Ecuador

Geography

Ecuador is small but more densely populated than most other countries in South America. It is like Peru in terms of having three very distinct geographical zones -- coast, mountain, and jungle -- but differs in that the coast receives plenty of rainfall, which sustains the banana crop. There are sizable petroleum deposits, mostly in the eastern jungle. The Andes mountains block access to interior, impeding development. Ecuador historically considered itself an "Amazonic" country and once laid claim to lands held by Peru, and the territorial dispute flared into warfare in 1941 and 1995. A treaty resolving this issue was signed in 1998.

History

Compared to its neighbors, Ecuador has been relatively peaceful for most of its history. That does not mean it has been stable, however. Indeed, abrupt changes in government have been the rule, not the exception. Ecuador was part of "Gran Colombia" until it and Venezuela seceded in 1830. Conservatives (based in Quito) dominated the government from 1860 to 1895, and the country was officially dedicated to the "Sacred Heart of Jesus." Eloy Alfaro led Liberals (based in Guayaquil) to power in "Revolution of 1895," but was killed by a mob in the brief civil war of 1911. Cacao (cocoa) exports led development (especially on the coast) until the market dropped in 1920s. After World War II, banana exports grew rapidly and led development, which stabilized politics. Jose Maria Velasco Ibarra, a fiery populist, served as president four times from 1933 to 1972, but was overthrown each time! Oil was discovered in 1960s, leading to first big modernizaiton boom in Ecuador's history. A miltary government ruled from 1972 to 1979, emulating Velasco in Peru, and likewise failed. The vast oil wealth was largely wasted. The party system in Ecuador is extremely fragmented, so congresses can hardly ever get a majority vote to adopt budgets, policies, or reforms. Thus, presidents often resort to issuing emergency decrees. For example, President Febres Cordero (1984-1988) tried to impose orthodox economic policy but was stymied by Congress. During his term there were two coup attempts, and he was actually held hostage by the Air Force in 1987! An erratic populist named Abdala Bucaram (who called himself "El Loco") was elected president in 1996. He had campaigned against economic liberalism, but after his inauguration he imposed austerity and price hikes anyway. Rather corrupt, he was impeached for "mental incompetence" in February 1997. After a chaotic interlude, Jamil Mahuad became president in 1998, but soon gave up trying to stabilize economy and proposed adopting U.S. dollar, provoking outrage. He was ousted in a coup in January 2000, but the new president Gustavo Noboa went ahead with dollarization anyway.

Culture

Politically and socially, the country is divided between the capital Quito in highlands, where customs are conservative, and the coastal port Guayaquil, which is more modern and liberal. Like Peru, the people of Ecuador are mostly of mestizo and Indian ancestry. The Quecha language is still spoken in rural areas, a legacy of the Inca Empire. Indians are better organized politically in Ecuador than in any other country in South America. Indian groups supposedly spearheaded the coup that toppled President Mahuad in 2000, but most observers believe they were being manipulated by military officers. One unique aspect of Ecuadoran society is that there are substantial number of Arab-descended people, including former president Mahuad.

CLOCKWISE FROM TOP LEFT:

A street market in the town of Latacunga;

Quito, the capital city in the highlands;

Doing the laundry in Latacunga;

Golden altar in a Quito cathedral;

Monument at The Equator.

(photos by Remey L. Clem)

Politics

The cultural division between the highland and coastal areas has created a political rivalry that has severely impeded the articulation of a truly national development agenda. Populist politics became deeply entrenched from the 1930s to the 1970s as the result of four-time President Jose Maria Velasco Ibarra, hindering occasional efforts to reform the economy along liberal free-market lines. The country's desperate situation was confirmed when it gave up on trying to maintain its own currency and adopted the U.S. dollar instead in 2000. That means that the government has effectively surrendered control over its own economic destiny. So far, dollarization seems to be working out in strictly economic terms, but paved the way for inevitable protests against the United States. At first, many believed that the election of former Colonel Lucio Gutierrez heralded a shift toward radical politics, but he angered his supporters -- mostly poor Indians -- when he sought friendly relations with the United States. The former coup plotter was himself the victim of an insurrection in April 2005, as a fearful Congress ratified the decision rendered in the streets, voting to remove him from power.

Ecuador's political party system is classified as "inchoate," split into numerous small factions. A "Democratic Alliance" emerged to unite the left-of-center factions, emulating a similar multiparty movement in Chile, but Ecuador is on the road to becoming a virtual one-party state similar to Cuba and Venezuela.

U.S.-educated Rafael Correa (inaugurated in January 2007) took on Ecuador's political establishment and succeeded in replacing most of the country's institutions with a new regime modeled on that of Hugo Chazez's Venezuela. To carry out his left-wing populist agenda, he shut down opposing newspapers and broadcasting companies. He served two terms in office, and was replaced in May 2017 by his protege, Lenin Moreno.