Tag Archives: Ecuador

Ecuador’s Raid on Mexican Embassy Fractures Regional Comity

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EcuadorianPresident Daniel Noboa has sought to project an image of being tough on crime and impunity. He has come under fire for authorizing the raid of Mexico’s embassy in the country.

“Glas was to receive safe passage from the Ecuadorian authorities allowing him to fly to Mexico City, but instead, Noboa ordered his immediate capture.”

Tensions between Ecuador and Mexico have been simmering since Mexican President Obrador questioned the legitimacy of Ecuadorian President Noboa’s election victory in October 2023. A short time later, in December 2023, Ecuador’s former Vice President, Jorge Glas, thrice convicted of corruption, exiled himself to Mexico’s embassy in Quito to avoid another prosecution.[i] According to the excerpted article in the Spanish daily El País, President Noboa gave the order to raid Mexico’s embassy and detain Glas. The trigger for the action appears to have been President Obrador’s decision to grant Glas political asylum, which the Noboa government argues would have served the cause of impunity. In response, as the article from El País reports, Mexico accused Ecuador of contravening the Vienna Convention and broke diplomatic relations. The regional outcry was swift, according to the second excerpted article from the Argentine daily Clarín. Nicaragua immediately broke relations with Ecuador, while other countries expressed grave concerns, rebuked Ecuador’s actions and threatened to rupture their own bilateral relations. At the center of the debate appears to be the interpretation of the inviolability of embassies in the Vienna Convention and the need to balance with the Caracas Convention, which states that political asylum cannot be abused by those already convicted in competent domestic courts. The nature of the Noboa government’s raid on Mexico’s embassy and the uproar of condemnation has impacted the entire region. Latin America has fractured along familiar political lines in response to the raid, with leftist governments generally taking Mexico’s side and moving to sever relations with Ecuador, and governments ruled by the right decrying Ecuador’s actions while emphasizing Mexico’s abuse of asylum procedure. Many countries have observed others’ responses as a litmus test for their own sets of bilateral relations.[ii] For Noboa’s part, domestic politics likely drove much of the decision-making, as a truncated presidential term and the country’s security crisis have led him to project an image of tough-on-crime. Glas’ connection to organized crime, and foreign criminal organizations driving some of Ecuador’s surge in violence, made the decision to seize him politically popular among Ecuadorians.

OE Insight Summary:

ECU government raid of MEX government embassy in Quito has sent regional relations spiraling and generated conversations about the appropriate use of granting political asylum.

Sources:

“México rompe relaciones con Ecuador tras el asalto policial a su Embajada en Quito (Mexico breaks relations with Ecuador after the police assault on its Embassy in Quito),” El País (Spanish daily with excellent regional coverage), 6 April 2024. https://elpais.com/mexico/2024-04-06/mexico-rompe-relaciones-con-ecuador-tras-el-asalto-policial-a-su-embajada-en-quito.html 

Mexico has broken relations with Ecuador. The measure was adopted after the Ecuadorian police attacked the Mexican Embassy in Quito with armored cars and masked agents…and forcibly took away former vice president Jorge Glas, who hours before had received political asylum from the Government of Andrés Manuel López Obrador…In the following hours, Glas was to receive safe passage from the Ecuadorian authorities allowing him to fly to Mexico City, but instead, Noboa ordered his immediate capture.

“La canciller de Ecuador afirma que México violó primero las normas diplomáticas: ‘Hubo incumplimientos y respuestas negativas’ (The Foreign Minister of Ecuador affirms that Mexico first violated diplomatic norms: ‘There were non-compliance and negative responses’),” Clarín (Argentine daily that covers most of Latin America), 8 April 2024. https://www.clarin.com/mundo/canciller-ecuador-afirma-mexico-violo-primero-normas-diplomaticas-incumplimientos-respuestas-negativas_0_ozE6HjUzaH.html  

For Mexico, Ecuador violated the Vienna Convention, which has some 115 countries, and which regulates relations between states through treaties. It is considered one of the main sources of international law and its compliance is mandatory for the states that have ratified it…In response, [Foreign Minister] Sommerfeld noted that Mexico did not respect Article 1 of the Montevideo Convention of 1933 or Article 3 of the Caracas Convention of 1954, regarding the fact that it is not lawful to grant asylum to people accused of common crimes, as was the situation of Glas in a case for alleged embezzlement of funds in the reconstruction of the province of Manabí after the 2016 earthquake.

