How Long Will the Nationwide Strike Persist?

When I learned the chicken stand at the corner was closed tonight, I walked down to Pollo Gus, my backup chicken eatery.  It's across the street from the vice-presidency building near Quito's Plaza Grande, a/k/a Plaza de la Independencia.

Inside Gus (pronounced goose) I spoke with three police officers who were taking a dinner break from their duties protecting the government-buildings area.

Many streets in the local area remain blocked off by the presence of police and by four-foot-high fencing that has been in place all week.

More articles with details of the strike and its effects on life in Ecuador are reachable at www.cuencahighlife.com ...

cccmedia in Quito

Presidente Lasso has declared a state of emergency for Pichincha

province (Quito area) and two other provinces -- Imbabura and

Cotopaxi.

The declaration will allow police to break up crowds using "reasonable

force."  Overnight curfews starting at 10 p.m. will be in effect.  The

curfew order is in effect for 30 days as things now stand, according

to Sr. Lasso

El Presidente has acceded to some demands by the anti-government

protesters.  These are listed in an article dated June 18, 2022, at

www.cuencahighlife.com, the source of this post.

The emergency declaration follows some violent night-time

confrontations between protesters and police in Quito's

historic district.  Several traffic lights were damaged or destroyed. 

The mayor of Quito said the city had only five days remaining

of various supplies before shortages would produce a crisis situation.

Roadblocks by the indigenous protesters are preventing gasoline

and other products from reaching the city.

Cuenca is quieter, but many roadblocks are in place.

Yahoo! News is reporting that Presidente Lasso met with

a small group of indigenous leaders on Friday in an

effort to resolve the fuel-price issues.

The head of the protesters had said there would be a

march on the main government buildings in El Centro

early in the coming week, according to the Cuenca

Highlife website. 

However, given the emergency declaration, the start

of negotiations and some concessions made

by Sr. Lasso, it is not clear whether there will be

such a march into the fortified area.

cccmedia in Centro Histórico, Quito

The demands being made:

1) Reduction and no more rise in fuel prices


2) Economic relief for more than four million families (debt forgiveness or renegotiation)


3) Fair prices on farm products


4) Employment and labor rights


5) Moratorium on the expansion of the extractive mining/oil


6) Respect for the 21 collective rights (comprehensive bilingual education; indigenous justice; prior, free and informed consultation; organization and self-determination of indigenous peoples)


7) Stop the privatization of public services (Banco del Pacífico, hydroelectric plants, IESS, National Telecommunications Corporation (CNT), highways, health, etc.)


8) Price control policies (at grocery stores)


9) Health and education (budget increases)


10) Security & protection (to curb gang violence and crime)

While all of these demands seem reasonable and might be the right thing to do, we don’t live in a world with unending supplies of money to fund these types of programs, especially when several of the demands actually reduce income the government could use to pay for the other demands.

#1 The oil industry in Ecuador is owned by the people and run by the government, which is why fuel prices are lower in Ecuador than most other countries in the world. Ecuador only produces low-octane gas and diesel, though. It still must import premium, which is why high-octane gas is so expensive (nearly $5/gallon).

However, the government already loses money on every gallon of gas sold with the current regulated fuel prices. By demanding a further reduction in fuel prices, the government will lose even more money. And the deficit must come from somewhere to continue operations.

#2 Debt forgiveness and renegotiation must also be funded by the government because borrowed money must be paid back to the banks or foreign lenders by someone. It doesn’t just go away if the government agrees to wipe the slate clean.

#3 They want the government to regulate and increase the price that the farmers can charge for the food they produce to increase their income.

However, #8 asks for a cost reduction on food at the grocery store. It’s not feasible to increase the cost of a product, while also decreasing the price that can be charged for it.

#4, 6, 9 and 10 Would require billions of dollars in funding, which the government doesn’t have and has no feasible way of raising.

#5 Would reduce the production of oil, which would reduce the supply, which would increase the cost, which would make #1 impossible to achieve. The two demands, #1 and #5, are mutually exclusive.

#7 While privatizing public services is not desireable from a cost-control perspective, when the government can’t afford to continue running those services due to high debt and low revenue, there isn’t much choice other than to consider selling them.

Unfortunately, low income earners suffer the most from privatization until an economy is mature enough to stabilize itself through competition and government oversight to give consumers power to push back through an ombudsman and/ or anti-monopoly legislation. Without checks and balances privatization almost always leads to price increases.

To recap, some of the demands would decrease government revenue, while several would increase government spending.

