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Breakingviews: Ecuador's firebrand needs to soften his tone

Thursday, September 11, 2014 - 03:47

Editor Rob Cox discusses how Rafael Correa has done a decent, if not miraculous, job of managing the nation's economy but faces a looming crunch.

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One of Latin America's most successful left wing politicians may have to changes economic chain. Pretty soon he's done a pretty good job as. Ecuadorian President Rafael Correa all of investing in the country and getting unemployment down and the economy's looking pretty good shape that -- you're just down there recently yeah day. I would fish have relatively successful so I mean when you look at at Ecuador's what they call the economic -- turn on television down there for -- you can't help but see it on state run television. Of which there now is fortunate lot -- state run television since Rafael Correa took over in 2007. But you know there there are certain things you can't arguments we've got. Unemployment below 5% got inflation -- largely because dollars station the shuttle which you have to -- him but they've kept that you've got growth rates of 4% over the past you know. Eight years something like that that's. Pretty admirable. I mean really they haven't squandered all the riches that have come in. From all the oil wealth levels as well technique. At a possible -- eagle from from then. Break -- -- -- news I mean it's it's pretty you know well I think a lot of people are quite skeptical of Korea who has been very -- -- fire grant Julian Assange in the gave him asylum. Kicked out the World Bank represented a few years -- kicked out the US ambassador. You know -- ripped up mining agreements or children's. Defaulted on 3.2 billion dollars of debt during the financial crisis. So given that that rap you know he's actually done a pretty good job -- -- he says that some coaches and team -- has been a bit more at anti government Argentina Venezuela we have 60% inflation in you don't have that here. The problem is this you know given that past I think he's kind of reached a point where he can no longer play the revolutionary because -- got to. Fiscal deficit of more than 5% you've got to bring in money. Now you're not getting money from oil companies coming in mining companies -- the extent that he needs it used to be able to rely and the Chinese data that cutting back they have immunity. They seem to be there's an abatement nine billion dollar refinery project there involved and that is really massively delayed. You've got China trying to kind of pull back around the world and some of the places where it's worked -- corruption that kind of thing. Not that that Ecuador is that particularly nothingness it was unity he's basically in the hand feed him but he can show what you start and -- people yes he I think he can. He's gonna have to speak a little bit more the language you know a little bit less Hugo Chavez little bit more Hank Paulson and you're starting to see that so just a couple weeks ago. Basically they reached an agreement with the IMF which is for the first time since 2008. You know there was they didn't do it in the same way the usually these consultations. You know basically I have people come down to your city. And the interview your people these consultations. They get it differently they went up some people went from Ecuador to Washington and they -- -- -- that. I don't tell me or something like that yes which is different and I did speak the finance ministers suggested that. These multilateral lending groups and institutions like the World Bank now I'm become less aggressive yet so there's a sort of tone that's changed. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We'll -- -- next may be -- it six Nazi can maybe -- the Libya paid for and so on some things so. You know Bolivia is that also led by even more far left. President arguably but also assessing the natural gas and oil but. But the point is I think what you're seeing is Correia has kind of run out of being the revolutionary but I think he can still keep progress moving forward in this country. But he's gonna have to sound a little less like Farber. Our thanks very much and will be bet it will breaking -- --

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Breakingviews: Ecuador's firebrand needs to soften his tone

Thursday, September 11, 2014 - 03:47