Notes:

[i] President Noboa is grappling with a surge of gang-related violence, and Glas stands convicted of corruption, including links to transnational criminal organizations. For more information on the origins of Ecuador’s insecurity crisis, see: Ryan C. Berg, “President Lasso Calls for ‘Plan Ecuador’ Amid Growing Security Concerns,” OE Watch, December 2021. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/400849

[ii] For more information on how the international fallout could negatively impact the Noboa government, see: James Bosworth, “The Mexican Embassy Raid in Ecuador Will Backfire for Noboa,” World Politics Review, 8 April 2024. https://www.worldpoliticsreview.com/ecuador-mexico-embassy-corruption/

Image Information:

Image: EcuadorianPresident Daniel Noboa has sought to project an image of being tough on crime and impunity. He has come under fire for authorizing the raid of Mexico’s embassy in the country.
Source: https://www.flickr.com/photos/presidenciaecuador/53497882306 
Attribution: PDM 1.0 DEED.

Ecuador Faces Reprisals for Indirect Support to Ukraine

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A Russian military Mi helicopter of the kind Ecuador was prepared to donate to Ukraine.

“The decision unleashed the fury of the Kremlin, which defended the parts sold to Ecuador years ago.”

Since the start of the Russia-Ukraine war, Latin American and Caribbean countries have been reticent to get involved.[i] Specifically, they have resisted calls to send Russian military equipment stockpiles to support either side of the conflict. For this reason, Ecuador stood out when, following the recent declaration of an “internal armed conflict,” Spanish wire agency EFE reports that President Noboa expressed his country’s desire to trade Soviet-era military equipment for a $200 million security package of new equipment from the United States. This security package is meant to bolster the government’s position in the current domestic security crisis.[ii] The Soviet-era equipment, six Mi-8 [RG1] helicopters, a rocket launcher, and anti-aircraft systems, from previous arms deals with Russia would then be transferred to Ukraine.  To avoid provoking the ire of Russia by signaling overt support for Ukraine’s cause, EFE reports that the Noboa government has referred to this equipment, as inoperative “junk.” Nevertheless, Russia responded angrily and referred to original contracts for the equipment, which allegedly prohibit the export of this equipment to third parties. In addition, following Noboa’s announcement, according to the second excerpted article from the Argentine regional outlet Infobae, Russia’s phytosanitary agency halted imports of Ecuadorian bananas, claiming an uptick in flies. The article also notes that Russia is Ecuador’s second-largest customer for banana exports, and a halt in Russia’s imports of Ecuadorian bananas will hurt Ecuador economically and force it to quickly divert exports to other countries. While the quantity and types of weapons Ecuador plans to send to the United States (and eventually on to Ukraine) will not, by themselves, change Ukraine’s fortunes on the battlefield, the decision is a potential watershed moment for Latin America because its governments have generally pursued a studious policy of “non-alignment,” with several regional leaders declining to send Soviet-era equipment in their stockpiles.[iii] It is possible that Ecuador may pave the way for the region to assist Ukraine despite the threat of economic reprisals.

Sources:

“EE.UU. confirma que equipos soviéticos de Ecuador irán a Ucrania para guerra contra Rusia (The US confirms that Soviet equipment from Ecuador will go to Ukraine for war against Russia),” EFE (Spanish wire agency), 8 February 2024. https://es-us.finanzas.yahoo.com/noticias/ee-uu-confirma-equipos-sovi%C3%A9ticos-215123186.html

The president of Ecuador, Daniel Noboa, described the equipment as ‘scrap’ so his country will receive new equipment worth about 200 million dollars…the Russian government transmitted to the Ecuadorian government its position regarding these supplies, ‘indicating the specific points of the agreements and contracts’ linked to Russian military supplies to Ecuador that the South American nation would violate if it re-exported them.

