Rafael Correa: The Anti-Obama

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Adam Chimenti and Carmen L. Arias

Latin American elections always seem to get it these days. Western journalists cannot deny an opportunity to pass without throwing some stones. So it was hardly surprising when the words “dictator”(Reuters, BBC) and “handouts”(USA Today, CBS News) were thrown into the hastily assembled reports on the election in “tiny”, read: insignificant,[i] Ecuador and the results turned out to be heavily in favor of the “anti-American” candidate.

It’s interesting to look at each of these terms to see the duplicitous nature of Western reporting. For example, the word dictator should hardly apply to Rafael Correa, the Ecuadorian President comfortably reelected. That is unless you enjoy the use of hyperbole for dramatic effect. As they say, if it bleeds… and Latin American blood is always especially crimson in the grey of the New York Times and its counterparts. Except President Correa in Ecuador has killed no one. He has started zero wars, tortured or killed zero citizens, and while he may have a “pugnacious” (Reuters again) attitude how else could one realistically expect a politician to survive in the 21st century.

Here’s what you need to know. Rafael Correa was a nobody on the political scene in Ecuador when George W. Bush was being inaugurated for the second time in Washington 8 years ago. I know. It’s not polite to bring up such ugly episodes in US history but allow me to refresh your memory for a second. Bush just beat the current Secretary of State John Kerry in the November election and presumed he had a mandate. He was talking about going after Social Security. The left, right and center were paying close attention. It turns out though, that Bush’s victory was an incredibly narrow one, with allegations of strange occurrences in Ohio, people being forced to wait in line for hours around the country and corporations spending ever more on getting their representatives elected.[ii] All in all, the result was a US democracy looking less and less like an established fact, and more and more like some kind of disturbing case of regression back into the “good old days” of black, brown, poor, and those with some form of exploitable vulnerability being prevented from voting because they were black, brown, poor or vulnerable. No matter though. Both Kerry and Bush were rather familiar politicians, both extremely wealthy, both went to Yale and both even played in the same dark dungeons there.[iii] How nice!

Meanwhile, Rafael Correa was a nobody on the Ecuadorian political scene back then. Journalists would have found no reason to write about him, negatively or otherwise. Then, the Ecuadorian people had grown tired of dirty politics and politicians once and for all it seemed. Various social groups came together including natives from the highlands and lowlands and leftists who were inspired by Chavez in Venezuela, Lula in Brazil, Kirchner in Argentina, and Morales in Bolivia. They decided to throw out a president they called Sucio (Dirty) Lucio. Lucio Gutierrez was an alright guy in their eyes back in the year 2000 when he was in military fatigues and had decided to lend his hand to the social movements that were stirred up by a terrible economic crisis that featured dollarization of the economy. If you live in the US and wondered what happened to all your dirty old dollar bills, then dollarization could help you understand.

In 1999, the country was told by economists from the US and those benevolent monetary institutions, the IMF and World Bank, that its sucre currency was especially filthy lucre and needed to be thrown out. In turn, they could start using the US dollar and be happier for it. One problem though was that anyone with any small amount of savings in the bank were practically wiped out. So along came Sucio Lucio with some supporters behind him, ready to say ¡Ya Basta! but it turned out that he was only playing nice. Actually, Sucio Lucio was destined for bigger and better things than low or highland “Indians”. He had a date with George W. from Yale. How exciting!

Eventually, the people of Ecuador were stirred up once again and decided to take to the streets one more time. The legislature would have to take decisive action. The rest, as they say, is history. Lucio Gutierrez would be removed from office, albeit in a very civilized way, and his vice President Alfredo Palacio would take over. The man who would temporarily be in charge of the government in Quito was a medical doctor by trade. He would reportedly told BBC Journalist Greg Palast, our former boss, that if the IMF really made the Andean country pay the debt they said Ecuador owed, then they would not survive. This story isn’t about him though. It’s about the colorful and confident, if not pugnacious, finance minister he chose for a brief stint in 2005. This man subscribed to the views of Ha Joon Chang and other heterodox economists who pointed out that the West was “kicking away the ladder” when it came to advice on how to run an economy. His name was Rafael Correa!

Correa would then go on to run for president himself and surprise everyone by whipping the ever-persistent banana magnate and #1 wealthiest man in the country. Alvaro Noboa is the man behind Bonita bananas and he believed Ecuador should proudly continue in the path of the banana republicanism that it was known for. He felt so strongly about this that he was to run for president five times and not be deterred by his lack of success.[iv] Correa disagreed and so did the Ecuadorian people. The West was, wait for it now, flabbergasted. How could this be? Oh, that’s right! It was because Latin Americans like to elect populists who in turn like to screw up economies, and then who like to head for Miami or Zurich or some other safe haven. So the story goes.

Correa was not your typical populist in the sense that he actually knew a bit about what he was doing. He had studied in the US but he didn’t leave with tears in eyes, saying he’ll never forget those wonderful Yankees. He came back home like many Ecuadorians would love to do, and he did so with a plan. [Note: the country’s economy has been tragically dependent on remissions, with Ecuadorian migrants propping up the likes of Western Union and filling the squares of Madrid, Rome and other European cities on Sunday to celebrate their only day off.]

