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Andean Group - January 2012 (ISSN 1741-4466)

ECUADOR: The counter-example

The strength of oil prices and, just as importantly, a successful overhaul of the tax system, which has forced companies to pay their tax bills, is giving the government of President Rafael Correa the resources to reshape the country. The government is the biggest player in the economy but it is beginning to be joined by foreign energy and mining companies. The latter are gambling that now that Correa has tilted the foreign investment legislation so far back in the government’s favour, he will not tilt it any further.

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