“Ecuador se ve obligado a buscar nuevos mercados para sus bananas tras el cese de exportaciones a Rusia (Ecuador is forced to look for new markets for its bananas after the cessation of exports to Russia),” Infobae (Argentine regional outlet), 14 February 2024. https://www.infobae.com/america/america-latina/2024/02/14/ecuador-se-ve-obligado-a-buscar-nuevos-mercados-para-sus-bananas-tras-el-cese-de-exportaciones-a-rusia/ 

The decision unleashed the fury of the Kremlin, which defended the parts sold to Ecuador years ago…The measure ordered by Vladimir Putin will considerably affect Ecuadorian exporters and, consequently, the profits that the Ecuadorian government receives from bananas. Now, Noboa must campaign to relocate one of its top products in the world, outside of nations that interpose their political interests on commercial ones. At the same time, the president continues with his war against gangs, launched in early January, which he hopes to promote with new equipment.

Notes:

[i] For greater detail on how the region has remained “non-aligned,” see: Ryan C. Berg, Christopher Hernandez-Roy, Juliana Rubio, Henry Ziemer, and Rubi Bledsoe, “A Hesitant Hemisphere: How Latin America has been Shaped by the War in Ukraine,” Center for Strategic & International Studies, 27 February 2023. https://www.csis.org/analysis/hesitant-hemisphere-how-latin-america-has-been-shaped-war-ukraine

[ii] For more, see: Ryan Berg “Rising Violence Prompts Ecuador To Declare ‘Internal Armed Conflict’,” OE Watch, 02-2024. Need Link

[iii] For more on Latin America’s response to the war in Ukraine, read: Ryan C. Berg, Christopher Hernandez-Roy, Juliana Rubio, Henry Ziemer, and Rubi Bledsoe, “Two Years Later: LAC and Russia’s War in Ukraine,” Center for Strategic & International Studies, February 22, 2024, https://www.csis.org/analysis/two-years-later-lac-and-russias-war-ukraine.

Image Information:

Image: A Russian military Mi helicopter of the kind Ecuador was prepared to donate to Ukraine.
Source: https://commons.wikimedia.org/wiki/File:Mil_Mi-8MTV-5_Hip_82_yellow_%288587491042%29.jpg
Attribution: CC BY-SA 2.0 DEED

Rising Violence Prompts Ecuador To Declare “Internal Armed Conflict”

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Noboa, the youngest president in Ecuador’s history, faces a crisis of insecurity.

“President Daniel Noboa issued…an executive decree that reforms the current state of emergency and recognizes the existence of an ‘internal armed conflict.’”

Ecuador has been reeling from a dramatic increase in homicides over the past four years as gangs have evolved into transnational criminal organizations linked to Mexico’s drug cartels.[i]. The country’s homicide rate rose from 6.7 per 100,000 citizens in 2019 to an estimated 45 per 100,000 in 2023.[ii] In a recent 48-hour period, two notorious gang leaders escaped prison, gangs laid siege to the University of Guayaquil, and one group stormed a live news broadcast, televising the bedlam for nearly 20 minutes before cutting the transmission, reports center-left Argentine news outlet Clarín. In response to this spate of violence, the recently elected Noboa government declared a state of emergency. However, the continued threat posed by multiple criminal groups has led Noboa to dramatically increase the sense of urgency, declaring instead an “internal armed conflict.” This empowered the nation’s armed forces to enforce a 60-day curfew and restore domestic security, according to Ecuadorian digital news outlet Primicias. The decree enumerated nearly two dozen armed groups and classified them as domestic terrorist organizations, the outlet says. Noboa is only a few months into his term, following a presidential campaign that featured the assassination at the hands of criminal groups of Fernando Villavicencio, a popular anticorruption candidate.[iii] To complement his presidential decree, Noboa announced a package of increased measures, including the construction of additional maximum-security prisons and the expropriation of criminal assets. The effectiveness of these measures bears watching throughout 2024 to see if Ecuador follows down a similar path as El Salvador or continues to spiral down into criminality and violence.