As the world struggles with rampant inflation and a pending recession while it tries to recover from a pandemic, Ecuador doesn’t have a lot of wiggle room when it comes to cutting income and increasing expenses.

At this point, it’s a struggle for Ecuador just to keep making payments on its national debt. And the indigenous leadership is adamantly against taking on more foreign debt to cover their demands. More debt isn’t an option because most Ecuadorians are against it, and very few foreign lenders are willing to take the risk, which has just increased due to the paro.

That only leaves charging more taxes, (eliminating the opt-out of paying property taxes by commercial property owners by simply leaving construction of buildings “incomplete”?) which might help a little, but isn’t likely to happen and wouldn’t be nearly enough to cover all of the demands for revenue cuts and spending increases.

Other developing countries like Venezuela have tackled this problem by printing more money to pay for programs, which leads to rampant inflation as the currency becomes devalued (or worthless). Since Ecuador is on the US Dollar, printing money isn’t an option, which on the other hand is why Ecuador has one of the most stable economies in the world, and banks can offer high interest rate returns on investments and savings… currently a huge positive for attracting foreign investment and immigration bringing an influx of capital. Ecuador is still stabilizing economically, socially, and politically however, and hurts its ability to attract investment and destabilizes it’s institutions each time a change in government occurs either by coup or ousting by popular uprising, instead of through democratic elections.  If any reform could be made, a few that could be considered could be to:

-increase and guarantee higher minimum bank interest rates on savings for low-income earners, instead of only paying out higher interest to those few able to maintain high account balances

-improving availability of low interest loans to encourage Ecuadorian entrepeneurship for business startups and in-home product and service providers… rethinking the requirements and minimum conditions

-invest in refineries over time to produce higher quality / octane fuels to further improve Ecuadors economic independance, and increase balance of exports vs. imports

At the core, is a disdain for capitalism. For better or worse, that’s the predominant worldwide economic system. All the social democracies like Sweden and Denmark have capitalist economies. Even China has a capitalist economy.

The indigenous people may hate capitalism, and blame Lasso for it, but there’s little the Ecuadorian government can do to change its economic system, even if it wanted to.

The Lasso administration has said it is open to negotiations and mediation to end the paro, which is killing tourism and further harming the economic recovery following the pandemic, but it’s hard to envision a way out of this that pleases anyone

Wow that was so well written. Thanks for the great teaching moment. It makes sense to me know. Thank you

Who wrote it?  Where was it posted?  What's the link?

cccmedia

Presidente Lasso has expanded his 30-day declaration of emergency to several additional provinces.

Restrictions on peaceful demonstrating has been relaxed.

There were some additional confrontations in El Cento, Quito, last night (Monday night).  Order was restored by the 10 p.m. curfew.

Details on the above are at www.cuencahighlife.com

The national strike is almost two weeks old and is centered in Quito.

The head of the Policía Nacional says 20,000 protesters have descended on the capital.  He acknowledges that the police do not have the personnel to disband roadblocks and keep roads open throughout La República.

Police have abandoned the large Quito building Casa de la Cultura, as the protest leader demanded, and turned it over as temporary housing for protesters.

More details at the source of this post, www.cuencahighlife.com

Three people have died as a result of El Paro, including two people who died (as reported by the Health Ministry) when their ambulance could not get to a hospital due to protester roadblocks.

The United Nations has called on the protesters and the government to begin talks on the key issues.  However, Conaie -- the indigenous coalition -- has been refusing to start talks until Presidente Lasso agrees to protester demands.

Source... The New York Times

The government of Ecuador says authorities in the Amazonian town of Puyo have lost control of the community .. and 18 police officers are missing.  Protesters with guns, spears and other weapons have taken control of the city.

About 15 years ago, Puyo had a population of 25,000 and was the fastest growing city in Ecuador.  It is the economic and commercial center of its part of the country in Pastaza province.

"We cannot guarantee public safety in Puyo right now.  They have burned the entire police infrastructure and the entrance to the city is under siege," Interior Minister Patricio Carillo told reporters on Tuesday.

Source... The New York Times

From the Associated Press...

"Ecuador's capital was virtually paralyzed amid increasing signs of food and fuel shortages and reports of clashes between indigenous protesters and police."  Protesters punctured the tires of buses, forcing workers to walk to their places of business.

As shown in local media images in Quito, protesters invaded the Ecuadorian prosecutor's offices, causing damage.  The prosecutor's office has appealed for assistance from the police and the military .. and was moving office files to a secure location so that its investigations cannot be compromised during El Paro.

In a national broadcast, Ecuadorian Defense Minister Luis Lara said there has been a "manipulation of social protests and growth in violence by those who have rejected dialogue."