Correa’s plan was to save the economy of Ecuador by putting into place the economic programs so rarely enacted but superior in every way to the IMF Structural Adjustment Plans (SAPs) that economists love to talk about. There would be no more borrowing to pay off loans. There would be no more privatizing to place premiums on necessities such as water, electricity, gas and oil. Correa would reverse course and, six years later, Ecuador is celebrating their democracy with pride. While I do not wish to be overzealous and depict a knight in shining armour, most of the people are very happy with their president. They respect him and they even care about politics with him at the helm. This includes young and the old, the poor and the middle class, the black, brown and white.

I know. You’re thinking I’ve heard all this before. Obama was standing in DC reciting his passionate inaugural speech only weeks ago. Tears, though not as many as in 2008, were flowing and Obama supporters were saying it was time to get busy. Electoral politics is a sham but let’s give the Ecuadorian people and the government some credit here. The election appeared well-organized and peaceful. The winner was an incumbent with a plan to continue to try to revitalize the economy by giving ordinary everyday people a chance at living a life devoid of the desperation that comes with deep impoverishment. They are investing in social programs like healthcare, education, grassroots cooperatives, and even trying to mitigate serious environmental problems. In an article in The Guardian, the Indian economist Jayati Ghosh has called Ecuador the most radical and exciting place on earth as a result.[v]

Since Correa first took office in early 2007, he got a lot of interesting things done. He defaulted on Ecuador’s debt (that his predecessor swore would be the death of the country).[vi] He kept his campaign promise to evict the United States military from their base at Manta. He set about correcting some serious problems with the constitution by leading a team to draft a new one. This new constitution would be the first to provide rights to the environment, that is, rivers, lakes, and forests in Ecuador have rights and can be legally defended. He also sponsored a plan to keep the oil in the soil with the Yasuni Initiative, a plan to attract investors whose funds would be used to not extract oil.[vii] The plan and the constitution were hailed as trailblazing. Imagine all that from a diminutive nation like Ecuador. He also declared solidarity with the plaintiffs in the Amazon against a shameless US corporation[viii] (Shell, now Chevron), whose refusal to act with minimal responsibility when drilling for oil and to clean up after itself has led to serious problems with the land and its inhabitants.[ix] He even invited Julian Assange to come down and live, so he could be sheltered from those countries (Sweden, Australia, the US) willing to destroy liberties to avoid the frightening idea of the free flow of information.

This is not to say that all is rosy. There are plenty of problems that must be dealt with. As in Venezuela and the United States, crime is a serious problem. People are worried about the executive branch having too much power. Mining in the country is deemed necessary by the government but the people that live in areas that will be affected need to have a seat at the table. Furthermore, Correa’s style can offend. His former ally, Alberto Acosta, broke with him because he feared that the president’s ego and quest for power was becoming too much. The progressive constitution the country’s assembly had written was being manipulated by the president in a quest to maintain and increase his power. He was backing down on some of the promises he made about the environment and was increasingly intolerant of dissent. Acosta was challenging him from the left and we can hope that the pressure he applies will keep the president in check and even set agendas like third parties should be able to do. Acosta, who called Correa “the sun-king of the 21st century” claiming that he controls everything,[x] appeared not to have a significant following in the election with only 3.4% of the vote, less than the banana magnate Noboa and Sucio Lucio Gutierrez (yes, both really did run again). His main competition, Lasso with around 22.5% of the vote, was a banker and it was really no contest at all.

It does seem that Correa has broken a lot less promises than President Obama. It also appears that he is probably not going to lock up whistleblowers, kill his own citizens, make a mockery of the citizens’ increasingly undermined civil liberties invade countries for “humanitarian purposes” like Bush and Obama have done. Rather, it seems like he is willing to stand up and count when it matters, like when an oil company poisons a significant portion of the country (BP flavored shrimp anyone?) or when bankers try to get their way by ruthlessly insisting that austerity simply must be carried out. There is an alternative and there shall always be one. Promises should be kept sometimes at least. ¡Viva la revolucion ciudadana in Ecuador and everywhere!

Correa with his children, Miguel and Anne, and wife, Anne Malherbe. Photograph: EPA

Correa with his children, Miguel and Anne, and wife, Anne Malherbe. Photograph: EPA

Adam Chimienti is a teacher and a doctoral student originally from New York. He can be reached at ajchimienti@gmail.com. Carmen L. Arias can be reached at karmenarias@gmail.com

Notes
[i] The Washington Post and Daily Mail, amongst others, recently used the adjective tiny, to describe Ecuador, roughly the size of Nevada.