Sources:

“Súplicas de ‘no me maten’ y una granada en el bolsillo: así tomó en vivo un grupo narco el canal de televisión en Ecuador (Pleas of ‘don’t kill me’ and a grenade in the pocket: this is how a drug group took over a television channel in Ecuador live),” Clarín (Argentina’s oldest outlet that is generally considered center left), 9 January 2024. https://www.clarin.com/mundo/grupo-armado-irrumpio-transmision-vivo-canal-television-ecuador_0_0okSuT5tJC.html

An armed group stormed the live broadcast of a television channel in Ecuador, threatening those who were in charge of the programming with guns and weapons of war. There were also violent episodes at the University of Guayaquil and on commercial premises…the security forces stated only two hours after the assault that they were able to recover the taken buildings.

“Noboa declara conflicto armado interno y dispone la salida de militares (Noboa declares internal armed conflict and orders the departure of soldiers),” Primicias (a digital news outlet based in the capital, Quito) 9 January 2024. https://www.primicias.ec/noticias/politica/noboa-conflicto-armado-interno-militares/President Daniel Noboa issued…an executive decree that reforms the current state of emergency and recognizes the existence of an ‘internal armed conflict.’ Therefore, it provides for the immediate mobilization and intervention of the Armed Forces and the Police in the national territory. The decree was issued minutes after armed attackers took over the TC Television facilities and broadcast live. This new decree establishes the identification of…organized crime groups as ‘terrorist organizations and belligerent non-state actors.’

Notes:

[i] Previous governments, unable to stem the growth in criminal potency, have issued pleas to the international community for a “Plan Ecuador,” akin to the wide-ranging security assistance plan and social makeover that helped save Colombia from similar threats in the 1990s and 2000s. For more information, see: Ryan Berg “President Lasso Calls for ‘Plan Ecuador’ Amid Growing Security Concerns,” OE Watch, 12-2021. https://community.apan.org/cfs-file/__key/telligent-evolution-components-attachments/13-21393-00-00-00-40-08-49/2021_2D00_12_2D00_01-President-Lasso-Calls-for-_1C20_Plan-Ecuador_1D20_-Amid-_2800_Berg_2900_.pdf?forcedownload=true

[ii] For more information on rising homicide figures in Ecuador, see: “How Ecuador Became Latin America’s Deadliest Country,” The Economist, 10 January 2024. https://www.economist.com/the-americas/2024/01/10/how-ecuador-became-latin-americas-deadliest-country

[iii] For more on Villavicencio, see: Ryan Berg, “Presidential Candidate Assassination Shows New Depths of Ecuador’s Insecurity,” OE Watch, 09-2023. https://fmso.tradoc.army.mil/2023/presidential-candidate-assassination-shows-new-depths-of-ecuadors-insecurity/

Image Information:

Image: Noboa, the youngest president in Ecuador’s history, faces a crisis of insecurity. Source:  https://www.flickr.com/photos/presidenciaecuador/53367780040/  
Attribution: Flickr, PDM 1.0 DEED

Presidential Candidate Assassination Shows New Depths of Ecuador’s Insecurity

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Ecuadorian Presidential Candidate Fernando Villavicencio.

“He [Fernando Villavicencio] structured his campaign around the fight against mafias and drug trafficking. Days ago, the candidate said that he had been threatened with death by ‘one of the bosses of the Sinaloa Cartel.’”