"[T]hese actions go beyond citizen protest.  This amounts to a deliberate effort to use violence to threaten democracy, endanger institutions," said the defense minister.

In the city of Ambato, 81 miles south of Quito, there have been reports in seven sectors of water coming out of domestic taps with a dark color and the smell of burnt motor oil.  The prosecutor's office is investigating the possible contamination of water sources by sabotage.

Source... The Associated Press

An analysis by the news agency U.S. News and World Report points out this irony in the protesters' anti-government tactics:

"The demonstrations -- longer-lasting and larger than marches over fuel prices in October of last year -- are testing [Presidente] Lasso's ability to restart the country's economy and kick-start employment."

The news agency reports that protest leaders have denied responsibility for two days of attacks this week on the attorney general's office.

Source... U.S. News and World Report

Presidente Lasso was diagnosed as positive for covid on Wednesday, potentially complicating the situation as he isolates for several days.

Doctors say the president is asymptomatic.

Source... www.cuencahighlife.com

The 18 missing officers in the Amazon town of Puyo have been accounted for.  Of the 18, two had been kidnapped and released by protesters.

Dozens of stores in Puyo were damaged/looted in the riot this week in which the authorities lost control of the city.

A national police commander says the local police were so outnumbered during the riot that they were forced "to run for their lives."

The military is now patrolling the streets of Puyo, according to the commander.

Source... Cuenca Highlife

The Expat/YouTuber known as Mr. Second Passport,

Dom Buonamici from Ohio, says that other YouTubers

and the mainstream media have not adequately

portrayed the serious level of violence that has been

occurring for the past week or more in Ecuador.

Dom's latest episode shows graphic video evidence

of acts of violence against motorists .. a tire set aflame

rolling down a public street .. serious damage to a

bank in Puyo, Ecuador .. and a headline saying

El Presidente considers the protests to be a

Correistas cover for an attempt to overthrow the

Lasso government.

second passport what is not being shown

          roadblock protests

The indigenous in Ecuador may be only ten percent

of the population.  However, it's a well-organized

ten percent .. credited with helping remove

from office previous presidents in the

period before Rafael Correa (president from

2007-2017).

From an analysis just published in the

Washington Post...

"The Confederation of Indigenous Nationalities

of Ecuador is credited with helping to oust

three governments in Ecuador between 1997

and 2005 by leading massive days-long

street protests that pushed the National

Assembly to vote out the presidents for

incapacity to govern.

"Today, many, including Lasso, say the group

is trying to do the same.

"But it won't be as easy this time.

The assembly now requires a two-thirds vote

to remove a president, more than the

majority requirement of the past."

Source... The Washington Post

Presidente Lasso, who has been isolating

with a positive covid diagnosis, spoke to

Ecuadorians on Friday in a nationally-shown

broadcast.

Also on Friday, Leonidas Iza -- the leader of

the indigenous alliance -- said he supports

efforts to remove Sr. Lasso from office.

El Presidente said:

"The real intention of Mr. Iza is the

overthrow of the government.

The National Police and the military will

act with necessary measures to defend

under the law, using progressive

use of force."

Source... Reuters

After Presidente Lasso stated that the protesters don't was a peaceful settlement but rather an overthrow of his government, the National Police moved in on Friday.

The policía evicted thousands of protesters from Casa de la Cultura in Quito and the adjacent Parque el Arbolito.

There are conflicting reports from both sides about the alleged use of tear gas inside Case de la Cultura.

See more details at the source of this report, www.cuencahighlife.com

Don Shader of the Don Shader channel on YouTube

has been posting videos daily about El Paro.

Today he posted after visiting the huge grocery

supermarket MegaMaxi in Manta...

"As far as food supply it's very bleak.  There is

no food.  There is no meat.  There's no fish,

no chicken, no nothing.  No frozen foods. Nothing.

There's no milk, there's no eggs, there's no bread,

and even the beer and wine has been depleted."

Don has some frozen fish at home plus plenty of

rice and beans.  However, he says he is "stressed

beyond belief" and will consider moving back to

the States if the roadblocks and shortages

keep up.

Although there have been virtually no protests or

violence at the coast, Don is warning Expats not

to come to Ecuador during El Paro.

cccmedia

Quito on Saturday (June 25, 2022).

After the session, El Presidente removed the 'state

of exception' or emergency declaration from

six provinces, as the protesters had demanded.

A protest leader said trucks transporting food will

be allowed to enter Quito via a partial removal

of roadblocks by indigenous protesters ..

potentially easing the shortage situation in

the capital.

