10-12-2019, 10:45 PM
*** 13-Oct-19 World View -- Ecuador's president Moreno imposes curfew after 10 days of violent protests
This morning's key headlines from GenerationalDynamics.com
****
**** Ecuador's president Moreno imposes curfew after 10 days of violent protests
****
![[Image: g191012b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g191012b.jpg)
Anti-government protesters in Quito, Ecuador, on Tuesday (AP)
Ecuador's president Lenin Moreno Garces has imposed a curfew on Quito,
the capital city, after 10 days of violent protests that have
paralyzed the city. Protesters on Saturday blocked road access to the
city's international airport and set fire to the national auditor's
office as police responded with tear gas and rubber bullets and
authorities imposed water and power cuts across the city.
The violence was so bad that Moreno moved his government base from
Quito to the coastal city of Guayaquil earlier this week to escape the
violence.
The protests were led by the Confederation of Indigenous Nationalities
of Ecuador (CONAIE). The indigenous groups are the ethnic groups that
occupied this region prior to arrival of the European conquerors.
Today, there's a major social fault line between the indigenous people
and the descendants of the European invaders. The principal
indigenous groups are the Shuar and the Cañari Kichwa.
The protests were triggered by a plan to end fuel subsidies. Ending
fuel subsidies would increase gasoline (petrol) prices by 1/3, and
would double diesel fuel prices.
On March 11, the International Monetary Fund (IMF) approved a $4.2
billion bailout for Ecuador, subject to certain conditions:
<QUOTE>"The aim is to reduce debt-to-GDP ratio through a
combination of a wage bill realignment, a careful and gradual
optimization of fuel subsidies, a reprioritization of capital and
goods and services spending, and a tax reform. ...
The authorities are committed to supporting job creation,
restoring competitiveness and catalyzing private sector-led growth
while increasing transparency and forcefully countering
corruption. A more efficient tax system, public wage restraint,
facilitating the hiring process, and a more efficient energy
sector are important components of the authorities’ plan in this
area."<END QUOTE>
Having accepted the IMF bailout money, Ecuador is now committed to
implementing the austerity measures, including "the careful and
gradual optimization of fuel subsidies."
Some of the rioters are demanding that the government ignore the IMF's
austerity requirements, and keep the fuel subsidies. Conaie agreed
late Saturday to negotiations. This is an ongoing situation, and it's
possible that Moreno's government will not survive.
****
**** Ecuador caught in massive debt trap by China
****
Rafael Vicente Correa Delgado was Moreno's predecessor as president
between 2007-2017. When Correa first took office in 2007, he
advocated for indigenous people’s rights and sustainable development,
and the end of “exploitative capitalism” by mainly American and
European investors.
The end of "exploitative capitalism" meant that Correa would refuse to
pay back $3.2 billion in foreign debt.
So having defaulted on debt to US and European investors, Correa
invited investments from Chinese investors, and went on a spending
spree with money loaned by China. Today, Ecuador owes $6.5 billion to
China.
In December 2018, Ecuadorian president Moreno visited Beijing and
obtained an additional $900 million in loans from China, as part of a
Belt and Road Initiative (BRI) cooperation deal with China.
I've written about a number of China's "debt trap diplomacy" deals
with many countries. China designs these agreement so that it's
almost impossible for the debtor country to make its payments. The
terms of these agreements are kept top secret, because they usually
involve corruption and kickbacks, and because the allow China to take
control of a country's infrastructure, such as a seaport, as an
inevitable consequence of default. Since the agreement specify that
China takes control of the debtor's assets, there's no need to impose
austerity requirements, as the IMF does.
So even the $900 million loan in December wasn't enough to save
Ecuador from default, and so Ecuador had to obtain a further $2.4
billion bailout from the IMF.
There are some groups in Ecuador that are demanding that the
government simply not pay back the IMF loan, in the same way that
Correa refused to pay back the $3.2 billion that Ecuador owed to US
and European investors in 2007. However, that won't work this time,
since the IMF bailout money will only be disbursed over a three year
period.
As we said, this is an ongoing situation, and Morena may not survive
in office.
****
**** Indigenous people demand closure of China's copper and gold mines
****
Ecuador has a 750 km stretch of mostly undeveloped deposits of copper,
silver, gold and zinc. Starting in 2015, China has taken a leading
role in mining those minerals. China has ownership or joint ownership
of three mines: the Mirador and San Carlos-Panantza copper mines, and
the Rio Blanco gold mine.
The mines are all being developed in the midst of indigenous people's
villages. When the Chinese first arrived, they promised that the
local people would benefit from the mines. However, as is usual with
Chinese projects, the jobs are all taken by imported Chinese workers,
and the locals receive nothing, although their land is taken, their
roads and lakes are blocked. The Mirador copper mine has turned 1,300
hectares of rainforest into an open pit mine.
Indigenous people affected by the mines are planning protests, but
they have little hope. This is another ongoing situation.