Over the past three years, Ecuador has experienced a tremendous spike in violence led by the activities of transnational drug trafficking organizations often operating in collaboration with local gangs,[i] which has resulted in skyrocketing homicide rates. [ii] Underscoring the extent of the violence, one of the leading candidates in Ecuador’s snap presidential elections, Fernando Villavicencio, was assassinated in early August after a campaign rally in Quito. Villavicencio polled in the top tier of candidates poised to make the runoff round, with a message focused on anti-corruption efforts. Villavicencio was a journalist who rose to prominence uncovering and denouncing corruption in the Rafael Correa government, as well as links between organized crime and members of Correa’s party. According to the excerpted article from the Spanish daily El País, in addition to denouncing corruption, Villavicencio had spoken on the campaign trail about a comprehensive security plan for the country, including cracking down on organized crime and building maximum security prisons. Days before his assassination, Villavicencio alleged he had been threatened by a member of Mexico’s Sinaloa Cartel with an interest in Ecuador. The allegation furthered speculation about the role of Mexico’s top criminal organizations, the Sinaloa Cartel and the Jalisco New Generation Cartel, in Ecuador’s downward spiral of criminality. Infobae, an Argentine outlet with excellent regional coverage, states the Ecuadorian investigation has been unable to link Mexican cartels to the crime. Instead, the outlet reports that the investigative unit has uncovered firmer connections between those it suspects are responsible and the local gang Los Lobos and the Puerto Rican transnational crime group the Latin Kings. The development signals the difficulty of confirming the nexus between the Sinaloa and Jalisco cartels and local Ecuadorian gangs. It also indicates that high-level politicians may be a new target for Ecuador’s criminal violence.

Sources:

“¿Quién era Fernando Villavicencio, el candidato presidencial asesinado en Ecuador?(Who was Fernando Villavicencio, the presidential candidate assassinated in Ecuador?),” El País (Spanish daily with excellent regional coverage), 10 August 2023. https://elpais.com/internacional/2023-08-10/quien-era-fernando-villavicencio-el-candidato-presidencial-asesinado-en-ecuador.html 

Among Villavicencio’s proposals were building ‘a very high security prison’ to lock up the most dangerous criminals, militarizing ports to control drug trafficking, and creating an anti-mafia unit that would pursue drug traffickers with foreign support…He structured his campaign around the fight against mafias and drug trafficking. Days ago, the candidate said that he had been threatened with death by ‘one of the bosses of the Sinaloa Cartel.’

“Asesinato de Fernando Villavicencio: investigan los vínculos del sicario con bandas criminales ecuatorianas (Murder of Fernando Villavicencio: investigating the hitman’s links with Ecuadorian criminal gangs),” Infobae (an Argentine outlet with excellent regional coverage), 20 September 2023. https://www.infobae.com/america/america-latina/2023/09/20/asesinato-de-fernando-villavicencio-investigan-los-vinculos-del-sicario-con-bandas-criminales-ecuatorianas/After the investigations carried out on the gunman’s mobile phone, the hitman’s links with organized crime groups in the country are being investigated…According to the report, the hitman recruited the first six detainees in the case, all of whom are Colombians from Cali…Others suspected of involvement have been linked to Los Lobos gang and the Latin Kings.

Notes:

[i] For more information on Ecuador’s security challenges and the government’s attempt to stem homicides, see: Ryan C. Berg, “President Lasso Calls for ‘Plan Ecuador’ Amid Growing Security Concerns,” OE Watch, December 2021. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/400849

[ii] For more information on the genesis of Ecuador’s violent crime and its impact on local politics, see: Will Freeman, “A Surge in Crime and Violence Has Ecuador Reeling,” World Politics Review, June 14, 2023. https://www.cfr.org/blog/surge-crime-and-violence-has-ecuador-reeling

Image Information:

Image: Ecuadorian Presidential Candidate Fernando Villavicencio.
Source: https://commons.wikimedia.org/wiki/File:Alternativ_crop_of_Fernando_Villavicencio.jpg
Attribution: Wikimedia, CC BY-SA 2.0

Organized Crime Engulfing Ecuador

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Ecuador’s Police patrol streets of the capital, Quito, after civilian unrest.

Ecuador’s Police patrol streets of the capital, Quito, after civilian unrest.

“If the State Public Security Council declares these groups as terrorists, the Armed Forces of Ecuador may intervene in security matters without the need to amend the country’s Constitution.”

