About Ecuador

Ecuador Population: 13,212,742 (July 2004 est.)
Languages: Spanish (official), Amerindian languages (especially Quechua)
Capital: Quito
Government Type: Republic
Independence Day: 24 May 1822 (from Spain)
Legal System: Based on civil law system; has not accepted compulsory ICJ jurisdiction
Currency: US dollar (USD)

Executive Branch:

Chief of State: President Lucio GUTIERREZ (since 15 January 2003); Vice President Alfredo PALACIO (since 15 January 2003); note - the president is both the chief of state and head of government.

Head of Government: President Lucio GUTIERREZ (since 15 January 2003); Vice President Alfredo PALACIO (since 15 January 2003); note - the president is both the chief of state and head of government.

American Embassy: Avenida 12 de Octubre y Avenida Patria, Quito
Mailing Address: APO AA 34039
Telephone: [593] (2) 256-2890 FAX: [593] (2) 250-2052

Economic Overview: Ecuador has substantial petroleum resources, which have accounted for 40% of the country's export earnings and one-fourth of public sector revenues in recent years. Consequently, fluctuations in world market prices can have a substantial domestic impact. In the late 1990s, Ecuador suffered its worst economic crisis, with natural disasters and sharp declines in world petroleum prices driving Ecuador's economy into free fall in 1999. Real GDP contracted by more than 6%, with poverty worsening significantly. The banking system also collapsed, and Ecuador defaulted on its external debt later that year. The currency depreciated by some 70% in 1999, and, on the brink of hyperinflation, the MAHAUD government announced it would dollarize the economy. A coup, however, ousted MAHAUD from office in January 2000, and after a short-lived junta failed to garner military support, Vice President Gustavo NOBOA took over the presidency. In March 2000, Congress approved a series of structural reforms that also provided the framework for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and growth returned to its pre-crisis levels in the years that followed. Under the administration of Lucio GUTIERREZ, who took office in January 2003, Ecuador benefited from higher world petroleum prices, but the government has made little progress on fiscal reforms and reforms of state-owned enterprises necessary to reduce Ecuador's vulnerability to petroleum price swings and financial crises.

International Disputes: the continuing civil disorder in Colombia has created a serious refugee crisis in neighboring states, especially Ecuador.