The same social and political forces that have dominated Ecuador's history in the last two centuries foreshadow its direction for the future. The vast majority of the nation's wealth still sits in the hands of a very few, while a diminutive middle class struggles to survive, and more than half of the country's population exists at or below the poverty level. The country's economy continues to falter, due to the low price of oil and catastrophic losses from flooding and volcanic eruptions, combined with government austerity programs. Ecuador returned to democracy in 1979, and free elections have continued since. In addition, the political system lacks strong and stable federal institutions.

On average, every two years a new civilian or military government takes control. Governmental institutions, without opportunity to mature, have been unable to address the country's constantly re-emerging problems. The economy continues to enjoy periods of "boom" and suffer periods of "bust" on account of its reliance on a few export commodities.