tion has continued to improve with a simultaneous increase in cultural pride, and so forth. Yet, this new form of rule has also brought about new evils. Democracy has made it almost impossible for leaders to pass laws or reforms aimed towards the lowering of debt. In other words, it has undermined the government's power to make a difference. In addition, globalization has caused those in power to neglect domestic issues and concentrate on world influences instead. Some feel that this detrimental movement has occurred because most domestic proposals are killed by the gridlock of bureaucracy and rendered ineffective by time lags. Thus, fewer and fewer politicians waste their time with such issues, and when they do it seems to be that their proposals are denied or are too little and too late to make a difference. For example, President Jamil Mahuad has just signed a letter of intent with the IMF to pay back some of the outstanding debt in order to bring in nearly $400 million aimed at rejuvenating the economy. Nevertheless, Ecuador's Congress is currently blocking this proposal consisting of an increase in taxes, reforms in the banking system, and no deficit spending. Opposition parties do not agree with an increase in taxes, as they would like to see that the government crack down on tax evaders first. Tax evasion is so rampant that "the government estimates 80% of taxes are not paid (Miami Herald 1999)." This raises other interesting reasons for Ecuador's crisis, the first being corruption. It is evident that a state can not function smoothly unless all people are held accountable to their actions. Yet, "a recent study listed Ecuador among the 10 most corrupt nations in the world and the riskiest for foreign investors to operate in (Miami Herald 1999)." It is evident that cheating is going on from the local store all the way to the presidential office. Clearly no sane person would want to invest in a region controlled by co...
