The people of Ecuador are rising up to refound their country as a pluri-national homeland for all. This inspiring movement, with Ecuador's indigenous peoples at its heart, is part of the revolution spreading across the Americas, laying the groundwork for a new, fairer, world. Ecuador Rising aims to bring news and analysis of events unfolding in Ecuador to english speakers.

Thursday, November 26, 2009

Ecuador, China to create oil joint venture

AFP - QUITO — Ecuador and China will form a joint venture to develop an oil bloc in the South American country that has proven reserves of 120 million barrels of crude, an Ecuadoran official said Wednesday.

Germanico Pinto, the minister of non-renewable natural resources, announced the creation of a joint venture between Ecuador's state-owned Petroecuador and China's Sinopec International Petroleum at a meeting in Quito with about 20 Chineses business representatives, said a statement.

Pinto said the new company will seek an investment of one billion dollars to "explore and exploit" Bloc 42 in the eastern part of the Andean country.

Petroecuador was to hold a 60 percent stake in the joint venture, and Sinopec the remaining 40 percent.

Ecuador is OPEC's smallest-producing member, pumping out 500,000 barrels of crude a day.

The Andean nation has become an investment magnet for the energy-hungry Asian giant. Companies such as Andes Petroleum y Petroriental have attracted Chinese capital, and Petrochina has signed a two-year contract for crude oil that "assures Ecuador of the sale of its oil," the statement noted.

The Bloc 42 area is located in the eastern Pastaza province and includes two oilfields with combined proven reserves of 120.1 million barrels of heavy crude.

On Tuesday Ecuador and China signed three cooperation agreements worth 442 million dollars and Quito obtained credit to buy four warplanes, officials said.

The agreements were signed during the visit of Jia Qinglin, chair of the National Committee of the Chinese People's Political Consultative Conference, who met with President Rafael Correa in the Ecuadoran capital as part of a tour of Latin America.

According to the socialist president's office, the economic and technical cooperation agreements include a 1.4 million dollar donation, as well as two lines of credit -- one for 2.9 million dollars payable within 10 years, and another for 438 million dollars to buy four Chinese military planes for Ecuador's air force.

Beijing's direct investment in Ecuador has reached 2.2 billion dollars, making it one of the top targets of Chinese investment in Latin America, Qinglin told reporters through an interpreter.

Trade between the two countries reached 2.4 billion dollars in 2008, a 50 percent increase from the previous year, he said.

China, Ecuador pledge further cooperation of mutual benefit

By Luan Xiang, Liao Lei

QUITO, Nov. 24 (Xinhua) -- There is plenty of room to explore further mutually beneficial development between China and Ecuador, Jia Qinglin, China's top political adviser, said here on Tuesday.

Jia, chairman of the Chinese People's Political Consultative Conference (CPPCC) National Committee, met with Ecuador's President Rafael Correa and Speaker of the Ecuadorian National Congress Fernando Cordero during his visit here.

There is plenty of room to explore further mutually beneficial development between China and Ecuador, Jia Qinglin, China's top political adviser, said here on Tuesday.

Jia Qinglin (R), chairman of the National Committee of the Chinese People's Political Consultative Conference, meets with Ecuadorian President Rafael Correa in Quito, capital of Ecuador, on Nov. 24, 2009. (Xinhua/Li Xueren)
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All agreed to work together to achieve better-balanced trade and broaden the fields of cooperation.

Jia, who met with Ecuadorian President Rafael Correa here on Tuesday, said China attached great importance to its relationship with Ecuador and was willing to make joint efforts to widen and deepen their cooperation.

He noted the China-Ecuador relationship had entered a new phase of fast development, as political trust grew, mutual benefit widened and cultural exchange increased.

China highly appreciates Ecuador's adherence to the one-China policy on issues of Taiwan and Tibet, and its support during Beijing Olympic and Paralympic Games.

Jia suggested China and Ecuador should pursue key areas of collaboration.

Also, in line with the principle of mutual benefit, the two countries should further explore the potential of cooperation by developing existing channels and creating new mechanisms to optimize trade balance, he said.

Jia called for a broader exchange in all social sectors and vowed to strengthen collaboration in culture, education, sports and tourism to promote mutual understanding and friendship between the Chinese and Ecuadorian peoples.

China and Ecuador will celebrate the 30th anniversary of the establishment of diplomatic ties, which Jia described as a mature bilateral relationship and a starting point of a brand new page of China-Ecuador ties.

Correa said Ecuador had made a strategic decision to enhance its relationship with China.

Ecuador appreciates China's long-standing support and is content with the progress made in important cooperative projects with China, he said.

National Assembly Speaker Cordero echoed his president's sentiments, saying China's win-win approach to cooperation and its assistance was highly valued.

Jia Qinglin (L), chairman of the Chinese People's Political Consultative Conference (CPPCC) National Committee, shakes hands with Fernando Cordero, President of the National Congress of Ecuador, in Quito, capital of Ecuador, on Nov. 24, 2009.

Jia Qinglin (L), chairman of the Chinese People's Political Consultative Conference (CPPCC) National Committee, shakes hands with Fernando Cordero, President of the National Congress of Ecuador, in Quito, capital of Ecuador, on Nov. 24, 2009. (Xinhua/Fan Rujun)
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He highlighted the encouraging outlook for economic-commercial cooperation between Ecuador and China and said the Ecuadorian Congress wished to intensify exchange and communication with its Chinese counterpart.

After their meeting, Jia and Correa signed a series of commercial technology cooperation agreements.

Earlier on Tuesday, Jia also attended a Chinese-Ecuadorian Entrepreneurs' Symposium on Investment Cooperation.

Lenin Moreno, Ecuador's Vice President, who attended the symposium, highly praised China's impressive achievements in all fields, taking as examples the Olympic Games and China's 60th Anniversary celebration.

Moreno expressed Ecuador's willingness to contribute to China's future development by intensifying cooperation.

Jia arrived in Quito for an official good-will visit to Ecuador on Monday and will continue his four-leg tour in Brazil. He has already visited the Philippines and Peru.

Colombia/Ecuador re-establish trade relations after 21 months

Mercopress, 24 Nov, 2009
Ecuador and Colombia formally established this week ties at trade representation level, official sources said in Quito and Bogotá. The two governments announced that “full normalization” will take place when the so called “sensitive” issues have been addressed and solved.

This puts an end to almost 21 months of severed diplomatic ties and a serious diplomatic rift between the neighbouring countries. Ecuador Trade representative Andres Terán, took office in Bogotá, while his Colombia counterpart Ricardo Montenegro, in Quito.

The appointment of trade representatives follows the agreement signed on October 3 in New York, as a consequence of ongoing negotiations that culminated during the UN General Assembly.

Ecuadorian Foreign Minister Fander Falconi said that Teran will be in charge of representing Ecuador’s trade and the country’s interests in Colombia. “Terán must work on promoting bilateral ties, trade and investment and equally important the quick normalization of diplomatic ties" said Falconi.

Regarding the so called “sensitive” issues Falconi said Ecuador would appeal to mechanisms and support from the Carter Centre and from the Organization of American States, OAS.

Relations were severed by Quito when on March 2008 Colombian troops bombed and raided a FARC camp on Ecuadorian border territory where the Colombian guerrilla’s organization number two man, Raúl Reyes was surprised and killed. The total toll of the attack resulted in the deaths of some 26 people including Raul Reyes, his armed guardsmen and several visiting foreign students and journalists.

Last week Defence ministers of Ecuador Xavier Ponce and of Colombia Gabriel Silva re-launched in Bogotá, activities of the Bi-national Borders Commission (COMBIFRON), created in 1996. Both countries also agreed to appoint before next 10 December, military and police attaches as well as a high level group of the COMBIFRON.

Meanwhile Ecuadorean President Rafael Correa during a routine inspection of border areas and the opening of two military outposts again called on Colombia to increase surveillance along their shared frontiers.

"I wish you, dear journalists, bear witness to what we are experiencing here: new military outposts to guard our national sovereignty against whatever" said Correa, in a speech at the Ecuadorean border town of El Palmar.

"This is the reality of the northern border - dozens of Ecuadorean outposts and yet, the Colombian state is unfortunately absent," Correa explained to the military high command and a hundred or so soldiers.

Ecuador and Colombia share a frontier extending some 720km. It is a volatile region highly active with guerrilla groups, paramilitaries and drug traffickers.


Ecuadorian government proposes new salary measures for businesses

Nov 23, 2009
A press release from Ecuador’s government website discussed on Nov. 21 a reform for minimum wages for the Ecuadorian workforce. Businesses will be forced to distribute the profits among employees within the companies they work for.

President Rafael Correa called it a just and dignified salary change for families to cover basic living expenses. The figure that was calculated is approximately $320, according the government report.
Correa emphasized there are no salary incentives for employees in numerous sectors. He pointed out employees working in the oil sector made commissions or salary bonuses while workers that specialize in Arts and Crafts make nothing.

The legislative changes are to change the capitalistic exploitation and level out the field for wages. President Correa said he is not going after private companies or looking to close them down. He wants to pursue social changes that have plagued the country with previous administrations, according to the report.

Ecuador’s president has faced in recent weeks sharp opposition due to with massive blackout and growing concerns over of economy. A recent report from the Wall Street Journal has the producer price index in September rose 1.14 percent for Ecuador. The sector for Agricultural and fishing products were down 12.64 percent and the minerals, electricity and water fell 21.44 percent from a year ago.

The socialism agenda in South America is in its infancy and will continue to transform the region. There has been little exchange and growing tension with Washington because of the debate over the addition of the military bases in Colombia, neighboring country to Ecuador.

The dialogue may change under the new administration but will require negotiation and diplomacy. Until tensions ease collaborations between the U.S and Ecuador will remain a work in progress.

Ecuador’s Correa Struggles to Maintain Popularity

November 17, 2009

(Angus Reid Global Monitor) - Fewer people in Ecuador are expressing support for Rafael Correa, according to a poll by Cedatos-Gallup. 44 per cent of respondents approve of the president’s performance, down five points since September.

Correa, a former finance minister, ran for president as an independent leftist under the Alliance Country (AP) banner. In November 2006, Correa won a run-off with 56.69 per cent of the vote. He officially took over as Ecuador’s head of state in January 2007. Correa’s party nominated no candidates to the National Congress.

In September 2008, Ecuadorian voters ratified a new constitution in a nationwide referendum. The draft was approved by the pro-government majority in the Constituent Assembly. Under the terms of the new constitution, Ecuador held a presidential election in April. Final results gave Correa 51.95 per cent of the vote. For the first time in 30 years, the Ecuadorian presidential election did not require a run-off.

Last month, Ecuadorian defence minister Javier Ponce confirmed the country’s purchase of two transport helicopters from Russia—at a cost of $ 22 million U.S.—adding, "There is also an opportunity to reach an important support at aerial and ground transport fields, with trucks, buses and other vehicles of military transportation."

Polling Data

Do you approve or disapprove of Rafael Correa’s performance as president?

Oct. 2009

Sept. 2009

Aug. 2009

Approve

44%

49%

51%

Disapprove

49%

44%

44%

Source: Cedatos/Gallup
Methodology: Face-to-face interviews with 1,668 Ecuadorian adults, conducted from Oct. 28 to Oct. 31, 2009. Margin of error is 3.4 per cent.

Tuesday, November 17, 2009

Chevron's lobby campaign backfires

Politico.com
By: Kenneth P. Vogel
November 16, 2009

Facing the possibility of a $27 billion pollution judgment against it in an Ecuadorean court, Chevron launched an aggressive lobbying and public relations campaign to try to prevent the judgment as well as reverse a deeply damaging story line.

Chevron’s tactics — ranging from quietly trying to wield U.S. trade policy to compel Ecuador’s government to squelch the case, to producing a pseudo-news report casting the company as the victim of a corrupt Ecuadorean political system — were designed to win powerful allies in Congress and the Obama administration as well as to shape public opinion and calm shareholders.

But many of the company’s moves have backfired, drawing fire from environmentalists, media ethicists, state pension funds, New York’s attorney general, members of Congress and even Barack Obama when he was a senator.

“Their lobbying and PR efforts are really clumsy and very heavy handed, and I think that that’s why they’re experiencing a degree of backlash,” said Rep. Linda Sanchez (D-Calif.), who is circulating the first of what she promises will be three letters to colleagues blasting what she calls the company’s “misguided approach” to dealing with the case.

The case stems from a class action suit brought by well-connected U.S. trial lawyers on behalf of 30,000 Ecuadoreans alleging that from 1964 to 1990, Texaco — which was purchased by Chevron in 2001 — dumped billions of gallons of toxic waste into Ecuador’s Amazon rain forest, leaving behind an unprecedented environmental and public health disaster including a wave of cancers, birth defects and miscarriages.

Chevron has been pushing the U.S. government to revise Ecuador’s trade preferences since soon after the lawsuit was filed in Ecuador in 2003 (it originally had been in U.S. federal court in 1993). But with a years-long trial in a tiny courtroom in the Ecuadorean rain forest expected to culminate in a ruling early next year, Chevron has turned up the heat, arguing that it can’t get a fair trial in Ecuador, an assertion that Sanchez and other Chevron critics point out seems to conflict with the company’s previous efforts to move the trial from U.S. courts to Ecuador.

In part, Chevron wants the office of U.S. Trade Representative Ron Kirk, as well as Congress, to revoke the preferential treatment Ecuador gets for its oil exports under the 1991 Andean Trade Preferences Act, unless the country enforces an agreement it entered into with Texaco in the mid-1990s, under which the company paid for a three-year, $40 million cleanup and was relieved of liability. The plaintiffs contend that Chevron botched the cleanup, but if the court were to recognize the agreement, it could essentially end the suit.

“When a government is in violation of its contractual obligations to a company, there are only a few avenues a company has to seek resolution,” Chevron spokesman Kent Robertson said in explaining his firm’s lobbying over the trade preferences. “If we were able to call a timeout and make the lawsuit disappear, then this entire issue disappears,” he added.

Chevron says its lobbying campaign — which has included more than $1.6 million in fees this year to a bipartisan roster of Washington heavyweights including Democrats Mickey Kantor, a former U.S. trade representative; Mack McLarty, a former White House chief of staff; and former Sen. John Breaux (D-La.); as well as big-time GOP bundler Wayne Berman — is not at all unusual.

Advocates for the plaintiffs, whose suit is financed by a Philadelphia law firm, have rallied their own impressive response in Washington. Led by Steven Donziger, a New York-based lawyer who was a Harvard Law School classmate of Obama, it includes Democratic fundraiser and lobbyist Ben Barnes; Tom Downey, a former Democratic congressman who is married to Obama climate czar Carol Browner and who recently registered to lobby Congress for Donziger; and public relations consultant Karen Hinton. The team has helped persuade a number of influential members of Congress to sign on to letters urging Kirk to reject Chevron’s efforts.