****
**** China deploys mass surveillance spy system in Ecuador
****
During the last four years, China has installed a vast surveillance
system, known as the ECU-911 system, that can be used to spy on all
Ecuadorian citizens.
The China-made surveillance equipment contains as many as 4,200
cameras, monitored by 16 centers and around 3,000 employees. The
system lets the government track phones, and may soon be upgraded with
facial-recognition capabilities. The equipment was manufactured by
two Chinese firms, Huawei Technologis and China National Import &
Export Corp (CEIEC).
Outside of Ecuador, similar systems have been sold to Venzuela,
Bolivia, and Angola. As many as 18 countries worldwide are currently
using Chinese-made monitoring systems.
As with all Chinese-made network products, we have to assume that the
Chinese military is able to access the surveillance and data, and
correlate it with the data in their own databases.
Sources:
Related Articles:
KEYS: Generational Dynamics, Ecuador, Lenin Moreno Garces,
Confederation of Indigenous Nationalities of Ecuador, CONAIE,
Shuar, Cañari Kichwa, International Monetary Fund, China,
Rafael Vicente Correa Delgado, China,
Belt and Road Initiative, BRI, debt trap diplomacy,
Mirador copper mine, San Carlos-Panantza copper mine,
Rio Blanco gold mine,
ECU-911 system, Huawei Technologies,
China National Import & Export Corp, CEIEC.
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Ecuador's president Moreno imposes curfew after 10 days of violent protests
- Ecuador caught in massive debt trap by China
- Indigenous people demand closure of China's copper and gold mines
- China deploys mass surveillance spy system in Ecuador
****
**** Ecuador's president Moreno imposes curfew after 10 days of violent protests
****
Anti-government protesters in Quito, Ecuador, on Tuesday (AP)
Ecuador's president Lenin Moreno Garces has imposed a curfew on Quito,
the capital city, after 10 days of violent protests that have
paralyzed the city. Protesters on Saturday blocked road access to the
city's international airport and set fire to the national auditor's
office as police responded with tear gas and rubber bullets and
authorities imposed water and power cuts across the city.
The violence was so bad that Moreno moved his government base from
Quito to the coastal city of Guayaquil earlier this week to escape the
violence.
The protests were led by the Confederation of Indigenous Nationalities
of Ecuador (CONAIE). The indigenous groups are the ethnic groups that
occupied this region prior to arrival of the European conquerors.
Today, there's a major social fault line between the indigenous people
and the descendants of the European invaders. The principal
indigenous groups are the Shuar and the Cañari Kichwa.
The protests were triggered by a plan to end fuel subsidies. Ending
fuel subsidies would increase gasoline (petrol) prices by 1/3, and
would double diesel fuel prices.
On March 11, the International Monetary Fund (IMF) approved a $4.2
billion bailout for Ecuador, subject to certain conditions:
<QUOTE>"The aim is to reduce debt-to-GDP ratio through a
combination of a wage bill realignment, a careful and gradual
optimization of fuel subsidies, a reprioritization of capital and
goods and services spending, and a tax reform. ...
The authorities are committed to supporting job creation,
restoring competitiveness and catalyzing private sector-led growth
while increasing transparency and forcefully countering
corruption. A more efficient tax system, public wage restraint,
facilitating the hiring process, and a more efficient energy
sector are important components of the authorities’ plan in this
area."<END QUOTE>
Having accepted the IMF bailout money, Ecuador is now committed to
implementing the austerity measures, including "the careful and
gradual optimization of fuel subsidies."
Some of the rioters are demanding that the government ignore the IMF's
austerity requirements, and keep the fuel subsidies. Conaie agreed
late Saturday to negotiations. This is an ongoing situation, and it's
possible that Moreno's government will not survive.
****
**** Ecuador caught in massive debt trap by China
****
Rafael Vicente Correa Delgado was Moreno's predecessor as president
between 2007-2017. When Correa first took office in 2007, he
advocated for indigenous people’s rights and sustainable development,
and the end of “exploitative capitalism” by mainly American and
European investors.
The end of "exploitative capitalism" meant that Correa would refuse to
pay back $3.2 billion in foreign debt.
So having defaulted on debt to US and European investors, Correa
invited investments from Chinese investors, and went on a spending
spree with money loaned by China. Today, Ecuador owes $6.5 billion to
China.
In December 2018, Ecuadorian president Moreno visited Beijing and
obtained an additional $900 million in loans from China, as part of a
Belt and Road Initiative (BRI) cooperation deal with China.
I've written about a number of China's "debt trap diplomacy" deals
with many countries. China designs these agreement so that it's
almost impossible for the debtor country to make its payments. The
terms of these agreements are kept top secret, because they usually
involve corruption and kickbacks, and because the allow China to take
control of a country's infrastructure, such as a seaport, as an
inevitable consequence of default. Since the agreement specify that
China takes control of the debtor's assets, there's no need to impose
austerity requirements, as the IMF does.
So even the $900 million loan in December wasn't enough to save
Ecuador from default, and so Ecuador had to obtain a further $2.4
billion bailout from the IMF.
