INTRODUCTION STRATEGY FOR DEVELOPMENT "Misfortune will befall any nation, which neglects agriculture.

" This is happening somehow in Ecuador, however, our country-folk have, year in year out, in good times and bad, supplied the whole population with agriculture products and major exports such as cut-flowers, banana, mango, passion fruits, rice, corn, etc. That is a remarkable achievement, accomplished in current difficult conditions, for which the entire nation should always express its profound gratitude. If we Ecuadorians, however, have not neglected agriculture, has the country fully benefited from it? It is easy to reply negatively to this question. In effect, agriculture development in Ecuador is aimed at feeding the local population. But our farmers have a lot of problem with production costs, because the selling price in the domestic market for their fresh products leave a very small profit. This market situation is producing that the farmers have look to move to the urban areas of the big cities in Ecuador. Additionally, with the reform of political parties, a large amount of Ecuadorian prefer a career in the public service and for president and government election, they really waste time, money, and do not produce any benefit for the nation’s budget or assets. Contrary, if the political party win the elections, they might have a job position, but they will help to corrupt the social-labour system, by trying to make money, as soon as possible, due to the short time left, because, they will replace by others that also worked in the political campaigns. This real situation among Ecuadorians reflect a state of mind, which still persists up to date. Ecuador is a traditional agricultural country, but unfortunately, is getting behind the globalisation process and yet, agriculture development, well programmed and methodically implemented, could provide individuals with comfortable incomes and initiate an era of general prosperity for the nation. The demonstration of that assertion is the aim of this delivery, which is structured into three main sections: 1. The first section shows that agriculture development was the basis of the economic takeoff of a country, which is now able to fiercely compete, on the international markets, against well established industrialized nations. 2. Two countries whose surface areas are much smaller than Ecuador, but which have developed strong agriculture and agriculture-allied sectors, are also mentioned. 3. In the second section some concrete cases of land development are briefly outlined to demonstrating the assertion. 4. Finally, the last section presents the bones of an integrated program, linking agriculture and industry, for a self-induced synergetic effect. This section is our contribution to the national debate on means and ways to staging and implementing the harmonious and prosperous development of Ecuador in this time of deep crisis and disarray. A - AGRICULTURE AS FOUNDATION TO ACHIEVING SUSTAINABLE ECONOMIC DEVELOPMENT We, in Ecuador need to make a close analysis of our situation, and our political and economics’ leaders has to realize that we have had a not solid agriculture infrastructure inherited from our ancestor, but we need to build strong agriculture associations (responsible for the popularisation of private farming in contrast to the state-run practice established elsewhere), a hardworking peasantry and performing research institutes to be dedicated for years to come to the "green revolution".


Farmers' incomes will increase due to the combined effect of improved production's yields and the decrease of overhead costs of land purchasing and rental. Due to the strategically and geographically conditions of biorefineries to produce Biofuels in the coastal region of Ecuador will be at lower prices under our real scheme of 20% or more than world prices. The results by investing at least US$5 Billions dollars to install 25 biorefineries and 2. from the enacted of the Land Act a new fresh resources will come to Ecuador by hundreds of million of convertible US dollars poured into agriculture development.000 hectares of energy crops to produce 2.500. Agriculture production increased significantly with a two digit increased for the 20 years to come. Our executive team force will work and look for the support of the Central Government to set up a credit policy to assist small operators under the microcredit system already established through the National Development Bank of Ecuador with locations along the country with logistics for the supply of raw 1 . to set Ecuador's developing on a regular high growth rate path unprecedented in history. the peasants 25%. which started supplying rural development with various equipment and materials. to be imposed by our ruling government shall be a compulsory decision to supporting this and future regimes to come. the Land Act will helped the leading landowners to become popular with the peasantry. This is to transform the labour-hand force into basic standard of living through major project with ample means of investment to guarantee all the needs of goods and services to the people. which shall prove subsequently to be very useful for the economic development of our country. Nevertheless. In this way. the promoters 20% and the investors 20% of the shares participation and production. That could mean a gross 30% of the total of our national budged in agriculture being considered as the absolute priority for our prosperity. Thus this Land Act. independent from and above all Ecuadorian governmental decisions making bodies. our congressmen shall fund the launching of the Land Act with Commission of Rural Reconstruction to be created and endowed with exceptional powers. Our Ecuador’ leaders do not have hesitate by converting "Land for those who cultivate it". rural roads. the fundamental thrust have to come from the rural dwellers themselves. They. We shall put into force a Land Act in three stages with a compensation scheme for the former landowners. to explode the small farmers and community peasantry and which had been disastrous to our their earlier regime in Ecuador. farmers will also invest up to digit of their incomes into economic areas outside agriculture development: in agro-allied industries and light industries. This real situation will create a domino effect in the former land owners also join the fray and became enthusiastically caught up in the investment fever. Due to the resulting prosperity and to educate Ecuadorians´ propensity to save. Only by taking a wise decision.500 millions gallons of Biofuels for the international market. They will learn easily their lesson avoiding to repeat the political mistake. highways.Our focus shall be focused on agriculture and fertile land (second best vegetable layer in the world) our natural resources assets and establish a powerful agriculture such as the energy crops but to be crop-sharing contracts to be imposed on the peasants by the landowners. This means to met the expectations of Ecuador's leaders. Rural electrification will also be extended to promote the establishment of factories in the costal region of Ecuador. it should be our rallying slogan . Under the following parameter: The landlords 35%. and second. first. they will also accept potential cuts to their incomes originating from improved and betterness of their monthly salaries to be converted in to real and fair basic standards of living. It is necessary to change or suppress the current usurious practice by the landlord as the key to unleashing the rocketing evolution of Ecuador's agriculture.from now to 2030. have to look for qualified Ecuadorian promoters with good international financial contacts to locate investors to accept our equity of natural resources to be converted in funds/assets as a large portion of their savings. running . Besides. Further. These major agro-industrial projects will also initiate and execute an significant program to developing communication networks.