In 2006, after multiple visits from Donziger, then-Sen. Obama joined with Sen. Patrick Leahy (D-Vt.) in signing a letter to then-U.S. Trade Representative Rob Portman, asking him “not to interfere in the Chevron case” and asserting that the Ecuadoreans “deserve their day in court.”

Robertson rejected the suggestion that the company’s lobbying had backfired, pointing to a report Obama transmitted to Congress this summer that allowed the preferences to continue but referenced Chevron’s concerns about the trial, including the company’s allegations of interference by Ecuadorean officials up to and including President Rafael Correa.

In an interview, Sanchez, who will testify Tuesday at a hearing her House Ways and Means subcommittee is scheduled to hold on free trade agreements, said Chevron is “trying to leverage our trade policy in order to get a lawsuit dismissed that is currently pending before the Ecuadorean court. It is a way of trying to undermine the rule of law, and I just find that completely abhorrent. It’s shocking.”

This summer, Chevron thought it had made major progress toward proving its point that it could not receive a fair trial in Ecuador, when it revealed that it had obtained videos — purportedly taped secretly by a pair of whistleblowers using recorders implanted in watches and pens — that the company said exposed a bribery scheme in the case involving Ecuadorean officials and possibly the judge in the case. The company turned the recordings over to authorities in the U.S. and Ecuador and circulated excerpts of the recordings on Capitol Hill. The judge recused himself.

But late last month, Hinton — who is paid by the Philadelphia law firm financing the suit to advocate on behalf of a nonprofit called the Amazon Defense Coalition — released a report revealing that the American who helped make the recordings was a convicted drug trafficker, while his Ecuadorean partner was a Chevron contractor.

Robertson called the report “character assignation” and said it “doesn’t change what was caught on film. We have a judge who is corrupt. … We’re not measuring the release of the videos as success or failure.”

He did count as a success, though, the fact that Chevron shareholders in May, after a letter-writing campaign by the company, voted down a resolution citing the lawsuit and calling on the company to examine whether it complies with host country laws and environmental regulations.

Nonetheless, state pension funds that hold a combined $1 billion in Chevron shares have expressed concern about how the company plans to handle a potentially huge adverse judgment in the case. And in a May letter demanding more information from Chevron, New York Attorney General Andrew Cuomo said he had recently “received complaints regarding Chevron’s disclosures of the potential litigation risks and Chevron’s characterization of available legal defenses.”

Chevron also got dinged for a curious PR effort back in April, when — after catching wind that CBS’s “60 Minutes” was preparing a damaging report about its handling of the Ecuador case — it released a video it paid for featuring former CNN reporter Gene Randall delivering what looked like a news report giving Chevron’s side of the story.

Posted on YouTube and the company’s website and bearing the logo “Gene Randall reporting,” the report was produced with help from the conservative Beltway consulting firm CRC Public Relations. It cast Ecuador’s politicians as out to get Chevron and blamed the pollution on Ecuador’s state-owned oil company, which took over Texaco’s operations.

Columbia Journalism Review assailed the report as “deceptive” and posited that it “might be unprecedented for how it blurred the line between public relations and journalism.”

Chevron’s Robertson said Hinton and the lawyers in the case are “trying to take Chevron’s reputation hostage and to ransom it back to us” for a settlement. “So getting our side of the story out there is important.”

Robertson also said Hinton and her allies are in a bit of a “glass houses situation” when it comes to alleging sneaky techniques. He pointed out that Hinton’s group paid a private investigator to expose the background of the video maker, that a group linked to Hinton’s issued press releases insinuating that the murder of a brother of one of the plaintiff’s lawyers may be linked to the case (though the lawyer initially told the police otherwise) and that Hinton’s own husband, Howard Glaser, a financial services industry analyst, late last month posted an item bashing Chevron on The Huffington Post — to which he is a contributor — without noting their marriage.

Hinton asserted her side’s tactics have been above board, adding that, though “no one knows who murdered [the lawyer’s] brother,” the killing came at a time when the lawyer “and other members of the plaintiffs’ legal team had received a number of anonymous death threats connected to the work on the case.”

Meanwhile, even the addendum Hinton’s husband posted at the request of Chevron noting his wife’s relationship to the case somehow seemed to ricochet against Chevron.

“My spouse works with the indigenous people of Ecuador who are the plaintiffs in the lawsuit against Chevron for the massive pollution the company left behind in the rain forest,” he wrote. “While Chevron conducts a multimillion-dollar media spin campaign to paint themselves as the environmental ‘good guys,’ said spouse working out of her house with her two cats and cell phone appears to have gotten under Chevron’s corporate skin.”

Ecuador's Amazonians sue Chevron over poison waterways

Tens of thousands of Ecuadoreans living in the Amazon rainforest are suing Chevron, the US oil company, for poisoning their waterways in what is billed as one of the biggest environmental lawsuits in history.

Ecuador Amazonians sue Chevron over poison waterways
Some 30,000 Amazonians are behind a lawsuit to be heard by an Ecuadorian judge

The claimants say the company illegally dumped toxic waste from its oil production which filtered into the waterways and lakes used by thousands of people for washing, drinking and cooking.

The result, they say, was an environmental disaster worse than the 1989 Exxon Valdez oil spill, which in turn has provoked a public health crisis, with soaring levels of cancer, birth defects and miscarriages.

Some 30,000 Amazonians are behind a lawsuit to be heard by an Ecuadorian judge. Experts say the company might have to pay up to $27bn (£16bn) in damages.

The company insists there is no proof that any illnesses were caused by its operations, and says the responsibility for cleaning the area lies with the Ecuadorian government and Petroecuador, the state oil firm.

Chevron says the court case is the result of the exploitation of the indigenous population by US trial lawyers in connivance with a corrupt government.

But the Amazon campaign has attracted some high profile supporters, including Trudie Styler, the wife of musician Sting, and human rights campaigner Kerry Kennedy, a member of the US dynasty. Chevron's reputation for corporate social responsibility has already taken a blow.

The issue is also the subject of Crude, a recent and critically-acclaimed documentary by Joe Berlinger. The rags-to-riches tale of the chief Ecuadorian lawyer fighting the case has also earned it a place on the front cover of Vanity Fair.

Texaco, which is owned by Chevron, first started operating in Sucumbíos, in northeastern Ecuador in 1964 and in 26 years made $490m (£294m) and produced 1.7 billion barrels of oil.

As the operator of a consortium with Petroecuador, it drilled hundreds of wells in an area of 1,500 square miles and for each one, a series of pits in which to put the water produced as a byproduct of the oil.

Those fighting Chevron claim the 18 billion gallons of water put into the pits was toxic and was allowed to overflow into nearby rivers. They also claim Texaco spilled an additional 17 million gallons of crude oil.

The resulting contamination has increased cancer rates in the area threefold, they claim, and led directly to the deaths of 1,400 people.

"Texaco treated Ecuador's Amazon like a garbage dump," said Douglas Beltman, a former official at the US Environmental Protection Agency who serves as a scientific consultant to the affected indigenous groups. "Almost everything an oil company could do wrong, Texaco did do wrong."

One of the families allegedly affected is that of five-year-old Yahaira Sanchez. Yahaira's grandmother died of cancer and her parents are terrified the girl could fall ill too, but they are forced by lack of options into using the local water.

Yahaira's father William, who farms his own smallholding, said: "We want to move to protect Yahaira's health but we are too poor."

Another local man, known only as Roberto, told Penny Marshall, an ITN correspondent who investigated the issue, that his son had died of leukemia and his wife was suffering from cancer. Asked why, he said: "I think it's the contamination."

Kent Robertson, a spokesman for Chevron, said there was no evidence that any death or illness had been caused by its operations. He said that when Texaco left Ecuador in the early 1990s, it arranged for 40 per cent of the pits to be decontaminated and signed a contract with the Ecuadorian government that Petroecuador would deal with the rest. Any sign of contamination now was Petroecuador's work, he said.

Asked whether the firm had fulfilled its moral obligations to the Ecuadorians, he said: "We are in the business of producing energy for the future, not the cleaning up after other companies or making trial lawyers rich."

Despite this, he said, the Ecuadorian judge hearing the case in Lago Agrio, the provincial capital, was likely to rule against Chevron later this year.

"If the case is based on the legitimate evidence which has been produced, Texaco will be exonerated," he said. "The concern on our part is that the evidence doesn't matter and the government of Ecuador has already determined what the outcome is going to be. The trial is largely a formality."


Ecuador Eases Power Rationing


QUITO – Ecuador’s government announced plans to ease the power rationing it imposed as a result of a sharp fall in output from a hydroelectric plant that normally supplies 40 percent of the Andean nation’s electricity.

The acting minister of Electricity and Renewable Energy, Juan Espinoza, said the length of programmed blackouts will be reduced by half once the power Peru agreed to sell Ecuador becomes available.

“If (power) is being cut four hours in a sector or a city, the cut will be two hours from here on,” he said, adding that Ecuador was also in the process of activating two petroleum-fueled electric plants.

Espinoza spoke to Ecuavisa television shortly after the office of Peruvian President Alan Garcia announced that the head of state, now traveling in Asia, had signed an executive order authorizing the sale of electricity to Quito.

The reservoir at the Paute River dam that powers Ecuador’s key hydroelectric complex is 20 meters (65 feet) below optimal levels.

Only two of the plant’s 10 turbines are currently functioning.

Paute can supply up to 20,000 MW per hour under normal conditions, but present output has fallen to just 4,000-5,000 MW per hour amid a severe drought.

Low rainfall amounts began causing alarm in September, traditionally a rainy month in Ecuador, and concerns grew further when the drought continued into October.

But Ecuavisa reported that some rain fell Thursday at Paute, though forecasters do not call for significant precipitation over the coming days in the areas near the dam.

The head of the Quito Chamber of Commerce, Blasco Peñaherrera, said he expected the power shortages to last for at least another three months, costing the country’s economy as much as $1.8 billion in lost output.

President Rafael Correa blames the crisis on neglect by previous administrations that failed to build new power plants. He says his government has already started work on around a dozen new facilities. EFE

Colombia, Ecuador Move Toward Restoring Relations

By Alexander Cuadros

Nov. 13 (Bloomberg) -- Colombia and Ecuador named charges d’affaires in a step to restore full diplomatic relations severed last year following a Colombian cross-border raid on a guerrilla camp in Ecuadorean territory.

Ricardo Montenegro will assume Colombia’s diplomatic duties in Ecuador, while Andres Teran will be his Ecuadorean counterpart in Bogota, according to statements from the countries’ foreignministries.

Relations between the two neighbors worsened this year after Ecuadorean judges called for the arrest of Colombian officials involved in the March 2008 raid. In July, Colombia released a video showing a leader of the Revolutionary Armed Forces of Colombia saying the rebels contributed to Ecuadorean President Rafael Correa’s 2006 election campaign. Trade diminished after Ecuador imposed tariffs on Colombian goods.

“We’re trying to smooth relations. There are delicate issues on both sides,” Colombian Foreign Minister Jaime Bermudez said today on Bogota-based RCN Radio.

Falling Exports

Colombia’s exports to Ecuador, its third-biggest trading partner, fell 17 percent in the nine months through September to $894 million, according to the government statistics agency. Colombia in October cut energy exports to its neighbor by almost two-thirds from the previous month as dry weather reduced water supplies for generating electricity, forcing Ecuador to ration.

Since August, Ecuador has removed all but about a quarter of the tariffs it imposed earlier this year.

The FARC, as Colombia’s biggest rebel group is known, operates in the jungles along the South American countries’ porous 400-mile border. A campaign by President Alvaro Uribe, who took office in 2002, has reduced their numbers and pushed them away from major cities.

Correa and Venezuelan President Hugo Chavez criticized Colombia for agreeing to allow the U.S. military to use seven bases for anti-drug operations previously run out of Ecuador’s Manta base. Correa refused to renew the U.S. lease at Manta earlier this year.

To contact the reporter on this story: Alexander Cuadros in Bogota at acuadros@bloomberg.net

Colombia releases list of alleged FARC contacts in Ecuador

ColombiaReports.com, 12 November 2009

colombia news, policia, police, ecuador

Colombia's police intelligence released a list of alleged FARC guerrilla contacts in Ecuador, Peru and Bolivia after it was published Thursday in an Ecuadorian newspaper.

The Directorate of Police Intelligence (DIPOL) released the list after its was published in Ecuador's newspaper El Universo, detailing the list of alleged contacts, five of which are believed to be in Ecuador.

The contacts were identified after DIPOL's tracking for the last four years of Nubia Calderon, who is considered a member of the FARC International Commission, reported newspaper El Espectador from information in El Universo's article.

According to the 'top sectre' document, among the suspected FARC contacts features Maria Augusto Calle (current member of the official movement PAIS) who supposedly maintained consistent communication with Calderon.

In addition to Calle, Wilson Sigfredo Basantes is believed to be responsible for the recruitment of youngsters into the FARC's Southern Bloc.

Additionally, Luis Hernan Muñoz Pasquel is mentioned, a former president of the National Ecuadorian Judicial Federation and according DIPOL he had contact with FARC leaders, though the identities of which were omitted.

Muñoz is reported saying that Calderon, in order to conceal her identity and FARC connections, borrowed computers and held an Ecuadorian cell phone.

The DIPOL report claimed Calderon maintained contacts with deans of major universities in Ecuador as well as with leftist newspaper editors and political leaders.

Furthermore it states that she was in charge of coordinating the movement of Brazilians, Bolivians, Peruvians and Ecuadorians into the jungle where they were to be trained in terrorism and guerrilla warfare in FARC camps.

Ecuador and Colombia are engaged in the process of restoring diplomatic relations after they were broken in March 2008 following Colombia's bombing of a FARC camp on Ecuadorian soil.

The bombardment, known as Operation 'Phoenix' killed some 26 people, including Calderon's partner Franklin Aisalla and the FARC's international spokesman 'Raul Reyes'.

Colombia denies using foreign intelligence in Ecuador attack

Colombia Reports, 12 November 2009

raul reyes, colombia news, cia, ecuador

Colombian authorities on Thursday denied Ecuadorean press allegations that they collaborated with CIA spies in the bombardment of 'Raul Reyes' FARC camp.

Ecuadorean newspaper El Comercio suggested that Ecuadorian Julio Rivera Cesar alias 'Pirata', who was killed when Colombian security forces bombed the guerrilla camp on March 1 2008, had been in contact with the CIA and Colombian intelligence agencies prior to the operation.

El Comercio further stated that the CIA were able to contact 'Pirata' and Franklin Aisalla, a guerrilla who also died in the bombardment and was the alleged partner of 'Nubia Calderon' - one of the leaders of the FARC International Front.

'Pirata', according to the paper, moved easily through FARC networks but was in reality, serving the CIA and Colombian intelligence and was able to gain intimate access to the FARC boss 'Raul Reyes'.

Colombian sources responded to the press suggestions by claiming that they had not been in contact with any foreign intelligence regarding the bombardment, known as operation 'Phoenix', and claimed that it was not based on information delivered by 'Pirata'.

