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ECUADOR (officially the Republic of Ecuador ), is a representative democratic republic in northwestern South America. Area - 283 560 sq.km. Population - 15 439 429 (2013) Capital - Quito. Ecuador bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean to the west. Ecuador also includes the Galápagos Islands in the Pacific, about 1,000 kilometres (620 mi) west of the mainland. Before the arrival of the Incas, the area was settled by various peoples. They developed different languages while emerging as unique ethnic groups. When the Incas arrived, they found that these confederations were so developed that it took the Incas two generations of rulers - Topa Inca Yupanqui and Huayna Capac - to absorb these confederations into the Inca Empire. The native confederations that gave them the most problems were deported to far away areas of Peru, Bolivia, and north Argentina. Similarly, a number of loyal Inca subjects from Peru and Bolivia were brought to Ecuador to prevent rebellion. Thus, the region of highland Ecuador became part of the Inca Empire in 1463 sharing the same language. A small band of Spaniards headed by Francisco Pizarro landed in Tumbez and marched over the Andes Mountains until they reached Cajamarca, where the new Inca Atahualpa was to hold an interview with them. Valverde, the priest, tried to convince Atahualpa that he should join the Catholic Church and declare himself a vassal of Spain. This infuriated Atahualpa so much that he threw the Bible to the ground. At this point the enraged Spaniards, with orders from Valverde, attacked and massacred unarmed escorts of the Inca and captured Atahualpa. Pizarro promised to release Atahualpa if he made good his promise of filling a room full of gold. But, after a mock trial, the Spaniards executed Atahualpa by strangulation. New infectious diseases, endemic to the Europeans, caused high fatalities among the indigenous population during the first decades of Spanish rule, as they had no immunity. At the same time, the natives were forced into the encomienda labor system for the Spanish. In 1563, Quito became the seat of a real audiencia (administrative district) of Spain and part of the Viceroyalty of Peru and later the Viceroyalty of New Granada. After nearly 300 years of Spanish rule, Quito was still a small city numbering 10,000 inhabitants. On August 10, 1809, the city's criollos first called for independence from Spain (among the peoples of Latin America). They were led by Juan Pío Montúfar, Quiroga, Salinas, and Bishop Cuero y Caicedo. Quito's nickname, "Luz de América" ("Light of America"), is based on its leading role in trying to secure an independent and local government. Although the new government lasted no more than two months, it had important repercussions and was an inspiration for the independence movement of the rest of Spanish America. On October 9, 1820, Guayaquil became the first city in Ecuador to gain its independence from Spain. The people were very happy about the independence and celebrated, which is now Ecuador's independence day, officially on May 24, 1822. The rest of Ecuador gained its independence after Antonio José de Sucre defeated the Spanish Royalist forces at the Battle of Pichincha, near Quito. Following the battle, Ecuador joined Simón Bolívar's Republic of Gran Colombia – joining with modern-day Colombia and Venezuela. In 1830 it separated from those nations and became an independent republic. The 19th century for Ecuador was marked by instability, with a rapid succession of rulers. The first president of Ecuador was the Venezuelan-born Juan José Flores, who was ultimately deposed, followed by several authoritarian leaders, such as Vicente Rocafuerte; José Joaquín de Olmedo; José María Urbina; Diego Noboa; Pedro José de Arteta; Manuel de Ascásubi; and Flores's own son, Antonio Flores Jijón, among others. The conservative Gabriel Garcia Moreno unified the country in the 1860s with the support of the Roman Catholic Church. In the late 19th century, world demand for cocoa tied the economy to commodity exports and led to migrations from the highlands to the agricultural frontier on the coast. The Liberal Revolution of 1895 under Eloy Alfaro reduced the power of the clergy and the conservative land owners. This liberal wing retained power until the military "Julian Revolution" of 1925. The 1930s and 1940s were marked by instability and emergence of populist politicians, such as five-time President José María Velasco Ibarra. Since Ecuador's separation from Colombia in May 13, 1830, its first President, General