66 billion in 1987. 1 .materials and organized several agencies in charge of popularizing farming and land development techniques. The Kingdom of Belgium has an area of 17. Methodical and rigorous planning will be combined with a soft and open implementation strategy. with relatively high purchasing power – guarantee by international finance private resources . The close link between agriculture and industry that plays a fundamental and prominent part in the success of developing the Biofuels project in Ecuador. The hard working spirit that will be employed by landowners. 5. and private promoters creating through educational programs that saving habits and the patriotism of the Ecuadorian people. Our policy-makers will be happy to demonstrate that a land development program methodically implemented was the prerequisite for a successful industrialization policy.000 hectares). In brief. And most importantly marketing channels were organized. 1. because they will backed and guarantee from the funds obtained the develop the complete major project of biofuels. Consequently. Its agriculture and agriculture . The open door policy will the reason why Ecuador will not suffer heavy public indebtedness. 3. which is nowadays the nightmare of Latin American countries. The project will become self-sufficient in products such as fertilizers. Our Agriculture's production will double with the implementation of 2500. The open door policy established by Our governments.000 hectares of energy crops and animal breeding will result in near a two digit rate. From now on. seeds. which allowed the participation of private foreign investors – so their funds will take over as the driving force to accomplish these Biofuels projects. 4. Thus the farmers became the driving force for the Ecuador's global economy. 2. With a wealthier peasantry. Thus.000 square kilometers. And also in fishing. A close link will created between agriculture and industry particularly at the beginning of the development process of these major biofuel projects. What will be the main reasons for this? 1. which will be supplied by national industries through the establishments of several wellprovided Malls. Now let us briefly consider two European cases. fertilizers and other inputs for land development together with household goods for its own comfort. textiles. we are expecting a 5 Billion US dollars (five) will be poured into the coastal region of Ecuador. the development strategy to be experienced by Ecuador will confirm the assertion made at the beginning of this project: A well planned and implemented land development program is the launching pad for an integrated development scheme linking agriculture and industry.allied products exports amounted to US dollars 6. cement and other necessary consumer comparison with the international average. purchased equipment. a domestic consumer market emerged in the biofuels corridor (covering 250. The initial International Private Financing support. nascent industrialization will be as largely financed by agriculture's incomes. This is helping to attract foreign investment. peasantries. No one could deny this achievement that will constitute a true and exemplary success story accomplished by a country endowed with strategic natural resources. Ecuador' successive governments has established investment incentives with a ten year tax free plan for new energetic industries.

