Page 1


2013‌? The number 13 can be a damn or a lucky number, as the Anglo-Saxon say "lucking number", it all depends on the people of this country if they allow and continue to allow to cage more people or if we demand to move us from people to citizens. The year 13 can be spectacular if it begins to change aggression by agreements and if the private sector joins with the state sector to precisely start producing and generate work in an appropriate way. The 13 will be a "lucking number" if people starts to work and not only to receive bonuses and do nothing. It will be a lucky year if we demand to support agriculture, if we give the agricultural sector training, credits, high productivity seeds to produce (for example) soybeans instead of importing it for more production. It will be a lucky year if we recover the Guayas River, Daule and Babahoyo, because you have to understand that in the Guayas Basin live around 4.9 million people who are committed in 5 provinces, 39 cantons; we must demand this government rescue the rivers because tol prevent flooding and to increase agricultural efficiency. It will be a year of luck, if it starts promoting domestic and foreign investment, giving legal security and clear rules. It will be a lucky year if we stop attacking the people's pockets with the capital exit tax, even more that this tax pushes investment to neighboring countries. It will be a lucky year if we leave the parentheses that have gotten us to do things not to believe. It will be a lucky year if instead of making the famous emergency contracts we began to attract concessions to build roads, bridges and dedicate ourselves to build roads. It will be a great year if the cantons and provinces understand the importance of environmental management and urban/rural sanitation. For example, take action to concession the waste management, in order to have waste recycled, orderly, to create jobs and investment. If we start with a change of mind that values our natural resources and from the least Ecuadorian, assimilate the importance of the good management of the natural environment. It can be a lucky year if channeling sewage starts, especially in small towns and rural areas. It will be a very, very lucky year if you start taking into account not to depredate forests; it will be a year in which the 13 will be a "lucky number", if you do a job on the banks of the rivers making a bamboo cane wall to prevent landslides and erosion in watersheds. It will be a lucky year if you train the population living close to rivers and other wetlands to generate sustainable development options through good management of economic alternatives for the proper use of the resource.


Would the 13 be the year of luck, finishing it with the recycled garbage, sewage in place and the beginning of an ecological plan. Let's cut the nonsense, much more damage is done with the existing predation than with a dream of a future ITT asking for charity where even outside it does not interest them. Let's make this year a year of the positive, peace, health and progress. God bless this wonderful country and that 2013 is our lucky year and number!


The Benemérita Sociedad Filantrópica del Guayas awarded unanimously Eng. Joyce de Ginatta with the Medal of Merit, which is annually awarded to citizens or institutions that have shown to serve the City with ability and patriotism. This event was held on November 21st at the lounge of Honor “José Salcedo Delgado”.


From October 24 to 26, 2012 the International Women´s Forum organized other international events, this time in San Francisco, California, called “Ideas to remake the world”.

Part of the IWF, chapter Ecuador that attended the event: from left to right.: Mrs. Rebeca Eljuri de Kronfle, Mrs. Haydeé de García, Mrs. Ilse Meinlschmidt, Eng. Joyce de Ginatta, Mrs. Patricia Isaías de Estrada, Mrs. Margarita Jaramillo de Hidalgo and Mrs. Cecila de Armstrong

From left to right Mr.. Chad Fleming, IWF International Executive Director in Washington, Eng. Joyce de Ginatta and Mrs. Sra. Patricia de Estrada.

Mrs. Sara de Benálcazar, Mrs. Sandra Benálcazar and Eng. Joyce de Ginatta

From left to right.: Eng. Giovanni Ginatta, Executive Director of FIE accompanying the IWF Ecuador ladies, Ilse Meinlschmidt, Haydeé de García, Joyce de Ginatta, Margarita Jaramillo de Hidalgo, Rebeca Eljuri de Kronfle, and Cecila de Armstrong.

THE PERVERSION OF DEMOCRACY


Dr. Franklin Lopez BuenaĂąo Retired teacher of Tulane University, New Orleans The U.S. election results are compelling evidence that the North country continues its inexorable path to the left. Each time it is more like the social democracy in European countries. And everything seems to presage that this path is inevitable and irreversible. However, there is a hope, as we shall see. The majority of the electorate has been abandoning traditional values of morality and has adopted the ethical relativism of postmodernism. Gay marriage does not offend rather it is appreciated as a "progress" in the social consciousness. For example, before 2012, all referendum to legalize "gay" marriage had failed; in these last elections it was legalized in the states of Maine, Maryland and Washington. Religious icons, such as the Nativity or the Ten Commandments cannot be exposed in public places. The Cross of the California shield had to be removed, even though it meant only an historic event: the colonization by Catholic missionaries. What a contrast with the flag of Russia that has St. George fighting against the dragon! The culture war has been won by the "progressionist"; from now on the conservatives will be clearly reactionary, dogmatic, outdated, etc.. It is because moral relativism has been taught in universities and academies. Movies, television, media like the New York Times, the Washington Post and Time magazine have reported and promoted these ethical values, and will continue doing it, rejoicing in his victory over the minds of the Americans. Is there any hope for a different result? Yes, there is! The hope is in the Hispanic immigrants. The Latinos retain traditional values like religion and the family. The Hispanic does not migrate in search of "perks", they migrate in search of work opportunities, in opportunities for their children to have a better future than the one they had; they abandoned their land because they were victims of corrupt rulers and in the best cases, inept. They voted for Obama because Republicans have launched a campaign against illegal immigrants, but unfortunately, they give the impression of being against Hispanic immigrants in particular, without discrimination if they are legal or illegal. 71% of the Hispanic vote went to the Democratic Party. This means about 15 million votes out of 21.2 million. If only 60% (this is historical percentage voting Democrat) had voted for Obama, the Republicans have received more than 3.8 million votes. Enough for the triumph of Mitt Romney (the difference between Obama and Romney was 3.5 million). These are the figures that conservatives must work, not necessarily Republicans, if they want to rescue the United States from the clutches of libertine "progressivism" and walk on a path of freedom and prosperity. The leftward trend is not only socially, but also economically. It was the only industrialized country that had not socialized health care system, despite the enormous costs it involved. The redistribution of wealth and the growth of “socialâ€? spending is an obvious fact. According to exit polls, about 10 million voters were receiving financial aid, whether for food, shelter or basic education; 67% of "these" voted for Obama. This means about 7 million votes. Obama won with a difference of 3.5 million. So who gave him the victory? Those who want to continue receiving state patronage. Other results show the same thing: those who want perks go to the polls, win elections and divide the money of others. Here is the perversion of democracy. The fiscal situation can embarrass economic growth. Europe is living it. The economy, fortunately, is capped: resource scarcity. Margaret Thatcher said, socialism works until the money of others runs. The crisis in Europe will soon teach their lessons: stunted growth, disappearance of entrepreneurs, social unrest, street violence. If the growth of the welfare state continues, these are the results. The market does not forgive the clumsiness of the voters when they choose their rulers wrong.