Colombia further assured that information about operation 'Phoenix' had never been shared and due to its confidential nature it was handled solely by Colombian authorities.

These authorities claimed that even if 'Pirata' was an important informant, he would not have had access to 'Raul Reyes' himself, much less be able to disclose his location and turn him in. They assured that 'Phoenix' was a distinctly Colombian operation.


Drought Blamed for Blackouts in Ecuador

PAUTE, Ecuador – Alarmingly low water levels at the hydroelectric power station in this southern Ecuadorian city are to blame for recurrent blackouts in the Andean nation over the past week, authorities say.

The reservoir water level at the dam on the Paute River, one of Ecuador’s largest, stood at 1,968 meters (6,450 feet) above sea level on Tuesday, compared with an average level of 1,991 meters and and a minimum level of 1,965 meters.

This 25-year-old facility meets approximately 40 percent of Ecuador’s total power needs, but at present only two of its 10 turbines are in operation and cannot guarantee more than 200 MW of electricity between them.

“I’d never seen this so empty,” said one of the employees who accompanied reporters on a quick tour of the state-owned plant’s installations.

Paute can supply up to 20,000 MW per hour under normal conditions, but present output has fallen to just 4,000-5,000 MW per hour amid a severe drought.

Low rainfall amounts began causing alarm in September, traditionally a rainy month in Ecuador, and concerns grew further when the drought continued into October.

Residents of Quito, Guayaquil and other cities were hit with surprise nationwide blackouts last Thursday, while the government has called on citizens to reduce consumption as it seeks ways of mitigating the energy crisis.

Just a few miles from Paute, work is continuing on the new Mazar dam “to increase power generation at the Paute plant,” National Electricity Council Chairman Fernando Izquierdo said, though he added that production at Mazar would not start until next April.

Although drought conditions are expected to persist until December, an optimistic Izquierdo said expectations are for the country’s energy supply to increase next week. However, he still urged consumers to continue to conserve energy.

In that sense, he predicted that the current electricity rationing program – which includes power cuts of roughly four hours a day – could be reduced in half beginning next week.

A key factor in the improved outlook is a possible deal to import 1,200 MW per hour from northern Peru to meet demand in the southern Ecuadorian province of El Oro, Izquierdo said.

Colombia’s contribution will be smaller since that country is also suffering from drought conditions and, in a best case scenario, could offer Ecuador some 450 MW per hour. EFE

Ecuador rejects media warnings on freedom of speech

QUITO, Nov. 10 (Xinhua) -- The Ecuadorian government on Tuesday rejected warnings by the Inter-American Press Society (SIP) of "aggressions" against the freedom of speech in the country.

Ecuadorian Secretary of Communication Fernando Alvarado said the SIP did not have "moral authority" to make such statements.

"No journalist or media in Ecuador can be said to have been threatened by the government," Alvarado said.

The criticism of certain media by the government of Ecuadorian President Rafael Correa does not mean "a threat to the freedom of speech" but "enriches the democracy of the information," he said.

He said the SIP sought "to protect their private business of communication management, because they represent the economic and political interests of big media businesses."

Alvarado said Ecuador presented to the SIP in October evidence of what the government considered "abuses of the press," adding that a communication law was necessary to "protect the citizens, journalists and to guarantee the access to information."

The Ecuadorian government would boost "a vision of respect without conditions for the freedom of speech and democratization of citizens' right to exercise it," he said.

Ecuador steel sector idles 30pct of installed capacity

Via SteelGuru.com
Wednesday, 11 Nov 2009
BNamericas quoted Mr Ramiro Garzón president of Ecuador's metalworking industries association Fedimetal as saying that thanks to investments, the Ecuadorian steel sector has idle installed capacity of around 30%, which could be used within four years.

Mr Garzón said that "Steel sector investments are made with the medium and long term in mind. In Ecuador investments are done thinking about the country's major infrastructure needs and that at some point we will reach the limit of installed capacity."

According to Fedimetal data, Ecuador has a population of 13 million and total national steel consumption of roughly 1.2 million tonnes per annum, meaning that per capita consumption is 92.5 kilogram. This consumption level is a good sign for future steel sector developments.

According to Mr Garzón, idle capacity is available to supply the local market and even tap into the export market as well.

Currently there are three steel companies operating in Ecuador namely, Andec Funasa, which recently increased production capacity to 250,000 tonnes per annum, Adelca, with capacity of some 200,000 tonnes per annum and Novacero, with initial production capacity of 120,000 tonnes per annum and projected capacity of 250,000 tonnes per annum.

(Sourced from www.bnamericas.com)

Ecuador requests meeting with Obama on U.S.-Colombia military deal

QUITO, Nov. 10 (Xinhua) -- Ecuadorian Defense Minister Javier Ponce requested on Tuesday a meeting with U.S. President Barack Obama on the U.S. military cooperation agreement signed with Colombia.

Colombia and the United States signed an agreement on Oct. 30 to boost the United States' presence by up to 1,400 people across seven military bases in Colombia to fight against drug trafficking and terrorism, a deal that has prompted objections from Colombia's neighbors.

Neighbors such as Bolivia, Ecuador and Venezuela have been criticizing the agreement since it was first discussed in July.

According to Ponce, the agreement says that the military base of Planquero in Colombia "guarantees the operations in all Latin America."

"I think there is enough reason to talk with Obama. The problem is that the proposal of Brazilian President Luiz Inacio Lula da Silva did not succeed, possibly it did not find all the necessary support at that moment," Ponce said.

During the Summit of the Union of South American Nations (Unasur) held in Quito in August this year, Lula proposed the organization should have a meeting with Obama for him to explain the range of the military agreement with Colombia.

"The proposal of President Lula is pending and I think we have to insist on that," Ponce said.

Ponce added that the Ecuadorian government had concerns on the military agreement, and urged the defense ministers of the member countries of Unasur to have an urgent meeting to analyze the U.S.-Colombia agreement.

Ecuador's 2010 Budget Plan Raises Fiscal Stability Doubts

Dow Jones 9 Nov 2009 --Ecuador's proposed budget for 2010 is raising concerns over its medium-term fiscal outlook and external debt repayments.

Jaime Carrera, secretary of the Fiscal Policy Observatory think-tank, described the 2010 budget as "populist" and "destructive."

"The spending increases are not sustainable," he said. The result, Carrera said, could be internal social problems, and potential non-fulfillment of external debt payments.

Last week Ecuador's government submitted budget proposals to the National Assembly worth $21.28 billion for 2010, an 11% increase on the 2009 budget proposal of $19.17 billion.

The 2010 budget proposal forecasts a 6.81% increase in gross domestic product, including 7.67% growth in the non-oil sector and 1.3% growth in the oil industry.

The government has established an average price assumption for crude oil of $65.9 per barrel, with production forecast at 178.4 million barrels.

A former member of Ecuador's Central Bank board, Marcos Lopez, told Dow Jones Newswires Ecuador lacks an economic plan. "There is an ideological-political model," Lopez said, which is based on the government's desire for "political effects and popularity."

According to Lopez, the 2010 budget will mean a deficit of at least $4 billion, because revenue forecasts are too optimistic.

Government revenue expectations in the 2010 budget proposal are $13.84 billion - $8.16 billion of which should come from taxes and $3.21 billion from oil-related activities. An estimated $5.84 billion will be needed simply to cover salaries for the public sector in 2010.

Mauricio Pozo, a former Economy Minister, said it is impossible for Ecuador to increase its tax collections when it is in recession.

Ecuador expects to receive external financing of about $2.18 billion and internal financing of $1.9 billion in 2010.

Last month, President Rafael Correa announced his government will repatriate around $2.5 billion from the nation's international reserves. The money, Correa said, will be used to generate local employment and reactivate the economy, which contracted 0.26% in the second quarter and 1.62% in the first quarter this year.

Economists say the use of international reserves is a sign of the current lack of liquidity.

Another problem is the government's high subsidy levels. A study from the Fiscal Policy Observatory estimates subsidies cost $4.0 billion in 2009. For 2010 that will increase to an estimated $5.0 billion.

"There's going to come a moment where revenues can't cover the fixed costs," said Carrera. Lopez said the budget was a time bomb, with high social costs that will lead to economic problems and social conflicts.

 
-By Mercedes Alvaro, Dow Jones Newswires

Ecuador Government Declares Electricity Emergency Due to Blackouts

QUITO – The Ecuadorian government declared an emergency in the electricity sector due to a generating shortfall at the nation’s biggest hydroelectric plant, which has forced the adoption of energy rationing programs across the country.

The coordinating minister of strategic sectors, Galo Borja, said that the measure was determined at a Cabinet meeting Friday in the town of Joya de los Sachas in the eastern Amazonian province of Orellana.

Borja, in a statement published in the official online daily El Ciudadano, said that President Rafael Correa issued a decree in which he declared a state of electrical emergency nationwide for the next 60 days.

The measure seeks to guarantee the continuity and supply of electricity, the minister said, adding that the decision responds to the nationwide power shortage caused by a drop in production at the Paute hydroelectric power station, the nation’s largest, affected by severely low water levels.

Borja said that the state of emergency will allow the Finance Ministry to take the corresponding measures to guarantee imports of the fuel needed by thermoelectric plants, which use fossil fuels to generate electricity.

He also said that the ruling, which includes a series of measures to deal with the power shortage, requires the state oil corporation Petroecuador to deliver fuel on an emergency basis and without prerequisites to electricity generators.

The government announcement came two days after the energy rationing program went into effect across the country that will continue until Saturday, the minister of electricity and renewable energy, Esteban Albornoz, said Thursday.

The drought affecting Ecuador’s southern Andean region for some weeks has caused a “drastic decrease” in the volume of water flowing into the dam at the Paute plant, which supplies 35 percent of the nation’s internal electricity demand.

Albornoz said that rationing will mean daily cuts of between 5 and 10 percent of the usual electricity supply.

Correa Defends Alliance Between Petroecuador and PDVSA


QUITO – President Rafael Correa defended the strategic alliance between Petroecuador and Venezuelan state-owned oil giant PDVSA for the operation of the Amazon’s Sacha field, one of Ecuador’s largest oil fields.

Correa criticized politicians who oppose the alliance, arguing that Petroecuador holds a 70 percent stake in the venture while PDVSA has only a 30 percent interest.

The state-owned companies formed the Rio Napo consortium, which will be a “service provider” in the Sacha field, Correa said on Saturday.

Rio Napo will only receive reimbursement for production costs from the 50,000 barrels per day (bpd) currently produced at Sacha, the president said, adding that the benefits from the deal would come from increased production due to new investment by the consortium.

The alliance will make it possible to increase Sacha’s output by some 20,000 bpd, with Rio Napo barely receiving $1 for each additional barrel produced and Petroecuador getting 70 cents out of each of those dollars, Correa said.

Ecuador is also receiving environmental protection technology in the deal, the president said.

An average of 48 oil spills used to occur annually in the Ecuadorian Amazon, but this year there have been only three spills, Correa said.

Ecuador produces some 480,000 bpd of crude, with Petroecuador accounting for some 60 percent of output and about a dozen private companies the rest.

Oil is Ecuador’s main export product and revenues from its sale finance about 35 percent of government spending.

President Correa Praises Research in the Amazon

QUITO - Ecuadorian president, Rafael Correa, congratulated young research engineers who work at the Center of Environment Technologies of Petroecuador in La Joya de los Sachas, in the Amazonic province of Orellana. This center is aimed at developing biotechnologies for environmental protection. "With these new techniques they develop from microorganisms we can remedy problems without major contamination," the president said.

Correa pointed out that the Center is in charge of designing and applying research projects to recover soil and waters affected with contaminants from the oil industry.

Its specialists will apply technologies to improve environmental processes and include the in vitro cultivation of native vegetable species.

It will also be in charge of checking microorganisms not cultivable, design and implementation of a treatment system of black and gray waters and design a physics-chemical-biological system for treatment of sedimentary mud.

Correa pointed out that reduction of oil spills through the formation of a Corporate Vice presidency of the Environment, Social Responsibility, Security and Health of Petroecuador that have been working hard to prevent the number of spills of previous years.

Petroproduction vice president, Brummer Vazquez, informed the president that according to annual figures 45 spills were reported in 2007 and in 2008 these were reduced to 18 and this year only three contaminating spills have been registered.

Ecuador 2010 Budget Draft Totals $21.28Bln

(Dow Jones) 6 Nov 2009 --Ecuador's government has proposed a $21.28 billion budget for next year, an 11% increase from the $19.17 billion budget proposed for 2009, according the proposals submitted on Friday to the National Assembly.

Ecuador's government submitted the 2009 and the 2010 budget proposals to the National Assembly, along with the required four yearly budget proposals covering the years 2009 to 2013.

The 2010 budget proposal has a deficit of around $3 billion. It forecasts a 6.81% increase in gross domestic product, including 7.67% growth in the non-oil sector and 1.3% growth in the oil industry.

The GDP is forecast at a level of $56.96 billion for 2010.

Ecuador expects external financing of about $2.18 billion and internal financing of $1.9 billion in 2010.

Inflation for 2010 is forecast at 3.4%.

The government expects revenues of $13.84 billion, $8.16 billion of which should come from taxes and $3.21 billion from oil-related activities.

The government has established an average price assumption for crude oil of $65.9 per barrel, with production forecast at 178.4 million barrels.

Ecuador's central government is forecast to end 2010 with a primary deficit of 4.2% of gross domestic product and with a global deficit of 5.3% of GDP. The data include Central government as well as autonomous entities.

According to the new constitution, approved last year, the executive branch must submit a budget forecast for each four-year period, in addition to the annual budget.

So far this year, the government has been working with a referential budget of $15 billion.

The 2010 budget includes around $3 billion for oil product imports that in previous years were not included in the fiscal budgets.

The amount earmarked for salaries for 2001 is $5.84 billion.

Local analysts said the 2010 budget maintains the government's heavy public spending which is unsustainable in the long term.

As of Friday, the National Assembly has 30 days to vote on the budget proposals.

On Friday, the Assembly also received the national development plan for the 2010-2013 period.

Depending on oil prices, Ecuador plans to invest between $18.9 billion and $22.30 billion from 2010 through 2013.

-By Mercedes Alvaro, Dow Jones Newswires

City looks to Ecuador to cut ‘carbon footprint’

Donations would help save tropical forestland

SignonSanDiego.com, Friday, November 6, 2009.

Solana Beach city officials are seeking to preserve a tropical forest 3,500 miles away, as part of an effort to lessen the city's effect on the environment.

City officials are suggesting that residents and businesses make “carbon offset” donations earmarked for conservation in Ecuador. The money will go through a tax-exempt nonprofit, Del Mar-based Nature & Culture International, in what may be the first such partnership of its kind.

There is no cost to taxpayers, and no one will be required to donate money.

All the money collected will pay for forestland in southern Ecuador. Nature & Culture International will handle the land purchase and ongoing preservation. An Ecuador-based nonprofit will own the land.

The goal is to buy enough forestland to equal the size of the 2,016-acre city, which would cost about $100,000, Solana Beach Councilwoman Lesa Heebner said.

