Ecuador acts to restore order

Country set for tax hike to fund fight against criminal gangs, ensure national security amid conflict

With the army on the streets and an ambitious fiscal reform plan, Ecuador’s government is working to re-establish order following an insurrection that began on Jan 9.

Less than a week after a dramatic armed attack on a television station that was broadcast live, multiple prison riots, and President Daniel Noboa declaring an internal armed conflict, security forces had secured the release of all hostages and there were efforts underway to continue stamping down on violence and terrorism.

“The conflict we are experiencing here in Ecuador is of giant proportions, something never before experienced in our country,” Mauro Andino, a constitutional professor, told China Daily, noting that the country has surpassed the figure of more than 40 violent crimes per 100,000 inhabitants for the first time.

Andino pointed to a social crisis, allowing organized crime to nest and nurture in extreme poverty and unemployment.

According to the most recent official figures, 1,327 people have been detained since Noboa declared a state of emergency.

“Hopefully, as a country, we can find a way that allows us to sanction all those who are convulsing the country, but without reaching situations that we could regret in the future,” Wilson Merino, a councilman from Quito, the capital of the country, told China Daily.

Five alleged terrorists and two police officers have been killed since the beginning of the conflict, while around 170 hostages, mostly prison guards, have been released.

The army is seeking to regain control of prisons amid such challenges as in Esmeraldas, in the north of the country, where around 40 prisoners escaped over the weekend of Jan 13 and 14.

“The Ecuadorian Armed Forces and the National Police can now proceed with the use of lethal weapons and tactics to dismember and somehow dismantle these organizations,” Juan Fernando Flores, a former member of the National Assembly, told China Daily.

The government’s plans to strengthen military capabilities for the fight against terrorism, stabilize the country’s security, and combat drug trafficking, come at a cost.

It intends to raise the value-added tax (VAT) rate from 12 to 15 percent to finance the cost of the internal war against terrorism while avoiding deepening the fiscal deficit.

Experts estimate the deficit could reach $10 billion by the end of 2024, while also noting the VAT hike is needed to obtain the support of multilateral organizations amid the critical economic slump affecting the country.

The reform has been presented to Congress but the government plans to enact it even if it is not approved by the legislature. They can do so under exceptional powers put in place for 60 days from Jan 8 and another declaration of an internal armed conflict announced on Jan 9.

Andino, the constitutional professor, said Noboa faces a great challenge but expressed hope that in the short term, the government can lay the foundations to progressively reduce crime rates.

If Noboa opts for reelection as expected, Andino added, then hopefully he will continue with public policies to prevent and prosecute crime, as well as on social issues such as public education, public health, labor, and the living wage.

Noboa took office on Nov 23 last year on a shortened 18-month presidential term after winning an election called by former president Guillermo Lasso amid a political crisis. Noboa can seek reelection in 2025.