International effects with ecuadorian new constitution

International Effects of the New Ecuadorian Constitution

Ecuador has had 20 constitutions already since its gaining independence as a republic in 1830 . Ecuadorians are used to constitutional changes every so often . Its present constitution was one made by Congress in 1998 . The draft of the new constitution has 444 articles and 26 transitory provisions . This last one has aroused international interests because of its effects on international investment , as well as its social and arbitration impact

Primarily , the new constitution would give President Correa extensive powers . He may stay in office

until 2017 . He may dissolve Congress which he already did , and in its place he created a temporary constituent assembly . The new constitution provides for the revamp of the judiciary , particularly the Electoral Tribunal and the Supreme Court . President Correa is also empowered to formulate and implement the country 's monetary policy , which is otherwise the job of an independent Central Bank . The Central Bank , the country 's watchdog tasked with the economic security and stability of Ecuador will become a politicized institution . Since Ecuador is a dollar-based economy President Correa has the controls over the volume of dollars infused in its economy . President Correa claims that the new constitution will put an end to corruption brought by the influence of the traditional elite of Ecuador over its political institutions . He vowed the equal redistribution of wealth to benefit the poor majority

International investors are particularly watchful on the developments because of the vast powers given to Correa by the constitution . The State would very likely take over Ecuador 's giant industries like oil and mining . Central Bank would be rendered powerless without its autonomy . Ecuador ranks 5th as South America 's largest oil producer Foreign investors are scared that 99 of oil profits will go to the government instead of its 50 normal share . The mining industry 's foreign direct investors are similarly concerned that the government will suspend new mining contracts . They feared that such move might all together paralyze the beginning of what seem to be a promising industry With a slight economic growth of less than 3 from the previous year Correa is convinced that it is absolutely necessary for government control or intervention to narrow the income gap between the elite and the poor

The new constitution expressly disallows the use of its territory by foreign forces as military bases or facilities . It has provisions that do not intend to extend the stay of the existing ones beyond 2009 . This is particularly significant to the Americans because of their Southwestern Manta Military Base . Due to its strategic location it has served the US well in going after the illegal drug trade and in monitoring the movement of warships from Middle East and Asia

The new constitution will treat undocumented immigrants with leniency These immigrants , including refugees , will be granted legal status They will be allowed to live and work in the country . Even with strong objections from the Catholic Church , the new constitution will...