Heebner said she proposed the arrangement early this year to augment local efforts to reduce the city's “carbon footprint,” a term that represents its projected effect on climate change.

“Global warming is a global issue,” Heebner said. “It's not just in our own backyard.”

The City Council voted unanimously last week to approve a formal agreement that allows the nonprofit to solicit donations using the city's name. Solana Beach will promote the nonprofit through its Web site. Nature & Culture International will list the city as a conservation Partner.

Mike McColm, the nonprofit's international director, said the program is a cost-effective way to help the environment.

“For the price of buying a fraction of a lot on (Highway 101) in Solana Beach, we're going to buy an area the size of Solana Beach of critically important tropical rain forest,” McColm said.

Del Mar resident Ivan Gayler, who founded Nature & Culture International in 1997 and is chairman of its board of directors, said Ecuador is renowned for its biological diversity. For example, it has more than 1,600 species of birds, compared with 600 in the continental United States, he said.

When the City Council first discussed the idea in February, 14 residents wrote to the city expressing support for the partnership. Officials received one letter from a resident who opposed the idea, saying that fundraising for an international cause is “outside the purview of the city.”

Solana Beach officials say the program could one day help the city meet state environmental mandates. A state law known as AB 32 requires cities to reduce their greenhouse-gas emissions to 1990 levels by 2020.

Heebner said the city has approached elected representatives in Sacramento about the possibility of counting the Ecuador program toward the city's carbon-reduction goal.

“There's only so much that a small city like Solana Beach can do. We don't have fleets of cars; we don't have landfills,” Heebner said. “We're hoping that a city the size of ours can do something like this and have it count toward our goals.”

Solana Beach is known for its environmental initiatives. For example, the city collects plastic bags in a partnership with Trex, a manufacturer that uses them in weather-resistant decking. The city also provides incentives for environmentally friendly construction projects by placing them first in line for permit processing.

Nature & Culture International's 2008 budget was $3.4 million, according to its annual report. Its main source of revenue is from foundations; it also receives government funding and donations from individuals, among other sources.

All of its board members are unpaid and receive no money for expenses, according to Internal Revenue Service filings.

Last year, the organization helped establish the Alto Nanay-Pintuyacu-Chambira Regional Conservation Area, which set aside 2.4 million acres of primate habitat in the Peruvian Amazon, according to its 2008 annual report.

The organization has a three-person staff in the United States and employs 90 people in Ecuador, Peru and Mexico. It focuses on the conservation of threatened ecosystems in the dry forests, cloud forests and rain forests of the Latin American tropics.

Former Solana Beach Mayor Doug Sheres is on the board of directors. Sheres said he became involved because “the work that they're doing is remarkable, and unlike anything I've seen anywhere else.”

For more information, go to natureandcultureinternational.org and click on “Solana Beach Fund.”

Ecuador Says New Regulations Will Foster Responsible Mining


QUITO – Ecuador’s new mining regulations, which among other things give the government a 50 percent participation in companies’ operations, will set the country on a path toward “responsible mining development,” a top official said Thursday.

In statements to Radio Sonorama, Non-Renewable Natural Resources Minister Germanico Pinto commented on the executive orders that were issued Wednesday and which serve to enact new mining regulations contained in a law passed in January.

Referring to criticism from environmentalists and Indians about the supposed threats to the environment and indigenous communities, Pinto acknowledged that some aspects of the law could be improved and said the government is “absolutely open” to dialogue.

However, he said the executive orders signed by President Rafael Correa highlight the “virtues of the law regarding the management, government control and citizen supervision” of initiatives to develop Ecuador’s reserves of gold, silver, copper and iridium.

In addition to a decree enacting a general law for the industry, Correa also signed executive orders implementing laws on the development of small-scale mining and environmental regulations for the operations, as well as several documents enabling the creation of the ENM national mining company.

The president also decreed the creation of other regulatory agencies and an institute for geological, mining and metallurgy research.

The mining law stipulates, among other aspects, that only the central government is empowered to approve multinational companies’ bids for mining projects and that 50 percent of the earnings from mining projects must be handed over the government.

In addition, under the new regulations, mining companies must present complete technical and environmental-impact studies before embarking on extractive activities and employ clean, cutting-edge technology.

As the regulations are applied, “serious problems with mining in Ecuador will be corrected,” including environmental pollution and the lack of oversight and training and of government monitoring of development projects, Pinto said.

He added that “not only will the problems be corrected, but we’ll turn the page: it’s a turning point for the development of responsible mining” in the environmental and social sense.

Pinto denied that the government has already given the green light to international mining companies to carry out development projects and stressed that, for the moment, “only advanced exploratory activity” is being carried out.

“What we did through the mining mandate (a degree issued last year halting large-scale mining in the country) is to verify that companies are complying with the law and legal requirements,” Pinto said. EFE

Ecuador To Launch Buyback Offer In Italy For 2012,2030 Bonds

(Dow Jones) Nov 4, 2009 --Ecuador's Finance Ministry said Wednesday that Ecuador has obtained approval from the Commissione Nazionale per le Soceita e la Borsa, or CONSOB, in Italy, to launch a public tender offer in Italy on November 5 to holders of its Global 2012 and 2030 bonds to participate in a cash buy-back.

Last December, President Rafael Correa's government refused to pay the interest on its 2012 and 2030 bonds, saying they considered such payments "illegal" and "illegitimate."

On April 20, the government launched a modified Dutch auction for the 2012 and 2030 Global bonds. It originally offered a minimum price of 30 cents on the U.S. dollar to buy back the bonds, but later raised that to 35 cents on the dollar.

Last June, the government said that it had spent $900 million for 91% of the Global 2012s and 2030s, and about $95.37 million of the Global 2012s and $194.4 million of the Global 2030s remain in the market.

According the government, Lazard Freres Banque and Lazard Freres & Co. LLC, as joint dealer managers, were not permitted to directly contact holders of the bonds in Italy, due to regulatory restrictions.

"The Republic (of Ecuador) is now launching the Italian offer for the benefit of holders of the bonds in Italy in order to give the same opportunity to tender their bonds to the Republic as holders of the bonds in other countries," the Finance Minister, Maria Elsa Viteri, said in a press release.

The press release added that "holders of the bonds should be aware that the Republic (of Ecuador) has no intention of launching other invitations or offers aimed at either holders of the 2012 or 2030 bonds on equivalent or more favorable terms to those of the Italian Offer," the release said. "Neither does the Republic intend to pay interest or principal on either the 2012 bonds or 2030 bonds."

The Republic, the statement said, looks forward to restoring normal relations with the international investor community.

According to Viteri, the Italian offer is designed to assist in allowing both the bondholders and Ecuador to close, on an acceptable basis, "a very challenging period in the Republic's external debt history."

The press release added that the Italian offer requires an exceptional use of resources, and despite the negative impact of the global financial crisis and the decrease in growth of the Ecuadorean economy, the government has set aside the resources.

Ecuadorean analysts have said that the sharp "haircut" that Ecuador effectively forced bondholders to accept has cut off the country from private overseas capital markets.

-By Mercedes Alvaro, Dow Jones Newswires

Chevron and Cultural Genocide in Ecuador

Kerry Kennedy,
The Huffington Post
4 November 2009

Traces of paradise are still visible. From the air, the rainforest region in northern Ecuador--known as the Oriente--appears as silvery mist and swaths of verdant green.

But beneath the cloud cover and canopy, the jungle is a tangle of oil slicks, festering sludge, and rusted pipeline. Smokestacks sprout from the ground, spewing throat-burning fumes into the air. Wastewater from unlined pits seeps into the groundwater and flows into the rivers and streams.

This nightmarish landscape is the legacy of Texaco. Between 1964 and 1990, Texaco (which was acquired by Chevron in 2001) drilled roughly 350 wells across 2,700 square miles of Amazon rainforest. It extracted some $30 billion in profits while deliberately dumping 18 billion gallons of toxic soup, known as production water--a mixture of oil, sulpheric acid, and other carcinogens--into the streams and rivers where people collect drinking water, fish, bathe, and swim.

In the process, Texaco constructed over 900 oil sludge pits, many the size of Olympic swimming pools. Unlike swimming pools, these pits were unlined punctures in the earth. With no concrete to protect the surrounding soil, poison seeped into the ground water.

I had heard about what has been called "Chevron's Chernobyl in the Amazon" for years. But nothing could prepare me for the horror I witnessed this week in Ecuador.

I held a dragonfly covered in oil in my hands, desperately and hopelessly trying to flutter its wings. I saw pig footprints in the mud next to the oily gunk, where it had eaten contaminated grass, and will soon be contaminating the children, women, and men, who in turn feed on Chevron's waste.

I met a man who told me his two children died after swimming in contaminated water. One died within 24 hours. The other writhed in agony for six months before his poor body gave way.

I met another man whose home is just a few hundred yards from one of the pits. He has 10 children. All of them have become sick, some covered with sores. His chickens and pigs have died. Nothing grows near his home.

I saw a poisonous pit abandoned by Texaco in 1974 and never used by any other company. The pipes leading from that pit have clear liquid running from them. When I put the liquid to my nose, it smelled like gasoline. It runs directly into an adjoining stream, which is the main source of drinking water for people who live along its banks.

We heard terrifying stories of mistreatment by Texaco workers: women raped; shamans taken by helicopter to far mountain ranges to see if they could find their way back; Indians told that rubbing oil on their bald scalps would make their hair grow long and thick; and Texaco trucks that dumped oil waste on roads where people walked and suffered the burns of sticky tar in hot sun.

This is not a matter of misty-eyed nostalgia. This is an issue of human rights - clear violations of the indigenous Ecuadoreans' rights to life, security, and self-determination.

When Texaco oilmen descended from helicopters into the jungle in the early 1960s, they gifted the locals with bread, cheese, plates, and spoons. To this day, this is the only compensation any of the indigenous groups have ever received.

Never were they asked for their permission before Texaco executives negotiated a contract with Ecuadorean government officials.

Texaco knew people would die because of what they were doing, and they ignored it. At last count, 1,400 children, women, and men have died of illnesses directly attributed to Texaco's contamination. Cancer rates in communities affected by oil activity are 30 times higher than anywhere else in the country. Other medical teams have documented elevated rates of birth defects, miscarriages, skin disease, and nerve damage.

Two nomadic groups that once inhabited the region, the Tetetes and the Sansahuari, have been wiped out. What Texaco did arguably amounts to criminally negligent homicide.

Now, the remaining indigenous peoples of the Oriente - the Cofán, Siona, Secoya, Kichwa, and the Huaorani people - have taken the fight to Chevron. Organized by a grassroots organization called the Frente de Defensa de la Amazonia--the Amazon Defense Coalition--they are simply demanding through an unprecedented class action lawsuit that Chevron clean up its mess.

The case is now in its 16th year. Chevron (whose human rights statement reads, "We value and respect the cultures and traditions of the many communities in which we work") has tossed up one delay after another.

Yet, the evidence of Texaco's wrongdoing is plain for all to see. Last year, an unnamed Chevron lobbyist was quoted as saying the lesson of Ecuador is that "We can't let little countries screw around with big companies like this--companies that have made big investments around the world."

But as an American, I am appalled that a corporation from our country would treat innocent people with such disdain. We--consumers investors, elected officials, journalists, activists, and citizens--must hold Chevron accountable for its actions, and see that justice is done.

Here in the Oriente, 45 years after Texaco first bore into the ground--16 years after the Ecuadoreans began their fight for justice--traces of paradise are still visible. We must not allow them to vanish.


Ecuador Concerned Over Spying Ahead of Talks with Colombia


QUITO – Ecuadorian Vice President Lenin Moreno said that espionage allegations against Colombia – if proven – could adversely affect next week’s talks aimed at improving bilateral ties.

“If (the allegations by Ecuador’s close ally, Venezuela,) prove to be true, in a certain sense” that would affect Tuesday’s meeting between the foreign ministers in the northern Ecuadorian town of Cotacachi, Moreno said Friday.

Ecuador’s leftist government broke off diplomatic ties with its neighbor on March 3, 2008, two days after a Colombian military strike in its territory killed more than a score of people, including a high-ranking member of the Revolutionary Armed Forces of Colombia, or FARC, guerrilla group.

The two countries began efforts last month to improve ties, although the process has been complicated by Ecuadorian courts’ efforts to prosecute Colombia’s former defense minister and a police general for the military incursion.

On Friday, Ecuadorian President Rafael Correa described Venezuelan counterpart Hugo Chavez’s allegations of Colombian spying operations in his country, Ecuador and Cuba as “extremely serious,” warning that if they prove to be true they could further harm relations with Colombia.

Moreno, for his part, said Ecuador’s Foreign Ministry and Internal and External Security Ministry must investigate whether there is any truth to the allegations. “If so, they will have to register the necessary (diplomatic) complaints” with the neighboring country.

Ecuadorian Security Minister Miguel Carvajal told Ecuavisa television that Quito’s probe into the alleged spying indicates Colombia may have conducted “human intelligence activities at the (Ecuadorian) embassy (in Bogota)” and at its “consulates in Colombia, as well as ... in Ecuadorian territory in 2008 and 2009.”

On Thursday, the Venezuelan government presented in Caracas what officials called “irrefutable evidence” that neighboring Colombia has dispatched spies to Venezuela, Ecuador and Cuba as part of an ambitious, CIA-financed operation.

Interior Minister Tarek El Aissami detailed the contents of documents allegedly originating with Colombia’s DAS security service and unearthed since the apprehension of two suspected Colombian on Venezuelan soil.

He said Colombian President Alvaro Uribe was fully aware of the espionage carried out by the DAS, which reports directly to the office of the head of state and has been repeatedly caught spying on journalists, judges and opposition politicians in its own country.

Uribe’s conservative government has already announced that the DAS will be dismantled.

El Aissami said the purported DAS documents refer to three operations: “Salomon,” targeting Ecuador; “Phoenix,” aimed at Cuba, and “Falcon,” directed at Venezuela.

He said the information was compiled in the course of a DAS internal investigation about a leak of classified information.

The minister did not say how he obtained the DAS report.

Caracas obtained the documents pursuant to the capture of two DAS agents in Venezuela, El Aissami told the National Assembly.

In announcing the arrests of the suspected DAS agents earlier this week, Chavez recalled that he had previously alerted Uribe “about the conspiratorial activities” of Colombian operatives in Venezuela.

Those activities will continue, the Venezuelan leader said, after this week’s signing of an accord with Washington giving the U.S. Armed Forces access to seven Colombian military bases.

Chavez, survivor of a 2002 coup attempt that former U.S. President Jimmy Carter says took place with Washington’s advance knowledge if not active collusion, says the basing agreement poses a threat to his “Bolivarian Revolution.”

Ecuador Announces Decision to Bypass Patents


QUITO – The Ecuadorian government said Thursday in justifying its decision to bypass patents and facilitate the production of lower-cost versions of certain medicines that health “takes precedence” over commercial interests.