There are some groups in Ecuador that are demanding that the
government simply not pay back the IMF loan, in the same way that
Correa refused to pay back the $3.2 billion that Ecuador owed to US
and European investors in 2007. However, that won't work this time,
since the IMF bailout money will only be disbursed over a three year
period.
As we said, this is an ongoing situation, and Morena may not survive
in office.
****
**** Indigenous people demand closure of China's copper and gold mines
****
Ecuador has a 750 km stretch of mostly undeveloped deposits of copper,
silver, gold and zinc. Starting in 2015, China has taken a leading
role in mining those minerals. China has ownership or joint ownership
of three mines: the Mirador and San Carlos-Panantza copper mines, and
the Rio Blanco gold mine.
The mines are all being developed in the midst of indigenous people's
villages. When the Chinese first arrived, they promised that the
local people would benefit from the mines. However, as is usual with
Chinese projects, the jobs are all taken by imported Chinese workers,
and the locals receive nothing, although their land is taken, their
roads and lakes are blocked. The Mirador copper mine has turned 1,300
hectares of rainforest into an open pit mine.
Indigenous people affected by the mines are planning protests, but
they have little hope. This is another ongoing situation.
****
**** China deploys mass surveillance spy system in Ecuador
****
During the last four years, China has installed a vast surveillance
system, known as the ECU-911 system, that can be used to spy on all
Ecuadorian citizens.
The China-made surveillance equipment contains as many as 4,200
cameras, monitored by 16 centers and around 3,000 employees. The
system lets the government track phones, and may soon be upgraded with
facial-recognition capabilities. The equipment was manufactured by
two Chinese firms, Huawei Technologis and China National Import &
Export Corp (CEIEC).
Outside of Ecuador, similar systems have been sold to Venzuela,
Bolivia, and Angola. As many as 18 countries worldwide are currently
using Chinese-made monitoring systems.
As with all Chinese-made network products, we have to assume that the
Chinese military is able to access the surveillance and data, and
correlate it with the data in their own databases.
Sources:
- Ecuador president imposes curfew on capital amid protests (AlJaz, 12-Oct-2019)
- Protest leaders in Ecuador accept talks with government, president imposes Quito curfew (Reuters, 12-Oct-2019)
- Ecuador’s government flees capital, imposes curfew, after protesters storm parliament (SCMP/AP, 9-Oct-2019)
- Rio Blanco / How locals halted a Chinese-owned gold mine in Ecuador (ChinaDialog, 5-Jul-2019)
- Mirador / Few options left for local communities opposing Ecuador’s largest copper mine (ChinaDialog, 8-Jul-2019)
- Ecuador faces a huge budget deficit because of loans it received from China (LATimes, 10-Dec-2018)
- Does China Own Ecuador? (ChinaUSFocus, 6-Oct-2014)
- How Chinese projects are tearing communities in Ecuador apart (SCMP, 25-May-2019)
- The History of Ecuador (ThoughtCo, 23-May-2019)
- History of Ecuador / Ecuador (InfoPlease)
- History of Ecuador, Heritage (Ecuador.com)
- IMF Executive Board Approves US$4.2 Billion Extended Fund Facility for Ecuador (IMF-org, 11-Mar-2019)
- Huawei / ECU 911 / Ecuador’s All-Seeing Eye Is Made in China (ForeignPolicy, 9-Aug-2018)
- ECU 911 / Huawei / China Gains Geopolitical Clout in Ecuador Through Export of Mass-Surveillance Systems (EpochTimes, 23-Dec-2018)
- The NYT investigates China’s surveillance-state exports (TheVerge, 29-Apr-2019)
- ECU 911 / Chinese Government Builds Far-Reaching, Allegedly Corrupt, Surveillance System in Ecuador (IPVM, 13-May-2018)
- Huawei To Be “Top Three Global Position” in Video Surveillance (IPVM, 29-Oct-2018)
Related Articles:
- US-China trade war seriously disrupts world trade (16-Aug-2019)
- Canada arrests the chief financial officer of China powerhouse Huawei (07-Dec-2018)
- Ecuador ends U.S. trade deal in order to protect rapists and traitors (28-Jun-2013)
- Illinois Rep Luis V. Gutiérrez demands TPS status for Ecuadorians (25-Sep-2016)
- Massive earthquakes in Japan and Ecuador are linked by the Ring of Fire (18-Apr-2016)
KEYS: Generational Dynamics, Ecuador, Lenin Moreno Garces,
Confederation of Indigenous Nationalities of Ecuador, CONAIE,
Shuar, Cañari Kichwa, International Monetary Fund, China,
Rafael Vicente Correa Delgado, China,
Belt and Road Initiative, BRI, debt trap diplomacy,
Mirador copper mine, San Carlos-Panantza copper mine,
Rio Blanco gold mine,
ECU-911 system, Huawei Technologies,
China National Import & Export Corp, CEIEC.
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
