Historically, revenue from the Ecuadorian oil industry has not been directed towards initiatives to achieve long term development. Therefore, this analysis seeks to understand how this oil revenue has been generated, managed and distributed in 2003-2007.
To do this, Faro analyzed the economics of the industry, the legal framework that regulates it and the management of its resources. In addition, they monitored compliance with the Organic Law of Transparency and Access to Information of public institutions in the sector.
This analysis concludes that the distribution of oil revenue has been based on an outdated legal framework, which responds to short-term needs rather than long-term policies. However, legal changes in 2008 could promote a more planned and transparent use of this revenue.
This document is the result of a research process that lasted a year and aimed to lay the groundwork for a systematic monitoring system of extractive industries, with special emphasis on the use of revenue from oil exports.
