Explainers

How the Illegal Drug Trade Is Affecting Ecuador’s Economy

Over the last decade, Ecuador has gone from being a quiet neighbor between Colombia and Peru to being described as a key hub of the global cocaine trade. Weak institutions, a dollarized economy, modern ports, and a free-trade link with Europe have made it attractive for foreign cartels and local gangs.

Series: Economy of Ecuador · Part 2

Ecuador’s Real Economy: Value and Cost of Its Key Sectors

Ecuador’s Real Economy: Value and Cost of Its Key Sectors When people talk about Ecuador’s economy, they usually mention oil first. That makes sense: oil exports and oil-related revenues still play a big role in public finances.

Series: Economy of Ecuador · Part 1

EXPLAINER – How Ecuador’s National Assembly Works (and how it connects to the President)

The Asamblea Nacional is Ecuador’s single national parliament – it’s unicameral, meaning there’s just one chamber, not two like in some countries. Right now it has 151 members (asambleístas), elected for four years. They come from three kinds of districts: 15 national members (elected by the whole country), 130 provincial/district members (elected in each province and big metro area according to population), 6 repre…

EXPLAINER – How Ecuador’s national budget is made

EN: The Presupuesto General del Estado (PGE) is basically the country’s yearly money plan. It estimates how much money the government will receive (from taxes, oil sales, fees, etc.) and how much it will spend (on education, health, roads, security and many other areas). The Constitution and the Código Orgánico de Planificación y Finanzas Públicas (COPLAFIP) say that the budget must follow the National Development P…

Why Do Investors See Ecuador as “High Risk”?

Why Do Investors See Ecuador as “High Risk”?Written with ChatGPT (GPT-5.1 Thinking) When news sites or banks talk about “sovereign risk”, they’re talking about how risky it is to lend money to a country’s government. Countries like Canada and the United States are usually seen as very safe borrowers. Countries like Ecuador are often classified as high risk. That doesn’t mean Ecuador is a disaster or “doomed” — it ju…