In my extensive experience in business and public administration, I have been fortunate to learn about leadership at the highest level. Undoubtedly, in 1940, in the House of Commons, representing the United Kingdom, Winston Churchill assumed the initial leadership of the Allied side in the Second World War. In one part of the speech he says: “What is our goal? I can answer in one word: victory. Victory at any cost, because without victory there is no survival.”

Daniel Noboa announced traffic lights in the cantons due to the curfew, and defended the VAT increase to 15% to fight against narco-terrorist groups

The government has introduced extraordinary economic bills, one of which has already been approved, to obtain funds in the amount of $800 million, especially from income tax advances and tax payments with interest waivers. In another law that was presented in the Parliament and is under discussion, an increase in VAT from 12% to 15% is proposed as a supposedly temporary measure that could raise an additional 1,000 million dollars.

Allegedly, the average VAT in Latin America is 15%, but it is not said that in Panama, a dollarized country, the VAT is 7%, and that in other Latin countries that have their own currency, it is devalued due to the high level of inflation.

How to finance the ‘war’ and the rest?

President Nobo talks about mixed VAT, ITT moratorium, contributions and even subsidies to face the lack of resources

No one can deny that Churchill was a trustworthy politician with excellent leadership. This trust is based on the decisions that the government makes to improve people’s living conditions and on the example that the state sets with its actions.

Communication with citizens must be transparent and frontal with real data and proposals that do not only imply sacrifice for the citizens but also for the fat state.

Communication with people must be transparent and frontal with real data and suggestions…

As in all my articles, I give recommendations that can be useful to leaders in general: a) always keep your word; b) be humble and honest; c) have empathy towards their colleagues and citizens; c) be firm and decisive; d) accept and analyze the ideas of others; e) lead working groups with civil society and interest groups; f) hire a competent team to help you manage that leadership; g) when you propose changes, make them first.

The increase in VAT will affect consumption as it is a massive and recessive indirect tax. There must be coherence in the fiscal policy despite the changes in the Government and it must be logical and countercyclical. That is, taxes increase when there is economic growth and decrease when there is an economic decline.

Members of parliament raise the alarm in order to prevent the executive project increasing VAT to 15 percent from passing through the Ministry of Law

If we are at war, the country’s economy must be war-like and measurable. We are interested in the Ministry of Finance’s plan to reduce current spending by at least 10%. You could consider delaying ITT’s shutdown for a year, where we could keep the $600 million in revenue it produces.

Tax revenues increase when the economy grows. In order for it to grow strongly, it is necessary to increase loans through CFN, BanEcuador and Banco del Pacífico. Favorable, long-term loans must be approved for development.

VAT of 15 percent until 2026 and the contribution of companies and banks to their profits is a counter-proposal of the Assembly

In order to maintain people’s trust and accept suggestions for change, you must take your own actions that set the example of continuing to be a trusted leader. (OR)