VZCZCXYZ0000
PP RUEHWEB

DE RUEHQT #2585/01 3391113
ZNR UUUUU ZZH
P 051113Z DEC 07
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC PRIORITY 8128
INFO RUEHBO/AMEMBASSY BOGOTA 7153
RUEHCV/AMEMBASSY CARACAS 2783
RUEHLP/AMEMBASSY LA PAZ DEC LIMA 2189
RUEHGL/AMCONSUL GUAYAQUIL 3090

UNCLAS QUITO 002585 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR: USAID (ROBIN BRINKLEY, SARAH-ANN LYNCH, CARL DERRICK, 
TULLY CORNICK) AND F (ERNESTO URIBE AND CHARLES NORTH) 
 
E.O. 12958: N/A 
TAGS: EAID EFIN EINV SENV PREL EC
SUBJECT:  Open Channels: GOE Seeks USG Assistance in Key Sector 
Reforms 
 
Ref:  Quito 2237 
 
¶1.  (SBU) Summary.  The USG and GOE are successfully working 
together on policy reform in areas of mutual interest.  The GOE has 
sought or accepted technical assistance from USAID in competition 
policy, investment, finance, decentralization, environment, and on 
other issues.  End summary. 
 
¶2.  (U) The GOE is planning to pursue comprehensive reform across 
the public sector, with changes at the constitutional and 
legislative levels (reftel and previous).  It intends to submit 
draft reform proposals to the Constituent Assembly, which was 
inaugurated on November 29 and will have up to six months to draft a 
new constitution.  Having suspended the Congress for the duration of 
its mandate, the Assembly is concurrently serving as Ecuador's 
legislative body.  In this context, several agencies have sought 
USAID assistance to review legislative changes that they are 
drafting. 
 
Competition Policy and Competitiveness 
-------------------------------------- 
 
¶3.  (SBU) Veronica Sion, head of the GOE's competitiveness 
commission, requested funding from USAID for an international 
consultant to review the draft competition law (akin to U.S. 
anti-trust law) prepared under the commission's auspices.  USAID has 
agreed to fund this request to help establish much needed 
anti-monopoly laws in Ecuador. 
 
Investment Attraction 
--------------------- 
 
¶4.  (SBU) In another instance, USAID met with Coordinating Minister 
for Production Mauricio Davalos to discuss adding an investment 
attraction strategy to the USAID competitiveness program.  The 
Minister expressed support for the proposal to have the regional 
development committee (Ecuadorian Committee for Economic Territorial 
Development) serve as a conduit between international investors and 
municipal governments and local businesses.  Davalos mentioned that 
this strategy falls in line with the GOE's internal investment and 
productivity goals, particularly with respect to SMEs and more rural 
areas.  Davalos was replaced over the weekend by Susana Cabeza de 
Vaca (septel), the former Executive Director of the USG Fulbright 
Commission. USAID expects shortly to reconfirm with Cabeza de Vaca 
the GOE's continued interest.  Future meetings with high-level GOE 
officials are planned to explore how the GOE and USAID can jointly 
support a new investment strategy. 
 
Financial Sector 
---------------- 
 
¶5.  (SBU) USAID sponsored a trip for Central Bank officials to visit 
the U.S. Federal Deposit Insurance Corporation (FDIC) and the 
Salvadorian Institute of Deposit Insurance in an effort to better 
understand successful deposit insurance systems, which is currently 
lacking in Ecuador.  Before proceeding with the trip, the Central 
Bank sought and received President Correa's blessing for this trip. 
The two Central Bank participants, Mauricio Martinez and Victor 
Campoverde, were subsequently appointed General Manager and Deputy 
Manager of the Central Bank by the Central Bank board.  Since that 
time, the Central Bank, again with the support of President Correa, 
has requested technical assistance from USAID to help form financial 
sector reform policy and review legislation that would merge the 
Central Bank and Superintendency of Banks.  The IDB is also 
supporting this work.  The Mission supports creation of an efficient 
and independent regulatory body. 
 
Training for People with Disabilities 
------------------------------------- 
 
¶6.  (U) USAID and the Office of the Vice-President of Ecuador 
partnered with the private sector to finance and implement a pilot 
program that will teach computer skills to 270 people with 
disabilities nationwide.  This training will make them more 
competitive and improve their chances of securing better-paying 
jobs.  It will also support compliance with Ecuadorian law that 
requires private firms to employ at least one person with 
disabilities per 100 employees. 
 
Justice Reform 
-------------- 
 
¶7.  (U) The Justice Network NGO, a USAID-supported civil society 
group, drafted a set of key justice sector reforms to be added to 
 
the new constitution.  Elected Constituent Assembly members from 
Alianza Pais, President Correa's political movement, participated in 
dissemination events and committed to promote the Network's reform 
proposals in the Assembly. 
 
Decentralization 
---------------- 
 
¶8.  (U) Through its Local Governance program, USAID provided 
assistance to the GOE's Planning and Development Secretariat, 
SENPLADES, by supporting a symposium which brought together experts 
from Latin America and the U.S. to discuss decentralization and 
regionalization experiences in the hemisphere.  Another co-sponsor 
of the symposium was the Latin American Center for Social Sciences 
(FLACSO).  Members-elect of the Constituent Assembly, academicians 
and the press were invited. 
 
Environment Sector 
------------------ 
 
¶9.  (SBU) USAID is also discussing technical assistance in preparing 
a constitutional proposal and implementing language for the Ministry 
of Environment, the Consejo Nacional de Desarrollo Sostenible 
(CNDS), and the Governor of the Galapagos.  CNDS is a government 
body with NGO and private sector representation charged with 
organizing the GOE's recommendation for reforms in the environmental 
sector. 
 
¶10.  (SBU) Comment. Post is carefully reviewing USG policy benefits 
of assistance in the high profile and sensitive work of the 
Constituent Assembly to ensure that USG support focuses on 
constructive areas of convergence, avoids the risks of 
politicization or being misconstrued as an attempt to 
inappropriately influence Ecuador's political process.  USAID's 
current work with the GOE on sensitive policy reforms to date offers 
an encouraging validation of this approach as  the GOE is not only 
willing to receive help, but are actively seeking it as well in 
several sectors.  End Comment.