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NEWS & LETTERS, MAY 2003

Meeting the new boss in Ecuador

Guayaquil, Ecuador--Unfortunately the news in Ecuador is not good. Lucio Gutiérrez, who, during the election campaign, had already begun to backtrack from his radical position, is looking more and more like just another power-amassing CAUDILLO.

His first act as president was to travel to the U.S. and assure Bush that "Ecuador is your best friend." This was followed by what he is putting forth as his first major achievement as president, an agreement with the IMF for an additional $200 million, which brings with it the usual "belt tightening" (read: it is to be paid for on the backs of the poor).

The state-controlled price of gasoline was raised by a whopping 35%, which raised the cost of public transportation and utilities and set off a new cycle of inflation. At the same time he froze public salaries and made commitments to the IMF with respect to privatization and other government "economies." This from a man who as candidate spoke of the primacy of the "social debt" over that of the external debt.

Adding insult to injury, in a recent speech to students, he urged them to no longer take to the streets. His policies have sparked strikes amongst teachers, health workers and civil servants. For the appointment of his sister as Ambassador to Argentina and for other appointments, he has already been accused of nepotism.

Wherever he goes he troops along adoring followers of his Patriotic Society Party. Recently, after joint military exercises with the U.S., a "forgotten" hand grenade went off on the Isle of Puná (just outside of Guayaquil), destroying homes and leaving five dead and numerous injured. Gutiérrez arrived with his contingent and delivered 200 sacks of rice stamped with his propaganda.

Gutiérrez, we must remember, ascended to the presidency based solely on his support of the indigenous uprising of January 2000, which demanded a total restructuring of the political institutions of the country, a freeze on paying the external debt, massive spending in health and education (teachers only received their paltry February salaries toward the end of March), and revoking the agreement that turned an air base in Manta over to the U.S. military (already during the election campaign Gutiérrez had promised to "honor all agreements with the U.S.").

His overwhelming electoral victory was a result entirely of the Ecuadorian masses' passion for fundamental change. To date this victory seems to have had the effect of at least temporarily co-opting radical indigenous organizations and stifling dissent. However, these passions are so strong and deeply rooted in centuries of exploitation that they are certain to erupt sooner or later, most likely with renewed vigor.

--Roger

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