Ecuador's economy has based its performance on agriculture. Mainly on the exports of cocoa, coffee, and bananas. In the early 1970's oil was discovered in the Amazon region. This brought economic improvement, improved living standards, and transformed the economy into one that depends on the exports of petroleum products.There was an "oil boom" that improved the economy and increased Government spending. After the economic prosperity, there was a decline in the economy. Three major things caused this decline to the economy:
1: The foreign debt crisis
2:The 1986 sharp decline in world oil prices
3:1987 earthquake damaged a large portion of Ecuador's oil pipeline.