In a democracy, political uncertainty increases in every election process, in which political forces measure their social capital, which is reflected in the levels of trust and distrust of citizens. Every political moment creates a political risk that the business and financial sector must manage in order to stabilize the production system and maintain its efficiency despite constant political upheavals. Moving between political uncertainty and productive certainty requires social trust.

Social mistrust makes it easier for political opportunism to conquer the space of power without strengthening the state’s governance and institutionality. According to the OECD’s 2021 Trust Survey, “three out of four Latin American citizens have little or no trust in their governments, and around 80% believe that corruption is widespread in public institutions”; For its part, the IDB in its report Trust: The Key to Social Cohesion and Growth points out that “when there is no trust, society and all its members suffer; Politics is unstable, the quality of public policies is declining, economic growth is slowing down, and social equality and individual well-being are declining.

Ecuador’s country risk has risen by 295 points and is now at 1415 points, after the 2023 election.

for his part, Business confidence is based on solid operational management, which facilitates the creation of an environment of transparency and accountability necessary to strengthen the production system through long-term investments, financial stability and integrity in business and in the market. A reliable business sector encourages innovation, competition and the creation of better jobs; and at the same time puts pressure on the state to make public spending more efficient, provide better services and respond to citizens’ demands. Social trust in the business sector reduces its excessive regulation, eliminating obstacles or bureaucratic controls that affect its competitiveness and economic growth.

Why is Ecuador among the top 4 countries with the worst risk in the region?

Depoliticization of relations between the state and companies would allow building business trust without political opportunism, which reduces social uncertainty caused by political hostility and fragmentation of citizens, and promotes civil cooperation based on a business institutional framework based on environmental, social and security standards corporate governance that guarantees legality, formality and transparency needed to encourage sustainable and responsible investment.

The business sector, through its unions, has the responsibility to create a network of civic trust that strengthens productive autonomy, that diversifies the productive structure and increases its added value for integration with new markets, that promotes operational efficiency and creates quality jobs with a focus on inclusion and fair wages .

The company must look after the interests of society through sustainable mutual trust, which protects the production system from the political risk generated by the struggle for power, which, far from being a purposeful struggle, is a combative struggle. (OR)