Name: Republic of Ecuador Population: 14.483.499 million Capital: Quito Other major cities: Guayaquil, Cuenca, Santo Domingo Area: 105,037 sq miles Currency: US Dollar GNI per capita: $3,850 (WB, 2010) Main exports: oil, bananas, shrimp, coffee, flowers Language: Spanish, Indigenous Languages Religion: Catholic (95%) Life expectancy: women-75yrs. /Â men - 72yrs (WB, 2009) WB Development IndicatorsÂ
Over the past decade Ecuador has been characterized by high levels of political instability, economic crisis and financial volatility, which resulted in the country adopting the U.S dollar as its official currency, and seven different presidents serving in the last 11 years.Â
In the last four years,  the country has experienced a period of relative political and economic stability. The current President, Rafael Correa Delgado, who took office in January, 2007 proposing to lead significant constitutional reforms as well as to strengthen the State's in the economy and the Government's planning capacity. High oil prices and a favorable external environment hava allowed the country to increase fiscal spending, and public investment in programs and projects, particularly in infrastructure and social programs.Â
After his election, President Correa called a referendum in order to form a Constitutional Assembly in charge of writing a new Constituion, which was subsequently approved by referendum in September, 2008. One of the Constituion's mandates was to call for a general election, which Correa won, thus extending his term in office to 2013.
Between 2001 and 2008, the Ecuadorian economy grew at an average rate of 5%. In 2009, as a result of the global crisis, GDP growth dropped to 0.4%, recovering in 2010 to 3.6% inflation has remained relatively low since dollarization in 2001, although it picked up alongside stronger growth in 2011.                                                                         Â
The government's current strategy has been to sustain economic growth by significantly increasing public spending. The government has invested in housing, transportation and energy projects. As a result of these policies, public spending has increased by 305% between 2005 and 2010. To finance public spending, the government has used additional resources besides the traditional revenue services, which have included: foreign bilateral loans, loans from social security funds (IESS), extraordinary oil revenues, and tax reforms.
Income poverty (according to the national poverty line) decreased form 37.6% in 2006 to 32.8% in 2010, likewise extreme poverty fell from 16.9% in 2006 to 15.4% in 2009.Â
Challenges
Poverty and inequality continue to be Ecuador's main challenges, this has been acknowledged by the Government and has driven the large scale expansion of social programs. The 2009 - 2013 Development Plan has a strong emphasis on reducing poverty and social inclusion, equality and justice.Â
The World Bank has a program of approximately US$27 million, which includes a rural development loan (US$15 million) to the Government of Chimborazo Province, various grant programs well as providing consultancies and technical assistance in social and environmental fields. Some of these projects are:
Chimborazo Development Investment Project (PIDD) The objective of the Project is to increase agricultural production and access to markets for rural families which live on the banks of the river Chambo and Chanchan-Chimbo, within the Province of Chimborazo. The project is based on investments in irrigation and improving roads.Â
National System of Protected Areas Project The 2002-2007 project helped strengthen Ecuador’s National System of Protected Areas by improving the legal, institutional and financial foundations and capacities for the participatory management of protected areas. Among other things, it established a Protected Areas Trust Fund to cover the recurrent costs of six priority protected areas. It designed and implemented management plans for two priority protected areas. A subsequent audit found outcomes satisfactory.
Poverty Reduction and Local Rural Development Project (PROLOCAL) The project targets 60,000 households where 80% of beneficiaries are poor. With local participation, 117 development plans have been designed to help the communities identify their priorities in health, education, environment and communication, as well as to coordinate their efforts to improve their living conditions. A total of 452 productive projects have been launched, providing new jobs and income for more than 56,300 poor households. Capacity building is another achievement with 25,000 people trained in entrepreneurial skills.
The Indigenous and Afro-Ecuadorian Peoples Development Project (PRODEPINE) The project helped to strengthen the capacity of 241 local indigenous and Afro-Ecuadorian organizations to participate in the formulation of state policies and in local development projects, and to provide services to their members. The project also supported the creation of two national councils (CODENPE and CODAE) to facilitate dialogue between indigenous and Afro-Ecuadorian peoples and the Government.Â
Over the past decade Ecuador has been characterized by high levels of political instability, economic crisis and financial volatility, which resulted in the country adopting the U.S dollar as its official currency, and seven different presidents serving in the last 11 years. 
Between 2001 and 2008, the Ecuadorian economy grew at an average rate of 5%. In 2009, as a result of the global crisis, GDP growth dropped to 0.4%, recovering in 2010 to 3.6% inflation has remained relatively low since dollarization in 2001, although it picked up alongside stronger growth in 2011.                                                                          
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