LCRDs would enter into purchasing/ supply contracts with processing units established according to the same legal pattern as the LCRDs. industrial processing and international marketing. Considering the average crop's yield as equal to 100 metric tons of sugarcane crops per hectare.plantations. Let us consider the cultivated area increased fivefold – Biofuel Corridor's territorial area is 50. An industrialization strategy will be based on the regular supply of local feedstocks to processing plants or biorefineries will help to establish strong linkage between agriculture and industry in contrast to industrialization. It is high time for Ecuador to adopt a new approach to agriculture development. particularly in the sector of oil seeds and oils in general. Once processed jojoba's nuts produce an oil and a natural resin that are basic raw materials mainly to produce biodiesel and for further applications the resulting by-products in food industry. sociologically.2. to specialize. the Rural Communities might take a significant shares in equity but the management should always be under the control of 1 . and jatropha curca cultivation systems new opportunities mean new varieties of plants and species to produce new products through industrial processing. The country has a powerful agro-allied industry. banana field waste. The management of a LCRD would be supervised by agriculture' specialists and seasoned managers to be hired under international contracts. It also provides lubricating oil for high performance motor engines (air-carriers' engines) as a replacement for whale oil. Both countries per capita gross national products are listed among the top highest in the world. Where could establish limited companies for rural development (LCRDs). In agriculture to produce energy crops such as sugarcane.000. politically and historically. this means to produce a production of 1.000 metric tons for one annual harvest.473 square kilometers. LAND DEVELOPMENT AS SOURCE OF INCOME FOR INDIVIDUALS AND THE STATE Energy crops and cultivation practices will be used to boost-up Ecuador's agriculture will be described and contract under a turn-key-project. The Jojoba plant to be cultivated in our project it is a striking example of such plants. The word "cooperative" is intentionally avoided. the resulting yearly crop shall be about 5. We are going to produce maximum revenues. it is necessary to detect opportunities.000 metric tons a year. to choose according to consumers' demand.000. as an imperative to avoid selling bulk agriculture raw materials. In both cases. It is considered as tomorrow's vegetable petroleum. They should have a financial interest in the venture either as shareholders or as beneficiaries under a profit sharing scheme to avoid the disastrous civil servant's mentality that pervades Latin American enterprises. In the following sections are considered ways and means to fulfilling that vision.000 hectares. because it has a lot of land . pharmaceuticals and cosmetics.000. which relies on imported raw materials. it is an absolutely necessity to be active at every stage of the production chain . Those examples show that agriculture development is really a gateway to prosperity. The shareholders of these LCRDs being rural folks belonging to rural communities giving their land as a contribution in kind for the Biofuel project in the Peninsula of Santa Elena. which can survive drastic climatic conditions. cassava roots. Of course. produce and merchandise the biofuels products domestically and internationally at least cost. each country is unique.000 hectares per each plant. The Kingdom of The Netherlands has an area of 41. Consequently. Nevertheless. Because to too make a profit. in any field of economic activity. for one harvests of sugarcane would be from an area of 10. Which could help to establish a linkage between agriculture and industry to assure Ecuador's economic to takeoff. That is the only way to escape or control international speculation. Its research institutes in the field of agriculture are world renowned. Ecuador has plenty of non cultivated arable land .Ecuador's territorial area to cultivate energy crops is around 1.000 hectares inside the biofuels corridor. Nevertheless Ecuador can draw much from the above mentioned experiences.

Let us now consider. They are convinced their contributions would be well used and not squandered.If the investment policy and the banking system of a country are well defined.Seed selection .people of goodwill show their willingness to cooperate. . including the selling of the Biofuels in the domestic and international markets. a rigorous implementation schedule.Plant multiplication for cultivation . scouting for additional support if necessary. APPROACH TO A NATIONAL DEVELOPMENT PROGRAM. INDUSTRIES AND SERVICES There is no doubt the basis for any success story is a detailed and accurate idea of the aims. A tentative planning looks as follows: . A panel of national executives and experts. appraisal of existing conditions and of the means available to reach the targets. During the first years of the developing. It is so much easier to find foreign partners and financing.If the investment propositions are well studied and backed by comprehensive Business Plan. agriculture experts and economists. LINKING AGRICULTURE. Therefore. Some brainstorming about this question of contracting is necessary to finding the best way to entering the marketing international business for the biofuels. AGRICULTURE Appropriate oil-yielding varieties . development planning specialists. international cooperation through the several United-Nations' agencies together with bilateral cooperation between States. after processing of crops.mechanization. it is obvious that to carve the road towards prosperity Ecuador with the Biofuels projects need to implement a developing strategy that closely links agriculture development. attractive.private nationals and foreign contracting firms. These purchasing/ supply contracts would ensure that the LCRDs and the processing units could plan ahead their forecast revenues and spending. sociologists and financiers .Selection of planting areas . a private-controlled central board would be in charge of international marketing of products in contracting with foreign companies and institutions active in the international marketplace. step by step. one could consider. clear and unequivocal 2.composed of geographers. transformation of crops together with the setup of related services. each component of the scheme. with wellestablished credentials in their respective fields of knowledge and expertise . When such a strategy is known .should be in charge of the final drafting of the scheme in close relation and coordination with the country's political decision-makers and in dialogue with the communities and civil populations.Selection of various crops with adequate balance between perennial and annual plants.Logistics . which are raw materials for further industrial processing. irrigation system. initially. Etc.and this applies to individuals as much as to a community . sociological and political situation of the country . For the acquisition of seeds and other necessary agricultural inputs.both perennials and annuals . edible and non-edible industrial oils and fats. 1 . The implementation of the scheme would necessitate a detailed study and analysis of each component economic activity of the scheme taking into account the existing economic. Through experience gained as Investment and Business Planner the promoter of the Biofuel Project in Ecuador of this delivery learned the following lesson: 1. .nursery or in-vitro be selected to obtain. building up various strategies and the will to keep on persevering.

