ABSTRACT
President Galo Plaza, a modernizing Liberal, analyzed Ecuador's economic situation in terms of increased production and economic diversification with the objective of strengthening the external sector in order to generate the capital resources necessary to reactivate the economy and spark an ongoing development process. The political supremacy of the oligarchy is a natural consequence of its economic power. Since political parties do not receive support through public funding and since many are ad hoc groupings, they are forced to appeal to the elite for financial donations and political support, even though these parties might not always represent precisely the interests of their benefactors. The growth of the capitalist sector of the economy, combined with urbanization trends and other developments. The crisis of the Liberal-Conservative two-party structure was accompanied by the growth of new political movements organized with the objective of responding directly to the realities of the country and the major interests at stake.
