Extractivism, economic diversification and prospects for sustainable development in Ecuador

Resumen

Ecuador ranks among the most biodiverse countries in the word and it is an oil exporter since 1972. Although oil became the backbone of the economy, the country extractive capacity is declining and diversification is necessary. Extractive-based economies in developing countries have been affected by weak economic performance, low diversification, structural unemployment, limited institutional development and high environmental impacts. Nevertheless, experiences in Latin America are diverse, with strong problems in Bolivia, Peru, Venezuela, and relatively favorable results in Chile. The paper objectives are analyzing Ecuador’s long-term performance, and evaluating prospects for overcoming extractivism.