For several years, violent crime has risen rapidly in Ecuador. Guayaquil, the country’s second largest city and its main port, now contends with a homicide rate of 46 per 100,000 citizens, making it one of the most dangerous cities in Latin America. A host of unsavory criminal organizations have established an operational presence in Ecuador, from Colombian criminal organizations operating over the border, to Mexican cartels, and even the Albanian mafia.[i]

Criminal organizations take advantage of Ecuador’s weak governance, convenient ports, and dollar economy. First, Ecuador’s weak governance translates into safe havens for many groups. Second, the country’s Pacific coastline provides a multitude of options for shipping illicit products out of Ecuador. Lastly, the country’s dollarization means the proceeds from the sales of illicit products can be easily laundered. The excerpted article from Argentina-based Infobae, reports that Ecuadorian President Guillermo Lasso, under significant pressure to improve security, plans to declare criminal organizations “terrorist groups.” By doing so, Lasso intends to use Ecuador’s military to combat criminal organizations and bypass what would otherwise require constitutional changes.[ii] Meanwhile, as the Spanish daily El País reports, Lasso’s approval ratings have not only slipped dramatically, but he now faces impeachment charges in Congress. Lasso has lost significant support because of the country’s public insecurity, and the impeachment charges involve a claim that his government has been penetrated by criminal organizations.[iii] Ecuador’s slide into insecurity illustrates what is at stake when weak institutions, weak state capacity, and transnational criminal organizations converge.

Sources: 

“El gobierno de Ecuador busca declarar a las bandas criminales como terroristas (The Ecuadorian government seeks to declare criminal gangs as terrorists),” Infobae (the Argentina-based outlet with some of the best regional coverage of any Latin American outlet), 20 April 2023. https://www.infobae.com/america/america-latina/2023/04/20/el-gobierno-de-ecuador-busca-declarar-a-los-grupos-criminales-como-terroristas/

The Ecuadorian government wants the State Public Security Council to declare criminal groups as terrorists. The purpose of the measure is for the Armed Forces to be able to participate permanently in what the Minister of Government, Henry Cucalón, has called a war due to the “unprecedented terrorist wave” that the country is facing. If the State Public Security Council declares these groups as terrorists, the Armed Forces of Ecuador may intervene in security matters without the need to amend the country’s Constitution. Currently, Ecuador’s Congress is processing partial constitutional reforms so that the military can support the police in internal control and in the fight against organized crime.

“Las claves del juicio político del presidente de Ecuador Guillermo Lasso (The keys to the political trial of Ecuadorian President Guillermo Lasso),” El País (the Spanish newspaper with hemispheric coverage), 24 April 2023. https://elpais.com/america-colombia/2023-04-24/las-claves-del-juicio-politico-del-presidente-de-ecuador-guillermo-lasso.htmlThis is the first time that a president has been subjected to impeachment since the approval of the Ecuadorian Constitution in 2008…In the end, the political trial will be determined in a complex social situation with a high level of insecurity affected by organized crime that keeps the population in anguish with extortion and violent deaths.

Notes:

[i] For more information on Ecuador’s descent into criminal insecurity and the role of Albanian organized crime, see: “Ecuador’s Crime Wave and Its Albanian Connection,” Americas Quarterly, 12 April 2023. https://americasquarterly.org/article/ecuadors-crime-wave-and-its-albanian-connection/; for more information on the Mexican connection, see: Ryan Berg, “Mexican Criminal Organizations Consolidate Their Positions in South America,” OE Watch, 05-2022. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/416680

[ii] Ecuador’s president has called for Ecuador to receive military and police assistance like the U.S. aid program Plan Colombia. For more information, see: Ryan Berg, “President Lasso Calls for ‘Plan Ecuador’ Amid Growing Security Concerns,” OE Watch, December 2021. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/400849

[iii] For more information on Ecuador’s complex impeachment process, see: “Crisis in Quito: President Guillermo Lasso Heads to Impeachment Vote,” Council on Foreign Relations, 9 May 2023. https://www.cfr.org/blog/crisis-quito-president-guillermo-lasso-heads-impeachment-vote-0

Image Information:

Image: Ecuador’s Police patrol streets of the capital, Quito, after civilian unrest.
Source:  https://commons.wikimedia.org/wiki/File:Police_Ecuador_Riot.jpg 
Attribution: Wikimedia, CC-BY 2.0

Ecuador Seeks New Relationship With China After Debt Deal

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Chinese President Xi Jinping and former Ecuadorian President Rafael Correa sign 11 cooperative agreements during a state visit in 2017.