Source... Reuters

After the Saturday session, alliance leader Leonidas Iza said he is making no commitment to begin 'formal discussions' with the government.  Iza had attended the Saturday session, which was held at La Basílica del Voto Nacional, the large

Gothic cathedral six blocks up García Moreno from the presidential palace.

At 6 p.m. the National Assembly convened to consider the possible impeachment of Presidente Lasso.  However, Lasso's opponents do not have the votes to remove the president from office.

Source... www.cuencahighlife.com

Don Shader has found some additional ways

to obtain food.

Although MegaMaxi shelves were bereft of

products, Don found that Corral supermarket

is fairly well stocked.

Also, roadside "tiendas.. bodegas" have

somehow managed to obtain food products.

Don eats some of his meals, especially

his breakfast, at a favorite restaurant ..

and has had no problems finding

restaurant 'comidas'.

cccmedia

In the same YouTube video, Don read from

a State Department statement recommending

that USA citizens avoid Ecuador due to

security concerns in the present situation.

The statement says Ecuador has been elevated

to a Level 3 security status, according to the

video.

cccmedia

That part is hundreds of miles west of the

Ecuadorian mainland in the Pacific Ocean --

the Galápagos Islands.

The famous islands with their exotic

flora and fauna are not afflicted by El Paro.

If flying through Quito and an overnight is

necessary, there are hotel accomodations

available within a couple of miles of the

airport terminal in what can be considered

a safe zone.  No need to test any roadblocks

or protesters.

However, check frequently on any flights

you schedule .. as some flights have

been canceled due to passengers having

trouble accessing the airport from Quito,

Otavalo and Cotacachi.

cccmedia

In a reasoned analysis posted today at Cuenca Highlife's

website, journalist David Morrill offers his explanation

of how the situation has been transformed in the

past 48 hours.

The piece is titled Suddenly the strike heads toward

According to Morrill's essay, the whole matter will take

time to resolve although it will resolve 'soon';  Lasso

will remain as president, presiding over a divided

country and unable to 'realizar' necessary reforms.

Essay at:  www.cuencahighlife.com

As the national strike enters its third week today

(Monday, June 27, 2022), Presidente Lasso has

announced that the price of so-called "extra"

gasoline at the pump is being reduce by

ten centavos a gallon.  That's well short of the

45-centavos decrease that Cocaie demanded.

Conaie wanted extra's price to be reduced

from $2.55 a gallon to $2.10 and a similar

reduction for less-expensive diesel.

---

Speaking on national television on

Sunday night, El Presidente also said this:

"Ecuadorians who seek dialogue will find

a government with an outstretched hand.

Those who seek chaos, violence and

terrorism will face the full force of the law."

Source... The Houston Chronicle

Mayor Pedro Palacios has been pleading for

relief for Cuenca, saying the city is in an

unsustainable state of isolation.

He is asking both the government and

Conaie, headed by Leonidas Isa, to

negotiate a settlement of the

Paro issues.

"Mr. Iza, you said you will open

humanitarian corridors for essential

goods to pass, and now is the time

to do it," said Mayor Palacios.

A large truck convoy has been stuck

in a village on the Cajas highway.

On Sunday, Iza asked his followers

to allow ambulances and trucks

carrying medical supplies .. to pass.

Source... www.cuencahighlife.com

Conaie has agreed to meet with the government

for settlement talks.

However, leader Iza says the ten-centavo

reduction in the price of gasoline is

'insuficiente'.

Source... The Associated Press

The negotiations began today inside La Basílica del Voto Nacional, with 30 government delegates and 50 delegates representing indigenous organizations.

Sr. Iza is the lead negotiator for the protesting organizations, while El Presidente sent government minister Francisco Jiménez as lead negotiator for 'el gobierno'.

No violence was reported in the capital today, Monday.  Crowds gathered outside La Basílica during the afternoon meeting.

Source... www.cuencahighlife.com

Presidente Lasso has pulled his negotiators from the talks at La Basílica in Quito following a nighttime attack on a convoy of trucks in Orellana Province that left one soldier dead and 12 others injured.  The president called Leonidas Iza an illegitimate spokesperson for the indigenous peoples, saying they are not abiding by Iza's supposed orders.

According to El Presidente, 100 armed protesters ambushed the convoy with rifles and spears despite Iza's call for a suspension of violence during negotiations.

In a televised address, Sr. Lasso said the government entered into negotiations on Monday in good faith.  He appealed directly to the indigenous:  "You deserve more than an opportunist who has deceived you," he said.  "We are ready to meet most of your demands because we recognize that the government has ignored indigenous communities for too many years."

