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Coherence of Development Policies: Ecuador's Economic Ties with Spain and their Development Impact

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  • Iliana Olivié

Abstract

This study provides a general analysis of economic relations between Spain, as a donor of official development assistance (ODA), and Ecuador, as a partner and recipient of development aid. It seeks to assess the potential (in)coherence between Spain’s foreign economic activities and the goals of development and poverty reduction that the Spanish government established for its relations with developing countries. Hence, the study's main aim is to determine whether the Spanish government as a whole (and not just Spanish co-operation) is coherent with Ecuador’s development and thus coherent with Spain’s policies on international development co-operation. We therefore analyse the links between the two countries through trade, international remittances, foreign direct investment (FDI) and external debt, from a development point of view. The secondary aim is to offer recommendations to help make Spain’s activities more coherent with development. One main challenge that arises is the lack of an institutional framework for a wider set of relations between the two countries. Although there is an institutional basis for international assistance acitivites, it does not cover other economic activities such as trade or investment projects. As a result, incoherences appear, such as the approval of ODA trade credit lines that are eliminated in debt cancellation agreements a few years later. Cette étude analyse les relations économiques entre l’Espagne, un bailleur de fonds, et l’Équateur, pays partenaire et récipiendaire de l’aide au développement. On cherche à établir les (in)cohérences potentielles entre les activités économiques extérieures de l’Espagne et les objectifs de développement et réduction de la pauvreté que le même gouvernement a établis pour ses relations avec les pays en développement. Le principal objectif est alors de déterminer si l’ensemble de l’Administration espagnole (et pas seulement l’administration chargée de la coopération au développement) est cohérent avec l’objectif de développement de l’Équateur et, en conséquence, cohérent avec les politiques espagnoles de coopération internationale pour le développement. Concrètement, nous analysons, du point de vue du développement, les liens en matière de commerce, transferts internationaux de migrants, investissements directs étrangers et dette étrangère. Le deuxième but est d’offrir une série de recommandations afin d’assurer la cohérence des activités économiques extérieures de l’Espagne avec son objectif de développement. Un des défis majeurs réside dans l’absence d’un cadre institutionnel intégrant l’ensemble des relations entre les deux pays. Bien qu’il existe une base institutionnelle pour la coopération internationale au développement, celle-ci ne couvre pas certaines dimensions économiques comme le commerce ou les projets d’investissement. Il en résulte l’apparition d’incohérences comme l’ouverture de lignes de crédit AOD qui sont par la suite résiliées lors d’un accord d’annulation de dettes.

Suggested Citation

  • Iliana Olivié, 2009. "Coherence of Development Policies: Ecuador's Economic Ties with Spain and their Development Impact," OECD Development Centre Working Papers 280, OECD Publishing.
  • Handle: RePEc:oec:devaaa:280-en
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    File URL: http://dx.doi.org/10.1787/221388758133
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    Keywords

    aid; aide; coherence; cohérence; commerce; dette extérieure; development; développement; Ecuador; Espagne; finance; finance; foreign debt; Spain; trade; Équateur;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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