Juan José Flores, laid claim to the territory that was called the Real Audiencia of Quito, also referred to as the Presidencia of Quito. He supported his claims with Spanish Royal decrees or Real Cedulas, that delineated the borders of Spain's former overseas colonies. In the case of Ecuador, Flores-based Ecuador's de jure claims on the following cedulas - Real Cedula of 1563, 1739, and 1740; with modifications in the Amazon Basin and Andes Mountains that were introduced through the Treaty of Guayaquil (1829) which Peru reluctantly signed, after the overwhelmingly outnumbered Gran Colombian force led by Antonio José de Sucre defeated President and General La Mar's Peruvian invasion force in the Battle of Tarqui. In addition, Ecuador's eastern border with the Portuguese colony of Brazil in the Amazon Basin was modified before the wars of Independence by the First Treaty of San Ildefonso (1777) between the Spanish Empire and the Portuguese Empire. Moreover, to add legitimacy to his claims, on February 16, 1840, Flores signed a treaty with Spain, whereby Flores convinced Spain to officially recognize Ecuadorian independence and its sole rights to colonial titles over Spain's former colonial territory known anciently to Spain as the Kingdom and Presidency of Quito. Ecuador during its long and turbulent history has lost most of its contested territories to each of its more powerful neighbors, such as Colombia in 1832 and 1916, Brazil in 1904 through a series of peaceful treaties, and Peru after a short war in which the Protocol of Rio de Janeiro was signed in 1942. During the struggle for independence, before Peru or Ecuador became independent nations, a few areas of the former Vice Royalty of New Granada - Guayaquil, Tumbez, and Jaén - declared themselves independent from Spain. A few months later, a part of the Peruvian liberation army of San Martin decided to occupy the independent cities of Tumbez and Jaén with the intention of using these towns as springboards to occupy the independent city of Guayaquil and then to liberate the rest of the Audiencia de Quito (Ecuador). It was common knowledge among the top officers of the liberation army from the south that their leader San Martin wished to liberate present-day Ecuador and add it to the future republic of Peru, since it had been part of the Inca Empire before the Spaniards conquered it. But, Bolívar's intention was to form a new republic known as the Gran Colombia, out of the liberated Spanish territory of New Granada which consisted of Colombia, Venezuela, and Ecuador. San Martin's plans were thwarted when Bolívar, with the help of Marshal Antonio José de Sucre and the Gran Colombian liberation force, descended from the Andes mountains and occupied Guayaquil; they also annexed the newly liberated Audiencia de Quito to the Republic of Gran Colombia. This happened a few days before San Martin's Peruvian forces could arrive and occupy Guayaquil, with the intention of annexing Guayaquil to the rest of Audiencia of Quito (Ecuador) and to the future republic of Peru. Historic documents repeatedly stated that San Martin told Bolivar he came to Guayaquil to liberate the land of the Incas from Spain. Bolivar countered by sending a message from Guayaquil welcoming San Martin and his troops to Colombian soil. Peruvian occupation of Jaén, Tumbez, and Guayaquil In the south, Ecuador had de jure claims to a small piece of land beside the Pacific Ocean known as Tumbez, which lay between the Zarumilla and Tumbez rivers. In Ecuador's southern Andes Mountain region where the Marañon cuts across, Ecuador had de jure claims to an area it called Jaén de Bracamoros. These areas were included as part of the territory of Gran Colombia by Bolivar in December 17, 1819, during the Congress of Angostura when the Republic of Gran Colombia was created. Tumbez declared itself independent from Spain on January 17, 1821, and Jaen de Bracamoros on June 17, 1821, without any outside help from revolutionary armies. However, that same year, 1821, Peruvian forces participating in the Trujillo revolution occupied both Jaen and Tumbez. Some Peruvian generals, without any legal titles backing them up and with Ecuador still federated with the Gran Colombia, had the desire to annex Ecuador to the Republic of Peru at the expense of the Gran Colombia, feeling that Ecuador was once part of the Inca Empire. Then on July 28, 1821, Peruvian independence was proclaimed in Lima by the Liberator San Martin and Tumbez and Jaen which were included as part of the revolution of Trujillo by the Peruvian occupying force, had the whole