Health Minister Caroline Chang told Efe that principle is enshrined in Ecuador’s constitution and noted the existence of international accords that authorize each country to prioritize health “over any commercial interest.”

Left-leaning President Rafael Correa, therefore, “has given priority to public health to guarantee we not only have universal access to free health services, but also to cutting-edge technology and even more so to medicines,” she said.

Chang said that at the moment “some sectors are having difficulty” acquiring low-cost medicines, especially (to combat) cancer and AIDS.

The IFI pharmaceutical industry association, composed of 14 laboratories of multinational companies such as Bayer and Pfizer, on Wednesday accepted the government’s decision to bypass patents to facilitate the production of less expensive generic versions of certain drugs.

The IFI said, however, that it was regrettable that the association had not been consulted before the decision was made.

Asked about the IFI’s concern, the minister said only that Correa’s government made a “public policy” decision.

The Ecuadorian Intellectual Property Institute estimates that 870 patents for medicines have been registered, although its president, Andres Ycaza, said that does not mean that “compulsory licenses” for the production of generic drugs should be granted in each case.

Correa said Saturday that such licenses would be issued to bypass patents and ensure affordable access to more than 2,000 products considered to be in the public interest.

Under intellectual property rules issued by the World Trade Organization, countries can issue compulsory licenses to bypass patents after negotiating with the patent owners and paying them adequate compensation.

Such licenses enable the local production, for example, of generic medicines or certain products for agriculture to meet the needs of the domestic market. Products manufactured under this regime cannot be exported.

The Ecuadorian government also plans to issue compulsory licenses for agrochemical products. EFE

Russia, Ecuador sign deals on arms, energy

Oct 29, 2009

MOSCOW — President Dmitry Medvedev on Thursday called new arms and energy deals between Russia and Ecuador just a beginning as Moscow strives to deepen ties in Latin America.

Medvedev and Ecuadorean President Rafael Correa announced a $22 million deal for Russia to provide Ecuador with two Mi-17 transport helicopters.

"It's not much, but it's the beginning of cooperation," Medvedev said. "There are prospects for our nations."

They also presided over of the signing of agreements on Russia's assistance in the construction of two hydropower stations and development of Ecuador's substantial oil and gas reserves.

Correa, the first Ecuadorean president to make an official visit to Russia, called his trip "historic."

The Kremlin has recently sought to renew Communist-era ties with Latin America in what is widely seen as a response to U.S. support to ex-Soviet Georgia and Ukraine. The flurry of activity intensified after last year's war between Russia and Georgia over breakaway South Ossetia.

Nicaragua and Venezuela are the only nations that have followed Moscow in recognizing South Ossetia and another Russian-backed separatist province, Abkhazia, as independent countries. The Kremlin subsequently signed lucrative arms and energy deals with Nicaragua and Venezuela.

Russian daily Kommersant reported Thursday that Ecuador has showed interest in buying Russian jets, bombers and missile systems.

Last year, Moscow dispatched a pair of strategic bombers to Venezuela and a squadron of warships to Venezuela, Panama and Cuba, the biggest projection of Russian military power to the Western Hemisphere since the Cold War.

Ecuador is Russia's third largest trade partner in Latin America — after Brazil and Argentina — with the 2008 turnover of $936 million. Almost 90 per cent of bananas and some 60 per cent of roses sold in Russia come from Ecuador.

Ecuador: The Battle for Natural Resources Deepens

Raúl Zibechi | October 26, 2009

Translated from: Ecuador: Se profundiza la guerra por los bienes comunes
Translated by: Monica Wooters

Americas Program, Center for International Policy (CIP)

A new indigenous uprising began in defense of water sources threatened by open air mining in Ecuador in late September. This time indigenous organizations find themselves up against a government that claims to be anti-neoliberal, a player in the "socialism of the 21st century," and one that has begun a "citizens' revolution."

"What happened in Cochabamba in the fight for water will be dwarfed by what is about to happen in Ecuador. An uprising is coming because it is coming," affirms a convinced Carlos Pérez Guartambel, president of the Azuay Union of Community Water Systems (Unión de Sistemas Comunitarios de Agua del Azuay).1 Pérez is referring to the Water War of Cochabamba, Bolivia, a vast social insurrection that put a stop to the privatization of water and, in April 2000, began a succession of protests that brought Evo Morales to the presidency.

"My parents taught me that water and electricity are to be shared, not sold," he says almost indignantly as we walk toward a community assembly in La Victoria del Portete located in an immense and beautiful valley, 15 kilometers from Cuenca, (capital of the southern Azuay Province) a pretty colonial town plagued by tourists. As we turn right onto the Pan-American Highway, he points out his parents' home where he was born a little more than 40 years ago.

"When I was a child I would go to a spring to look for water with a ceramic jug. The jug was sealed with a pocón, a biodegradable corn stalk leaf. I never imagined that I would one day buy a bottle of water, never. Each liter costs one dollar and 30 cents, in other words, a liter of water costs more than a liter of milk or a liter of gas. The struggle for water will be the struggle for life." The social distinctions caused by the remittances sent back by emigrants is obvious: next to modest homes with roofs made of sheet metal they are building three story houses, affecting an affluent appearance though the inhabitants remain campesinos.

Carlos Pérez is Quichua (Quechua) and a lawyer specializing in community rights with a postgraduate degree in environmental studies and he has also written an important book on community justice. In the last few years he has dedicated himself to the resistance against the introduction of mining companies with eloquent names like IAM Gold, in and around Quimscocha, where a source of springs is located that irrigate the valley where thousands of campesinos practice animal husbandry. Pérez belongs to a new generation of university educated indigenous leaders that speak several languages, attend international forums, and are trained in the use of new technologies, but who also remain dedicated to their communities and continue to speak their native languages.

When we arrive in Victoria del Portete, he parks on the side of the highway where hundreds of community members are congregating in a wide terrace between the parish office and the church. He climbs up to the municipal balcony and an assembly of the local water system where many important decisions will be made begins. "While earlier governments threatened us with the privatization of our water systems, that specter has disappeared and been replaced with the larger threat of mining companies," says Pérez before opening the event.

The Nero Project—that has been in place in this region for 24 years—is perhaps the largest community water system in the country servicing 6,000 families, some 30,000 individuals in 45 communities. Pérez relates the history of water in his community explaining that, "Initially, the families lived near the river or close to a spring but never close to the road because they preferred to be close to the water. After a while the rivers became contaminated and the springs provided less water. It was at this point, in the 60s and 70s, that organizations like Caritas began to appear and install manual pumps in the parish centers where the people lined up to get water. But in some community councils the people began to think about installing the water infrastructure themselves, making it unnecessary to carry water on their backs by installing indoor plumbing in each house."

As years went by, community water systems spread throughout the country. In the province of Azuay alone there are 450 systems that supply water to 30% of the population, especially in rural areas and in the urban peripheries. In all, Ecuador has some 3,500 water systems, built, maintained, and administered by the communities themselves.

A Different Kind of Uprising

On Sept. 27, the Confederation of Ecuadoran Indigenous Nationalities (CONAIE, Confederación de Nacionalidades Indígenas del Ecuador) began a new front against a water law that they were not permitted to participate in. The government law went to parliament in mid-August but CONAIE had already put together its own initiative in 2008 that was never taken into account by the administration.

The movements' critique of the Hydraulic Resources Law is that it allows for the development of mining projects in areas occupied by springs that are major sources of water. In addition, the law ensures water provisions for the mining companies but not for indigenous and campesino communities and does nothing to attend to the issue of the contamination of waterways. The law also attempts to bring all of the water systems under one centralized state authority implying the loss of community control over this resource.

Ricardo Buitrón of Ecological Action (Acción Ecológica) has undertaken a detailed study of the law and concludes that "it contains elements of privatization for both water and land usage in as much as those resources become the sole property of the benefitting industry or business for other uses. The hydraulic infrastructure becomes private property in addition to surface water—such as wetlands."2 The law allows for water resources to be acquired in the purchase of land and permits the owner to use the water as he/she sees fit.

Buitrón also criticizes the fact that the law contains no clauses that allow for deprivatization that would make it possible to take back control over water resources that are currently under private ownership. In addition, thousands of potable water councils are given no real recourse as their members are now merely consumers subject to the Sole Authority of the state that controls the entire hydraulic network.

Humberto Cholango, director of Ecuarunari, the Quichua organization of the sierra, offered some compelling facts during a press conference held on Sept. 24.3 Forty-five percent of water resources have been privatized through legal concessions, but 55% of it is being used illegally; 1% of those using water resources consume 64% of the water available and 86% of Ecuadorians consume just 13%. "The law does not say anything in regard to these points and the National Development Plan favors the mining companies and flower growers."

The law does not contemplate sanctions for contamination or water quality control. "The human right to water is restricted to access to potable water and domestic uses without considering the rights linked to health, food sovereignty, and culture," adds Buitrón.

For his part, Cholango insisted in the role of the indigenous communities in the construction of water system networks: "We have constructed irrigation canals, consumer water systems, and now, with this Executive Law, they want us to simply be consumers and not actors. Even in article 97, they are trying to exclusively administer and take control of community water systems through the Sole Authority. This is a threat to our water councils."4 The result, in his opinion, is prioritizing the use of water for mining exploits.

The protests began with roadblocks and demonstrations to force the government into a dialogue and a chance to present their own Water Law inspired by the Sumak Kawsay, the idea of "Buen Vivir" or "Good Living" that is guaranteed in the constitution. President Rafael Correa's response was harsh: "Who do these leaders think they are?" He accused them of being "extremists," of "playing the game of the right," and of being coup mongers, comparing the situation in Ecuador with that of Honduras.5

On Sept. 30, the police fired shots against indigenous Shuar in the Amazonian province of Morona Santiago. According to a communiqué from Ecological Action, Bosco Wizuma, a bilingual professor, was killed when he joined a group of 500 that blocked the bridge spanning the Upano River. It seems that it was a "trap" because the leaders were called to a dialogue "in order to distract the leadership and the local media."6

There were dozens of wounded, including several police. President Correa quickly changed the discourse and called for the dialogue: "Welcome brothers. This government is for all of you, the indigenous people, the Carondelet Palace [Presidential Palace] is yours."7 This was perhaps the only way to defuse the conflict that threatened the stability of his government. In effect, although the uprising did not originally have the strength of other indigenous actions, professors and members of other social sectors began to join the movement. And when there is a death, anything is possible.

Dialogue and Tension

The CONAIE leadership decided to suspend the actions of the struggle when the government opened a negotiation period. However, a good portion of the country, the grassroots movement, the communities, continued to stage roadblocks and shut down markets. There is a division between the organizations that make up CONAIE, in particular between those from the sierra (Ecuarunari) and those from the jungle (Confenaie).

The climate of distrust did not abate. On Monday, Oct. 6, the televised dialogue began in the seat of government, the Carondelet Palace. Thousands of indigenous people came together outside of the palace, waiting several days for the results of the dialogue. Under a tense climate, 130 leaders entered the palace to meet with Correa. On the first day they came to agreement on six points. Among those highlighted were the institution of a permanent dialogue between both parties, the government will take into account the Water Law initiative of CONAIE, and that it will receive a Mining Law proposal from the indigenous movement.

A good example of the climate in the negotiations is the following dialogue: "Marlon Santi, head of CONAIE, asked for respect for the indigenous people. His words are in relation to the declarations in which they were referred to as 'crazies' and were not given representation. The response was direct. Correa interrupted and asked for the names of the officials in order to 'dismiss them from government immediately. Who is that idiot?' Correa asked twice. 'You, Mr. President,' the leader responded."9

The indigenous organizations were able to institute the dialogue, as they had hoped. On Oct. 14, the Executive Office released Decree No. 96 that establishes the formation of a Mixed Commission made up of CONAIE and its three affiliates (the Coast, Sierra, and the Amazon) as well as the government represented by the Ministry of Justice, the Secretary of Communities, Social Movements, and Citizen Participation and several other institutions. This commission will debate the two water laws (the government's and that of the indigenous movements) as well as the proposals to reform the Mining Law.

But the accusations continue. After Correa's weekly address on Saturday, the Amazonian leader and ex-assembly member, Mónica Chuji, accused the president of being a racist: "The president proved me right through his words, gestures, and actions that characterize him as a racist. References to indigenous leaders as 'hook noses,' 'long hairs,' and 'golden ponchos' are racial slurs. Using kichwa [indigenous language] for demagogic purposes and later denying its official use is a racist attitude. Marginalizing the Ecuadorian indigenous population by reducing their votes at the polls is a racist attitude."9

Although the defusing of the conflict is important, the precedent set by the massacre in Baguá, Peru,10 makes many fear the worst, though the differences continue to be important. Pepe Acacho, president of the Shuar Federation (of the Amazon), does not agree with the resolutions: "We have been struggling for eight days and it is an injustice that we are not demanding that Morona Santiago be declared an ecological province, free from mining and petroleum exploration."11

The Problem of the Country's Model

The new Ecuadorian Constitution is one of the most advanced in the world on environmental issues. In one point it defines nature as having rights. The constitution was approved on Sept. 28, 2008 by 64% of Ecuadorians in a plebiscite. "Nature or Pacha Mama, where life is created and carried out, has the right to integral respect concerning its existence, maintenance, and the regeneration of its life cycles, structure, functions, and developmental processes," as stated in Article 71, consecrated in the "Rights of Nature."

The problem is open air mining, on which Correa's administration has made a major bet. Alberto Acosta, founder of the Country Alliance (Alianza País)—the movement that brought Correa to the presidency—and ex-president of the Constitutional Assembly, is raising a discussion very close to that of the indigenous movements: "The mining law, approved after the constitution, is putting the Magna Carta in danger. This is the root of the problem. Why is this? Without a doubt it is the incoherent aspects of the government that clearly continue to inspire neoliberal policies, that continue to represent the interests of the most traditional economic groups."12

Acosta maintains that the progressive South America governments "have not discussed nor have they put into question the extractionist model," not even the "most advanced" countries such as Venezuela, Bolivia, and Ecuador. In his opinion, the firm belief that "the practice of natural resource extraction will show us the road to development" has up until now impeded the ability to get passed this model and maybe even find "a new form of insertion into the international market."

A second problem is Correa himself. Acosta comments that Correa recently entered into political life in 2005, when in Ecuador, the indigenous uprisings have been ongoing since 1990. He tends to think in personal terms: "He is assuming the role of the bearer of collective political will and he doesn't realize that in large part the earlier historic process is the explanation for the positive results of Correa and Alianza País." The absence of an organic structure, movement, or party, according to Acosta, creates a situation in which Correa does not understand "that he is there, in the presidency, thanks to the great effort made by the Ecuadorian society."13

The economist Pablo Dávalos agrees with this idea but he also believes that Correa's government continues to be a neoliberal one. Today, capital needs to "link with territories at the vortex of financial speculation" as a way of moving beyond the crisis.14 Meanwhile, the movements have declared the Amazonian region in the south, including Zamora and Morona, mining-free territories. A collision with multinational mining companies seems inevitable.

