The New Zealand Herald

Ecuador rocked by protests over end to fuel subsidies

- Gonzalo Solano analysis stalwart backers of the former leader, whose administra­tion was tarnished by corruption concerns.

Ecuador has endured days of popular upheaval since President Lenin Moreno scrapped fuel subsidies, a step that set off protests and clashes across the small South American country.

Thousands of indigenous people, some carrying long sticks, converged on Ecuador's capital Quito yesterday as anti-government protests and clashes led the President to move his besieged administra­tion out of the city.

The South American country of 17 million people appears to be at a dangerous impasse, paralysed by a lack of public transport and blockaded roads that are taking a toll on an already vulnerable economy.

The Government has declared an overnight curfew around key state installati­ons and government buildings as well as vital infrastruc­ture such as airports and oil refineries.

Here’s a look at the chaos that has plunged Ecuador into one of its worst political crises in many years:

Why is the country in tumult?

Last week, Moreno declared an end to government subsidies that had been holding down fuel prices, saying the move was part of a package of measures designed to revitalise Ecuador’s economy.

The announceme­nt triggered a strike by transport workers that ended a few days later, but clashes involving youths and also members of Ecuador’s indigenous communitie­s have kept up pressure on the Government.

The widespread unrest reflects a sense of alienation among many people who were already suffering economic hardship. Economic problems stem from the high public indebtedne­ss inherited from the 2007-2017 Administra­tion of President Rafael Correa. His successor, Moreno, has also sought credit with internatio­nal agencies, especially the Internatio­nal Monetary Fund.

How is Moreno handling the crisis?

The President has taken a firm stance, saying he will not budge on the end to fuel subsidies and imposing a state of emergency when protests started to become chaotic. The Government says hundreds of people have been detained for blocking traffic, interrupti­ng public services or attacking police.

Moreno may be hoping to ride out the demonstrat­ions in the belief that they will eventually subside. But the situation has turned increasing­ly sour, with the emergence of protesters from indigenous communitie­s highlighti­ng widening divisions.

There have been reports of looting and signs of food scarcity in some markets in the country, deepening the burden on people who were already struggling to meet basic needs.

The Government says economic paralysis from the street protests is costing the country $70 million ($110m) a day, a situation that is likely to fuel public dissatisfa­ction the longer it continues.

How vulnerable is Moreno?

Moreno, speaking after another day of protests, announced in a national broadcast on Tuesday that he has moved the government’s administra­tion from Quito to the port city of Guayaquil.

But despite the political uncertaint­y and swirling rumours about the President, some analysts believe he is not in immediate danger of being ousted or forced to resign. He appears to have the support of the military.

Furthermor­e, the opposition is divided between those moving away from the legacy of Correa and

Is there a precedent for Ecuador’s crisis?

The Andean nation has experience­d similar challenges to its stability in the past.

Most recently, in 2005, President Lucio Gutierrez, a retired military officer, resigned after several days of protests, including by members of indigenous groups. The military tacitly approved of his resignatio­n, which followed growing opposition to some of his policies, including the dismissal of top judges.

Gutierrez, who was accused of authoritar­ian tendencies, was succeeded by his Vice-President, Alfredo Palacio. Gutierrez later ran unsuccessf­ully for president, losing to Correa.

 ?? Photo / AP ?? Anti-government protesters, including indigenous people, clash with police in Quito.
Photo / AP Anti-government protesters, including indigenous people, clash with police in Quito.

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