THE DAULE RIVER: A BASIN IN RISK THAT HAS ALREADY INITIATIVES OF SOLUTION


Carlos A. Schumacher Andretta Lawyer Director of Corporate Affairs of Cerveceria Nacional CN S.A. Several years ago, even as a child, I remember an interview aired by a national channel because of the damages that many crops and Ecuadorian Coastal areas have had as a result of flooding caused by a severe winter. In an interview with a farmer of the province of Guayas, the reporter asked him: "What do you do with these floods, with all your fields under water?� This farmer's response, full of innocence, was: "Nothing, sometimes we swim, sometimes we dive and others we do air bulbs". The journalist was surprised by the answer, and he insisted: "But what about rice?". To which the farmer spontaneously, said, "rice?, rice doesn't matter�. For many years we have been witnessing the continuing deterioration which our water resources are having, due to the rapid increase of water pollution, modification of natural resources, ecosystem degradation, sedimentation, increasing population pressure, etc. This reality has caused and is causing damage to all its beneficiaries and of course the threat is becoming more complex. The Daule river basin is one of the main basins of Ecuador, with an area of 11,567 km2, equivalent to 5% of the total area of our territory. Within its area of influence are five provinces (Guayas, Manabi, Los Rios, Santa Elena and Santo Domingo) and 31 cantons. The population within its area of influence is 4'518.106 inhabitants, equivalent to 32% of the total population, i.e. three out of ten Ecuadorians. The length of its main river, the Daule, is 331 km, which crosses eight cantons. The Daule River has a maximum average flow of 950m3/s and a minimum average flow of 25m3/, depending on the season. In short, it's easy to conclude that the Daule river is a source of life and economic engine in our country. Quoting Luis Dominguez, director of the Center for Water and Sustainable Development at the Polytechnic School of the Coast (ESPOL): "The Daule river provides many benefits for the populations settled along its banks. Right now it would be virtually impossible to think in the development of the city of Guayaquil and many settlements without the presence of the Daule river ". Being aware of this reality, earlier this year, Cerveceria Nacional (CN) promoted the organization of the First Academic Technical Forum for the Sustainable and Participatory of the Daule basin. This forum was convoked and attended by the leading authority responsible for managing water resources, as well as by local and provincial authorities, civil society organizations, private sector, academic entities, etc. The main objectives set in this meeting were to generate interaction and participation of all stakeholders, enrich and inspire awareness of decision makers, and promoting joint work focused on the restoration and care of the Daule river basin. From the private sector perspective, their involvement and concern for environmental conditions and use of resources, as well as social, of the communities it serves, it should become an essential part of their strategy and business model, and stop seen it as a secondary issue or third party liability. For example, it is necessary to have indicators on water footprint caused by various industrial processes, and that allows to assess the water consumed directly or indirectly in the production of any good or everyday service. Nevertheless, we started from a premise that we consider essential and this was that the only way to propose real solutions was to the extent that they generate a comprehensive and participatory process with as many stakeholders involved in this reality. The United Nations already, in its reports about sustainable water management, had indicated that the only way to manage and recover water resources on the planet is the participatory management, where public authorities, private companies and civil society interact and create synergies. We must not lose sight of the problem of the future of water, both in their access to human, industry and agriculture uses, as its quality, has worldwide dimensions. It is well known the data that at global level water balance is worrisome, i.e.,


whenever we are closer that our demand for water (quantity and quality) exceeds availability. And while in some countries, such as Ecuador, the water balance is positive and therefore it does not appear to threaten us, shortage in the availability is a threat in terms of quality. In this forum, where in addition to presentations by experts, working groups were formed to identify the various problems of the basin and possible actions solution, it was set some very interesting proposals as a result of a constructive dialogue of the various actors. Thus, it was concluded that the lack of territorial planning and pollution from household sewage, agricultural and industrial, were the biggest problems, followed by floods, deforestation and dumps. In addition to this, the most interesting probably and the most relevant result, was the birth of an initiative that a few months later became a reality: the DAULE NETWORK. Indeed, as a result of this forum, and convinced of the need for working together in private, state, local institutions, academy, NGOs, is necessary to search for integral solutions, the NETWORK DAULE was formed, which aims to become a forum for exchange of information for the sustainable and participatory basin. This network aims to systematize initially all available information on the status of the basin and create tools to access, update and use. Similarly, from it, lead initiatives and projects for its care and recovery. Without the Daule river and its waters, in high quality and quantity, we will have problems. But take care of it and sustainably manage it, is the task of all; it should be a participatory and permanent process. With that vision, the NETWORK is open to the participation of new actors; additionally it serves as an example for the management and care of other basins, but mostly to preserve water resources in the country.

THE KEYS OF FOREIGN TRADE


Dr. Pablo Lucio Paredes Director of the Economy Institute Universidad San Francisco de Quito Let's start raising some fundamental issues on a country's foreign trade (foreign trade and more‌). 1) The essence of development is to generate added value and productivity. That is, to create value with the best use of resources (human, energy, physical, environmental, etc...). This is what enables also be more equitable. 2) The chain that takes this result is: savings/investment in its broadest sense (machinery, processes, organization)/technology/productivity/ production. 3) To make this chain works it requires many things, there is no exact and preset recipe (institutions, freedom, leadership, culture, education, etc...), but one of the key factors is the opening to the world, even more so in small countries who should take advantage of economies of scale generated by globalization. It is false, for small countries, the postulate that they develope isolating temporarily of the world (see Switzerland, Holland, Sweden, Taiwan, etc.) 4) This involves producing more valuable goods both for the internal as well as external market, but particularly for the latter. More value means goods and services, not necessarily high-tech, but for which consumers are willing to pay more, or buy much. And also it's important to penetrate the chain to the final consumer not to become producers who receive little, because others in the chain capture the most important values. 5) It is also false the vision, which also limits the opening to the world, according to which the good is to export and the bad to import. Eventually the people, companies and countries have a certain balance between the one and the other. What produces more wealth is not that are more exports than imports, but the dynamics: export more to import more. 6) Behind this there is the other major element of the economy as it is specialization and exchange. Bringing this to the case of Ecuador: 1) Our openness to the world is limited but we believe otherwise. Of course, we export about 25,000 million dollars a year, which is more than 30% of GDP, which is good. But more than half of this is oil, without it the figure actually of exported goods and services is 10,000, 14% of GDP and less than $ 700 per capita. You may ask, but why does it matter much that is oil, at the end they are all exports. You are right but that "heaven-sent money" that is oil, brings us to strive less, not to improve quality, not to add value, etc... Which is really a result of our efforts, are those 10,000 million. As a simple example, New Zealand is 10 times more per capita...without oil! 2) We generally sell low value goods and services. Banana is a wonderful product, but it has no great value, because beyond it is a very basic food, it has no great impact. No one is willing to buy or pay much more for the banana. And besides in the chain to the final consumer, we capture only a portion of the existing value (for example flower growers are making efforts to reach out consumers directly; this is very important). 3) Part of the external opening are trade agreements, because they allow to enter in better conditions to important foreign markets and in this, all Pacific countries are ahead of us. They all have FTAs with the U.S., Europe and many with Asia. We are reluctant because supposedly there are more disadvantages than advantages and we want only the latter, this is not how the world works. But if everyone has seen otherwise, is it that only we are right? It is said to be a fool the Free Trade openness, but just these agreements are not free trade (which would only require a two-line agreement opening economies) but regulated trade agreements and negotiated. But if we just want to give us the benefits in exchange of nothing, it does not work.


4) Another factor is the domestic and foreign investment. And there we are also in bad situation. Private investment has dropped several points of GDP in recent years, and the foreign one is in the simplest form to ourselves, and not to mention in front of others (for example, five times less than Costa Rica that is significantly smaller that Ecuador). Without investment, there is no real progress. 5) And finally, if there is no understanding of the role of the company, anything is possible. For the government the entrepreneur is one who must be controlled because it is essentially unfair. In a better view the entrepreneur should be pushed because it helps create wealth and in some cases its environment must be regulated. While the Government's vision prevails as backbone of the economy and society, there is no way to unlock this. So, unfortunately, private investment has fallen by more than 4 percentage points of GDP in recent years. In aggregate we have lost in relation to a reasonable trend, around 20% of GDP in private investment. ... We are not exploiting globalization as a development tool ...

