Former Ecuadorian President Jamil Mahuad recently reflected on the 26th anniversary of dollarization, discussing the critical decision he made during his presidency to dollarize the Ecuadorian economy in the late 1990s. Speaking from Boston, Mahuad emphasized that earlier implementation of dollarization was hindered by a lack of political agreement in Congress, which created significant economic instability at that time. He believes that more effort is needed to fully stabilize and solidify the dollarization process in the country.

Mahuad’s insights also highlight the broader implications of economic policies and their reliance on political consensus, particularly in a developing country context. By speaking out on this long-standing economic strategy, he brings attention to both the successes and challenges associated with it, noting that the dollarization has shielded Ecuador from certain economic shocks but has also presented unique challenges.

Furthermore, Mahuad’s comments come at a time when the country faces various economic pressures, including the influence of criminal groups in regions where mining advancements have been significant. This intersection of economic policy and crime reflects the complexity of governance in Ecuador, where economic strategies must adapt to evolving social and political realities.