Ecuador  

The unemployment rate in Ecuador is around the global average at 8%, and the rate of inflation is low at just 2.2%. However, access to capital in order to produce goods and services is below average by international standards. While a domestic savings rate of 23% is around the global average, household expenditure of 23% ranks below the international average. The proportion of no- performing loans is very low in Ecuador with less than 3% default rates, but interest margins between borrowers and lenders is high at eight percentage points, placing Ecuador 93rd on this variable. Ecuador relies on a very high concentration of raw materials for its exports. The extremely low amounts of foreign direct investment ranks the country in the bottom 10, and Ecuador’s exports as a capacity to import are also very low, indicating weak terms of trade.

When compared globally, Ecuadorian businesses face a high number of barriers to entry including 14 start-up procedures, which places the country in the bottom 10, internationally. However, no data was available as to the actual number of new businesses registered in 2007. Value added in the Ecuadorian service industry is about average at 59% of GDP. The level of internet infrastructure, as measured by bandwidth, is near the global average at 3,000 mbps, but the number of secure internet servers is very low, at only 4.9 per million people. ICT exports are extremely low and constitute less than 1% of goods exported, while high-tech exports are slightly higher at 9% of manufactured goods exported, placing Ecuador within the top 40 for this measure. There are 13 personal computers per 100 people in Ecuador, ranking the country in the top half worldwide, but the country’s investment in R&D is extremely low, equalling only 0.2% of GDP.

Ecuadorians enjoy high, but somewhat limited, levels of both political rights and civil liberties. Ecuador is a democracy but there are no checks or balances in place to restrain the President from making arbitrary policy decisions. There is open competition among rival parties for the office of President, and the role is assigned through a free and fair electoral process. Elections for the legislative branch of government are also characterised by open competition amongst rival political parties; however, the judiciary is subject to interference from other branches of government. Regime stability is low in Ecuador, with the last political system change occurring less than 10 years ago.

The primary education enrolment ratio in Ecuador is well above the international average at 97%. However, with a teacher to pupil ratio of one to 23 the nation falls into the bottom 50 countries worldwide on this variable. Only 68% of secondary aged children are enrolled in school and only 26% for gross tertiary enrolment, which places Ecuador in the bottom half of all countries on the latter variable. In Ecuador, there is an equal ratio of female and male enrolment in primary and secondary school. With 5.4 and 3.9 years respectively, the average Ecuadorian worker enjoys high levels of both secondary education and tertiary education. However, the quality of education could be improved by increasing educational funding per student, which is currently low at $241, ranking Ecuador in the lowest quintile of the Index for this measure.

In Ecuador, there is a relatively average number of doctors per head at 15 per 10,000 people, but a very low proportion of hospital beds. Despite this, health-adjusted life expectancy is high, at 62 years, ranking the country in the top half of the Index on this variable, and only six babies per 1,000 die in their first year. A very high 84% of Ecuadorians have access to improved sanitation facilities, and 74% are happy with the quality of their water, which is a high proportion, internationally.* In Ecuador, fourfifths of the population are satisfied with their current state of health, and only 22% consider themselves to have health problems, placing the country in the top half of the Index.* Almost threefourths of those polled reported that they were well rested the previous day, and the 30% of respondents who reported having experienced pain place Ecuador well below average on this category.*

Ecuador faces serious challenges related to refugees and internally displaced individuals, as well as with groups who consider themselves to have been discriminated against previously. Ecuador also experiences a serious challenge with human flight, as many of the best-educated citizens find jobs outside of the country. The Ecuadorian government scores poorly on variables that assess the degree to which the government engages in violent practices against its own citizens, such as torture or political imprisonment. No Ecuadorians were killed in a civil war in 2008, but the murder rate was high enough to rank Ecuador in the bottom 25 with respect to homicides. Over a quarter of all citizens reported having property stolen in 2008, the fifth highest percentage of all countries, and 17% of citizens polled had been assaulted in 2008, the third highest in the Index for this measure.* Only 43% of respondents feel safe walking alone at night, indicating security problems.*

The legal and judicial system in Ecuador is not well developed, and laws are rarely enforced correctly, which is reflected in the country’s bottom 10 worldwide ranking in this category. Further, the quality of commercial regulation and the efficiency of the governmental bureaucracy are very low, placing Ecuador in the bottom 10, internationally. While political participation is very free and fair in Ecuador, only a quarter of citizens are confident in the honesty of the electoral process, placing Ecuador 94th in the rankings for this measure.* Less than half of all Ecuadorians have confidence in the country’s military, which is a low proportion, internationally.* More than 80% believe that both local government and local businesses are corrupt, while only 18% have confidence in the judicial system, the fourth lowest percentage throughout the Index.*

Ecuadorians have a high level of freedom of religion, movement, and speech, but only about two-thirds of the populace are happy with the level of choice in their daily lives, placing the country below the global average in this measure.* Tolerance for ethnic minorities and immigrants is moderate, with 65% of Ecuadorians believing that their neighbourhood would be a good place for minorities to live, and 63% thinking the same for immigrants.*

86% of Ecuadorians feel they could rely on their family and friends in times of need, a high number globally.* Only one in five respondents reported having volunteered or donated to charitable organisations in the previous month while 42% claimed to have helped a stranger during the same timeframe.* Ecuadorian citizens are strongly religious, expressing high confidence in religious organisations.* Data for variables regarding group membership were not available for Ecuador.

* Data taken from the Gallup World Poll

• Back to top