A NEW WORLD DEMANDS NEW RULES


Julita Maristany General Secretary of the FIE Buenos Aires, Argentina It is evident that we are living structural changes in our society, at all levels and speeds which is very difficult to take. The institutions are seriously challenged from different areas of society, creating a sense of important social instability. What happens in the business world? They do not escape from the changes generated in the younger generation, for whom the concepts that were previously accepted, makes little sense for these generations. Our parents and even our generation believed in the booms of a job that with hard work and dedication certainly will progress, and, it was a source of pride on being able to show that working for ten, fifteen years in the same company, was considered a warranty of honesty and diligence. If besides it had progressed in the pyramid of HR, the pride was doubled as it meant we had also been effective in the work done. This paradigm has lost its meaning; the reasons are certainly many, but what we have to do now is to find new strategies that allow us, as entrepreneurs, to maintain qualified personnel and that this personnel maintains a strong commitment and loyalty to the company.

It generally occurs that when thinking rapidly in a worker's salary one only thinks in the money he will receive at the end of the month. Nevertheless, while the sum of money to pay is what is most valued, the whole compensation which tends lately includes much more. It deserves a separate issue to consider the changes that were made after the entry of women into the workplace. By not changing the old division of roles, it emerged a social problem, as people, in principle mainly women, assume the incorporation to the labor market without leaving the tasks at home. This generates the so-called "double shift", with consequent impairment of energy in terms of conflict, work-house work-personal development-leisure. Although, as I said before, women in principle has been the one that more severely suffered this conflict; it is true that at present, it is a widespread problem since man, in a large majority, has assumed to share housework. In this situation, companies have realized that it is extremely important that they also change the paradigm and there are many that have already initiated different strategies for this purpose. A system that deserves our attention is the one being carried out in Spain, Navarra, by the AMEZDNA association. The system is called RE CONCILIA and is basically a strategy that seeks to achieve effective equality of all workers, so they can balance their working life with the various facets of their life, family time, leisure.


It has been tested in companies where this system has been carried out that it is beneficial both, to people, to improve their quality of life, and to companies as it reports multiple benefits for them. Regarding HR, it increases staff satisfaction, thus improving the working environment and therefore it reduces stress among workers which brings a reduction of potential internal conflicts. It is obvious that it generates a substantial improvement in the performance of workers; they feel more involved in an organization that is committed to their welfare and as a result, it reduces absenteeism. As an entrepreneur, it does not escape that to maintain a satisfied workforce who wants to continue working in the company, decreases the hidden costs of new recruitment and training time of these new workers. In summary, either it is with an already established system, the great challenge of today's business is working hard on the communication of all elements and aspects that make up total compensation, taking into account that the company is a key player, and therefore it can greatly influence society so that is fairer, avoiding social conflict.

LAW OF REDISTRIBUTION OF SOCIAL SPENDING Mauricio Pozo Crespo, Ec. Economic Analyst


In late October, the Executive sent to the National Assembly the Bill Redistribution of Social Spending as a matter of economic urgency. This new proposal has as its main objective the increase of the human development bond of $ 35 per person to $ 50 from 2013. Their approach is based on redistributive forms of financing that have been chosen to increase this subsidy, because regulations are raised to the private banks. The Human Development Bond is a targeted subsidy which emerged in 1998 as compensation to the poorest families by the use of economic measures, presenting conceptual and shape changes over the years. Currently, it is intended for mothers, head of households, who are under the poverty line and the elderly and disabled also considered as poor. For this grant, the government has budgeted $ 790 million for 2012 to benefit 1.9 million people who currently receive this bond. The raised increase of the bond requires additional resources of approximately $ 300 million. Funding for this additional expense would come in $ 140 million programming budget, $ 122 million of legal reform in banking and $ 42 million of administrative measures to banking. Tax reforms to banking have generated the greatest point of interest nationally and a debate among various economic sectors. The main reform is to increase the rate of tax on foreign assets that was increased from 0.08% to 0.25% per month on the tax base applicable to the funds available in foreign entities and from investments issued by issuers domiciled outside the national territory. With this measure, the government hopes to raise $ 48.5 million annually. It was also imposed a rate of 0.35% per month for the same tax to subsidiaries which are in tax havens; this measure would generate $ 38.7 million annually. The third tax reform to the banking sector is the application of 12% VAT to the financial services of banks, previously exempt. Mutual entities and cooperatives remain exempted from this payment. The expected revenue for this measure is $ 30.3 million annually. In parallel, the tax benefit that the banking sector had, was eliminated, which was a reduction by 10 percentage points to the rate of income tax if profits were reinvented and more credits were granted. It is estimated that for this measure $ 18.3 million be levied annually. Finally, there was a change in the calculation of the minimum advance income tax payable by the banking sector; it is expected $ 8.6 million in 2013, $ 14.3 million in 2014 and 24.1 million in 2015.

Net income from banks (millions of dollars)


450

395

400 350

300 250

294

282

293

254

2006

2007

261 218

200 150

100 50 0 2008

Grandes

2009

Medianos

2010

2011

ene-oct 2012

Peque単os

Source: Superintendency of Banks and Insurances Prepared by: Multienlace The administrative measures raised in this bill are the removal of the right to bank secrecy and the establishment of a maximum amount of the remunerations of administrators and legal representatives of banking institutions under the control of the Superintendency of Banks and Insurance. In the first case penalties are established for institutions that fail to comply with the reporting requirements of the Internal Revenue Service. This reform would entail additional resources of $ 42.3 million in 2013, and some more in the subsequent years. Due to the passage of this Law as it was expected, given the government majority in the Assembly, its application could generate a negative impact on the banking sector and jeopardize the stability of the whole economy. Deposits in the banking system (millions of dollars)

Source: Superintendency of Banks and Insurances Prepared by: Multienlace Portfolio of private banks to overcome (thousands of dollars)


14.975.944

16.000.000 14.000.000 12.000.000 10.000.000 8.000.000

6.000.000 4.000.000

2.000.000

Cartera por vencer

oct-12

ago-12

jun-12

abr-12

feb-12

dic-11

oct-11

ago-11

jun-11

abr-11

feb-11

dic-10

oct-10

0

35% 30% 25% 20% 15% 10% 5% 0% -5% -10%

Variaci贸n anual del sistema

Source: Superintendency of Banks and Insurances Prepared by: Multienlace The credit will be reduced significantly, thereby causing effects on the financing of the whole economy. Likewise, it also remains to be seen the effects of the lifting of bank secrecy in depositors in the country or in Ecuadorian banks operating abroad. Being this the tenth tax reform in nine years of the current government, there is a negative signal to attract foreign investment. For all the above, it is certainly that the legal reform presents greater risks to the economic stability of all the previous approved during the current administration.

THE NEW TUNNEL


Eng. Salomon F. Larrea R. Entrepreneur We are very close to December 22, 2012, where countless predictions, arguments and hypotheses converge that generate unknowns, acceptable for many, amazing for others, simply unacceptable and certainly only God will know. Besides, the Maya wisdom that cannot be discarded, states that this date marks one more twist in the solar system to which we belong, around the Milky Way galaxy that shelters us and forecasts are made labeled by some as the end of the Universe. The famous Japanese interviewer Kaoru Nakamaru, ensures to have been contacted by aliens, and has received the news of the changes that would occur on the date previously predicted by the Central American culture. Japanese Princess, political scientist, highly qualified many years ago by world-renowned news media as Newsweek, Washington Post, whose curriculum vitae, defined as "a person of our time whose outstanding international sensitivity makes her invaluable on the world stage." This character in January informed the world through a video uploaded to YouTube, saying that the aliens told her that from December 22nd there will be three days of darkness during which the planet will move from the third to the fifth dimension and logically we will not be able to use electricity.