[ii] For a summary of these problems that for the most part have yet to remedied see http://www.nytimes.com/2004/12/24/national/24vote.html

[iii] Remember Skull and Bones: see this 60 Minutes “Skull and Bones,” http://www.cbsnews.com/8301-18560_162-576332.html

[iv] Alvaro Noboa likes to fashion himself as a philantropist http://www.alvaronoboa.org/2011/03/alvaro-noboa-helping-hand.html but critics contend that he uses the social funds for political purposes when running for office according to his Wikipedia page http://en.wikipedia.org/wiki/%C3%81lvaro_Noboa#cite_note-9. Human Rights Watch has cited him for widespread abuse of labor and for child labor. See http://www.hrw.org/en/news/2002/04/24/ecuador-widespread-labor-abuse-banana-plantations

[v] Jayati Ghosh. “Could Ecuador be the most radical and exciting place on earth?” The Guardian 19 January 2012 online at http://www.guardian.co.uk/commentisfree/cifamerica/2012/jan/19/ecuador-radical-exciting-place, accessed 18 June 2012.

[vi] For more on the default and the reasoning behind it see Neil Watkins and Sarah Anders. “Ecuador’s Debt Default,” Foreign Policy in Focus December 15, 2008 at http://www.ipsdc.org/articles/ecuadors_debt_default_exposing_a_gap_in_the_global_financial_architecture accessed online on 18 May 2012 and an article titled “Ecuador declares foreign debt illegitimate,” published as an entry in the series Project Censored. Accessed online at http://www.projectcensored.org/top-stories/articles/10-ecuador-declares-foreign-debt-illegitimate/

[vii] John Vidal. “Can Oil Save the Rainforest?” 19 January 2013, http://www.guardian.co.uk/environment/2013/jan/20/can-oil-save-the-rainforest, accessed 19 January 2013.

[viii] According to a transcript from an interview with Amy Goodman on Democracy Now! on 29 June 2009, http://www.democracynow.org/2009/6/29/ecuadoran_president_rafael_correa_on_global, accessed on 21 September 2012.

[ix] William Langeweische. “Jungle Law,” Vanity Fair May 2007, http://www.vanityfair.com/politics/features/2007/05/texaco200705, accessed 1 October 2012.

[x] See BBC News Election coverage http://www.bbc.co.uk/news/world-latin-america-21379601

Rafael Correa Reelected: Resounding Victory for Ecuador’s Citizens’ Revolution

A child celebrates Rafael Correa's election victory

Source

Ecuador’s president has vowed to deepen the “citizens’ revolution” that has lifted tens of thousands of people out of poverty.

“In this revolution the citizens are in charge, not capital,” said Rafael Correa, who was elected to a third term in office after winning 56.9% of the vote on Sunday.

His closest challenger, banker Guillermo Lasso, won 23.8% and former president Lucio Gutiérrez finished third with 6%, with 57% of the ballots counted. The remainder of the votes were divided among five other candidates.

Correa, a leftwing economist, has brought stability to the oil-exporting nation of 14.6 million people, which had seen seven presidents in the decade before he took office. With the help of crude prices hovering around $100 a barrel, he has raised living standards and widened the welfare state with region-leading social spending.

The 48-year-old dedicated his victory to his cancer-stricken friend Hugo Chávez, the Venezuelan president, whom some analysts have suggested he could succeed as the standard bearer of Latin America’s left. “We are only here to serve you. Nothing for us; everything for you,” Correa told cheering supporters from the balcony of the Carondelet presidential palace shortly after polls closed.

Yet he has also drawn wide condemnation for intolerance of dissent, and some analysts have questioned how sustainable his economic policies are. The number of government workers ballooned from 16,000 to 90,000 during Correa’s previous term in office, an Ecuadorean thinktank reported in December.

Michael Shifter, president of the Inter-American Dialogue thinktank, described Correa’s policy of increased social spending as “simply applying the standard recipe for many populist governments in the region”. While his policies had succeeded in building political support in the short term, he added, it was not clear whether they would be sustainable.

While Correa has been heralded by supporters as the “undisputed rhetorical leader of Latin America’s left”, and should see his standing enhanced there, Shifter said the president’s consolidation of power had damaged Ecuador’s “already precarious institutions”. Correa, he added, lacked the clout, ambition and coffers to build a coalition that could curtail US power in the region.

His election victory easily surpassed the 51.7% he won in his first re-election in April 2009. Under the rules of the constitution Correa is barred from competing for another four-year term.

Ecuador relies on petroleum for more than half its export earnings, and Correa has used this oil wealth to make public education and healthcare more accessible and lay thousands of miles of highways.

Foreign investment has suffered, however, and Lasso, the former head of the Banco de Guayaquil, ran his election campaign on a promise to give multinational businesses more favourable terms, such as abolishing a 5% tax on capital removed from Ecuador.

Correa said he was happy to have more foreign investment but “it’s better not to have it than to mortgage the country in the name of that pipe dream called foreign investment”. He did not explain how he planned to pay for efforts to “quicken and deepen” poverty reduction. Sceptical economists say the state cannot afford it without major new revenue sources.

Such talk has not dimmed public enthusiasm for Correa. Jomaira Espinosa, 18, who voted for him on Sunday, said: “Before Correa, my family didn’t have enough to eat.” She said her father, who had struggled to find work, had recently been hired as a public servant, while she hoped to go to university for free with assistance from Correa’s education initiatives.

