Cocoa, Finance and the State in Ecuador, 1895–1925

Resumen

Abstract— In 1895 liberal forces, dedicated to the modernisation of their country's economic, social and political structures, came to power in Ecuador. The transformation was to be brought about on the basis of income from the profitable cocoa trade. Closely linked to the agro‐mercantile élite of Guayaquil, the liberals embarked upon an ambitious programme of reform. By the early 1920s, however, their hopes had been shattered by the decline of the cocoa trade and the impact of the First World War. Heavily indebted to Guayaquil banks and facing mounting domestic opposition, the liberals were overthrown by the military in July 1925.