But for the Chilean Cristian Contreras Radovic, doctor in philosophy of science, specialist in Mayan prophecies and journalist, the predictions of the ancient Mesoamerican people does not establish the end of the world but a change of era, confirming expressions of Princess Nakamaru, regarding the three days of darkness and especially the beginning of a “change of consciousness�. Contreras recommendations to address this unprecedented event in the history of humanity, range from basic food storage, close doors and windows and not to go outside even if you hear voices or perceive there is chaos outside, until reaching meditation using yellow or white ceremonial candles. Possibly we will wonder how the sun suddenly will stop enlightening us. For researchers of the Mayan prophecies, the solar system will travel later this year by the photon belt, from the center of the Milky Way. This belt is made up of photons, which are subatomic particles without mass, conveyors of all forms of electromagnetic radiation, which would impact with particles from the sun, eliminating each other and generating a great eclipse.


Certain versions consider that the number of photons will be such to be in the environment, that not only will blind us momentarily from the sun, but that will also ruin networks and electrical and electronic equipment around the world, creating a huge mess around the globe. To all this prophecies rather detached from everyday reality and common knowledge, it is added the announcement of NASA (National Aeronautics and Space Administration), specialized and technique organization, which also predicts "The Great Solar Storm" for 2012, assuming that a maximum solar could seriously harm satellites, electrical and electronic networks and mobile phones; GPS systems and other modern technologies. Mausumi Dikpati of the National Center for Atmospheric Research (NCAR for its acronym in English) with a highly specialized team of human beings and instrumental, predicted that "the next solar cycle will be 30 to 50% more intense than the last. All this information of combined forecasts, studies, beliefs that come from different classes, cultures and societies with a wide range of time and education, lead us to believe in a real world context event and, most importantly, the present to humanity an unpublished and invaluable transformation for a complete assessment of the society and the planet.

Performing a macro environmental analysis as such, we can only make a great fuss about the mess that all generations have been causing, the effects of "Global Warming" which all who inhabit the planet Earth are responsible, because in one way or another we are the cause of an unsatisfactory living conditions for future generations. Every day we strive to further affect our dwelling, consistently exterminating species of all kinds, deforesting everywhere, infecting oceans, seas, lakes, ponds, rivers and most important outcrops of fluids given by God for our survival: "water", heating the world with the use of about 85 million barrels of oil and countless evil deeds that have reached a near collapse of this planet. But the worst of all these actions is that they have a very connected relationship, much to do with HUMAN GREED, with that excessive profit and wealth, with no solidarity towards humanity, where the goal is money and only the money, achieving stellar positions in the ranking of the wealthy and live with the largest waste and ruthless, deceiving voters in the case of politicians, customers, partners, colleagues or acquaintances, in almost all activities of daily living, where the moral, ethical, legal principles and even family heritage, have been overcome by money, power, position, devious and dishonest relationship. Now in every corner of the world, the smartest, the most vivid and as we call it at home the most "toad", is one that most illegal actions performs in exchange for unspecified amounts of money, that allows him a life of glitz and luxury. Touring the world we look to the oldest continents, Europe, wrapped in a mare magnum of economic, political and social crisis, where adjustments and evictions are on the agenda, excluding the north where you can still talk about equity and good living. Asia is dismembered, with a systematic corruption, endless and ruthless governments, religions where hate prevails over all and respect for the thoughts of others is a utopia, having become


fabulous giants permanently growing at the expense of maintaining the extremely low level salary of its workforce and the laws that overlap this development at high and negligible cost. Africa with a generalized delay, leaving from tribal family cultures, although in certain areas they are starting breeding programs. America, increasingly disoriented in North, Central and South, where the debt, waste and concentration of wealth are the procedural rule and where the dominance of the clans, hegemonic groups of all kinds rule undergo the human conglomerate; except few exceptions that prove the rule, and that are in a market improvement plan. Oceania, one of the few sectors of the planet with defined personality, with criteria and characteristics that make it unique, where environmental conditions have forced the hardening of its inhabitants, where those that are received have to adapt to their customs or leave the area, where you fight bodly thinking in all. All these conditions lead us to believe that despite the extraordinary contribution of magnificent human beings who have passed through the earth and many of them who are even true generators of wisdom, humanity, solidarity and love for humanity in every way, the wonderful actions of technology, through which research and master inventions constantly develop, which makes more remarkable the human capacity, which causes the new generations born with an IQ that exceeds that of previous generations, perceive the need of a DIVINE jolt, for us to rectify procedures, rules, actions and passions for the benefit of all, and, in that way this planet be a good place to live. I look with great spirituality December 22, 2012; with the assurance that God will grant us FAITH, HOPE AND LOVING SOLIDARITY, so that this generation with so many qualities develop herself in another frame of awareness and understanding, where human capacity be in the service of all and all activate towards harmonious living standards and especially the triumph of good over evil, as unyielding sign of creation.


POVERTY MANUFACTURERS Alberto Medina Mendez (Argentina) The pseudo progressivism itself has become at this time the mayor poverty generator. They do it daily, and despite the irrefutable evidence that confirms this vision, they are convinced to be roaming the opposite way. Definitely they have a cult done out of indigence. After all they feed on her. The nations that managed to overcome underdevelopment, which progressed seriously, did not do it building a handouts industry, or gestating a privilege hurricane, or presenting ideal conditions for that unjust society in which those who strive get the same as the ones that do not do it. This breed of vile leaders that occupy the legislative seats and public offices, the vast majority of them, incapable to exhibit a professional success in their lives, they dispose of everyone's monies, fundamentally the one coming from the poorest, to keep them impoverishing, that logically at this point, it should have fallen under its own weight. To those who have less, they punish them with an inexplicable tax burden. They oblige the weakest to pay, those who with great effort can hardly sustain themselves, taxes that have as target the usual waste, the one that allows to exercise twisted political practices, favor the boss buddies on duty, or feed the epidemic corruption. They, politicians of different spaces, which governs these countries for too long, has built a web of playing rules to remain there, impoverishing those who produce, but also those who they say they benefit. The most impoverished sectors are the ones who pay hard this system, they suppose they defend them. Taxes, inflation, waste and corruption. It is difficult to identify this list; in what place is the much talked defense to those who has less possibilities which the leaders of this time fill in their mouth. They have designed a scheme to become rich as officials, which is held on the basis of subjugate the poorest. They have not generated the conditions for cease to be, quite the contrary, they have created a system for the poor to remain poor and remain enslaved in the hands of patronage and welfarism which they have dealt with to build for decades. A rich and prosperous country, as the one holding the narrative, does not plunder the poor with taxes and inflation to subsidize them afterwards, does not humiliate them, or encourages them to become beggars of politics. The country in which they want us to believe that we live in, does not exist. We are part of a society where a poor is induced to vote a party candidate, in exchange for a social state plan or merely a promise. Those who boast of doing politics seriously, organize, as an illicit association, a sharp method to deliver a bag of food on Election Day only to achieve a mayor electoral strength. They intend to herding the citizens like cattle, in vehicles. All this display done with public monies often confirms this cruel society between politics and corruption.