Within the Correa government as well as in the party that supports him, Alianza País—and this is key—there are several members of the right. As a consequence, concludes Dávalos, beyond the declarations about socialism and revolution, Correa's movement is "derived from post-neoliberalism, that is, a continuation of neoliberalism but under the categories of territorial and resource dispossession, and the deterritorialization of the state.

The alternative would look more like the ITT Initiative that seeks to leave petroleum in the ground and search for another development model.15 ITT are the initials for the three exploration wells found in the Yasuní Park zone in the Amazon (Ishpingo, Tambococha, and Tiputini). In mid-2009 the Correa government took on the project, the brainchild of Acosta when he was minister of Energy and Mining. The proposal was to abandon petroleum exploration as a contribution on the part of Ecuador toward the struggle against climate change.

The ITT represents 20% of the country's entire reserves. The Ecuadorian economy is based on petroleum: 22% of the GDP, 63% of exports, and 47% of the state budget depends on petroleum. But therein lies the significance of the proposal: it would avoid some 410 tons of CO2 emissions, slow deforestation and contamination, and it would be a major contribution to the development of a post-petroleum economy.

On the other hand, the Ecuadorian government is asking the international community to compensate the equivalent of 50% of the income that could be gained by drilling for the petroleum. The German government and parliament responded positively, putting forward 50 million Euros annually for the 13-year duration of benefits that the oil wells would have produced. Norway and the Community of Madrid have also shown interest.

Although there are many people involved in the project that see it as an ecological revolution, Acosta maintains that "it emerged from the indigenous peoples' resistance movements, particularly in the central-south of the Amazon, that were struggling against the expansion of petroleum activities toward their territories, in addition to groups of mestizo communities in the northern Amazon and the indigenous peoples affected by the activities of Chevron."16

End Notes

  1. Interview with Carlos Pérez.
  2. Ricardo Buitrón, El Telégrafo, ob. cit.
  3. See the press conference at: www.youtube.com/watch?v=tN3x3vE1jfE.
  4. Ecuarunari communiqué in Ecuachaski, Sept. 17, 2009.
  5. Agencia AFP, Quito, Sept. 25, 2009.
  6. "Noticias del Levantamiento en Defensa del Agua-1" at: www.accioecologica.org.
  7. El Comercio, Quito, Oct. 3, 2009.
  8. El Comercio, Oct. 6, 2009.
  9. Oct. 11 declarations at: http://ukhamawa.blogspot.com.
  10. See "Massacre in the Amazon: The U.S.-Peru Free Trade Agreement Sparks a Battle Over Land and Resources" at: http://americas.irc-online.org/am/6191.
  11. El Comercio, Oct. 6, 2009.
  12. Interview with Alberto Acosta, Sept. 6, 2009.
  13. Idem.
  14. Pablo Dávalos, ob. cit.
  15. Matthieu Le Quang, interview with Alberto Correa; Alberto Acosta, Eduardo Gudynas, Esperanza Martínez, and Joseph H. Vogel, "Leaving the Oil in the Ground: A Political, Economic, and Ecological Initiative in the Ecuadorian Amazon," Americas Program Policy Report (Washington, DC: Center for International Policy, August 13, 2009), http://americas.irc-online.org/am/6345.
  16. Idem.

Translated for the Americas Program by Monica Wooters.

Raúl Zibechi is an international analyst for Brecha of Montevideo, Uruguay, lecturer and researcher on social movements at the Multiversidad Franciscana de América Latina, and adviser to several social groups. He writes the monthly "Zibechi Report" for the Americas Program (www.americasprogram.org).

To reprint this article, please contact americas@ciponline.org.

Sources

Acción Ecológica: www.accionecologica.org.

Confeniae (Amazonian indigenous organization): www.confeniae.org.ec.

Ecuarunari (Quichua indigenous organization): www.ecuarunari.org.

Hydraulic Resources, Water Uses, and Implementation Law (Republic of Ecuador)
http://www.senagua.gov.ec/index.php?option=com_content&view=article&id=159&Itemid=140.

Water Law for Good Living (CONAIE)
www.ciudadaniainformada.com/.../Ley_de_aguas_para_el_Buen_Vivir.doc.

Alberto Acosta, Eduardo Gudynas, Esperanza Martínez, and Joseph H. Vogel, "Leaving the Oil in the Ground: A Political, Economic, and Ecological Initiative in the Ecuadorian Amazon," Americas Program Policy Report (Washington, DC: Center for International Policy, August 13, 2009), http://americas.irc-online.org/am/6345.

Pablo Dávalos, "Levantamiento indígena y revolución ciudadana: los impasses del posneoliberalismo," www.alainet.org, Oct. 10, 2009.

Raúl Zibechi, interview with Carlos Pérez Guartambel, Cuenca, May 22, 2009.

Ricardo Buitrón, "Comentarios al 29 de setiembre" on the Water Laws.

Ricardo Buitrón, "Si el río suena", El Telégrafo, oct. 13, 2009, at www.telegrafo.com.ec.

Yasser Gómez, "Los gobiernos progresistas de Suramérica no han puesto en tela de juicio la validez del modelo extractivista", interview with Alberto Acosta in Mariátegui, Sept. 6, 2009 at http://mariategui.blogspot.com.

Ecuador Moves Forward with Plan to Not Drill the Amazon in Exchange of Funds

by Paula Alvarado, Buenos Aires on 10.28.09

©Lou Dematteis, Crude Reflections
A kid stands on pipes of previous oil extractions in the Ecuadorian Amazon. Photo: Lou Dematteis for the Crude Reflections book.

We spoke about this campaign being in the making before, and about a presentation of it a month ago at the UN, but now it's a fact: Ecuador is promoting the measure internationally to get funds, and says Germany, Spain and France have shown interest in backing up the plan. The country is also considering forming a consortium of countries with natural resources.

Known details of the plan

As we mentioned in other articles, Ecuador has the plan of not drilling the Amazon for oil (the 850 million barrels of crude that lie underneath the Yasuni reserve), if governmental, private and individual donations to a fund can cover at least half of the royalties the country would get if it exported that petrol.

According to the campaign's official website, by not exploiting these resources, the country would be saving the world 407 million tons of CO2 emissions of 'not burned oil'. It would also be preserving a rich forest, biodiversity, and two uncontacted tribes: an area of 4.8 million hectares that would be left untouched, and another 5 million hectares that would be sustainably managed. The total protected area represents 38% of all Ecuadorian territory.

The number the international fund has to cover is not a small one: the estimated value of the oil that could be extracted from Yasuni is about 6900 million USD. The government wants at least half of that to be able to ensure protection of the reserve: about 350 million USD a year.


Diplomatic promotion and 'consortium' plan

Now the preliminary talks are over and Ecuador "has launched a diplomatic offensive" to promote the plan before the climate change summit in Copenhagen, informs Reuters.

On a recent visit to London, president Rafael Correa called for international support and said that Germany, Spain and France have expressed interest in backing up the plan. According to Business Intelligence, Germany is considering a donation of 50 to 70 million dollars a year.

Now authorities are heading to Russia.

Reuters also informs Ecuador wants to go ahead and form a consortium of countries with natural and energy resources such as Malaysia, Indonesia, the Philippines, Papua New Guinea and Congo. The idea would be to create a sort of 'carbon credit' for carbon that was not emitted.


As Matthew mentioned before, the project faces a number of obstacles, like the legal mechanism for the trading of these offsets. However, we've also read some great arguments of why this makes perfect sense. And in front of the slow talks between world leaders that are making the globe doubt if they will reach an agreement in Copenhagen, individual countries conservation plans don't seem like such a crazy idea.

We'll have to wait to see if the plan succeeds.


More info on the plan:
Official website: Yasuni-itt.gov.ec (in English)

More on crude and Ecuador:
2008 Goldman Environmental Prize Winners Pablo Fajardo Mendoza and Luis Yanza on the fight against Chevron in Ecuador
Trudie Styler talks Crude about Oil in Ecuador
The TH Interview: Daryl Hannah in Ecuador

Latin America's economic rebels

Ecuador and Bolivia are achieving remarkable growth because they reject conventional economic wisdom

Among the conventional wisdom that we hear every day in the business press is that developing countries should bend over backwards to create a friendly climate for foreign corporations, follow orthodox (neoliberal) macroeconomic policy advice and strive to achieve an investment-grade sovereign credit rating so as to attract more foreign capital.

Guess which country is expected to have the fastest economic growth in the Americas this year? Bolivia. The country's first indigenous president, Evo Morales, was elected in 2005 and took office in January 2006. Bolivia, the poorest country in South America, had been operating under IMF agreements for 20 consecutive years, and its per-capita income was lower than it had been 27 years earlier.

Evo sent the IMF packing just three months after he took office, and then moved to re-nationalise the hydrocarbons industry (mostly natural gas). Needless to say this did not sit well with the international corporate community. Nor did Bolivia's decision in May 2007 to withdraw from the World Bank's international arbitration panel, which had a tendency to settle disputes in favour of international corporations and against governments.

But Bolivia's re-nationalisation and increased royalties on hydrocarbons has given the government billions of dollars of additional revenue (Bolivia's entire GDP is only about $16.6bn, with a population of 10 million people). These revenues have been useful for a government that wants to promote development, and especially to maintain growth during the downturn. Public investment increased from 6.3% of GDP in 2005 to 10.5% in 2009.

Bolivia's growth through the current world downturn is even more remarkable in that it was hit hard by falling prices for its most important exports – natural gas and minerals – and also by a loss of important export preferences in the US market. The Bush administration cut off Bolivia's trade preferences that were granted under the Andean Trade Promotion and Drug Eradication Act, allegedly to punish Bolivia for insufficient co-operation in the "war on drugs".

In reality, it was more complicated: Bolivia expelled the US ambassador because of evidence that the US government was supporting the opposition to the Morales government, and the ATPDA revocation followed soon thereafter. In any case, the Obama administration has so far not changed the Bush administration's policies toward Bolivia. But Bolivia has proven that it can do quite well without Washington's co-operation.

Ecuador's leftist president, Rafael Correa, is an economist who, well before he was elected in December 2006, understood and wrote about the limitations of neoliberal economic dogma. He took office in 2007 and established an international tribunal to examine the legitimacy of the country's debt. In November 2008 the commission found that part of the debt was not legally contracted, and in December Correa announced that the government would default on roughly $3.2bn of its international debt.

He was vilified in the business press, but the default was successful. Ecuador cleared a third of its foreign debt off its books by defaulting and then buying the debt back at about 35 cents on the dollar. The country's international credit rating remains low, but no lower than it was before Correa's election, and it was even raised a notch after the buyback was completed.

The Correa government also incurred foreign investors' wrath by renegotiating its deals with foreign oil companies to capture a larger share of revenue as oil prices rose. And Correa has bucked pressure from Chevron and its powerful allies in Washington to drop his support of a lawsuit against the company for alleged pollution of ground waters, with damages that could exceed $27bn.

How has Ecuador done? Growth has averaged a healthy 4.5% over Correa's first two years. And the government has made sure that it has trickled down: healthcare spending as a percent of GDP has doubled, and social spending in general has expanded considerably from 5.4% to 8.3% of GDP in two years. This includes a doubling of the cash transfer programme to poor households, a $474m increase in spending for housing, and other programmes for low-income families.

Ecuador was hit hard by a 77% drop in the price of its oil exports from June 2008 to February 2009, as well as a decline in remittances from abroad. Nonetheless it has weathered the storm pretty well. Other unorthodox policies, in addition to the debt default, have helped Ecuador to stimulate its economy without running too low on reserves.

Ecuador's currency is the US dollar, so that rules out using exchange rate policy and most monetary policy for counter-cyclical efforts in a recession – a significant handicap. Instead, Ecuador was able to cut deals with China for a billion-dollar advance payment for oil and another $1bn loan.

The government also has begun requiring Ecuadorian banks to repatriate some of their reserves held abroad, expected to bring back another $1.2bn, and it has started repatriating $2.5bn in central bank reserves held abroad in order to finance another large stimulus package.

Ecuador's growth will probably come in at about 1% this year, which is pretty good relative to most of the hemisphere. For example, Mexico, at the other end of the spectrum, is projected to have a 7.5% decline in GDP for 2009.

The standard reporting and even quasi-academic analysis of Bolivia and Ecuador says they are victims of populist, socialist, "anti-American" governments – aligned with Venezuela's Hugo Chávez and Cuba, of course – and on the road to ruin. To be sure, both countries have many challenges ahead, the most important of which will be to implement economic strategies that can diversify and develop their economies over the long run. But they have made a good start so far, by giving the conventional wisdom of the economic and foreign policy establishment – in Washington and Europe – the respect it has earned.

Ecuador to set up state banana exporter

FreshInfo.com: Ecuador is to set up a national banana exporter as it looks to tackle alleged underhand tactics and “abuses” in the sector.

President Rafael Correa announced at a press conference that the government would be setting up an exportation company as the state looks to combat what Correa described as the “many abuses” being committed by banana exporters.

It is understood the state-owned company is in the process of being set up.

He accused some companies of signing “contracts during the low season, which they failed to meet, instead selling the fruit for more money during the high season”.

He also alleged some “un-registered companies” are avoiding paying export duties and promised “clear regulations” would allow the new export company to operate in a transparent fashion.

The export company will also be used to enforce Ecuador’s official price of $5.40 (£3.30) per box.

Ecuador President Says Rich World Should Pay Poor Countries Not to Pollute

LAHT, 27 October, 2009
LONDON – Ecuadorian President Rafael Correa said on Tuesday that wealthy nations should make up for their disproportionate role in causing climate change by financing poor countries’ adoption of green policies.

“Climate change has been produced principally by the rich countries, but it most affects the countries of the third world,” he told an audience at the Chatham House think-tank in London.

The left-leaning president was there to promote the Yasuni-ITT initiative, Ecuador’s offer to forgo exploiting an estimated 850 million barrels in Amazon oil reserves in exchange for $3 billion in aid from wealthy nations over the course of 10 years.

Ecuador estimates that while it could earn around $6 billion by extracting and selling the oil, leaving the petroleum in the ground would avert the creation of 407 million metric tons of carbon dioxide emissions, seen as the chief man-made cause of climate change.

Correa blamed climate change for the catastrophic floods that destroyed hundreds of millions of dollars worth of crops in Ecuador last year and urged rich nations to accept their responsibility for the problem.

He said governments in the developing world must have something to offer their own struggling citizens when they ask them to leave rainforests and other environmentally sensitive areas untouched.

The U.S.-trained economist also outlined his idea to create a new financial instrument similar to tradable carbon-offset credits.

Correa said every country contributing to the Yasuni initiative would receive “carbon bonds” that guaranteed a full return on investment plus interest should Ecuador eventually decide to tap the Amazon oil reserves.

Ecuador says it will use proceeds from the proposed ITT-Yasuni trust to fund economic development and renewable energy projects and to prevent deforestation in 40 environmentally protected zones.

