CNH Tours - Cultural and Natural Heritage Tours Galapagos
Sunday April 21, 2019
Lenin strikes a deal with the IMF
Last week's edition of The Economist had a good article on the current financial challenges confronting Lenin Moreno, the wheelchair bound president of the country. His charismatic predecessor, Rafael Correa, brought in big changes to "politics as usual" during his 10 year tenure - improving working conditions for teachers and others, and spending generously on much needed infrastructure (you'll witness the results directly on arrival at the new Quito airport and on the new highway to the city).
Perhaps the spending wasn't always as efficient as it could have been, and the precipitous drop in the price of oil, an important source of revenue for this US dollar based economy didn't help either. In any case, Ecuador is facing challenging fiscal and budgetary hurdles these days.
The Economist article provides a good overview of the situation, along with likely difficult measures that will need to be imposed as part of a $4.2 billion loan agreement with the International Monetary Fund.
For those interested in the broader political context of their visit to Galapagos - or if you're looking to start a conversation with some of the locals you'll meet, this is a good way to understand the backgroung against which many Ecuadorians might be expressing concerns about financial clouds on the horizon.
The full article can be consuted here.