One should be less pious with this political class. It's about vicious breed, a real social evil, backed up by many citizens, most of them unwitting accomplices of this parody. This bunch of political leaders has no moral authority to talk about progress. They handle a daily treatment to people as "a thing", to condemn them to stay in a worthless life, to make promises, knowing that they will not be met, and to convince them fundamentally that they are useless, that they are good for nothing and that they can only hope to continue to receive favors, to live in the borrowed and only to the extent that they continue to vote for them and keep receiving mistreatment. When these corrupt finally leave and be finally unmasked, when those who still support them, realize the immorality they have generated, this society must still fight to overcoming dreadful sequels and this unfortunate legacy that they will leave as heritage. Politics and society predators, have convinced the poorest that they are inept, useless, and it will take them a lot of time to rebuild self-esteem, faith in themselves, strength to start a major battle and exit poverty without anyone giving away anything. During all this time, they have stolen the greatest wealth that a human being can have, their dignity. And it is difficult to recover this virtue when it has been trampled, dragged and outraged during generations. Governments are not required to get the people out of poverty, in any case there is a need of a ruling class that can put aside its messianic and endless vanity, their inexhaustible pride to make believe the center of creation, the owner of the truths and proprietary of the monopoly of solutions. Good people has a tough task ahead, to help to rebuild optimism, what remains, to restore faith to those who lose it daily, to feed confidence in themselves and the necessary attitude, which is the mother of wealth. The combat will be difficult because while many citizens are willing to be agents of change, others decided to engage in civic leisure, promoting chronic apathy and being accomplices of so many mistakes. It is time to focus on not lowering arms. Those who really believe that history can change, have a hard challenge ahead. While on the other side, a high part of this political contemporary class, fed by the current populism, will be devoted to perfecting the art of being poverty manufacturers.


THE PHANTOM OF CHAVEZ: THE END IS COMING Dr. Carlos E. Ponce REDLAD General Coordinator, New Policy Co-Editor Venezuela Tyrants have an intimidating effect often without using force. It is the case of Chapita Trujillo, Rafael Leonidas Trujillo, the dictator who ruled the Dominican Republic with an iron fist from 1931 to 1961, killing more than 50,000 people, torturing and persecuting. The interesting thing about this dictator is that even sick he ruled and his only security when he was killed on May 30, 1961 was his driver. He felt protected by the fear he radiated. In fact the government that was installed after this death, declared national mourning and praise his memory. In Venezuela the tyrant who ruled Venezuela from 1908 to 1935, when he died, some few weeks passed for people to truly accept his death for fear of reprisals and not to be true. Fidel Castro and his brother Raul have ruled Cuba with their dictatorship of terror for 53 years. And so on many dictators generate an aura of fear around them that prevents the reaction of people, corruption in their opponents, institutional weaknesses and lack of international solidarity with the democratic cause. An interesting case of analysis is that of Venezuela, where Hugo Chavez still sick manages to continue abusing the power. A presidentialism sick of abusive warlords. Dictator Chavez has unconstitutionally altered the electoral law to ensure his re-re-election and has manipulated the system to "win" a new election. There is talk that steroids, cortisone, analgesics and stimulants as well as adrenaline helped Chavez to hold out until the election, but that victory after the body has taken its toll. It seems he has used all the energy he had left to for that triumph, after this, his appearances became increasingly scarce, and justly he decided to go to Cuba to undergo further cancer treatments few days before a new electoral battle to control governorates. His last message before leaving again Cuba is very clear since the cancer is present at a level that requires a new emergency surgery to treat metastasis. We have no doubt that he will recover from his surgery and continue abusing the people of Venezuela. The relapse of Hugo Chavez has left the door open for the opposition to win in more states than those expected after the recent defeat and in that in some weeks before it seemed to be an imminent defeat for the opposition in its most important strongholds. Again the situation in Venezuela is marked as unpredictable. But Chavez, instead of contributing to the stability of his country, participates in an election knowing that his health allows him not to rule and then instead of rather decline simply makes an announcement of "designation" in case something happens to him, but it does not finish to let the country moves in a better fate. Chavez has misgoverned from Cuba over 9 months of the last 14 months. His marked absence in all international forums, presidential summits and in the representation management of the state for the past two years, is well known. This year in addition to traveling to Cuba for surgery or medical treatments, he has only traveled briefly to Brazil to promote the entry of Venezuela into the Mercosur (Southern Common Market), but he has failed to attend the most important summit recently. A Chavez marked by the comings and goings of his pain and from the effects of chemicals and drugs that he must take. A military that dropdown in the middle of an electoral "battle" or sets aside a military act of appointing military commanders for inability to carry it out. He has remained silent before the imminent fall of his friend, the bloody dictator of Syria Bashar al-Assad or before the crisis in Palestine, the negotiations of the Colombian guerrillas, or before so many things that were normal in his comments. A ruler used to weekly programs on radio and television appearances and permanent presentations in the life of his country, limiting to some images of meetings with his ministers sitting with little interaction. A governance by electronic signatures from Cuba and


contacts with his followers on Twitter. Silence is now the feature on the one that has been one of the greatest exponents of neo-populist authoritarianism. Now he advances his "Pity Mission" designed to create a show about his illness. But there is even a more interesting case which is the reverence of the entire environment of Chavez, fearing to discuss his illness, his disappearance from public life or clear inability to govern. Even more strange is the almost reverence of the opposition in Venezuela that simply does not dare to say that Chavez is not able to continue to govern and that it should immediately open the call for an election for February 2013. In fact Article 233 of the Venezuela's Constitution provides that "the President shall misconduct by ... the permanent physical or mental disability certified by a medical board" and being January 10, 2013 the date on which, under the Constitution of Venezuela, Chavez would behoove to take possession for his “new termâ€?, if he continues ill it is logical that he acts in the same constitutional frame and "there will be a new and direct universal election within thirty consecutive days" being responsible of the Presidency the Vice Presidency, in this case Nicolas Maduro until Jan. 10 and from January 10 and until the election (in a maximum of 30 days) the President of the National Assembly. Maduro could not run for public office because he is already exercising one. Due to lack of information, rumors excess and lack of seriousness of many "doctors" or journalists, there are doubts about the disease progression of Hugo Chavez. On other opportunities it has taken advantage of the rumors to remove a triumphant Chavez before death or leave their opponents as liars. But if it were true that he has worsened, the game of his followers would be to play constitutional fraud, ensuring that the specter of Chavez hold until Jan. 10, swear thanks to the effects of steroids and the new government installed, thus there is no clear date of call for immediate elections. This is a more than possible scene, especially when the Constitution of Venezuela enables that if the swearing is not given before the National Assembly, the president can swear before the Supreme Court of Justice board. In fact public information states that there are some terrible internal conflicts in the Court for the leadership, because it is known that two battles will be wage, the first the swearing in Cuba of President Chavez, if the operation succeeds; Article 231 of the Constitution says you must swear or take possession charge "by oath before the National Assembly. If for any reason befallen the President of the Republic could not take possession before the National Assembly, it will be before the Supreme Court of Justice." There goes part of the possible fraud from Cuba. The other fraud is the interpretation of the time within election call in case of death or incapacity of Chavez. How much time is left for ChĂĄvez? Nobody knows if he is really sick, the extent of his metastases, the type of operation he has required, the necessary treatment, etc. The lack of transparency that has marked his administration also accompanies him in his illness; he should learn from other presidents as Santos of Colombia or in the past Lula of Brazil, Lugo of Paraguay, among others, who have had no problem admitting diseases and treatments. Nobody knows if it is still another theater show of his perverse behavior to put their illness more serious than it is and manipulate their followers and the opposition. But the reality is if Chavez has been a disaster as president when he was healthy, with increasing to barbaric levels of violence, food shortages, health crises and the exponential decay of the country; a sick Hugo Chavez or again recovering, nothing better will have the country. Nobody knows what level of control he maintains, but the effects of the drugs cannot allow him to be in the best ability to make important decisions and in two years he has abandon much of the presidential burden. What is worst is that it is true about the news of the massive expansion of cancer and if his followers are considering using his unburied puppet to move towards a constitutional fraud, the opposition silence does not help this country not to come in a crisis governance. It seems that from the opposition side they expect a divine solution to their political shortcomings. What will be the legacy that Hugo Chavez leaves? From the journal New Politics, we have written extensively on this subject; particularly in our magazine #8 we wrote: "The Legacy: Chavez will be


