***FSD has suspended accepting volunteers or interns for our Ecuador program as of February 1, 2008. We will not be hosting interns or volunteers for at least 6 months from this date due to shifts in our local staff. Please check back with us in July for an update on the Ecuador program.

While Ecuador may be famous for its concentrated ecological diversity and economic connections with the United States, its contemporary history is relatively unknown internationally. Ecuador's seemingly peaceful 20th century has often been overshadowed by the infamous violence experienced by its neighbors, such as Colombia's drug trade and Peru's Shining Path. However, Ecuador in recent decades has dealt with its share of political upsets, economic turbulence, and environmental transformation, as well as the resulting social effects of such changes.

Little is known of Ecuador’s pre-Incan cultures, but Quito gained importance in the early 1500s as the northern base of the Incan Empire, as well as a stronghold of resistance to Spanish conquest. Spanish rule lasted from 1534 until 1822, when Ecuador won its independence through Bolívar's war, but social relations continue to reflect the racial divisions introduced by this rule. The perceived superiority of whites over indigenous and people of color created an efficient system whereby resources, labor, and wealth are exploited and transferred to Spanish elites. Even after the abolition of systems like the encomienda and the mita, other methods of coerced and inequitable labor continued to thrive. Indigenous uprisings occurred throughout the 19th century, and in the past century the movement is recognized for being one of the most strongly organized in the region. Today, the indigenous population makes up at least 25 percent of the population and the majority live in the Andean highlands where they continue to have disproportionate access to economic and political power.

A large part of Ecuador's contemporary history has been shaped by three major economic export booms: cacao, bananas, and most prominently, oil. The discovery of oil and a new source of income allowed for increased public spending by the government, lower taxes, import substitution, and petroleum subsidization during a period characterized by high governmental involvement in the economy. Earnings were not enough to sustain such a system, however, and state-guided development gave way to neoliberal adjustment programs in the 1980s. At the end of the century, inflation, foreign debt, and a drop in oil prices, as well as the consequences of earthquakes and El Niño created a precarious economic situation. Poor economic management and political instability (indicated by seven different presidents over ten years) did little to resolve the issues.

Popular social spending was suddenly cut by a government under the pressure of foreign debt, which it could no longer repay with oil revenue. Rural and agricultural areas were especially disadvantaged in the midst of reduced spending, and suffered in terms of electricity, sanitation, and other basic services. There was a 70 percent depreciation of currency over the course of 1999, and poverty rates in the coastal and mountainous regions were a shocking 80 percent higher in 2001 than 1990. In 2001, the government turned to dollarization with the goal of controlling inflation and stabilizing the economy. Far from resolving these issues, dollarization provoked hyperinflation, bank closings, the freezing of assets, chronic underemployment, and arrested social security payments. Cheaper prices mostly benefited the nonpoor, and Ecuador continues to have low productivity and growth rates.

The results of the recent economic crisis have been widespread and self perpetuating in their reciprocal nature. The reduced spending on social services has had repercussions on the quality of health services and education, while those who need them can hardly afford to use them. Households defer medical attention, contributing to the spread of infectious diseases. Children often leave school early to earn money, which has created controversy over child labor. Increased migration, especially out of rural areas and the Andes, has had effects on family relations and women's responsibilities. Meanwhile, the environment has suffered due to oil excavation and overworked land. Six years after dollarization, inflation is under control and growth has increased, but Ecuador is still waiting to see all the anticipated benefits of the process.

As Ecuador aims at economic recovery and stabilization, there is a tremendous need for grassroots organizations to implement bottom-up strategies to properly incorporate underserved populations in the country's development. FSD concentrates on developing these solutions to directly benefit rural communities that receive minimal help from the government. Through established partnerships with NGOs located in the Ambato area, FSD has found a lean and effective method of implementing community-based solutions. Working with one of our partner organizations offers you the opportunity to support the resolution of social, political, and economic problems, while immersing yourself in a unique, indigenous culture.

For more about subject-specific development issues and internship/volunteer opportunities in Ecuador, click on the links below:

Microenterprise/Microfinance ▪ Environment ▪ Health ▪ Youth and Education ▪ Women's Empowerment ▪ Community Development ▪ Human Rights