While several countries have expressed interest, only Germany has committed to providing Ecuador with $50 million annually for 13 years, Correa said in London.

Oil is Ecuador’s main export, and the Andean nation currently produces an average of about 500,000 barrels per day of crude, of which state-owned Petroecuador accounts for just over 50 percent.

Revenue from oil exports finances roughly 35 percent of Ecuador’s public spending. EFE

Will Ecuador's plan to raise money for not drilling oil in the Amazon succeed?

Jeremy Hance
mongabay.com
October 27, 2009


Ecuador's Yasuni National Park is full of wealth: it is one of the richest places on earth in terms of biodiversity; it is home to the indigenous Waorani people, as well as several uncontacted tribes; and the park's forest and soil provides a massive carbon sink.

However, Yasuni National Park also sits on wealth of a different kind: one billion barrels of oil remain locked under the pristine rainforest. While drilling for oil has brought huge profits--the commodity is Ecuador's top export--it has also brought environmental destruction and conflicts with indigenous groups, including a legal one between several tribes and Chevorn highlighted by the new film Crude.

In a country where oil extraction has a long, bloody, and contentious past, President Rafael Correa put forth a novel idea, known as the Yasuni-ITT Initiative. He announced in 2007 that he would not touch the oil if the international community compensated Ecuador. He said that leaving the oil would help achieve three international objectives: protecting biodiversity, respecting the rights of indigenous people, and combating climate change, since it is estimated that extracting the oil would release 410 million metric tons of carbon.

"Oil and gas concessions now cover vast swaths of the mega-diverse western Amazon. Ecuador´s revolutionary initiative is the first major government-led effort to buck this disturbing trend," says Dr. Matt Finer from Save America's Forests. Finer is the lead author of a new paper in Biotropica that looks at the viability of Yasuni-ITT, and the hurdles it will have to jump to even be implemented.



Yasuni National Park in Ecuador. Photo by Matt Finer © Save America’s Forests.
The most difficult hurdle is how to get paid for leaving oil instead of selling it. At first Ecuador, with an economy largely dependent on oil, asked international countries for compensation of around 350 million US dollars per year (about half of what could be expected from the oil). However, after several deadlines—and two years—passed without raising the funds, Ecuador has now turned to the burgeoning carbon market by offering 'Yasuni Guarantee Certificates'. Yet as the Biotropica paper points out this means that the initiative would not result in a net less in carbon, since nations and companies would likely offset continuing pollution.

"The best way to minimize the risk associated with the carbon bonds is to encourage supporters to make direct donations," said Remi Moncel of the World Resources Institute. "While less problematic from the point of view of environmental integrity, it is harder to raise money that way."

Yasuni-ITT is an example of just how difficult such donations are. Germany has been the largest verbal supporter of Yasuni-ITT. Numbers have been tossed around, but the nation has yet to put forward any real money and recent reports suggest that Germany may be backing-off original promises. Other European nations have shown interest including Spain and France.

Despite the difficulties facing Yasuni-ITT—including making certain that countries compensating Ecuador won't decide to drill for themselves in the future—the researchers believe that Yasuni-ITT will become a model both for oil and gas drilling in areas where it would lead to environmental degradation, biodiversity loss, or local conflict, that is, should it succeed. As well, the authors say, Yasuni-ITT should be looked at as a creative way to combat climate change.

"The climate conference of Copenhagen is only weeks away. What Ecuador has proposed is a good example of how each country can come up with home-grown, nationally relevant ideas to promote sustainable development," Moncel said.

Dr. Clinton Jenkins of the University of Maryland says that the future of Yasuni national Park will ultimately rest on the value's of global society: "Yasuní is an exceptional place in the world, biologically incredible, home to uncontacted peoples, and yet – perhaps tragically – full of oil. Society faces a test of what we value more, drilling for more oil, or preserving a cherished national park and the people who call it home."

In terms of biodiversity Yasuni National Park supports 150 amphibian species and 121 reptiles (the highest numbers of herpetofauna on earth), in addition to 600 species of bird and 200 mammals. Such numbers are always changing, since new species are discovered frequently.

The reserve is also home to the Waorani people. In the past the warlike tribe often defended their homes violently: they became famous for spearing oil workers, missionaries, and illegal loggers, while the infringement on their territory by the wider world led to several epidemics and cultural upheaval. Tribes—both related and only distantly related to the Waorani—still remain uncontacted in the park today, such as the Tagaeri and Taromenane.

Due to the unique place that Yasuni National Park holds not just for Ecuador (it's the country's only Amazonian park), but for the world, it was designated a Man and Biosphere Reserve by UNESCO in 1989.


Citations:

Matt Finer, Remi Moncel, and Clinton N. Jenkins. Leaving the Oil Under the Amazon: Ecuador's Yasuni –ITT Initiative. Biotropica, October 2009. 10.1111/j.1744-7429.2009.00587.x.

Matt Finer, Varsha Vijay, Fernando Ponce, Clinton N Jenkins, and Ted R Kahn. Ecuador’s Yasuni Biosphere Reserve: a brief modern history and conservation challenges. Environmental Research Letters 4 (2009) 034005.

Ecuador: Germany Pledges $50M/Yr For Yasuni Project

(Dow Jones)--Germany has pledged $50 million a year as a contribution to the Yasuni-ITT project, which would see Ecuador compensated for not extracting oil from an Amazonian reserve, Ecuador's president said Tuesday.

Speaking at a Chatham House conference, Rafael Correa said the $50 million was part of an annual $350 million compensation the Andean nation is seeking as part of the project.

He said the funding be equivalent to 10 to 12 years of earnings.

Ecuador's environment minister, Marcela Aguinaga Vallejo, later said the pledge, made following an Ecuadorian visit in June, was dependent on the creation of a trust fund for the project and that other countries would join.

Foreign Affairs Minister Fander Falconi said Ecuador is also in talks with France and Spain about financing the project, saying it had received a "great response" from them.

President Correa said the project will keep 850 million barrels - or 20% of Ecuador's proven oil reserves - under the ground. It will save 407 million metric tons of carbon dioxyde from being released into the atmosphere by avoiding deforestation, he added.

Correa also called for the incoming Copenhagen negotiations in December to address funding for projects that avoid deforestation, such as Yasuni-ITT, and not just those aimed at planting trees. "They shouldn't compensate only forestation but (abstaining from) deforestation," the president said.

-By Benoit Faucon, Dow Jones Newswires;

Incoming Chevron Chief Toes Company Line on Ecuador Oil Pollution Case During Debut in Nation's Capital

Amazon Watch and Rainforest Action Network

FOR IMMEDIATE RELEASE 2009-10-27

Han Shan, 917-418-4133, han@amazonwatch.org
Nell Greenberg, 510-847-977, nell@ran.org

Incoming Chevron Chief Toes Company Line on Ecuador Oil Pollution Case During Debut in Nation's Capital

Supporters of Amazon Residents Who Are Suing Chevron for Environmental Cleanup Put $27 Billion Contamination Case Front and Center During
CEO-to-be John Watson's Chamber of Commerce Visit

Washington DC – Incoming Chevron CEO John S. Watson's debut speech in the nation's capitol addressed a range of issues from the future of the world's energy economy to rising gas prices to the company's $27 billion litigation in Ecuador for massive environmental contamination. Asked how he would address the massive oil pollution case as CEO, Watson toed the company line, vowing to continue Chevron's practice of evading responsibility for the contamination inherited from Texaco upon its acquisition of the company in 2001.

Activists challenged Mr. Watson as he spoke to the National Chamber Foundation at the U.S. Chamber of Commerce today about "the importance of energy security to the long-term stability and success of the U.S. economy," according to the Chamber's announcement. Mr. Watson, the current Vice Chairman of Chevron Corporation's Board of Directors, was the chief architect of Chevron's deal to purchase Texaco, and will succeed current CEO of Chevron Dave O'Reilly on January 1, 2010.

Amazon Watch and Rainforest Action Network organized a rally outside the U.S. Chamber of Commerce with dozens of people holding up signs that spelled out "Mr. Watson, What Will You Do About Ecuador?" Activists distributed a mock Washington Times article dated a few days into Watson's tenure in the first week of January. With the headline reading, "Chevron Announces Plan to Resolve Ecuador Oil Pollution Case," the article imagined a new approach for Chevron under the leadership of Mr. Watson. The mock article was handed to investors, media, and industry peers as they arrived, and distributed widely inside the event, for which The Washington Times served as "media partner."

During a question-and-answer session after his speech, Mr. Watson was asked by the moderator about his approach to the Ecuador pollution case. In reply, he asserted that the Chevron Ecuador case was an example of "a trend where U.S. trial lawyers conspire with corrupt governments" to bring legal actions. Mr. Watson continued, "We're heading toward a determination and judgment in Ecuador. We'll exhaust our legal remedies there, and if we lose, and if enforcement is sought elsewhere, we will fight them very vigorously."

"We hope that his comments today simply reflect the current conservative company stance, and that as CEO Mr. Watson will show more regard for the underlying facts in this case, and will lead his company in a more socially responsible and forward-looking direction," said Mitch Anderson of Amazon Watch. "Mr. Watson was a key player in Chevron's purchase of Texaco and is intimately familiar with Texaco's oil pollution in Ecuador's Amazon. As CEO, he will be well positioned to take immediate steps to clean up the contamination in Ecuador and provide relief to the tens of thousands of people whose environment, communities, and lives have been impacted."

"By focusing energy on evading responsibility instead of cleaning up the mess in Ecuador, Chevron is letting children suffer from some of the world's most heinous environmental destruction when they could be doing something about it," said Rebecca Tarbotton, Program Director of Rainforest Action Network.

For more information about Amazon Watch's campaign, visit: www.ChevronToxico.com.

Amazon Watch works to protect the rainforest and advance the rights of indigenous peoples in the Amazon Basin. We partner with indigenous and environmental organizations in campaigns for human rights, corporate accountability and the preservation of the Amazon's ecological systems. Amazon Watch's Clean Up Ecuador Campaign has been providing critical support to the affected communities
in their pursuit of justice and environment cleanup.

Rainforest Action Network runs hard-hitting campaigns to break America's oil addiction, protect endangered forests and indigenous rights, and stop destructive investments around the world through education, grassroots organizing, and non-violent direct action. For more information, please visit: www.ran.org

Ecuador wants funds to stop rainforest oil output

* Ecuador offers to leave oil underground for compensation

* Ecuador plans diplomatic offensive to promote plan

By Adrian Croft

LONDON, Oct 27 (Reuters) - Germany, Spain and France have expressed interest in a pioneering Ecuadorean plan not to pump oil from under a tropical forest in return for international compensation, Ecuadorean officials said on Tuesday.

Ecuador's President Rafael Correa, on a London visit, called for support for the Yasuni initiative, under which Ecuador would leave 850 million barrels of oil, worth $6 billion, underground as a contribution to countering climate change.

In return for not exploiting the oil in the environmentally rich area, the OPEC-member country is looking to other countries to pay it $350 million a year.

"We are proposing to the world that we will leave that oil underground. That means giving up on $6 billion, but we would thereby avoid polluting the planet," Correa said in a speech at the Chatham House thinktank.

Not touching the oil would avoid creating 410 million tonnes of carbon dioxide, Ecuador says.

Ecuador has launched a diplomatic offensive to promote its plan before U.N. climate talks in Copenhagen in December.

The left-wing Correa said that so far, the only progress towards international acceptance of the plan had been a German proposal to contribute $50 million a year for 13 years.

Foreign Minister Fander Falconi said the German support was conditional on Ecuador setting up a proposed international trust fund, into which countries would pay the money, and on a second country agreeing to give financial backing to the plan.

Falconi said the Spanish government had given strong support for the plan and Yolanda Kakabadse, a member of Ecuador's Yasuni commission, said the French government had expressed interest.



RUSSIAN VISIT

No talks are planned in Britain, where Correa is on a private visit, but the Ecuadorean delegation travels to Russia on Wednesday and will discuss the proposal there, Falconi said.

Ecuador says that foregoing oil drilling in a block that overlaps the Yasuni National Park would also protect two indigenous tribes living in isolation there.

The proceeds of the initiative would be used for clean energy projects and to alleviate poverty in Ecuador.

Ecuador also has more ambitious plans to invite other developing countries with energy resources -- such as other countries in the Amazon region, Malaysia, Indonesia, the Philippines, Papua New Guinea and Congo -- to form a consortium.

The consortium might then propose the creation of a new tradeable instrument, similar to carbon permits, that would put a value on carbon dioxide that was not emitted because resources were left in the ground.

During Correa's trip to Russia, Falconi said Ecuador would sign a strategic association agreement to promote cooperation on investment and technology transfer.

He said Ecuador had no plans to buy arms from Russia, although he said Ecuador would complete the purchase of two Russian helicopters, a deal he said had been negotiated over the past year.

Correa is a critic of Washington and an ally of Venezuelan President Hugo Chavez, who is building up his military with Russian weapons.

Both socialist presidents object to a deal being negotiated between Colombia and the United States under which U.S. anti-narcotics operations will be launched from Colombian bases. (Additional reporting by Sujata Rao; Editing by Stefano Ambrogi and David Brough)

Student Protest Turns Violent in Ecuador

QUITO – A demonstration on Wednesday by thousands of Ecuadorian college students unhappy with government proposals to reform the university system ended in a violent confrontation with police.

Protesters gathered at a park on the north side of Quito and marched to the presidential palace, where police responded with tear gas after students hurled bottles and sticks while making several attempts to storm the gates.

Media outlets blamed the violence on leaders of the Ecuador Federation of University Students, who demanded a meeting with President Rafael Correa or Vice President Lenin Moreno.

Joining students for the peaceful part of the demonstration were professors, university chancellors and administrative personnel, opposition politicians and business leaders.

A similar protest took place in coastal Guayaquil, Ecuador’s biggest city, where students marched to the offices of the Guayas provincial government, delivering a petition to Gov. Roberto Cuero.

The Correa administration’s education bill is an “authoritarian” measure that “reduces, assaults and occupies the autonomy of universities and of the system,” according to Gustavo Vega, head of the National Higher Education Council.

Critics of the proposed legislation want changes in the articles applying to universities’ operational and financial autonomy. Students, professors and administrators also complain that they weren’t consulted when the administration drafted the bill.

The government, however, stresses the need for a “university revolution” and for the state to recover its policymaking and regulatory role in the realm of higher education.

Officials likewise claim that some opponents of the bill are members of entrenched sectors who fear losing “their privileges.” EFE

Colombia knows of 12 FARC bases in Ecuador

Colombia Reports, 24 October, 2009

Colombia news - Sucumbia

Colombia says it is certain that the FARC have twelve guerrilla camps on Ecuadorean territory where some 2,000 guerrillas are hiding from the Colombian authorities.

According to a report by newspaper El Espectador, Colombian intelligence sources said these camps are all in the northern Ecuadorean Sucumbios province where the Colombian military in March 2008 bombed a FARC camp and killed the #2 of the guerrillas, Raul Reyes.