only a T-shirt image" actually we said in June, "The Death of Chavez will bring Venezuela a save yourselves within his corrupt ranks of his party and government, a rearrangement of "salvageable" people and a migration of corrupt (women and men) as or its mimicry within the new sources of power. In fact the rearrangements and the "bridges" of salvation began for many. It must be very sad to have it all, have a chance to do much, having the resources to make Venezuela a first class country and finally and at the end die and leave a story that no one wants to remember. The Bolivarian revolution and the XXI century socialism will be buried with him, some will buy the Tshirts and iconography as part of folklorism or remain tied to its image as part of the cult image of what could never be. Like the Che T-shirts and from others that did not leave greater things, the legacy of the "great leader" of Sabaneta will be a picture on a T-shirt, but will be remembered as one more autocrat. Rescuing the words of the President of Uruguay, Jose "Pepe" Mujica, "When Chavez passes away, he will not have built any socialism…” As he is characterized within his authoritarian behavior as sick and lying in the electoral process and then it was handpicked a possible successor in case things do not go well, but the enlightened, Nicolas Maduro is unable to fill the tyrant's boots. Chavez wants to hang on a divine solution; he says he expects the possibility of a miracle. But it seems that the hell of tyrants needs a new member and miracles are scarce, as well as almost all of the products in the so beaten Venezuela. But the more likely scenario is that the Phantom of Chavez swears on January 10 using the stratagem of the Supreme Court. All the ghosts are on the street. The first one is the fear in the government and in the opposition to recovery of the tyrant. On the one hand within chavismo, the political games will dent. We have Disodado Cabello, Chavez's right hand in his years as a military and during the conspiracy that led to the coup of February 4, 1992 and the leader of the coup attempt of November 27 of that same year; he is President of the National Assembly, he has become billionaire due to handling the businesses of the military, the new chavista bank and the ones called “boliburgueses”; it has always been known for its presidential appetite and his control of the armed forces, including the current Minister of Defense. Regarding Rafael Ramirez, current Minister of Energy and president of the state oil company PDVSA, there is talk that he has managed Chavez funds that Ramirez and his family have taken out of the country; he teams up with Jose Vicente Rangel and other environmental operators. Elisa Jaua, has been neutralized when they have launched their campaign for governor of the state of Miranda, which now probably loses, he handles armed assault groups and based factors of the left. Brothers Cliver Alcala Cordones has been a faithful ally of Chavez and is spoken of handling trafficking networks from the armed forces together with former Minister Carlos Rangel Silva, who is the General Commander of the Army; they proclaim themselves as the defenders of the Bolivarian-military movement. There is another group operating in the armed forces contrary to the extremist groups of Alcala Cordones and of the boli-military of Cabello. Moreover the Chavez family and the Cuban regime have spread hope in Nicolas Maduro. On the part of the opposition there are no clear scenarios neither, Henrique Capriles defeat in the elections against Chavez reduces their chance of winning as a candidate of unity again; other actors are already claiming their electoral choice, as is the case of Pablo Perez, Leopoldo Lopez and Henri Falcon. The current Metropolitan Mayor Antonio Ledezma will also try to play within the troubled waters ahead. Within these games anything is possible. I don't wish death or disease to anyone, but regardless of the outcome of the new secret treatments or miraculous operations, I think Chavez is not fit to rule and should save his country greatest tragedies, retiring from the presidency and dedicating effectively to his treatments. The opposition must speak out clearly and end this silent complicity with the fraud that is being mounted and seriously should look for a serious inclusive government alternative and Chavez supporters; his Vice President Nicolás Maduro, ministers and officials are required to build the bridges that facilitate a peaceful transition to democracy. The only card that can be played by Maduro is negotiating with all factors of the country and find a viable alternative of inclusive consensus inclusive to the political/ economic/social situation lived in that country and that it seems to be increased with the uncertainty of January 10th. We should not get in the theater or tragicomedy that Chavez advances.


There must be spaces for dialogue to combat violent groups and the gangs that now consume that country; immediate mechanisms that address the immediate economic crisis dammed by a 14-year misrule government, immediate release of all political prisoners and especially a finding of a unit in the country that manages to overcome the hatred sown and illogical division of an imaginary revolution of a dangerous talkative.


ANALYSIS OF THE POLITICAL STAGE José Luis Ortiz, Lawyer MA in Political Science Ecuador has experienced a political year marked by events that deserve an objective assessment. Here are some of them: 1. – The government management has continued the trend set by the President: An increasing control of the functions of the State by the Executive. The Legislature has met most of the provisions from Carondelet, with the passage of laws, sometimes without respecting the legality of the proceedings (this has happened when certain projects that had to follow a normal process, were handled as if it they were economic emergency projects). The president of this function, Fernando Cordero, has acted very wise and timely to obey orders from Rafael Correa: he has put in the agenda issues that has been considered prejudicial to the interests of the "political project"; he has included in the Agenda topics on which he was sure would be approved; he has established a system of absolute control in the development of all legislative commissions, and he has proceeded with mastery to reach circumstantial agreements, negotiate pronouncements and quell discontent, especially those from fellows that they would not be considered for participation in the Alianza Pais list to be re-elected. Therefore, and as an appreciation to their work, Cordero is in the second place of the list for national deputies of his party and is one of the groups closer and reliable to the President. In the judiciary, Correa has also gone on to have absolute control. The National Court of Justice, the Constitutional Court, and the Judicial Council, have been integrated with people chosen by the Executive. The so-called "modernization" of justice has meant that judges are of total and absolute confidence of the presidential power, and that in the execution of the pharaonic physical works marginalize large volumes of resources with contracts given out by “hand-pick”, commissions and obviously, shady deals which would benefit those close to the ruling party. The same happens in the Electoral. All members of the National Electoral Council and from the other agencies, are unconditional of the Executive. The President of the National Electoral Council, Domingo Paredes, proposed for the first positions by former Minister of Government Gustavo Larrea, comes from the ranks of the Communist Party of Ecuador (Moscow line), and the vice president is a man of confidence of Chancellor Ricardo Patiño and a technician specialized in handling systems and, therefore, the best guarantee to manage, according to the official convenience, the elections to come. The role of the so-called Citizen Participation Function and Social Control is a simple tool to decorate the procedures previously decided in the government as if they were true social participation exercises. In this sense, all institutional designations in which is required the presence of the public, have been truncated actions arising from decisions, likewise, from the Executive. The so-called supervisory authorities (General Attorney, Comptroller, Attorney, etc.) are also functional pieces in the centralized exercise of official power, they do not have autonomy and therefore they have no criterion, nor liberty of action or decision. 2.- Regarding society, it is clear that the party system remains in a critical situation. Unless the ruling party, equipped with state resources bureaucratic and mass militancy, none of these groups has such prestige, maintains real structure in all provinces of the country or presents a proposed government strategy. In these elections, the national issues have been touched by the various parties in isolation, circumstantial, but with no systematic support that can sustain them as a reference for the development of a government project.


