ut of the third world for the time being. However, between 1976 and 1980 it also increased its total "external debt by a spectacular 67% annually (Clark 1997: 5)," and has not proceeded to slow down. This coupled with the decline of oil prices (from $35 in 1979 to $10 a barrel in 1986) and the rise of real interest rates spelled its doom. In order to maintain national stability Ecuador has tried to induce a trade surplus in order to increase the flow of money into domestic markets, as well as taking many more loans from the IMF. However, there have not been nearly enough investments made into export goods such as shrimp and roses. Although these industries have grown as of late, " the share of industry (which produces capital and surplus) in Ecuador's overall GDP has shrunk to a mere 7.3% after a continual decline through the 1980's (Bulmer-Thomas, 1994: 401)." Plus there has been an extensive movement of capital flight. In other words: "by 1994, wealthy Ecuadorian's had 13 times as much money invested outside of the country as they had in Ecuador (Clark 1997: 7)." All these factors have culminated in a devaluation of currency (the sucre), a domestic bank crisis, skeptical world lenders, and a shady era of democracy. Ecuadorian politics have been no different than the rest of Latin America's. It too continues to struggle with national stability through constant changing military and democratic rule. Ecuador entered its period of 1970's under an authoritarian military government and prospered greatly because of this. The authoritarian power the military lead government had allowed it to smoothly carrying out policy after policy. In 1979 the military ended its rein of power in Ecuador, and has been ruled by a series of democratically elected governments since then. Many applauded this change for its positive effects. It has lead to a great increase in civil rights as well as popular indigenous participation. Educa...
