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"There is mistake in the economic policy"
26 October 2009 | EXPRESO Newspaper
Businessman, and former presidential candidate, Alvaro Noboa makes an analysis on the current situation of the country and the need to open new markets while performing a tour through European countries.
What is your read on the crisis lived in the country?
The economic policy of the Government has made that Ecuador live the biggest crisis of this times, while increasing the rate of unemployment. there are laws that raise taxes. This creates more problems on the labor sector, tax area, export regulation; all of this encourages a decrease in the country. the external crisis whose origin had a mortgage and financial also affected the country.
How can the private companies recover work sources?
It is better to not fire people, unless the company is bankrupt; secondly, reducing any unnecessary expenses, and third, which is the most important, search for new markets. Besides keeping with up with the United States, we must open destinies like the ones in Eastern Europe to attract Ukraine, Poland, Macedonia, Hungary, Romania, and the former Yugoslavia, like Slovenia, and Croatia, besides Turkey, and all the sector of the Black Sea.
The population of those localities reaches to 500 million people, we have to add China, since it is growing 7,5% annually, while Ecuador and the rest of the world decrease. Because of this, we must seize all those markets.
We have a socialist state that is not thinking in the free commerce. What must the companies do to understand that through this they can generate more employment and economic growth?
Regrettably this is the tendency that has been given in the last 10 years. I believe that the only way the Government understands is through there own experience. For example: China, despite the world crisis continues to grow, meanwhile Ecuador who has a high oil price, has an economy that keeps decreasing. Then there is a mistake in the economic policy. and that is the fault of there rulers.
Through tax reforms, one way or another, the exporters are the targets of higher taxes, how can markets be diversify with this? I believe something is wrong in Ecuador, and the banana sector is suffering for this, like legal companies as Noboa, Dole, Del Monte, who pay a high price, while the informal companies that represent half of the country exports pay much less, this damages the current international market. because the markets say to me: Mr. Noboa, why do you sell us the banana box to a higher price than other Ecuadorians? I answer them, because they pay much less to the producer, and they answer, that is not my problem; if you want to sell me your product lower the price.
How does it feel that other countries accept your investment without more taxes? I feel horrible that in Ecuador, were we have been the number one in most of our products, we are the most pursued, they say I am a tax evader when the truth is that I always pay more.
Despite the problems that your companies deal with, are you going to keep up with politics?
As long as there is poverty in Ecuador I will keep trying to eradicate it by every possible angle, even the political one.
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