On the side of social movements it can be seen in several of them a dispersion luck. CONAIE, the largest indigenous organization, although several of his groups have been co-opted by the government and integrated to the public service payroll, continues to maintain its strength and its convening. The march organized by CONAIE to support the prefect of Cotopaxi, a few months ago, was a proof that they are able to facilitate the mobilization of their groups in the provinces of the central highlands. The most dynamic centers of CONAIE, the East Indian organizations, are aware of what could happen in the next few months concerning the large-scale mining policy that the government wants to promote. This issue, plus the one related to Water and Land laws can become an impetus for the presence of indigenous nationalities as pressure on the national stage. Other indigenous organizational groups have been divided; the groups have aligned themselves to several partisan groups and has weakened its representativeness. In this issue, the government intervention through its regional bodies has played an important role, through the implementation of social welfare projects in the productive area, which has established, as a factor of influence, the legitimacy of the official discourse from promises and the expansion of welfare programs. In 2013 Ecuador may experience changes if the behavior of the civil society matures and expresses itself in a set of citizen actions to collect the collective concerns and act to preserve an order of democracy and freedom. Along these lines a greater presence of minorities is expected, that have defined, specifically, its scope and its proposals; a cohesive statement of the business sectors in terms of articulating, the same time, economical and political demands, and management that reflects a supporter of matches around the difficulties that may be exacerbated if the regime continues its project to concentrate power and trample the freedoms and human rights.


ECONOMIC FIGURES

GDP growth projected for 2013

By 2013 the GDP estimation is 4.5% due to a less impact on public investment versus what was represented in the previous years. Consumption could be affected by credit restrictions, it should monitor it during the year.

Inflation at the end of 2012 and in 2013

Inflation in 2012 ended in 4.9% and it is estimated an inflation of 4.5% by 2013.

Average oil price by 2013

The average by 2013 will be $90.

How will the conjuncture affect that 2013 is an election year for the evolution of the economy?

Whatever the outcome of the first round is, it will not deteriorate the economic environment for that reason; in the first quarter it may slow somewhat on public works because these are months of low tax revenues.

Which sectors do you think will need more attention in 2013?

Whatever the presidential winner is, it will have to open towards the private sector to compensate the lack of impetus of the public sector whose level of response has reached its limit (10-12% of GDP). It should reconsider the suitability to grant “improvements in conditions of lodging� to foreign investment.


REFLECTION As the year that is ending has been of confrontation, hatred, fights, inequity, lack of ethics, much corruption, I think it appropriate as editor of this magazine, to share with you a thought or prayer that an atheist father gave to his son to form a guideline in his life and who gave it to me. I think this will lead some people to reflection even more in an election year, so that confrontation is changed by agreements, hatred with love and that in a peaceful environment, we can rebuild a country that is ethically destroyed by fear and discretion in order for us to have a rebirth looking at the good of all and not to a caste, region, race, where discretionary prevails. The prayer or thought is from Saint Francis and it reads:

Thought

Lord, make me an instrument of peace, Where there is hatred, let me sow love, Where there is injury, pardon, Where there is discord, I may bring harmony, Where there is error, I may bring truth, Where there is doubt, faith, Where there is despair, hope; Where there is darkness, light, Where there is sadness, joy, O Master, grant that I may not so much seek to be consoled as to console; To be understood as to understand, To be loved as to love; For it is in giving that we receive, For it is pardoning that we are pardoned, And it is dying that we are born to eternal life. Hopefully this wise thought or prayer serves us as an axis in 2013 for this year 13 is the year of luck and not tragedy.


THE CULTURE OF DEBATING Dr. Eduardo Pe単a Hurtado President of the Chamber of Commerce of Guayaquil The Chamber of Commerce of Guayaquil (CCG) has organized a debate between the candidates for the presidency of the Republic, registered for the elections of February 17, 2013. Create and promote spaces that can meet the lines of thought of the people who aspire to drive the destiny of the country is one of the most important union goals. Hence, to date, six of the eight candidates have confirmed their attendance. Only one has excused himself, presumably due to pre-established commitments. We expect confirmation of the seventh in the coming days. The issues we have raised, are of course related to the commercial, tax and taxation field: we want to know the opinion about international trade agreements and the need or not of them for the future of Ecuador; today that our neighbors have signed many Free Trade Treaties with the European Community and the United States. It interests us greatly that they delineate the type of fiscal policy that we will endure over the next four years, that is, do we must increase the tax burden through new tax reforms? Or rather cut government spending? How important is this definition today, for the future development of investment! How do our candidates for president propose to raise the serious problem of insecurity in which Ecuadorians live? Along with this issue is the serious underemployment level, chronic problem in Ecuadorian society, which has no solution yet, despite the lukewarm efforts. With these issues, it is justified to convoke and promote a meeting of this nature, which will certainly will define the position that voters face before an election, which, incidentally, has been strongly criticized since the publication of the affiliated lists to the different political parties involved, to the indiscriminate use of advertising space by the government, that before starting the campaign has already intervened promoting their works and even attacking their future opponents. It is in this scenario that we find indispensable the assistance of all the candidates proposed, we hope that it happens.


UNDERSTANDING THE “BAD PROFITS� Eng. Giovanni Ginatta Executive Director of FIE For many persons it is perhaps difficult to understand the difference between bad and good earnings. Some people think, from a pragmatic and huckster viewpoint that profits are profits and they don't care if they are either won or bad. Taking this concept to the extreme, some may argue that the end justifies the means and within that world informal businesses can be accepted and even illegal ones. Not being as dramatic and keeping us in the world of formality and legality, are there "bad profits"? To better explain this concept I want you to get in the shoes of one of many airlines that travel within and outside the country; have you wondered how it is that these airlines survive and be profitable (there are many that are profitable and others which are on the verge of bankruptcy) despite the bad treatment they give to the customer? Have you ever felt vexed, violated in your rights by these airlines? There are some that border on the attack on human rights, nevertheless they are sold as profitable firms and the supervisory authorities neither fined them nor stop them. In how many stores (which are profitable) you have entered and been mistreated or you have seen that its dependents don't care giving a good service or the best help possible?? In my opinion, this situation, which is far from books theory where it is assumed that companies should aim to provide the best possible service, can only happen because these companies are part of a monopoly, oligopoly or economic or regulatory barriers which are so high that are placed in a dominant position over their customers. In many cases, and following the example of the airlines, the passenger or customer is in a position well below the company, so that even by anti-terrorism laws one cannot complain because you can end denounced and imprisoned in an air terminal. There are many such stories and I remember one dated from just under a year on a flight from the U.S. to Ecuador, the pilot announced that the flight attendants were giving the dinner service (if you can call it dinner to that kind of food) and don't think of driving the call button because the hostesses were not for that, only to serve the food and goodbye! What happened from the romantic era of aviation where travel was a pleasure, flight attendants were attentive and helpful people dedicated to meeting the demands of passengers??? but, I still wonder why many companies that do not provide the expected service can manage to be profitable and their stocks/shares are well qualified and demanded on the stock exchanges of the world? To analyze this I reviewed a very interesting document produced by the famous consulting firm Bain & Co, developed by Fred Reichheld and Rob Markey called "Blowing the Whistle on Bad Profits". In this study, these consultants essentially said that many companies operate under prevailing situations in which they forget to differentiate between "good" and "bad" earnings and that this in the future may be disastrous for the company when this dominant position erode somehow. They say also that "bad" profits makes the company forgets to see the deepest business opportunities to find the way to a real and sustainable growth. This also makes the company build a disreputable way that puts her in a vulnerable position before consumers or customers. Besides, these consultants not only refer to customer misuse within the meaning of bad service, but in practices of "extracting value" instead of "adding value", such as: placement of predatory pricing, price labeling and misleading promotions , savings in the company that affect the quality of the product or service to the detriment of the consumer. This brings us to the central question of the reason for existence of an enterprise. Must the FIRM or the COMPANY exist to create value? and, as a reward for creating value does it receive their winnings? In the real world this does not work like this and I would say that some companies still think they can continually abuse this relationship with their customer. It is important to consider that the more closed an economy is, it is easier to abuse this position. In an open economy it is more difficult to abuse that relationship. Obviously the nature of every industry or business also facilitates or hinders this relationship environment between customer and company. In this regard, the company can generate an inventory of clients that can be promoters, detractors, or neutral. In that closed scenario, critics have little power because the options are zero


or low but, in a scenario of openness and competition, critics are a group that can do real harm to your reputation, especially now with the ease of spreading and broadcast positive and negative messages about your shopping experience in a company. Fred Reichheld of Bain & Co. created an indicator called NPS (Net Promoter Score) which provides a measure or qualification on the availability of the customer base to promote the company or be detractors of it.

