Creating jobs, improving the environment for entrepreneurship and establishing more quality companies are some of the proposals embodied in the economic axis of the government plan of presidential candidate Daniel Noboa from the Acción Democrática Nacional (ADN) alliance.

One of the strategies is attracting foreign direct investment. What can provide capital, create jobs, facilitate the transfer of skills and technology, encourage competition and help diversify the economy“, says the 73-page document presented to the National Electoral Council (CNE).

Business development with social responsibility and its relationship with society, as well as to promote “the work of craftsmen, traders, entrepreneurs, fishermen, transporters and all those who are dedicated to independent work.” is among the priorities.

These are the economic proposals of the government plan of candidate Daniel Noboa

The planned plan envisages the establishment of tax incentives for investments that employ domestic labor. The purpose is to increase the number of contributors to the Ecuadorian Social Security Institute (IESS) to finance pensions, the health of branch members and retirees, and to cover catastrophic illnesses.

With 100% of the list, Noboa achieves acceptance of 23.47%, which is 2,315,296 votes and wins in six provinces.

But how feasible is it to comply with the proposed?

Editor of an economic journal Weekly analysis Alberto Acosta Burneo believes that Noboa’s government plan calls for a model of economic growth based on investments.

Their priority is competitiveness, attracting domestic and foreign investments, promoting entrepreneurship at all levels.

Creating wealth through entrepreneurship and investment without neglecting vulnerable populations while increasing government social investment is the heart of Noboa’s proposal, Acosta says.

What can be saved about this plan is that it focuses on further promoting employment, points out Pedro Romero, a professor at the University of San Francisco de Quito: “It is clear that there is a direct relationship between increasing formal jobs to raise funds for social care safety”.

Promoting investment in strategic areas such as the oil and mining sector, ports, airports and tourism is another proposed benefit.

All through the policy of tax incentives for companies.

One concept, for example, is that the more young staff they hire, the more tax benefits they will get.

“This is credible, part of the existing legal framework already promotes this, discounts for foreign direct investment. “Companies that invest more than one billion dollars have multi-year discounts on income tax of 15 to 25 percent, so it is not that this depends on the adoption of a new law,” he points out.

There is even the possibility of signing a memorandum or contract between the Ministry of Production and companies to guarantee legal certainty for more than five years.

What challenges will Daniel Noboa and Luisa González have in the campaign for the second round?

“These documents usually set conditions such as the employment of personnel of that age. I see that the regulations are clear to him, that’s understandable, since he chaired the Commission for Economic Development of the Assembly,” says Romero.

What is worrying about the plan, the expert adds, is that there is no mention of the country’s budget situation, which it will gain if it wins (fiscal deficit).

“Maybe it’s strategic, I don’t see something that they proposed relatively clearly that will be a priority in public spending.

Estimates show that it is fiscal deficit for 2024 will be 5% of gross domestic product (GDP)about five billion dollars. “That will be the necessary funding to make next year’s budget work.”

This reality will lead to an adjustment in spending, he says.

in all economies when there is a problem of fiscal deficit and external debt even if tax reform is done, You have to see what you can spend on and what you can’t.

“This is what was not done in the current government of Guillermo Lasso or in that of Lenín Moreno (2017-2021),” says Romero.

This decision is difficult, but there are alternatives without affecting social policy and the guarantee of free health and education, he adds: “The option is a structured plan for certain years of gradual cutting of certain public state companies, only maintaining vital costs.”