Since he took office in 2007, Ecuador’s poverty rate has dropped nearly five percentage points to 32.4%, according to the UN, and some 1.9 million people receive $50 a month in aid from the state.

However, critics say the handouts and subsidies have bloated the government and civil liberties, meanwhile, have suffered.

Correa has been widely condemned for using criminal libel law against opposition news media and for such strongarm tactics as seizing Ecuador’s airwaves to attack opponents.

German Calapucha, a 29-year-old accountant, said he had voted against Correa because he was tired of the president’s imperiousness. “He thinks that because he wins elections he has the right to mistreat people,” Calapucha said.

Correa has eroded the influence not just of opposition parties but also of the Roman Catholic church and corporate news media. He has prosecuted indigenous leaders for organising protests against his attempt to open up Ecuador to large-scale mining without their consent. Meanwhile, he has been unable to stop a growing sense of vulnerability in a country where robberies and burglaries soared 30% in 2012 compared with the previous year.

Correa, a University of Illinois graduate, gained an early reputation as a maverick, defying international financiers by defaulting on $3.9bn in foreign debt obligations and rewriting contracts with oil multinationals to secure a higher share of revenues for Ecuador.

He has kept the US at arm’s length, and angered Britain and Sweden in August by granting asylum at the Ecuadorean embassy in London to WikiLeaks founder Julian Assange, who is wanted for questioning in Sweden over sexual assault allegations.

Meanwhile, Correa has courted Iran and China. The latter is the biggest buyer of Ecuador’s oil and holds $3.4bn in Ecuadorean debt, according to the finance minister, Patricio Rivera.

Ecuador: Correa Leads Polls As Campaign Begins

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Granma Internacional

THE election campaign in Ecuador began Friday, January 4 with rallies for all eight presidential candidates, among them the current socialist leader Rafael Correa, currently the favorite to win on February 17.

A total of 11.5 million Ecuadorans are eligible to vote for a president and vice president, 137 ministers and five Andean representatives for the 2013-2017 term.

Correa, who came to power January 15, 2007, is being challenged by right-wing banker Guillermo Lasso, billed as his main rival, by former President Lucio Gutiérrez (2003-2005, overthrown), and by multimillionaire Alvaro Noboa (running for the fifth time).

The other presidential candidates are Evangelical Pastor Néstor Zavala, running in place of ex-President Abdalá Bucaram (1996-1997, exiled in Panama), right-wing Mauricio Rodas, and leftists Alberto Acosta and Norman Wray, both former allies of Correa.

The election campaign, with a total of 1,400 candidates for the different political positions, runs up to February 14, during which time electoral spending is allowed, with an expected $1.7 million going to the presidential and vice presidential campaigns.

Correa, leader of the left-wing Alianza País movement, is the favorite in the first round, with a 60.6% voting preference reported by the independent Opinion Profiles poll taken in December.

The President, whose current term ends May 24, is leading the polls by a large margin over his rivals. Lasso is second with 11.2%, followed by Gutiérrez (4.5%), after predicted no returns (10.8%) and invalid ballots (6.9%). Trailing behind are Acosta (3.5%), Noboa (1.8%), Zavala (0.2%), Rodas (0.3%) and Wray (0.2%).

Parliament has given Correa a 30-day license, from January 15 to February 14, for the campaign, while Vice President Lenín Moreno has taken over his official duties.

Correa, reelected in 2009 in an historic first round of early elections, called after a new constitution was passed, met with hundreds of sympathizers in southern Quito before moving on to the coastal town of Portoviejo (southeast) to officially start his campaign.

The other presidential candidates will also be holding party rallies and events in main cities around the country. 

Ecuador: A Revolution In Motion

Laura Bécquer Paseiro

THE Alianza PAÍS (AP) in Ecuador has officially nominated current President Rafael Correa as its candidate in the country’s February 17, 2013 presidential elections. In this way the political movement which embodies the Citizens Revolution led by Correa since 2007 is looking to ensure continuity in the process of change underway in the country. Correa’s running mate will be current Minister of Strategic Sectors Jorge Glas.

The two will work together to eradicate poverty through the equitable distribution of wealth, they affirmed during the national AP convention, held November 10-11.

The President, speaking to thousands of supporters, said that much progress has been made over the past five years, but much remains to be done. “Only with political power serving the vast majority is it possible to change this reality and transform the bourgeois state, which serves a few, into a popular state at the service of the poorest.”

In response to the current situation within the country, five more fundamental proposals have been added to the movement’s original five. As a whole they are reflected in the social project proposed by Correa, based on 10 broad objectives, or revolutions, as the group describes them.

The first is the constitutional and democratic revolution established by the Montecristi Constitution, “approved by the overwhelming majority of the Ecuadorian people, which changed the neoliberal state and laid the basis for this new homeland,” according to Correa.

Nevertheless, he said, many more laws must be approved and this will be the fundamental role of AP legislative representatives, to continue this constitutional and democratic revolution over the next four-year term.