In addition in the criterion, based on the research of this consultant, it is determined that the leaders in NPS grow at a rate 2.5 times greater than the industry average:

These results may be obvious because the companies that generate loyalty and satisfaction, by definition, should be more successful. However, the focus of this discussion is to differentiate between companies able to generate profits versus the ones generating but that could be more profitable and also whose profits would not be sustainable in more competitive environments.


The remaining question is how to recognize this pathology management when a positive statement hides the less obvious problems? How to act to raise the NPS? I think the first thing to do is to keep a channel open and transparent to customers. On more than one occasion, many managers resist hearing the truth behind the customer feedback and middle managers are complicit in this selfdeception. When a Board of Directors says that everything is perfect, that everything is going great, without objective evidence, that's when to worry. In the end, the question we need to ask is what is the real value that the company is generating? Are we creating value or destroying value?


MARICULTURE Samir A. Kuri-Zahra Cantos Chief Operating Officer of Ocean Farm S.A. Aquaculture, goes back to ancient times. There are references of mullet farming practices (smooth) and carp in ancient China, Egypt, Babylon, Greece, Rome and other Eurasian and American cultures. The oldest dated to about 3500 B.C., in ancient China. In the year 1400 B.C., already existed protection laws against fish thieves. The first treat on carp culture dates from 475 B.C., attributed to Chinese Fan-Li, also known as Fau Lai. Among the Greeks and Romans, there are numerous references. Aristotle and Pliny the Elder wrote about oyster farming. Pliny, in particular, attribute to the Roman general Lucinius Murena, the invention of the culture pond, citing the huge profits of commercial exploitation, in the first century. Seneca also had an opinion on pisciculture, quite critical: "the invention of our fish ponds, these enclosures designed to protect the gluttony of people face to the risk of storms." In modern Western culture, aquaculture did not regained strength until the Middle Ages in monasteries and abbeys, building ponds fed by river channels, where the crop was fattening carps and trout. In 1758 there was a significant discovery, the artificial fertilization of salmon and trout eggs by Ludvig Stephen Jacobi, an Austrian researcher, although his research did not go out of the lab and was forgotten. In 1842, two French fishermen, Remy and Gehin, had viable measures, completely outside the find of Jacobi. They attained young trout that they developed in ponds successfully. The discovery led to the Academy of Sciences of Paris to further the discovery, thereby creating Huninge Institute, the first research center in aquaculture. Marine aquaculture or mariculture is essentially the marine species, both fish, invertebrates, algae, molluscs, etc. that live, reproduce and grow in the sea. It has a great economic importance. For many species, crop production has almost completely replaced fish catches. Some of the most important and most cultured species in the world are salmon, cobia, turbot, sea bream, sea bass, cod, sea bass, snapper, huayaipe and eel. The cultures of other species are still being developed, such as octopus, sea bream, flounder, tuna fish, among others. A variant of marine aquaculture is called greased Bluefin, which "grows" in cages from wild specimens. After a process of growth and fattening they are subsequently sold on the Japanese market, where it is a precious commodity. Mariculture is a specialized branch of aquaculture involved in the cultivation of marine organisms for food and other in cages in open water in a closed section of the ocean, or in tanks or channels that are filled with seawater. An example of the latter are the crops or marine fish farms, including for example seafood, or oysters and algae in saltwater ponds. Non-food products produced by mariculture include: fish meal, nutrient agar, jewelry (e.gg cultured pearls), and cosmetics. The development of mariculture should be supported by basic and applied research and by development in important fields such as nutrition, genetics, management systems, product handling, and socio economics.


Our country, despite being blessed with all its excellent conditions, given its geographical location, has been "asleep" for a long time in the development of this activity. We have been in the commendable work of producing shrimp in pools even against statistics in the most difficult times; the production of tilapia, trout; and sporadically or at least without proper sustainability, production of chame. Finally, in August 2007, a group of Ecuadorian businessmen led by Mr. William M. Wood decided to pursue an adventure called Ocean Farm S. A. And the dream of the company is the production of several species of marine fish in captivity and hand with sustainability together with the environment. Aware that the scarcity of fish resources is an imminent world reality due to the impending world population growth, overfishing and the effects of global warming, decided to pioneer the focus of this new model of socio-economic development. The social benefit is imminent, because jobs will generate direct and indirect. But this adventure, this dream, it wanted to be seen truncated. Ocean Farm was tempted many times to "throw in the towel", given time passed and received no answer to his request, rather received more problems to each solution that was presented. It is just a few months ago that finally various authorities of our country and at the request of the President of the Republic, that the final decree governing mariculture in Ecuador was promulgated. Ocean Farm S. A. with other companies has entered together in research and development in the field of feed, genetics and use of gnotobiology, walking together towards sustainable progress and friendly, achieving strong growth performance and feed conversion. Yet the debate still continues about the introduction of nonnative species. There are some who are completely close to this fact, forgetting many factors of real importance in all fields and without considering seriously what the world would be; what would happen to Ecuador if it had banned the import and production of non-native species in cattle, pigs, equine, bovine. What would happen to Ecuador if it had banned the entry, planting and production of potato, nonnative blessed tuber in our land. But there are also the ones who are open to imports and production of non-native species, and not only at sea, but as long as there are controls and regulations and are regularly checked by the authorities. Already in our country we have the sustained production of fish fry of marine species. There are missing minor adjustments or the "fine tuning" to finally proceed to anchor these cages weather they are floating or submersible off our coasts. We're on the verge of starting to become with our ability and drive, in one of the biggest and best producers of certain marine fish species in the world. As we achieve that merit with shrimp production, cocoa and bananas, we can do it with fish, shellfish, algae and what we set out to produce, because we are a country of thrust. Our fishermen and our people have the knowledge and desire to do so. Another fear that at some point existed and that maybe lasts until now is the false belief of threatening the environment. If certain standards or simple rules are met contained in the current Decree 458, the trend is that actually there are environmental impacts, but POSITIVE. The trend is that, over time, we begin not only to feed Ecuador and the world, but that we parallel began to repopulate our seas with a reboot of the food chain. But we must not stop there. We must move on and think at some point in planting coral reefs, which are believed to have as much interference with the global climate, as the Amazon forests. Just as our government has launched a campaign to protect the Yasuni reserve pro-profit worldwide, we should also promote this type of repopulation.


The mariculture race is not easy and cheap. Comparing shrimp farming with marine fishes for example, the first is a professional who has gained some experience, while the latter is emerging even in the womb, but which have been tested and exams of amniotic fluid and are confident that is unfolding as it should. Marine aquaculture promises sustainable economic and environmental benefits. The economy of scale implies that mariculture can produce fish, mollusks, bivalves, algae at a lower cost than industrial fishing, resulting in better human consumption and the gradual elimination of unsustainable fishing. The mariculture product also offers greater species options. A constant supply and permanent quality control have allowed and will allow integration into the channels of the food market.


MSMEs Magazine Nov-Dec 60  

Journal of economic and business court

Read more
Read more
Similar to
Popular now
Just for you