Ecuador Finds Progress Made During Boom Years Is Unsustainable

Ecuador Finds Progress Made During Boom Years Is Unsustainable
Pipelines running from an oil production site in eastern Ecuador, Dec. 3, 2012 (DPA photo by Erwin Patzelt via AP).

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries.

Ecuadorean President Rafael Correa defended his legacy last month in his last state of the nation address, saying that the current recession is the result of a perfect storm of falling oil prices and a strengthening U.S. dollar. In an email interview, Diego Grijalva, a professor of economics at the University of San Francisco of Quito, discusses Ecuador’s economy in the wake of the commodities bust.

WPR: How important are commodities for Ecuador’s economy, and what impact have falling commodities prices had on the economy and, in turn, domestic politics?

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