The second component of the AP platform is the economic revolution, which Correa described saying, “Our system is totally different from the one we found [upon being elected.] It doesn’t serve the IMF, but rather what the citizenry requires of the state.”

The third and fourth objectives address the social and ethical revolutions. The latter is focused on the struggle against corruption at all levels.

In addition to these efforts, Correa said, the country is asserting its sovereignty with renewed strength, “within the unity of the Great Homeland, of the process of Latin American union, with UNASUR, CELAC”, continuing efforts over the next four years to make a reality of Simón Bolívar’s dream.

At the same time, the AP proposes to lead Ecuador in an ecological revolution, to save the planet; revolutions in the areas of justice and knowledge, “to be truly free,” plus another in culture and, lastly, an urban revolution, which implies “no marginal urbanization, which has done so much harm, above all to the country’s poor,” Correa said.

President Rafael Correa vs. Corporate Media

President Correa hasn’t shied away from taking on the powerful interests behind libelous corporate media.

MÓNICA BARÓ SÁNCHEZ

THE principal rival of Ecuadoran President Rafael Correa in the 2012 presidential elections is not a political party, but the right-wing press. Despite the fact that the leader of Alianza PAIS has not as yet announced that he intends to run for another term, in recent months he has had to respond to a whole series of attacks from the national and foreign media, all wielding accusations against him of one kind or another in order to discredit him. One of the most systematic charges is that of restricting freedom of expression and utilizing the case of Wikileaks founder Australian Julian Assange to “clean up” his public image.

“Everything that we have seen in the last few days is the prelude to this electoral campaign which, given the collapse of ‘partidocracia’, of the political mafias which dominated this country, this corrupt press has now taken their place, and even represents them,” affirmed President Correa in a recent mass event, refuting the imputation circulated by various media that Alianza PAIS presented the highest number of false signatures to the National Electoral Council to secure its legal guarantee for taking part in the elections.

However, it is enough to review the development of the Citizens’ Revolution initiated in 2007 in order to expose this ridiculous idea. Alianza PAIS does not need to resort to fraud to continue representing the people. The results of a recent survey by the Perfiles de Opinión enterprise, revealing 81.7% support for Correa’s presidency, are more eloquent than the media’s use of multimillionaire sums to discredit him.

Followers of the yellow press from whatever political faction are also kicking up a storm in relation to the Ecuadoran government’s courageous decision to grant political asylum to Julian Assange.

One of the least surprising attacks came from the U.S. El Nuevo Herald a week after Ecuadoran Foreign Minister Ricardo Patiño announced the granting of asylum to the Wikileaks founder. Titled “The Correa-Assange Show,” the August 23 article was written by Andrés Oppenheimer, an Argentine journalist resident in the United States, described in 2003 by the French Le Monde newspaper as “someone who occupies a unique position in the Americas’ press, representing U.S. interests.”

Espousing the opinions of Emilio Palacio, a former columnist with El Universo, resident in Miami after being tried in Ecuador for slanderous allegations against the President, Oppenheimer states, “Correa’s campaign in favor of Assange is not only intended to repair his image as enemy number one of the freedom of the press in Ecuador, but is also part of his propagandistic offensive to win political spaces in the field of the Latin American radical left.”

However, the Alianza PAIS movement, which emerged from the popular sectors, has fertilized politics in a country in which the traditional left parties were worn down, lacked credibility and were sympathetic to neoliberalism. That is why the Citizens’ Revolution activated such alarm when it declared its historical objective as a broad-based social project. An aspiration which opens the way to an authentic radicalism within the region’s emancipation processes.

One of the most memorable achievements of the Rafael Correa government in this context was the creation of a public media, which did not exist in the country prior to 2007 – only private and community media – and the approval in 2008 of a new Constitution recognizing the right of citizens to information and communication.

If freedom of expression genuinely concerns this media in any way, they would have considered in their analysis the opinion of Assange himself who, in an interview published in the Andes agency on September 17, emphasized Correa’s determination to defend national sovereignty, and went on the comment:

“As opposed to many governments which wanted to repress our publications on the U.S. diplomatic cables, at the beginning of 2011 President Correa asked us to make public the largest possible number, even knowing that some were critical of his administration.”

Obviously, it is not in the interest of the press attacking Rafael Correa for Assange to establish himself in Ecuador and be liberated from (in)justice, nor that the Ecuadoran nation should continue promoting a Citizens’ Revolution. 

Ecuador Calls on Latin America to Confront British Threat

Prensa Latina

Ecuador’s foreign minister, Ricardo Patiño, said today that this week an urgent meeting could finally be held, at the request of Quito, between several regional bodies following the British threat of entering its London embassy.

The diplomat confirmed the call to the Union of South American Nations (UNASUR), the Bolivarian Alliance for the Peoples of Our Americas (ALBA) and the Organization of American States (OAS), given the possibility that the UK may invade the Ecuadorian embassy in London to arrest Julian Assange.