State and foreign investment.Financing. Alcohol and fatty acids' industries cover a wide spectrum. for electricity generation and as raw materials for pharmaceuticals and leather industries.oilexpelling or/ and solvent extraction processes.. select. . hospitals to be considered. The end products are: . The opportunity exists. . coordinate and utilize to the optimum non-edible oils and fats' raw materials will be a tremendous task that is rewarding as the sector generates substantial profits.Non-edible or industrial oils and fats. Social logistics . Etc. ON THE SPOT ENERGY GENERATION The technology to utilizing crude vegetable oils as fuel in automotive and power generating engines is now well established.housing.Legal aspects of farming organization . Efficient technology processes adapted to tropical areas to be chosen . because without energy. mixed plantations with private. in this sector. mainly for the developing countries such Ecuador. To investigate. .Edible oils and fats. there is no economic development. INDUSTRIAL PROCESSING Taking into account selected crops included in the scheme and the balance between perennial and annual plants.Edible oil refineries . to manufacture several kinds of products with high-added value for the international market to earning hard currency.village plantations. paints.Vegetable proteins (oil cake).see section about On The Spot Energy Generation -. That is a very important breakthrough. Soap manufacturing is a well-known economic activity that uses vegetable oils and fats in line with detergents. It is the primordial factor. The processing units to be located on site near the plantations and be self-sufficient in energy as below explained in the section about On the Spot Energy Generation. AGRO-ALLIED AND FOOD INDUSTRIES Edible oils and fats obtained from various species of oil-yielding seeds are raw materials for the setup of agro-allied and food industries : . printing inks and varnishes sectors. if standards are respected from the outset.Industries based on raw materials obtained from the chemical distillation or fractionation of edible and non edible oils CHEMICAL INDUSTRIES Crude non-edible oils and fats obtained from appropriate plants could be used directly as fuel in automotive engines .Storage facilities . versatile processing units to be established that could process different species of vegetable oil seeds.Fertilizers. . schools. The lack of abundant and cheap sources of energy has 1 .Drying systems . Storage facilities capable of handling several similar production' units to be set up.

which makes ideological debates and conflicts obsolete and anachronistic.Development of high performance irrigation system and study of the restrictive factors of various irrigation systems. A country that carries out the strategy would have access to a renewable energy free from external pressure. mineral oil. The supply of energy in developing countries being worsened by the high cost and environmental consequences of classic energy sources . planting and harvesting of crops could be programmed and the quality of crops better controlled.New cultivation techniques .will be vital to launching rural hydrological programs on large scale. Therefore.To power machines in processing factories. An energy supply's policy based on the generation of energy on the spot . new extraction techniques . A decade would be enough to establish sound foundations for prosperity for all. . There is no doubt the execution of the scheme hereby described would help any Latin American country achieve a high rate of economic growth.been. Etc.Fertilizer-coated seed development .Seed multiplication. 1 .hydro. until now. A mechanical industry could be established to assemble automotive engines. Particularly. Indeed.through the utilization of non-edible vegetable oils and fats . one could foresee a solution to the energy crisis in developing countries. Etc.Species improvement (maturity yield. power generating sets and unsophisticated motor vehicles. In this time of global economic war. drought-resistance) . ferti-irrigation.Vegetable oil.In-vitro technology for plant multiplication .Study of seeds. . nuclear.To run tractors on plantations . The village plantations of vegetable oil seeds would provide energy fuel to run crops processing factories. for a better economic future for Ecuador. Now. A controlled irrigation system could be set up to avoid dependency on rain seasons. the bottleneck to implementing projects in developing countries. wood.Production of high yield seeds. There will be no need to establishing lengthy conducting lines deployed over thousand of kilometers together with innumerable supporting pillars and distribution stations to connect electricity to villages. with vegetable oil as energy fuel. if well carried out. We Ecuadorians have assets enough to enter the fray. it would be a decisive factor in stopping the rural exodus of young people to cities that is one of the plagues of Latin American nations. This contribution opens the debate. RESEARCH INSTITUTES Research institutes specialized in the following areas to be established: . and plants which yield oils and fats . without any polemical attitude. the scheme described in this document is selfsufficient in energy. including Ecuador. only those who are prepared and organized for the "battle" will win and prosper. . Throughout this delivery ideas and proposals were exposed. Oil produced from particular species of vegetable seeds could be used as energy fuel: .To run on the spot power generating engines for rural electrification. Rural electrification would become commonplace. An energy supply's policy based on vegetable oils fuel would doubtless have tremendous sociological impacts.

