Turmoil Erupts in Ecuador as a Result of New Austerity Measures

Part of the reason the government abandoned Quito is because of its geographical elevation and isolation. (Pixabay)

Protestors took to the streets in Ecuador to express their anger and discontent with President Lenín Moreno’s termination of the national fuel subsidy program. The protests, primarily composed of indigenous people, students, and transportation workers, demand that the program be reinstated, with some calling for President Moreno’s removal. In addition to extensive property damage, 19 civilians and 43 officers have been injured in the often violent demonstrations thus far.

The termination of the fuel subsidy program is part of a set of austerity measures put in place by Moreno’s administration in accordance with their recent debt-reduction deal with the IMF. The deal entitles Ecuador to $10.2 billion in loans from the IMF, the World Bank, and the Inter-American Council, as long as the Ecuadorian government drastically cuts federal spending and works to bring the soaring national debt down below the legal limit of 40 percent of GDP. However, these measures mean the people of Ecuador are expected to pay drastically higher prices for gas and transportation, a financial burden that many say would be impossible for them to bear.

Protesters flooded into the capital city of Quito last week and have slowed the city to a virtual standstill since their arrival. The protests have, in many cases, turned violent, with rioters vandalising government property, looting stores, and throwing Molotov cocktails. Many of the protesters are dressed in bowler hats and colorful layered skirts, clothing traditional to the indigenous peoples of Ecuador. According to Reuters, the prominent role of the indigenous communities in this protest is significant, as they have played a key role in pushing several previous presidents out of power. The protesters have declared that they will remain until the austerity measures are repealed or Moreno is removed.

The government responded swiftly to the protests. Moreno decided to temporarily move the seat of his government 170 miles south to the city of Guayaquil in an attempt to de-escalate the conflict and to avoid getting trapped by protesters in the high, isolated mountain valley of Quito. So far, more than 700 people have been arrested, and President Moreno has declared a state of emergency in an effort to “ensure citizens’ security and avoid chaos.” While protests are still ongoing, the government is in the early stages of negotiations with the indigenous groups leading the protests. The UN and the Catholic Church acting as mediators.

President Moreno has accused former president Rafael Correa and his supporters of orchestrating these protests as a political ploy to remove him from office. Moreno was once considered Correa’s protege, but he shifted drastically right from his predecessor’s socialist economic policy once taking office, causing a rift between the two. Correa, who is currently in self-imposed exile in Belgium, has vehemently denied Moreno’s accusations about his involvement in these protests, but has called for snap elections to be held immediately instead of at the end of Moreno’s term in 2021.