Patiño said the Secretary Generals and President of the three agencies welcomed Quito’s request, for which he expects the UNASUR and ALBA meetintg could take place on Saturday and Sunday in this country.

Regarding the OAS, he said Secretary General, José Miguel Insulza, stated he will convene an extraordinary meeting in the coming days to assess the request.

Patiño evaluated the possibility of going to The Hague International Court to solve this situation if the British government refuses to grant Assange safe conduct to leave the embassy and travel to Ecuador, following the granting of asylum on Thursday.

Meanwhile, the British government stated in its Aide Memoire to Quito that it will not give permission for Assange to travel to Ecuador, after remaining in the Ecuadorian embassy in London as from June 19 this year.

Ecuador Orders Chevron to Pay $19 Billion

An Ecuadorian court that has accused Chevron of environmental damage has set a Monday deadline for the US oil firm to pay about $US19 billion ($A18.25 billion) – one billion dollars more than an original order.

Source

The court attorney Juan Pablo Saenz said the plaintiffs could organise embargoes if Chevron does not comply with the order from a court in the northeastern Amazonian province of Sucumbios.

The complaint stems from years of unchecked pollution in the Amazon attributed to Texaco, which Chevron acquired in 2001.

Chevron has called the judgment a “product of bribery, fraud”, saying it is “illegitimate” and not enforceable after plaintiffs filed lawsuits in Canada and Brazil to go after the company’s assets in third countries.

Plaintiffs say Chevron has virtually no assets in Ecuador that could be seized.

According to indigenous groups and local farmers, the US oil firm Texaco contaminated large areas of Ecuador’s Amazon jungle when it operated in the region from 1964 to 1990, a decade before being acquired by Chevron.

After years of litigation, an Ecuadorian court in February 2011 ordered the company to pay $US18 billion in damages, a ruling upheld by Ecuador’s Supreme Court in March.

Chevron, which has appealed the ruling, has accused the Ecuadorian judge who ruled on the case of fraud and breach of trust.

USAID’s Days Numbered in Ecuador

Prensa Latina

The Ecuadorian government is considering the implications of finally expelling the US Agency for International Development (USAID), local media confirmed today.

On-line versions of El Telegrafo and El Ciudadano newspapers said that a meeting was held recently between the Foreign Ministry and the Technical Department for International Cooperation (SETECI) to discuss the repercussions of an eventual decision on the matter.

According to the sources, if the idea is realized, President Rafael Correa could make it official this week.

According to reports, of an additional $10.2 million USD sent to this nation by USAID in 2010, only four million are to be allocated to alleged social programs.

El Telegrafo says that the end of USAID interference in Ecuador would mean the end of the Framework Agreement and of the strategy for the country, which has not been renewed so far.

In the past few weeks, El Telegrafo revealed that USAID is funding two projects in Ecuador worth $4.3 million USD, allegedly to “strengthen democracy.”

With these resources, it warns, they seek to lead a joint campaign using the country´s Civil Society Organizations (OSC) during this electoral year, against Decree 982, which regulates the activities of non-governmental organizations (NGOs).

This intention would be realized through the agreement “Strengthening Civil Society in Ecuador” or “Active Citizenship,” implemented by the Faro and Fundamedios Group, NGOs opposed to the government, along with other similar bodies, said the daily.

Since May, 2010, President Rafael Correa has been revealing the existence of a considerable number of NGOs in the country, mainly uncontrolled and failing to pay taxes, which are funded for illegal political activities, even for allegedly training leaders.

USAID reaffirmed recently its readiness to fund subversive groups that seek to destabilize the countries within the Bolivarian Alliance for the Peoples of Our America (ALBA), a pro-integration mechanism created in 2004.

Deputy Chief of USAID for Latin America and the Caribbean, Mark Feierstein, confirmed that Washington is prioritizing support for opposition forces “fighting for human rights and democracy” in those nations.

Ecuador Elections: Citizens’ Revolution vs Neoliberalism

Yurién Portelles

In the context of next year’s elections, political intentions are becoming clearer in Ecuador, with information as to the presidential aspirations of opposition groups, all of which are attempting to define a single platform with which to confront President Rafael Correa in 2013.

Although Correa has not as yet announced that he will run for reelection, he is perceived as a strong candidate to defeat, considering his high degree of popular support, in excess of 80%, according to official reports.

The first round of voting for Ecuador’s president, vice president and 136 members of the National Assembly is scheduled for February 17, 2013, and the new authorities who will lead the country for a five-year period, take possession on May 24.

Names given the most attention in the media include Lourdes Tibán, parliamentarian for Cotopaxi province, from the Pachakutik Movement; Gustavo Larrea of the Movimiento Participación (Participation Movement); and Paúl Carrasco of the Izquierda Democrática (Democratic Left).

Others are Jorge Escala and Mery Zamora, from the Movimiento Popular Democrático (Democratic Popular Movement); Diana Atamaint and Auki Tituaña (Pachakutik); and Alberto Acosta, former president of the Constituent Assembly.

Guillermo Lassa, president of the Bank of Guayaquil, has resigned from his position, probably to run for the presidency, although he has repeatedly denied this.

