facing issues with its other exports, such as bananas, shrimp, canned fish, flowers, cacao, and coffee; many of these exports are produced unsustainably. Banana farm workers earn a minimum wage less than half the cost of living, and pesticides used in both banana farming and flower farming threaten the health of local communities and wildlife (Harari, 2009). Canned tuna prices are down because of oversupply due to overfishing; mangrove forests are being destroyed by the shrimp industry (Vega and Beillard, 2015). Although cacao production is on the rise (Vega and Beillard, 2015), the coffee industry is suffering due to cheaper foreign imports, and many farmers face extreme poverty (“History of Coffee”, 2017). Tourists, such as ourselves, can both help and hurt. On one hand, tourists support Ecuadorian families by purchasing their goods and services. On the other hand, overdevelopment of some areas (such as the Galápagos) due to tourism can drastically change and damage fragile ecosystems.
Fortunately, under President Correa, things are looking brighter. The country’s unique and useful experiences through its four eras of environmentalism make it a useful subject in the study of the possibility of sustainable development for small, poor, indebted nations with a wealth of natural resources.
References
Harari, R. (2009). Labour, environment and health in Ecuadorian banana production.
History of Coffee in Ecuador. (2017). Retrieved from equalexchange.coop
Myers, N. (1988). Hotspots: Earths biologically richest and most endangered terrestrial ecoregions. The Environmentalist. doi:10.5860/choice.38-0922
Myers, N., Mittermeier, R., Mittermeier, C., Da Fonseca, G., & Kent, J. (2000). Biodiversity hotspots for conservation priorities. Nature, 403, 853-858.
Vega, H., & Beillard, M. (2015). Ecuador Cocoa Update and Outlook. Retrieved from usda.gov
Vega, H., & Beillard, M. (2015). Ecuador's Tuna Fish Industry Update. Retrieved from usda.gov