The Social Science Library » The IMF, the World Bank, and U.S. Foreign Policy in Ecuador, 1956-1966

The IMF, the World Bank, and U.S. Foreign Policy in Ecuador, 1956-1966

Author(s)	Kofas, Jon V.
Abstract	During 1956-66, unfavorable shifts in the terms of trade crippled the Ecuadorian economy, undermining the value of its chief exports and forcing it to rely increasingly on foreign loans. This article details the influence of the World Bank, the International Monetary Fund, and United States foreign policy on Ecuador’s economy during this period. Under Camilo Enriquez, Ecuador first moved toward import substitution, reliance on foreign investment, austerity, and repression, which led to increasing dependence on the United States and international financial agencies and to ballooning private and public debt. The populist regime of JosÃƒÂ© Maria Velasco Ibara, elected in 1960, promised social and land reforms, but under US and international pressure Velasco abandoned these objectives, and he was overthrown in November 1961, along with parliamentary democracy. A military junta soon followed in 1963. While Ecuador thus struggled, international and US agencies imposed policies broadly in line with their interests and those of their clients among the Ecuadorian elite. The results included endemic corruption, a highly unequal agrarian sector, and foreign domination of banking, manufacturing, and petroleum.
IssueNo	5
Pages	50-83
Article	Access to Article
Source	Latin American Perspectives
VolumeNo	28
PubDate	September2001
ISBN_ISSN	0094-582X
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The IMF, the World Bank, and U.S. Foreign Policy in Ecuador, 1956-1966