 |
Ecuadorīs Indians Show Their Clout In Win over Fuel Price Adjustments By Ronald J. Morgan QUITO, Ecuador -- President Gustavo Naboaīs roll back of basic fuel prices following 10 days of Indigenous protests here, has reasserted the role of Ecuadorīs Indians as the final arbiter in the nationīs politics. The protests which left four dead, and dozens injuried, lead to a reduction in cooking gas prices from $2 to $1.50 per 15 kilo tank, and a freezing of the price of premium gasoline and diesel for one year. Senior citizens and students are to receive discounts on public transportation rates. Twenty-five percent of Ecuador's 12.4 million population is indigenous,mainly Quichua. Most Indians subsist on an average of $2 per day. Anger over government plans to reinstate use of kerosene fuel for the poor and the extent of the January hikes -- a 100% increase in cooking gas, a 25% jump in gasoline prices and bus fare increases of 75% -- caused unprecedented numbers of indigenous women to join the January 26 uprising called by Antonio Vargas, head of the Confederation of Indigenous Nationalities of Ecuador. Most brought along their children in what became a broad-based family effort that paralyzed indigenous regions of the country. "We woman are the people who understand the economic costs because we do the shopping, we take care of the education. Weīre involved in all the economic questions. For that reason we had to become more active," said Susana Pupiales,a Quichua indian, as she awaited protest duties earlier this week at the Salesian Politechnical University of Quito. The Feb. 8 agreement, which followed an initial government strategy of police repression and implemenation of a national state of emergency, committed the goverment to 23 actions. Some of the items are to be hammered out in five seperate negotiating groups to be established within 30 days. In addition to the price reductions, the agreement increases soft credits to medium, small and microbusinesses, and commits the government to increase financing of indigenous development and health funds. Foreign debt swaps for conservation and development projects are to be promoted by the government and targeted at Ecuadorīs poorest regions. The government also committed itself to decentralization and resolution of pending land disputes. The indigenous organizations have been particularly critical of the governmentīs use of government funds to rescue and restructure the banking system. They feel the poor are baring the brunt of the cost through price hikes and increased taxes. The 1999 banking collapse lead to goverment intervention in 14 financial institutions. The IMF estimates the eventual cost to the government will be $2.7 billion. The government has committed itself to negotiaitons on strategies to retrieve bank funds removed from the country by ex-bankers and recover bad loans issued by the failed banks intervened by the government. The government will also negotiate with the indigenous on the operation of the customs service, which they say could raise more tax revenue if it were operated by the Internal Tax Service. Plan Colombia will also be a subject of negotiation. The agreement signed this week calls for Ecuador to "not allow the regionalization of Plan Colombia nor involve the country in a foreign conflict." Ecuadorīs Indigenous groups also oppose the presence of the U.S. Foreward Operations Base at Manta. The agreement is being viewed as a setback to the IMF conceived economic strategy which accompanied a $304 million standby financing agreement. Dollarization was successfully implemented in 2000 and inflation has begun to tack down from 91% in December. But sharp tax and price increases are considered crucial to returning Ecuador to fiscal health following economic collapse and default on some foreign debt in 1999. Some of the IMF-designed economic and investment reforms had already been struck down as unconstitutional in December. And a tax reform proposal may have trouble passing congress. The indigenous say their victory should awaken the IMF to the need to take their views into consideration. "They put strong economic measures into place without understanding our serious problems," said Miguel Perez, Congressional Deputy from Cotopaxi and a member of the Indigenous Pachatukik Party. "Itīs not just the economic problems. There are social problems. There are problems with immigrants. Until we solve those problems we canīt comply with their demands." Despite some internal disputes Ecuadorīs indigenous movement has been steadily gaining in political experience and power. Indigenous organizations have helped oust two presidents: Abdala Bucaram (1996-1997) and Jamil Mahuad (1998-2000). They briefly reached the parapets of power on January 21, 2000 as part of a populist junta in a military-backed coup that was rolled back under U.S. pressure. In May elections indigenous candidates made strong gains, winning 19 city governments and five governorships. Simon Pachano, a political analyst at the Latin American Faculty of Social Sciences, says the agreement consolidates the power of the indigenous but also puts off inevitable economic adjustments. "I think theyīre going to win as a political force. But they are also going to lose because backing down on the economic measures is not desireable for the country as a whole. It unravels the economic strategy and there will have to be another adjustment at a later time. In a sense its a very temporary victory. But obviously they are now positioned as a sector that can obtain what it demands." |
|