Report on the state of the Ecuadorian economy - Manuel del Castillo y Rada

Report on the state of the Ecuadorian economy - Manuel del Castillo y Rada

Due to a technical error, this update from yesterday was removed. It is reposted here.

Andean highlands
The Serrano economy is based on agriculture and textiles, and is extremely weak. The Andes provides a weak basis for crops, though a sustainable one for sheep, whose wool is put to use in the obrajes [sweatshops] alongside cotton from the region, to produce high-quality textiles. Crops are grown only for local consumption, given the rate of profit available, as well as the extreme difficulty in transporting them out of the region, due to poor infrastructure. The area is bereft of profitable activity, ever since its textile industry was significantly hampered by international competition. It lacks the potential for greater agriculture, as well as mines of the sort found in New Grenada.

Guayaquil
The coastal region of Guayaquil, on the other hand, is not as badly off. As well as a profitable cash-crop in the form of cacao for export, Guayaquil port brings relative prosperity to this region. The port brings significant quantities of trade, and has also led the city to become the premier ship-building city of Latin America. The region's success is down to its coastal location and port status, which is also what enables its vigorous cacao exports.

General notes
Other crops produced by the region, but without particular significance, include barley, wheat, corn, sugarcane, bananas and tobacco. None of these, save for sugar, is particularly profitable. Furthermore, the region is beset by a state-encouraged monopoly on salt, which has doubled the price for the ordinary consumer. This excessive hike in such a valuable good, which is needed by all for the preservation of food, is a great burden on the people of Ecuador. We in the central government would like to help the region further, but we struggle for a lack of funds. There are various improvements available, such as the implementation of more modern production machinery, like that used in Europe. However, until the national economy can first be built up, the development of Ecuador may have to wait.

M. C. R.

1st April 1828