Ecuador is making right-ward movements, looking for IMF loans, that could mean impending hardship for the Ecuadorean people.
Former Ecuadorean President Rafael Correa denounces the current administration of Lenin Moreno as “toxic” and warns that he’ll return to Ecuador if required to run as member of the National Assembly or as a vice-presidential candidate.
The former head of state currently lives in Belgium and hosts his own online program called Enlace Digital in which he makes commententary on world issues and Ecuadorean politics. His 9th show was dedicated to what he calls the “betrayal” of the Moreno government and its failure in avoiding “elite control of the country for the next 30 years” as Ecuador moves further toward embracing the neoliberal policies that culminated in its economic collapse of 1998-1999.
He appealed to the "people to take out the government which has only betrayed them" calling on the current president to issues a "muerte cruzada," a term referring to the power of the executive to dissolve the government and call for new elections.
On Feb. 20, Ecuador’s General Secretary of Communications issued a statement, signed by President Lenin Moreno, confirming the signing of an agreement with the International Monetary Fund (IMF) for USD$4.2 billion.
Social groups fear this means the beginning of the Moreno government’s move towards damaging neoliberal reforms. The agreement signed by the IMF was a “Staff Level Agreement,” which means that the USD$4.2 billion loan will only be granted to cash-strapped Ecuador if it complies with certain conditions first.
These conditions are likely to mean austerity for the Ecuadorean people, however no announcements have been made thus far on what these measures will look like. The relative experience of other Latin American countries, like Argentina, provides a hint at what may occur.
Argentine social movements have called attention to the fact that the recent IMF bailout agreed to in their country has, in fact, worsened the economic situation. Several demonstrations have already happened in Argentina to protest the IMF-backed austerity economic measures implemented by the government of President Mauricio Macri.
The inflation rate for Argentina from January 2019 vs January 2018 was at 49% making life extremely difficult for poor and middle class Argentines.
Despite these warnings, Ecuador is moving forward with these agreements.
Correa was president of Ecuador from 2007 to 2017 and was responsible for the country’s “pink tide” movement to left-wing policies which saw poverty decrease by 14% and an annual GDP growth of 1.5%.