Ecuador Return to Democratic Rule, 1979-84
Women and children in a village near Riobamba
Courtesy Inter-American Foundation (Miguel Sayago)
Roldós presided over a nation that had undergone profound
changes during the seven years of military rule. During the
ceremony to pass the mantle of power to Roldós, Admiral Alfredo
Poveda Burbano pointed proudly to impressive indicators of economic
growth between 1972 and 1979: the government budget expanded some
540 percent, whereas exports as well as per capita income increased
a full 500 percent. Industrial development had also progressed,
stimulated by the new oil wealth as well as Ecuador's preferential
treatment under the provisions of the Andean Common Market (Ancom,
also known as the Andean Pact)
(see Growth and Structure of the Economy
, ch. 3).
Past export "booms" in cacao and bananas were managed by and
for private coastal interests, but the state controlled the
petroleum bonanza and thereby transformed the social landscape.
Quito--the seat of the bureaucracy and the closest major city to
the oil fields--reaped the benefits of the economic growth. The
capital city lost much of its sleepy Sierra character and in the
1980s competed with Guayaquil as a center of modern economic
endeavor. Employment in the public sector grew in excess of 10
percent annually throughout the late 1970s, creating a new
consumption-oriented middle class in Quito. But such change
highlighted the persistence of the traditional rural campesino and
the unskilled urban subproletariat; petroleum revenues thus widened
Ecuador's habitual inequality in income distribution
(see Social Classes
, ch. 2).
Expectations that the economic and social changes would
transform the traditional political culture were unfulfilled.
Customary aspects of civilian politics, such as regionalism and
personalism, reflected in the proliferation of political parties;
and rivalry between the executive and legislature persisted during
the five years that Roldós and his vice president, Osvaldo Hurtado,
were in power.
The most destructive of these traditions was evident in the
intense rivalry that developed between Roldós and Bucaram, the
strongman of the president's own CFP who, having twice been
prevented from running for the presidency, was now determined to
run the country from his power base in the unicameral legislature,
the National Congress (Congress Nacional--hereafter, Congress).
Bucaram's coalition building secured him the presidency of the
legislature during the first year of the new government. The
president, for his part, was determined to retain his independence
from the autocratic and increasingly conservative party boss.
Bucaram had no apparent agenda other than blocking the reformist
agenda of the president, who was thus forced to spend most of his
first year in office scratching together his own political base,
independent of the CFP, in order to achieve a legislative majority.
Roldós proved successful in this effort; in August 1980, his
candidate for the congressional presidency narrowly defeated the
bucaramista candidate, and the CFP also suffered major
losses in the municipal and provincial elections in December. The
president was not able to enjoy the fruits of his success, however;
on May 24, 1981, he was killed, along with his wife and the
minister of defense, in an airplane crash in the southern province
of Loja.
The death of Roldós generated intense popular speculation. Some
Ecuadorian nationalists attributed it to the Peruvian government
because the crash took place near the border where, four months
previously, the two nations had participated in a bloody flare-up
in their perpetual border dispute. Many of the nation's leftists,
pointing to a similar crash that had killed Panamanian President
Omar Torrijos Herrera less than three months later, blamed the
United States government.
Roldós's constitutional successor, Hurtado, immediately faced
an economic crisis brought on by the sudden end of the petroleum
boom. Massive foreign borrowing, initiated during the years of the
second military regime and continued under Roldós, resulted in a
foreign debt that by 1983 was nearly US$7 billion. The nation's
petroleum reserves declined sharply during the early 1980s because
of exploration failures and rapidly increasing domestic
consumption.
The economic crisis was aggravated in 1982 and 1983 by drastic
climatic changes, bringing severe drought as well as flooding,
precipitated by the appearance of the unusually warm ocean current
known as "El Niño"
(see Climate
, ch. 2). Analysts estimated damage
to the nation's infrastructure at US$640 million, with balance-of-
payments losses of some US$300 million. The real gross domestic
product
(GDP--see Glossary)
fell to 2 percent in 1982 and to -3.3
percent in 1983. The rate of inflation in 1983, 52.5 percent, was
the highest ever recorded in the nation's history.
Although widely considered a center-leftist, Hurtado confronted
the economic crisis by instituting highly unpopular austerity
measures aimed at gaining the approval of the International
Monetary Fund
(IMF--see Glossary) and
the international financial
community at large. Hurtado eliminated government subsidies for
basic foodstuffs--thus contributing to both inflation and the
impoverishment of the masses--and substantially devalued the sucre.
With unemployment increasing to as high as 13.5 percent, the United
Workers Front (Frente Unitario de Trabajadores--FUT) launched four
general strikes during Hurtado's period in office. The most
militant of these nationwide strikes, in October 1982, was called
off after forty-eight hours because of union leaders' fears of
provoking a coup d'état.
Outside observers noted that, however unpopular, Hurtado
deserved credit for keeping Ecuador in good standing with the
international financial community and for consolidating Ecuador's
democratic political system under extremely difficult conditions.
The political right, nevertheless, believing that the economic
crisis was caused by presidential policies that were inimical to
free-enterprise capitalism, bitterly criticized Hurtado. The right
united for the 1984 elections in order to back León Febres Cordero
Ribadeneyra, a businessman from Guayaquil, with Borja running a
close second. As Febres Cordero entered office on August 10, there
was no end in sight to the economic crisis nor to the intense
struggle that characterized the political process in Ecuador.
* * *
Beginning in the 1960s, Ecuadorian historiography benefited
from publication of a handful of excellent studies, most of which
grew out of doctoral dissertations. Nicolas P. Cushner's Farm
and Factory and John Leddy Phelan's The Kingdom of Quito in
the Seventeenth Century offer some of the best research ever
conducted on colonial Spanish America. On the post-independence
period, Osvaldo Hurtado's Political Power in Ecuador and
Agustín Cueva's The Process of Political Domination in
Ecuador are both excellent general studies by Ecuadorian
scholars and have been translated into English. Frederick B. Pike's
The United States and the Andean Republics is also extremely
valuable, although the reader interested in Ecuador might jump over
extensive analyses of Peru and Bolivia.
A number of political analyses are also useful to the historian
of the modern period. John Samuel Fitch's The Military Coup
d'Etat as a Political Process: Ecuador, 1948-1966 is a
pioneering, in-depth study of the political mindset of the Latin
American armed forces. John D. Martz's Ecuador: Conflicting
Political Culture and the Quest for Progress is a more general
study that concentrates on the 1960s. Literature on the military
government of the 1970s remains scarce; David W. Schodt's "State
Structure and Reformist Politics" provides useful information on
the public sector during that period, however. Crisis, Conflicto
y Consenso: Ecuador, 1979-84 by Nick D. Mills, Jr. is a
valuable study of the turbulent Roldós-Hurtado period. (For further
information and complete citations,
see
Bibliography.)
Data as of 1989
|