Inteligencia y Seguridad Frente Externo En Profundidad Economia y Finanzas Transparencia
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29/08/2005 | Ecuador: Palacio gets a taste of his own medicine

The Economist Staff

Upset the rule of law and you risk a free-for-all. That is what is happening in Ecuador. It began with Lucio Gutiérrez, the president elected in 2002 who last year dissolved the supreme court. In April, Mr Gutiérrez was replaced in a congressional coup by Alfredo Palacio, his estranged vice-president.

 

Dr Palacio, a cardiologist, announced ambitious plans for social spending. He changed the law to divert part of a fund of windfall oil revenues from debt payments to social spending, placing in doubt loans of $400m from the World Bank and others. Now, protesters in the oil-producing, but poor, provinces of Sucumbíos and Orellana, in the Amazon, have taken matters into their own hands.

A week of protests shut down the main oilfields, causing the loss of at least 1.5m barrels of oil before talks began on August 21st. The protesters, not unreasonably, want a bigger slice of oil revenue for better health, education and roads in a neglected part of the country—more or less the same as Dr Palacio. Though more violent, their methods, too, bore some resemblance to those which brought the president to power: they dynamited pipelines and vandalised pumps belonging to the state oil firm, and sacked a government building in the town of Lago Agrio. Initial estimates suggest that the protests could cost the government some $400m (or 1.3% of GDP) in lost revenue and repairs. Oil output may not return to normal until November.

Oil provides about a third of the government's revenue. The protests will make it harder still for Dr Palacio to achieve his social goals. Venezuela's president, Hugo Chávez, ever eager for political clients, in July offered to buy up to $500m in Ecuadorean bonds. But the government's financial hole is now even bigger.

Dr Palacio's initial popularity has quickly faded. He lacks political experience and party backing. He is trying to exercise some authority. He wants to avoid a break with the World Bank, prompting his finance minister to quit. He fired the defence minister, who had failed to secure oil installations. He refused to talk to the protesters until they called a truce, or to entertain their demand to expel foreign oil firms. But it was not clear if the saboteurs would face charges. Dr Palacio lacks the legitimacy of an electoral mandate. Even if he survives until a fresh election due in October 2006, Ecuador—a potentially rich country—will continue to struggle.

Hacer - Washington DC (Estados Unidos)

 



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24/10/2008|
24/10/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
06/09/2008|
06/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
22/08/2008|
22/08/2008|
17/08/2008|
17/08/2008|
16/08/2008|
16/08/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
19/07/2008|
19/07/2008|
24/05/2008|
24/05/2008|
03/05/2008|
03/05/2008|
29/04/2008|
11/02/2008|
05/01/2008|
09/12/2007|
18/11/2007|
10/11/2007|
10/11/2007|
06/11/2007|
06/11/2007|
06/09/2007|
26/08/2007|
25/08/2007|
11/07/2007|
16/06/2007|
16/06/2007|
10/06/2007|
10/06/2007|
19/05/2007|
19/05/2007|
19/05/2007|
19/05/2007|
24/04/2007|
24/04/2007|
14/04/2007|
14/04/2007|
05/04/2007|
05/04/2007|
05/04/2007|
28/02/2007|
28/02/2007|
05/02/2007|
05/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
29/01/2007|
29/01/2007|
29/01/2007|
29/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
20/12/2006|
20/12/2006|
17/11/2006|
30/09/2006|
28/07/2006|
12/04/2006|
12/04/2006|
12/04/2006|
06/03/2006|
21/02/2006|
17/02/2006|
31/01/2006|
10/01/2006|
28/12/2005|
31/10/2005|
26/09/2005|
11/08/2005|
08/08/2005|
24/06/2005|
24/06/2005|
24/06/2005|
03/04/2005|
03/04/2005|
03/04/2005|
03/04/2005|

ver + notas
 
Center for the Study of the Presidency
Freedom House