region swear allegiance to the new Peruvian flag and incorporated itself into Peru, even though Peru was not completely liberated from Spain. After Peru was completely liberated from Spain by the patriot armies led by Bolivar and Antonio Jose Sucre at the Battle of Ayacucho dated December 9, 1824, there was a strong desire by some Peruvians to resurrect the Inca Empire and to include Bolivia and Ecuador. One of these Peruvian Generals was the Ecuadorian-born José de La Mar, who became one of Peru's presidents after Bolivar resigned as dictator of Peru and returned to Colombia. Gran Colombia had always protested Peru for the return of Jaen and Tumbez for almost a decade, then finally Bolivar after long and futile discussion over the return of Jaen, Tumbez, and part of Mainas, declared war. President and General José de La Mar, who was born in Ecuador, believing his opportunity had come to annex the District of Ecuador to Peru, personally, with a Peruvian force, invaded and occupied Guayaquil and a few cities in the Loja region of southern Ecuador on November 28, 1828. The war ended when a triumphant heavily outnumbered southern Gran Colombian army at Battle of Tarqui dated February 27, 1829, led by Antonio José de Sucre, defeated the Peruvian invasion force led by President La Mar. This defeat led to the signing of the Treaty of Guayaquil dated September 22, 1829, whereby Peru and its Congress recognized Gran Colombian rights over Tumbez, Jaen, and Maynas. Through protocolized meetings between representatives of Peru and Gran Colombia, the border was set as Tumbez river in the west and in the east the Maranon and Amazon rivers were to be followed toward Brazil as the most natural borders between them. However, what was pending was whether the new border around the Jaen region should follow the Chinchipe river or the Huancabamba river. According to the peace negotiations Peru agreed to return Guayaquil, Tumbez, and Jaén; despite this, Peru returned Guayaquil, but failed to return Tumbez and Jaén, alleging that it was not obligated to follow the agreements, since the Gran Colombia ceased to exist when it divided itself into three different nations - Ecuador, Colombia, and Venezuela. The dissolution of Gran Colombia The Central District of the Gran Colombia, known as Cundinamarca or New Granada (modern Colombia) with its capital in Bogota, did not recognize the separation of the Southern District of the Gran Colombia, with its capital in Quito, from the Gran Colombian federation on May 13, 1830. After Ecuador's separation, the Department of Cauca voluntarily decided to unite itself with Ecuador due to instability in the central government of Bogota. President Juan José Flores with the approval of the Ecuadorian congress annexed the Department of Cauca on December 20, 1830, since the government of Cauca had called for union with the District of the South as far back as April 1830. Moreover, the Cauca region throughout its long history had very strong economic and cultural ties with the people of Ecuador. Also, the Cauca region which included such cities as Pasto, Popayan, and Buenaventura had always been dependent on the Presidencia or Audiencia of Quito. Fruitless negotiations continued between the governments of Bogota and Quito, where the government of Bogota didn't recognize the separation of Ecuador or that of Cauca from the Gran Colombia until war broke out in May 1832. In five months, New Granada defeated Ecuador due to the fact that the majority of the Ecuadorian Armed Forces were composed of rebellious angry unpaid veterans from Venezuela and Colombia that did not want to fight against their fellow countrymen. Seeing that his officers were rebelling, mutinying, and changing sides, President Flores had no option but to reluctantly make peace with New Granada. The Treaty of Pasto of 1832 was signed by which the Department of Cauca was turned over to New Granada (modern Colombia), the government of Bogota recognized Ecuador as an independent country and the border was to follow the Ley de División Territorial de la República de Colombia (Law of the Division of Territory of the Gran Colombia) passed on June 25, 1824. This law set the border at the river Carchi and the eastern border that stretched to Brazil at the Caquetá river. Later, Ecuador contended that the Republic of Colombia, while reorganizing its government, unlawfully made its eastern border provisional and that Colombia extended its claims south to the Napo River because it said that the Government of Popayan extended its control all the way to the Napo River. Currency: US Dollar .