According to WikiLeaks, Lasso has sought support to counteract Correa’s policies, in complicity with ex-president Lucio Gutiérrez and millionaire businessman Alvaro Noboa.

Noboa began his electoral campaign early by proclaiming himself presidential candidate for the Partido Renovador Institucional de Acción Nacional, and called on the opposition to join him in order to “do away with the Citizens’ Revolution” (Correa’s social program), while Gutiérrez stated that there would definitely be a second round in the elections.

CORREA, A SOLID CANDIDATE

The figure of economist Rafael Correa, leader of the Movimiento Alianza PAIS, is the most solid one for the presidency on the Ecuadorian political scene.

In addition to having led the nation over the last five years, an unprecedented feat in the country, given its total of seven presidents in the previous decade, observers agree that Correa exhibits an incorruptible image which has impressed voters.

Political analyst Santiago Basabe stated on national television that his virtue as a good administrator and transparency in the use of the country’s resources, places the current President in an advantageous position over his opponents in the upcoming elections.

In addition to being young and charismatic with a solid academic background and demonstrated leadership at the national and international level, in particular in the context of Latin America, Correa has worked positively and achieved results.

There has been a sustained reduction of poverty over the last five years, during which one million-plus people emerged from absolute poverty, contract labor has been eliminated, and unemployment has fallen from 7.38% to 4.88% (last March).

Beyond pending challenges, such as his agrarian reform program, Correa has backing due to public policies adopted during his presidential terms in favor of traditionally marginalized sectors, such as indigenous groups, women, children and people with disabilities, in spite of constant media campaigns against him.

Correa’s Ecuador: Challenges, Successes, and Promise

It is evident that Ecuador’s government, with the support of the people, has stemmed the flow of oil wealth out of the country and begun redirecting it towards meeting ordinary peoples’ needs.

This is not to suggest that Ecuador does not continue to face big challenges; much less that capitalism has been overthrown. There is still a long way to go.

Federico Fuentes

Criticism of Latin America’s radical governments has become common currency among much of the international left. While none have been exempt, Ecuador’s government of President Rafael Correa has been a key target.
But a problem with much of the criticism directed against Correa is that it lacks any solid foundation and misdirects fire away from the real enemy.

Correa was elected president in 2006 after more than a decade of mostly indigenous-led rebellions against neoliberalism.

During his election campaign, the radical economist promised to rewrite the country’s constitution, reject any free trade agreement with Washington, refuse to repay of illegitimate foreign debts and close a US military base on Ecuadorian soil.

The social movements had campaigned around many of these demands, which is why most supported Correa in the second-round presidential run-off against Alvaro Noboa, Ecuador’s richest man.

Since then, Correa has largely carried out these election promises. This explains why he has an approval rating of more than 80%, a June 13 opinion poll found.

Left criticisms

But foreign leftists do not share this support.

Raul Zibechi, a Uruguayan journalist whose anarchist-leaning writings have been widely distributed among the English-speaking left, has denounced the Correa government for presiding over “a new model of domination”.

This new model, Zibechi said last year, differs from past neoliberal governments that promoted free market policies to allow transnational corporations to dominate Ecuador’s economy and natural resources.

Zibechi said that today the state plays a larger role in Equador’s economy. But he said the state has simply replaced the role of the market as the principle guardian of transnational interests, which continue to loot the nation’s wealth unabated.

He said as the Correa government “depends on oil exports and mining concessions to make ends meet … resistance now no longer faces multinational corporations, but rather the state apparatus.”

The criticisms of Correa are not just limited to the anti-state left.

In a May 2 article, US Marxist academic James Petras said Correa’s claims to be renegotiating a better deal for the country were false.

Petras said: “The style and substance of the distribution of the powers and privileges in the oil and gas agreements between progressive governments and the multinationals are no different than what transpired under previous ‘neo-liberal’ regimes.”

He said Correa has instead deepened the country’s reliance on agro-mineral and energy exports in its pursuit of “extractive capitalism”. This is because “state revenue and growth” are now “utterly dependent on the increasing demand for raw materials, high commodity prices and open markets”.

Zibechi and Petras agree that Ecuador today is as much or more dependent than before on raw material exports, while transnational corporations reap the rewards.

Zibechi said this reliance on export-driven growth and revenue derived from natural resources — the logical consequences of “extractive capitalism” — has converted the Correa government into the main enemy for those opposed to this “new form of domination”.

Economic reality

Yet these statements bear no resemblance to Ecuador’s economy or the policies pursued by the Correa government.

There is little evidence that transnationals extract more of Ecuador’s wealth, raw materials or profits.

Oil production, the main extractive industry in Ecuador, has fallen from 195.5 million barrels in 2006 to 182.3 million barrels last year.

Crude oil exports have also fallen. The US remains the biggest market for Ecuador’s crude oil, but falling export volumes to the US have been offset by an almost five-fold rise in exports to Latin American countries.

In the same period, the state’s share of oil production has risen from 46% to more than 70%. Last year, transnationals extracted less that half of what they did in 2006.

