domingo, 27 de febrero de 2011

The benefits of a democratic country

We have seen trough the history that the democratic system is the better because it has three specific benefits:
- The fist one, in a democratic government all the people is represented, that includes: all the social clases, without differences of culture. It depends of the country that they have an indirect or direct democracy.
An indirect democracy is "a form of government in which people elect representatives to rule in their interest"( dictionary.reference.com) So their leaders are the president and a posible senate or assambly. And  a direct democracy is "a form of democracy in which the people as a whole make direct decisions" ( dictionary.reference.com), in this case the people decide by voting in referendum ( but for that they need a big amount of money for asking all the habitants what to do over a topic. An example of it is Switzerland.
Another factor that benefits the country is the division of power in: executive, legislative and judicial. And each one is important and it serves to don´t give too much power to a person, in a way that the leaders don´t handle the country as they want. The executive country includes the president and his ministes, also his assistants. The legislative power is composed by a parlament, assambly or a congres. And the judicial contains all the judges and courts.
And the last is that in a democratic system the people has the support for a development, becuase in democracy the equality and the progress are very important subjects. The people has more opportunities of work because the leaders allows the big companies in the country, also they export what they produce and the market is basic for the economy.

domingo, 6 de febrero de 2011

The Petroleum´s production

In the last months we have heard on several reforms from the laws of the constitution approved in the year 2008, one of these reforms was given in the law of hydrocarbons that was approved last July 26, 2010, this one indicates that the Ecuadorian state will remain with 100 % of the oil and will pay to  to the companies a quantity  for the given services. But if we have in mind that " The production has gone down in the last four years (…)Its cause is  principally,  the low production of the companies deprived in the last two years " (Pastor, Wilson), I think that the production will continue going down because this reform are harmful to the petroleum companies that have realized investments in the country for many years; the economic instability of the same one and the lack of guarantees in the laws that govern it.

If the reform proposes that only the given services are paid to the companies and that the same ones cannot use the extracted crude oil, there is no a motivation for the national and foreign enterprises to continue doing their  investments. So we as a result that the companies finish the contracts, though it is true  that the petroleum companies get a rate for their investments, and the expenses are taken in you count so there is difference between the companies that do a recognition and local study to which it is known as exploration and to the companies that extracts the product since they need a major investment, programming and permissions;though, a minor risk has that the exploration where in some cases they can find oil and in other one not. But if we concentrate on the following information that shows that " The production of the country borders on 480.000 daily barrels of crude oil. 40 % of the oil is extracted by foreign companies " (http://www.bbc.co.uk/) this ending of the contracts they would cause a great expenditure for the country and for the companies since it is never going to be possible to recover everything invested in the time that they were extracting oil.

There is another very important factor that is the economic instability that exists in the country if we refer to that " Economic Stability: Situation characterized by the absence of big fluctuations in the level of Revenue and Employment, for the nonexistence of involuntary unemployment and of Underemployment and for the absence of Inflation. ", then we come to the conclusion of that our economy is based only in one product, since we are not self-sufficient, we can´t import any more than we export and if they lower the prices of this product affects on all the social groups and the condition in general what generates an unemployment and an increase in the inflation.But this is not new since along our history always we have based on a specific product since one was giving with the" boom bananero" and the "petroleum boom", nowadays we live through a moment of about four products that lead the exports.

Another point  is the lack of solidity of  the laws of our country; since we have seen in the months later to the popular consultation that was given to accept the new constitution of the Ecuador, there have been several reforms to the laws that they change radically the sense of the same ones. The reforms are necessary to correct possible mistakes that are seen in the moment of execution of the laws but and if there is an abuse of the same ones?  who guarantee the democracy? To the latter question we might answer that our representatives are: first, the president; and later the assemblymen chosen by voting in the urns. But, do we feel represented? If we know that the government has a majority in the assembly and if this one does not pass or seam the laws in a maximum time goes  to another organism that almost always approves the law. Now let's see an approach of what is the law, " The law (of the Latin lex, legis) it is a juridical norm dictated by the legislator. That is to say, a rule established by the competent authority, in which it gets about itself or prohibits something in agreement with the justice. His breach brings prepared a sanction. " (http://www.wikipedia.org/), therefore it is not necessary to forget the intention of the law that is to make  something for good of the company having in mind the justice that it is necessary to to apply. This is something that  worries both the population of  Ecuador and the inhabitants of other countries.

After having exposed the ideas previously raised, I came to the conclusion that the production of petroleum  will not stop his descent since the factors that are developing this year are not favorable like we already know several petroleum companies  have moved back because  they have met harmed with this reform to the law, besides it there exists an economic instability that concerns all the sectors of the country and the insecurity that exists on the reforms that could be done to the different laws. But already we will see results beginning for that "  January 23, 2011, Petroecuador will export the whole petroleum production of the country " (Maria de la Paz Vela, 17). In my personal opinion, I wish the best thing for the country but I think that the government must  considered in a better way the decisions that they will take in future since we must see the limit and not to come to the excess, and focus on "  the legal and effective residence of the power of control of a social set  is exercised in and for the universality of the citizens " (http://www.wikipedia.com/) then it is necessary  to think in everyone at  the moment to decide and represent all those who conforms a nation.