Over the past 15 years, Ecuador has experienced significant economic and political transformation. In 2000, after years of high inflation, Ecuador introduced the U.S. dollar as a legal tender. This unconventional decision stabilized the economy and prevented hyperinflation. Stabilization, coupled with high oil prices, contributed to the economic boom in the early 2000s. The 2006 presidential elections also ushered in relative political stability. President Rafael Correa, who is currently in his second term, is supporting a shift to what he calls “21st century socialism”. The 2008 Constitution guaranteed some human rights such as “right to nature” and “right to food”.
According to the World Bank, from 2001 to 2008 Ecuador’s economy grew at an average rate of 5 percent. Ecuador was adversely affected by the global crisis but managed to restart economic growth in 2011. Despite this growth, poverty and inequality continue to be the main challenges for Ecuadorian development. For some, the country’s expansion of social spending is evidence that the current government is exercising the political will to address those problems.
Notwithstanding the dynamic changes in Ecuador, the European Commission’s objectives for 2011-2013 remained the same as projected in 2006 — achieve the Millennium Development Goals and reduce poverty. Over the period of 2007-2013, the European Commission allocated €137 million ($175 million) to support social programs and create sustainable economic opportunities in Ecuador. The Mid-term Review, a document published by the EC, prescribed that, for the 2011-2013 period, the EC has two priorities in Ecuador — education and economic development.