Oil prices have risen during this time, but this has been accompanied by government measures to ensure more wealth stays in Ecuador, at the expense of transnationals.

In October 2007, the Correa government increased the windfall tax on profits (accrued when oil prices surpass those set down in the contracts signed between companies and the state) from 50% to 99%. It shifted the tax back to 70% when oil prices fell sharply at the end of 2008.

The government also dismantled several oil funds set up under past neoliberal governments that directed oil revenue towards repaying foreign debt. The state’s oil revenue has been consolidated into the government’s budget.

Similarly, Ecuador’s ability to recover from the 2008 global economic crisis and register record economic growth was not export-driven or dependent on the oil sector.

Rebecca Ray, who co-authored a report on Ecuador’s economy for the US-based Center for Economic and Policy Research, told the Real News Network that Ecuador was among the quickest countries to recover from the global crisis because “it developed its domestic market and it took care of its people domestically rather than trying to ride out the global commodity wave”.

One important move was the government’s decision to provide grants to first homebuyers and make available low-interest mortgage loans.

This boosted the building industry, which became the main driver of growth. It accounted for more 40% of Ecuador’s GDP growth last year. Other key areas of growth have been agriculture, manufacturing and commerce.

Growth in the non-petroleum sector outstripped petroleum sector growth for every quarter from the start of 2007 to the end of 2010.

Ecuador’s revenue from exports fell 25% in 2008-9, with falling oil prices being a key contributor. But the economy was better able to cope due to rising internal consumption, aided by much higher social spending and wage hikes.

The Center for Economic and Policy Research report said: “Between 2006 and 2009, social spending nearly doubled as a percent of GDP … and spending on social welfare more than doubled – from 0.7 to 1.8 percent of GDP.”

It also said the minimum wage “has risen about 40% in real terms over the last five years”.

Dignified salary

Workers have also benefitted from the introduction of the “dignified salary”, whereby Ecuadorian law requires “any business earning a profit [to] first distribute that profit among its employees, until either the employees’ total earnings rise to the level of a living wage or the entire profit has been distributed before reporting the remainder as its final profits”.

These policies have lead to a fall in poverty rates and unemployment.

It is evident that Ecuador’s government, with the support of the people, has stemmed the flow of oil wealth out of the country and begun redirecting it towards meeting ordinary peoples’ needs.

This is not to suggest that Ecuador does not continue to face big challenges; much less that capitalism has been overthrown. There is still a long way to go.

A study by Ecuador’s National Secretariat of Planning and Development (SENPLADES) has shown that almost US$45 billion in public investment and recurring costs will be needed in order to eradicate poverty in Ecuador by 2021.

This is 10 times more than Ecuador’s annual budget for infrastructure investment.

To end poverty, all Ecuadorians would need access to basic services such as water, housing, electricity, transport, water irrigation, sewerage and education and health facilities, among others.

On top of this, it is true that Ecuador’s economy has not fundamentally changed under Correa. The path towards industrialisation and diversification of the economy has been slow and full of hurdles.

The continued existence of a capitalist state apparatus designed to serve the interests of the old elites, not the people, compounds these problems.

Valid criticisms can be made of the impacts that oil extraction, and recent moves to open up a new open-cut mine, have had on local communities. There has also been a lack of government consultation about these projects.

But this is not the same as accusing the Correa government of presiding over some form of “extractive capitalism” that does the dirty work of transnational corporations. This claim lacks any factual basis. Ultimately, it pits leftists against the very same people they claim to support.

No government, even one that comes to power on the back of an insurrection and destroys the capitalist state, would be able to meet the needs of the Ecuadorian people while at the same time halting all extractive industries.

However, it can attempt to strike a balance between protecting the environment and satisfying people’s needs, while empowering the people to take power into their own hands. The difficulty of such a task means mistakes will be made, but also learnt from.

Historic debts

To overcome Ecuador’s legacy of dependency on extractive industries, rich imperialist nations will need to repay their historic debts to Ecuador’s people.

The lack of any willingness to do so has been shown by the response from foreign governments to the bold Yasuni-ITT initiative launched by the Correa government in 2007.

The proposal involves Ecuador agreeing to leave 20% of its proven oil reserves (located in the Amazon) in the ground. In return, it asked Western governments and other institutions to provide Ecuador with funds equivalent to 50% of the values of the reserve, about US$3.6 billion, over 13 years.

So far, Ecuador has been offered a paltry $116 million.

Until rich countries are held to account for the crimes they have committed against countries such as Ecuador — something that will require revolutionary struggles breaking out elsewhere — no foreign leftist has a right to denounce the Ecuador government for using wealth from its natural resources to meet peoples’ needs.

Environmental concerns are valid, but so are the very real needs of people to be able to access basic services that many of us take for granted.

And we should never forget who the real culprits of the environmental crisis are.

Rather than aiming their fire on a supposed “new model of domination”, leftists would do better to focus on the real enemies we and the Ecuadorian people face in common. Ecuador’s fate is intertwined with our fight against Western governments and corporations at home.