Pablo R. Izurieta Andrade - Boom and Bust: Ecuadors Financial Rollercoaster

Synopsis

This work proposes a connection of financial circumstances with major socio-political events in 20 th -century Ecuador. It highlights the state of the nations economy as a determinant factor in the outcome of events. Throughout the history of Ecuador, the ambivalent evolution of major political and social events such as the stability of serving presidents, coups and war, has had an interesting and direct relationship to the financial environment. If the economy was healthy, did the country also experience stability? If it went into disarray, did the non-financial environment follow? Data collected from the Central Bank of Ecuador , unpublished diplomatic papers, and personal documents from relevant historical figures, as well as from the work of previous historians, indicate a strong effect of financial and economic performance on major political and social events. Particularly, given the countrys dependence on three main commodities: cacao , bananas and oil , the performance of these significantly shaped 20 th -century Ecuadorian history.