Source... www.cuencahighlife.com

National-strike activity has ramped up in Cuenca.

Transport workers in Cuenca called a strike and road-blockage for Tuesday (June 28) in support of the strike.

Among other incidents there was violence at Fería Libre, the largest market in the city.

The mayor promised fines and other punishments for lawbreakers.

Source... Cuenca Highlife website

Ecuador may be about to suspend the

production of oil, its number-one

product.

The Energy Ministry said the industry

has been disrupted by the national

strike, with production threatened

by the inability to transport needed

equipment.

Source... Reuters

The indigenous alliance Conaie has put out a

statement saying it is "shocked" that

El Presidente has cut off the strike

negotiations.

In a a statement on its Twitter account,

Conaie says the decision confirms

the "authoritarianism" and incapacity

of the Lasso Administration.

Some assembly leaders are urging

Presidente Lasso to resume the

talks .. and for Conaie to add some

leadership members atop its

negotiating team so that the

controversial Leonidas Iza

is not the only 'front man'.

--

The legislative effort to remove

Sr. Lasso from office came

to a vote .. and failed to muster

the necessary votes for

impeachment.

Source... www.cuencahighlife.com

Presidente Lasso has sent word that talks will

resume aimed at ending the national strike.

The negotiations will be moderated by the

Catholic Church at a TBD venue .. and new rules

will be established.

More at www.cuencahighlife.com

On Day 18 of Ecuador's national strike,

Conaie has agreed to end the strike.

The announcement was made by the

Catholic Church, which had agreed to

mediate the negotiations.

Other concessions by the government

include new rules for mining and

use of urea for fertilizer.

---

Some protesters expressed

disappointment that Leonidas Iza

did not press for concessions on

all ten of Conaie's original demands.

Source... www.cuencaighlife.com

After signing the end-of-strike document,

Sr.Iza announced the protests had ended.

Five civilians and one solider died during

the 18 days of protests.  150 arrests were

made.  Hundreds of people were injured.

Punctured and burned tires added to the

damage.  Still to be calculated -- the financial

losses suffered by businesses that closed

or whose customers could not be

accommodated due to roadblocks and

by airlines that had to cancel flights.

Source... Cuenca Highlife website

I would like to add my interpretation of what was called ""The Act for Peace", the document signed today to end the strike.   Fuel reduction may grab headlines but inside this document are some very important points.

Officially this afternoon, The National Strike in Ecuador came to an end. Representatives of three major indigenous organizations: CONAIE, FEINE and FENOCIN signed off the minutes of a special dialogue with the Ecuadorian Government mediated by Ecuadorian Episcopal Conference, a respected Catholic organization.

The document addresses a number of points:
* Cessation of the strike and return to their villages and homes of
the indigenous protesters
* Suspension of all acts that affect peace and public order
* Further reduction of the price of diesel and gasoline (not as much as wanted) with the proviso of work on subsidy policies to continue
* Repeal of the State of Exception
* Repeal Decree 95 regarding opening more Amazonian territory for pertoleum exploration and use
* Commencement of the reform of the law regarding the Territorial Especial Amazonia
* Reform of the Executive Decree 151 regarding the Plan of Action for the mining sector covering issues such as protected and ancestral territories, archaeological zones, hydrological protection, zones declared intangible and guaranteeing free and informed consultation with the indigenous
* Plus confirmmation of other promises made during the time of the Strike such as reduction of small bank loans, reduction in fertilizer costs, etc. - there are several items
* And the creation of a dialogue methodology to include the 4 signatory groups to further discuss these agreements and other points over a 90 day period and to guarantee the functioning of the country in relation to these points.

The document was signed off with the following words:
"We are willing to continue with the task of building a country of peace, of freedoms, of respect, of equality, where we can all reclaim ourselves (be vindicated)... today is not the end, it is the first day of this great dream for national reconciliation." words by the Minister of Government.

President Lasso, then said, “We have reached the supreme value to which we all aspire: peace in our country... now we begin together the task of transforming this peace into progress, well-being, and opportunities for all.”

As one can see this is but a step, but hopefully a momentous step towards a better country for all. I am aware that not all indigenous like this result but this should buy some time for the country to begin its recovery and for calmer assessments of what is really possible and needed to address the last 40 years of unheard indigenous concerns and issues.

Comments

… additional details include:

1. Gasoline goes down 15 cents

2. The social bonus is raised $5

3. Investment in education

4. subsidy of 50% of urea (fertilizer)

5. Debt forgiveness up to $3,000

6. Loans at 1% up to 5,000 dollars with a 30-year term