The people of Ecuador are rising up to refound their country as a pluri-national homeland for all. This inspiring movement, with Ecuador's indigenous peoples at its heart, is part of the revolution spreading across the Americas, laying the groundwork for a new, fairer, world. Ecuador Rising aims to bring news and analysis of events unfolding in Ecuador to english speakers.

Wednesday, January 07, 2009

Ecuador to Boost Social Investment

Quito, Jan 6 (Prensa Latina) The Ecuador government gives priority in 2009 to strategic sectors and ongoing works while intending to optimize expenditures, affirmed the minister of economic coordination, Diego Borja.

Due to the fall in oil prices, investments will center on the social spheres, especially in education and health, in telecommunications, hydroelectric plants and oil as well as works in progress, Borja explained in declarations to a national television channel.

"Obviously there must be an optimization of expenditures, there can be no waste in Ecuador, due to the poor use of resources," he emphasized while pointing out that the deficit for 2009 will not surpass three percent of the Gross National Product.

He further pointed out that funds will be requested from regional institutions such as the Inter-American Bank of Development, the Andean Corporation of Development as well as investment from friendly nations, such as Iran and Venezuela among others.

The official explained that these nations will supply resources for necessary and important works for the development of Ecuador.

The government aims to find a "manageable deficit and this objective will depend on the international scenario, the price of crude that is the main source of income," he added.

Referring to economic growth this year he indicated that it would be about three percent, lower than the 6.32 percent announced by the Ecuadorian Central Bank for 2008.

Inflation will also not surpass two digits, close to nine percent, equal to the figure predicted last year, he added.

Borja indicated that "the policy is not one of cutting back but of optimization of expenditures" by using resources well and generating sources of employment.

Finally, he stressed that everything will be done to prevent affecting the poorest population, which represents most Ecuadorians, by a contraction of expenditures or scarcity of funds.

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