Taiwan. One should erase that untruth from one's thinking. 2. Transition from poverty to prosperity is just a question of method. Singapore and Japan. and a minor axis. the community of the nations. Underdevelopment and its consequent poverty are not fatal. . we should have a suitable development strategy.with the first great world war . communities. we have to act and react fast. Which exposed various business and trade opportunities capable of driving the economic development of the country on a double-digit rate path. Otherwise. explicit and well explained targets to allowing the country to follow up the lead initiated by countries whose success stories worldwide. and peasants’ life easy and their activities profit earning in the Biofuels projects. with food crops is praised in the biofuel projects. rigorous behaviour and thinking and good political choices.Soils analysis.The dynamism of Ecuador's rural folks. hard work. This document is a draft about such a strategy .The rural development activities are organized in such a way that the farmers benefit from a proper logistics support: . To facilitate the success of the scheme following actions are necessary: 1. a suitable strategy should tackle rural development problems and propose sound solutions to make the country folk. year upon year. To organize ourselves as South Eastern Asia nations did. It is fair also to mention the resourcefulness shown by our mothers. to be able to provide the necessary feedstocks of good quality as agricultural raw materials for the industrial fuel processing plants. It ended the year of grace 1989 with the collapse of said country and its totalitarian ideology. to join. but rather a free enterprise one. A strategy of industrial promotion linked to rural development could be staged according to two axis: 1 . The approach above outlined is the only way to establish industrial plants with appropriate capacity to manufacturing biofuels for the domestic and foreign markets. If we Ecuadorians want to catch up with the train of progress and improve the economic development of our country. we are already in the one and twentieth first century. all our efforts will end up without any noticeable result. To break the vicious circle of poverty and pave the way towards general prosperity. efficient organization. The most efficient way to do so is to take our destiny into our hands.based upon experience gained in consulting for Biofuels projects worldwide. if we are willing to shake out poverty not to remain perpetually assisted. not to speak of a failure.and the emergence of the USSR in 1917. rain or shine. come hell. communities and peasants who supplied the whole nation.A commercial and trade promotion is undertaken prior to the setup of the agro-industrial projects. spouses and sisters. The combination of these will break the vicious circle of poverty and establish foundations for a prosperity to be enjoyed by every class of society in our nation.. to be enjoyed by every class of society in the nation. The tremendous collapse of USSR and its Eastern Europe' satellite regimes created a open and soon to be a free market to which Western European states and North America shall be more and more attracted. guided and sponsored by the State as done and still performed by SouthKorea. It should be clearly understood that the scheme is not aimed at building up a state controlled economy.Cultural guiding plans. We are sure that there is no doubt that Ecuador is endowed with dormant potential that needs only to be invigorated and directed towards clear. So. which broken the vicious circle of poverty. Centuries are not always one hundred years old. the promoter of the Biofuel Projects is of the opinion that there is no poor Nation in world. as quickly as possible. The twentieth century really started in 1914 . Contrary to the common belief. As a high percent of the population of Ecuador is dedicated to rural development activities. The dossier is structured into two principal axis: A major axis.

. THE MINOR AXIS: .Flowers and fragrance plants.THE MAJOR AXIS: .Fruits and vegetables. .Roots and tubers. 1 . .Cereals. .Medicinal and bio-active plants.Vegetables oils and fats.

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