For nearly a week, protests have been raging in Ecuador over austerity measures. Thousands of indigenous people have led the demonstrations, which have turned increasingly violent- characterized by clashes with security forces, lootings, and vandalism. President Lenin Moreno moved his administration out of Quito on October 7th, and less than 24 hours later imposed a curfew from 8pm to 5am around government buildings, attempting to minimize repercussions of the unrest.
The government’s decision to scrap fuel subsidies which have been in place for 40 years, and implement unpopular labor and tax reforms, have caused the massive protests. President Moreno defends his decision, claiming that given the government’s struggle with large foreign debt and fiscal deficit, the measures were necessary to secure the $4.2 billion loan from the IMF. Opponents of the measures undertaken say the cost is born by the majorities, and only the creditors and domestic elites are protected. Some experts say establishing capital controls and limiting dollar flight would better resolve Ecuador’s financial problems, without significantly impacting the population. Nonetheless, President Moreno says he will neither overturn scrapping fuel subsidies nor tolerate disorder, claiming the protests are more a manifestation of political motives to destabilize the government, than social discontent. Considering that indigenous-led protests have brought down three presidents in recent years, President Moreno’s outlook seems bleak.
