The newly elected president Daniel Noboa Azín has announced these days part of his economic front and they will be young women who will manage the two most important ministries, such as economy and finance, headed by Sarih Moya, and Andrea Arrobo for the energy portfolio, which is now facing extinction electricity.

Economic analysts evaluate their little-known names as positive, due to the issue of youth and a kind of oxygenation that can be felt, but they raise doubts due to a possible lack of experience, weight for negotiation and knowledge to manage public issues.

Sariha Moya, who will be the Minister of Finance, is 35 years old and has two postgraduate degrees in Europe: one in economics and the other in management. She has worked in the public sector since 2016 in various middle management positions. Andrea Arrobo is 33 years old and has a master’s degree in international organizations and international cooperation at the University of Barcelona. Vodik business developer from France, in the company HDF Energy.

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For former Minister of Economy Maurici Poza, the new government is positive. “This is refreshing, it gives energy and creativity, it gives a different vision of problems in some areas,” he says. However, it seems to him that the public sector also needs some experience of what can and cannot be done.

He assures that, as far as he is concerned, he does not know these people, so he does not know what their line will be. He also believes that the profile of the Minister of Economy and Finance must have several aspects. On the one hand, knowledge of economics and an understanding of how things work in the public sector, but also the ability to negotiate with different sectors: the economy, trade unions, politicians, the Parliament.

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You also need a communication ease profile, which means knowing how to sell the measures you adopt. Explain that these other requirements are not known whether they have them or not. He remembers that when he held that portfolio, first at the age of 40 in the government of Lucio Gutiérrez and then at the age of 60 in the government of Lenín Moreno, he felt that he had much more room for negotiation “because of my gray hair”, he comments .

Alberto Acosta Burneo, editor, shares a similar opinion Weekly analysis, believes that these two young experts were not exposed to the media and therefore does not know their achievements. According to their CVs, it can be said that they have knowledge, but it is not known whether they also have managerial skills in the public sector. “Management is one of the big difficulties, you have to know how the strings are pulled in the public sector. “That was one of the great failures of the government of Guillermo Lasso.”

He comments that according to Sariha Moya’s biography, she was active in the public sector. He explains that in the year and a half of the Government, there is no time for learning.

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Both Acosta and Pozo hope that both officials do very well in their positions, as this will allow the country to perform well.

In addition to the proposed names, they have certain reservations regarding the first announcements made by President-elect Daniel Noboa Azín on the economic issue.

Pozo explains that Noboa was talking about differentiated value added tax (VAT). But he has enough experience in this matter that it is not convenient, because it creates distortions and political tensions. A sector such as agriculture can tell why construction is shrinking and not agriculture if it has more weight in the economy. He explains that if you want to stimulate the economy, you have to point to the source of the problem, and that wouldn’t exactly be VAT. Solutions must be sought through greater financing, improvement of project financing capacity and greater certainty of the costs of imported inputs. Consider that VAT in Ecuador is one of the lowest in the region.

Daniel Noboa claims that he will not raise taxes with the tax reform he will promote

For Pozo, the issue of tax reform, which will include VAT, would be an attempt, according to Noboa, to revive the business issue, and not to chase after tax revenues. However, he believes that this would be too businesslike a reading of reality, and that the macroeconomic part is important. As for the possibility of multilaterals providing bridging credit, he assures that this will only be achieved if there is a sustainable plan over time.

Acosta Burneo admits that the newly elected president has clarified that taxes will not be increased, which is positive; However, a reform that only reduces income is not sustainable in a bankrupt state. The reduction in resources must be financed or compensated, especially in a country that could end up with a deficit of almost 5 billion dollars, he comments. In this sense, he says that the Government must strive to reduce current spending.

The mentioned bridging credit, says Acosta Burneo, would serve to cover this year’s financing needs, but not to compensate for lower taxes.