Chinese President Xi Jinping and former Ecuadorian President Rafael Correa sign 11 cooperative agreements during a state visit in 2017.

“The idea is that part of the oil is released, and it is allowed to be sold at market price, which is an additional benefit for Ecuador.  And with those resources, the president can further strengthen social investment.”

Ecuador is performing a balancing act as it undertakes a strategic review of its with China while making overtures to Washington. Under President Rafael Correa (2007-2017), Ecuador racked up billions in debt, with China as the country’s largest lender. Since Correa’s departure, Ecuador has struggled to repay China, making repeated requests to restructure debt deals. In contrast, current President Guillermo Lasso recently announced the renegotiation of Ecuador’s debt, reports center-right daily El Universo. According to the article, the agreement will free Ecuador’s oil production, previously tethered to the repayment of the Chinese debt, to be sold on the spot market. The newspaper notes that this should provide additional revenues for the government, which it badly needs to invest in both social programs and to combat rising insecurity and criminality. The debt renegotiation is part of a broader repositioning of the Ecuador-China relationship, notes another El Universo article.  One large source of debt is the Coca Codo Sinclair Dam project, which has generated controversy throughout the country. The project is mired in cost overruns, environmental degradation, and questions over the structural integrity of the infrastructure (it has thousands of cracks and is unstable). As a result, a review commission within Ecuador’s government recommended a rejection of the project, with a threat to withhold repayment of the loan that financed it if China does not fix the structural deficiencies.

Sources:

“Presidente Guillermo Lasso anuncia renegociación de deuda con China en Nueva York (President Guillermo Lasso announces debt renegotiation with China in New York),” El Universo (one of Ecuador’s largest dailies, generally seen as center-right), 19 September 2022. https://www.eluniverso.com/noticias/economia/presidente-guillermo-lasso-anuncia-renegociacion-de-deuda-con-china-en-nueva-york-nota/  

The government… said that, in general, these agreements represent a relief of $1.4 billion in debt service for Ecuador until 2025, since amortizations to the China Development Bank will be reduced by more than $745 million over the next three years and amortizations to Eximbank will be reduced by about $680 million over the next four years… The idea is that part of the oil is released and it is allowed to be sold at market price, which is an additional benefit for Ecuador.  And with those resources, the president can further strengthen social investment.

“Informe de Fiscalización recomienda no recibir central Coca Codo y revisar designación del Ministro de Energía por conflicto de intereses (Audit report recommends not receiving Coca Codo Sinclair Dam and reviewing the appointment of the Minister of Energy due to conflict of interest),” El Universo (one of the country’s largest dailies, generally considered center-right), 9 September 2022. https://www.eluniverso.com/noticias/economia/informe-de-fiscalizacion-recomienda-no-recibir-central-coca-codo-y-revisar-designacion-del-ministro-de-energia-por-conflicto-de-intereses-nota/  

At least 121 conclusions and 13 recommendations, which include asking the President of the Republic, Guillermo Lasso, that his government reject the work of the Coca Codo Sinclair hydroelectric plant (due to its multiple structural problems) and that it review the appointment of the current Minister of Energy, Xavier Vera Grunauer, for allegedly having a conflict of interest, came out of a final report of the investigation carried out by the Supervisory Commission of the National Assembly, on the contract and construction of the largest hydroelectric power plant, the Coca Codo Sinclair Dam.

Image Information:

Image: Chinese President Xi Jinping and former Ecuadorian President Rafael Correa sign 11 cooperative agreements during a state visit in 2017.
Source: https://commons.wikimedia.org/wiki/File:Ecuador_y_China_firman_11_convenios_de_cooperaci%C3%B3n_(30958228411).jpg
Attribution: CCA BY 2.0