The Colombian government is keen to send the intelligence information and coordinations of the camps to the government of Rafael Correa, but is withholding it because of the arrest warrents for several of Colombia's highest ranked military by a judge in the same province, the newspaper reported.

According to the Colombian intelligence report, a number of prominent FARC commanders are in these twelve Ecuadorean camps and are hiding themselves between the civilian population of the border area.

Both guerrilla and paramilitary forces are known to use the remote jungle area between Ecuador and Colombia to hide from authorities or transport cocaine.


Indigenous movement continues to weaken

LatinAmericaPress
Luis Ángel Saavedra

10/23/2009



Beneath government´s call for dialogue, a plan to divide indigenous groups.

Ecuador´s largest and important organization´s call for a large protest against President Rafael Correa´s policies may have put pressure on the government, but it also gave the administration the chance to further divide the already weakening indigenous movement, once a strong political force in the Andean country.

Since Correa took office in January 2007, the indigenous movement, which emerged as an influential movement in the 1990s, has not been able to formulate a cohesive platform. The government argues that indigenous issues are highly important to the administration´s political agenda. But indigenous groups, which once strongly supported Correa, have become wary of some of his policies, particularly those pertaining to natural resources, and instead of making a solid opposition, have become weaker and fractured.

The umbrella group Confederation of Indigenous Nationalities of Ecuador, or Conaie, had called for marches against Correa´s political decisions, such as lifting a mining ban, stripping state-funded indigenous offices of their autonomy, failing to guarantee bilingual education and other issues. But the Confederation of Kichwa Nationalities of Ecuador, or Ecuarunari, a member of Conaie, urged the groups to focus their demands on a water administration law that is currently up for debate in Congress before Conaie even called the protests and had a chance to develop a platform.

Government propaganda
The government met Conaie´s call for protest with an aggressive media campaign to discredit indigenous leaders, and presenting a water administration bill, stated that no privatization of water will be allowed. The promises resonated with the indigenous groups and organizations accepted invitations – that were not offered to Conaie – for dialogue with the government.

Organizations included the small Ecuadorian Indian Federation, which has links to the country´s Communist Party, and the National Federation of Campesina and Indigenous Organizations, which is tied to the Socialist Party.

"The government is trying to turn the indigenous organizations against each other," said William Chena, director of the Evangelical Indigenous Organizations and Peoples´ Council, which in the beginning also met with the government.

The protests in the highlands and coast were sparsely attended and leaders ended up focusing their agenda on the government propaganda for the water bill, while other issues were left by the wayside.

But in Ecuador´s jungle, the site of copper and gold fields, protests against the government´s pro-mining policies drew large crowds demonstrating the potential environmental damage to their native areas.

Amazon protests turn violent
While Conaie and Ecuarunari leaders called off the protests shortly after they began, Shuar and Achuar people of the southern Amazon continued with their demonstration against mining activity.

Fractured and without an unified agenda, the protest would have been a failure if it hadn´t been for the Amazon protest, which only grew stronger after the demonstration grew deadly with the death of Shuar professor Bosco Wisuma.

In the Amazonian city of Macas, Wisuma was killed by a pellet gun. The police said it did not use such a weapon, and Correa said the pellet came from one of the protesters. Conaie reacted by reinitiating the protest, which took place only in Macas.

The government also broadened its call for dialogue, this time including Conaie. Correa´s government also issued a decree establishing "permanent dialogue" with indigenous sectors only if they do not protest.

For the moment, la Conaie has no other option but to participate. The organization has called for talks not only on indigenous lands, natural resources, education and other issues, but also a committee to investigate Wisuma´s death.

But some are skeptical about what the talks will produce.

"The dialogue doesn´t go anywhere. I don´t believe in them anymore," said indigenous lawmaker Lourdes Tibán. —Latinamerica Press.

Ecuadorian Water Law Sparks Outrage from Indigenous Communities

Americas Quarterly, October 23, 2009

by Ruxandra Guidi

Last month, around a thousand peasants marched and blockaded the streets of Cuenca, Ecuador, and many more came out in protests throughout the Ecuadorian Amazon, calling for the cancellation of a new water law. If passed, the law would privatize water services, limit community and neighborhood water management, relax current measures on water contamination, and (to the great frustration of the activists) prioritize water access to private companies. The demonstrations also came in reaction to a new mining measure, which would allow two Canadian companies—Corriente Resources Inc. and Kinross Gold Corp.—to resume gold explorations in contested areas of the Amazon where indigenous communities live.

The situation has only worsened since the beginning of October, leading to violent raids by police. In the community of Macas, in the Southern Upano Valley, the attack left at least one confirmed dead and almost 50 injured. President Rafael Correa has accused the leading indigenous organization, the Confederation of Indigenous Nationalities of Ecuador (CONAIE), of trying to destabilize his government with “lies.” He claims that the protesters were acting on behalf of the country's conservatives who would like to see Correa fail.

Showdowns between the people and the government over indigenous rights and natural resources are nothing new in the Andes. But in the case of Ecuador, the current conflict over the privatization of water is bringing to mind the so-called "Water War" that erupted in Bolivia in 2000. That dispute ended in a victory for the protesters.

It all started in 1999, when a partnership between the American multinational, Bechtel, and the Bolivian government—at the suggestion of the World Bank—signed a deal to improve water supplies to the city of Cochabamba. The move increased the cost of the service by 35 percent, to about $20 a month. (The average salary in Cochabamba remained at $100 a month.) Then hundreds of protesters took to the streets when one of the new water executives said, "If people fail to pay their accounts, we'll cut their service." Protests continued for three weeks until the government backed down.

Many analysts credit the victory of Evo Morales in 2005 to the wave of mobilizations that was ignited by the Water War. (For more on this, and on social movements in Bolivia, please read the blog by Jim Shultz of The Democracy Center.)

As the country's first indigenous president, and as a former labor leader and activist, Evo Morales has tried to address some of the issues affecting Bolivia's indigenous majority. Among them have been Morales' controversial plans for land rights and land distribution, a "nationalization" of Bolivia's natural gas and a series of provisions which extend the human, cultural and political rights of Bolivia's 36 indigenous groups.

Evo Morales' new constitution was adopted in January of this year—a move that seems to have silenced his opposition and pleased many of his indigenous supporters for the time being. But in Ecuador, the passing of a new, more inclusive magna carta seems to be having the opposite effect.

Last month marked the one-year anniversary of Ecuador's constitutional referendum. Much as in Bolivia, this new document was meant to advance the rights of the indigenous communities and the rights of all Ecuadorians to water and natural resources.

But indigenous and peasant organizations say the Correa government has not lived up to its constitutional promise. They represent a powerful social movement—one that should not be discounted in their effort to change policy by first taking to the streets.

* Ruxandra Guidi is a contributing blogger to americasquarterly.org. She is an independent journalist based in Austin, Texas, and her work can be found at Fonografia Collective (http://fonografiacollective.com).

Colombia asks to investigate Ecuadorean judge

Colombia Reports, 23 October, 2009

gabriel silva, colombia news, ecuador

Colombia's Ministry of Defense requested Thursday that Ecuador's authorities investigate the judge who seeks to extradite former Defense Minister Juan Manuel Santos and Commander of the Amed Forces, Freddy Padilla de Leon.

Defense Minister Gabriel Silva said that the investigation represents dark motives against the Colombian government, reported newspaper El Espectador.

"We have recommended that the Ecuadorian authorities launch an inquiry into the motives behind this judge's actions," said Silva.

He added that the Colombian government had indicators that suggested that the proceedings were not transparent, and asked that Ecuador find out the true judicial intentions of the proceedings.

A judge in the northern Ecuadorian province of Sucumbios has filed charges against former Colombian Defense Minister Juanl Manuel Santos, current Director of the National Police, Oscar Naranjo, and Commander of the Armed Forces General Freddy Padilla de Leon. None have yet been taken into custody.

They are all being held responsible for the 1 March 2008 bombing of a FARC encampment in Ecuadorian territory, which killed 25 people, including the FARC second-in-command Raul Reyes, four Mexican students and an Ecuadorian civilian. The attack was not sanctioned by Ecuador's authorities.

Diplomatic relations between the two countries were suspended and have just recently started down the path to reconciliation when the extradition requests were issued.

"The more aggression against [Colombia] through the courts, the more staff and officers that are involved, the more people who are unionized, the clearer it is that it has a political purpose with no legal basis. This is a defense issue of state," Silva declared, W Radio reported.

Colombia's President, Alvaro Uribe, said that his government "has the full determination to protect our officials, our ministers, the ex-Minister and the high command."


Abrasive style opens new front for Ecuador's Correa

* Confrontational style eroding Correa's popularity

* Former allies now criticizing his policies

By Javier Mozzo

QUITO, Oct 23 (Reuters) - Leftist Rafael Correa was elected president on promises of curtailing the power of Ecuador's rich elites. He was not counting on having to do political battle with his poor indigenous base as well.

But the confrontational leader is coming under fire from Indian leaders and other one-time allies as he uses his regular Saturday television program to blast the growing list of those who criticize his policies and his pugnacious style.

International investors, local bankers and what he calls "corrupt and dishonest" media companies have always been among Correa's adversaries. Indigenous leaders in Ecuador's Amazon region, who have helped throw presidents out of office before, are now lining up to oppose some of his policies as well.

They say his mining reforms will allow big companies to encroach on and pollute their lands. They also say his water policies will rob local communities of control over natural resources and concentrate control in the hands of the state.

Teachers unions have taken to the streets against his performance education reform agenda.

The multi-front political battle has taken a toll on Correa's popularity, which has fallen to below 60 percent from 84 percent in the early days of his government in 2007, analysts say.

Correa needs to tone down his rhetoric or risk losing more support, said Santiago Nieto of Quito-based polling firm Informe Confidencial.

"The president has quite a confrontational style," Nieto said. "This approach is losing its efficiency in the current political environment."

On his most recent Saturday broadcast, Correa defended his style, saying he was within his right to speak directly to indigenous leaders and university professors.

ECONOMIC WOES, SKITTISH INVESTORS

Low global oil demand has hurt Ecuador's finances while many international investors shun the OPEC-member country due to the tough stance Correa has taken with the private sector and his 2008 default on $3.2 billion in foreign debt.

Growing opposition to Correa is important given Ecuador's history of toppling presidents in times of economic trouble -- its leaders have lasted less than two years in office on average over the last decade.

Correa remains one of the country's most popular presidents after two years in office. In the early stages of his presidency, many Ecuadoreans thanked him for taking on lawmakers many blamed for years of corruption and instability.

But going on the counterattack against opposition groups could prove costly for the U.S.-educated former economy minister, who is distrusted by many international oil companies for his push to renegotiate production contracts in a bid to increase government clout in the sector.

"Ecuadoreans are tired of hearing his regular Saturday attacks against the indigenous, journalists and everyone else who criticizes the regime," said Indian leader Monica Chuji in a televised interview this month.

"His attitude is arbitrary and anti-democratic," said Chuji, a former spokeswoman for Correa's government who fell out with him after an argument over indigenous rights.

He won re-election this year after pushing for a new constitution allowing more than one presidential term.

Since then the president, who is given to wearing ornate indigenous shirts beneath his suit jacket, has vowed to deepen his socialist reforms, which include setting up Cuban-style "Committees for the Defense of the Revolution".

El Comercio, a local newspaper and regular target of Correa's tirades, earlier this month said the country is at its "saturation point" with the tough-talking leader.

Newspaper columnist Julio Cesar Navas wrote last week: "Frankly, it's not very nice to have a neighbor who wants to fight every weekend." (Writing by Hugh Bronstein; editing by Mohammad Zargham)

Friday, October 23, 2009

Peruvian, Ecuadorian Presidents hold "historical" bilateral meeting

LIMA, Oct. 22 (Xinhua) -- Peruvian President Alan Garcia and his Ecuadorian counterpart Rafael Correa on Thursday held talks which were described by them as "historical" following armed confrontation over a century.

"We have to adjust bills with the history. We do not have one second more to spend, our people have lost a lot on war conflicts," said Correa at the end of 3rd Bilateral Ministerial Cabinet Meeting held in Piura city, northwest Peru.

During the meeting, the two presidents signed six cooperation agreements.

Referring to the peace agreement signed on Oct. 26, 1998 in the Brazilian capital of Brasilia, the Peruvian president said "we are surpassing the agenda" of the agreement.

"Never in the political history of Latin America and in the world, there have been sustained and continuous works in fact like the ones we have been doing," Garcia added.

Over the last 100 years, Peru and Ecuador had experienced several armed conflicts over border issues, such as the war of 1941 in the El Oro border area, the conflict over the military base of Paquisha in 1981 and the Cenepa war in 1995.

Ecuadorian judge files charges against Colombian general

Colombia Reports, 22 October 2009

oscar naranjo, ecuador, colombia news

For the controversial assault in question, 'Operation Phoenix', Ecuadorian courts have requested the extradition of the Police Director, General Oscar Naranjo.

In addition to Naranjo, Ecuador want Colombia's former Defense Minister Juan Manuel Santos and the Commander of Colombia's Armed Forces General Freddy Padilla de Leon extradited, claimed a report by news station W Radio on Thursday

Operation Phoenix took place in March 2008 when the Colombian Military bombed a FARC encampment on Ecuadorian soil without warning Ecuadorian authorities. The assault resulted in the death of the FARC's second most important boss, 'Raul Reyes'.

Ecuador and Colombia are in the process of negotiating strategies to restore their fractured ties.


'Crude,' the Film, Explores Oil Giants' Crude Conduct in Ecuador

WASHINGTON, DC, October 22, 2009 (ENS) - The acclaimed documentary film "Crude," which details the 16-year struggle of indigenous peoples in Ecuador's Amazon to hold Chevron legally accountable for contamination of a huge rainforest area, opens in Washington, DC on Friday during intense scrutiny of a $27 billion liability lawsuit against the oil giant.

Since it premiered at the Sundance Film Festival in January, "Crude" has been praised in the media and has won a series of environmental and human rights awards. Theaters were packed for the film's opening weekend in New York City in September.

'Crude' filmmaker Joe Berlinger with posters for the documentary at the New York City opening, September 9, 2009. (Photo courtesy Amazon Watch)

"Crude" runs from October 23 through 29 at the Landmark E Street Theatre in Washington, DC.

Filmmaker Joe Berlinger focuses on the legal controversy as well as the destruction of human life and the rainforest environment from nearly three decades of oil exploration and development of the Lago Agrio oil field in northeast Ecuador.

The film delves into the complexities of the lawsuit currently underway against the company in Lago Agrio, where Chevron's subsidiary, Texaco Petroleum Company participated until 1992 as a minority member of a consortium that explored for and produced oil under contracts with Ecuador and Ecuador's government-owned oil company, Petroecuador.

Filed by Ecuadorian Indians and farmers who have suffered illnesses and ecological damage to their land caused by oil contamination, the lawsuit alleges that from 1964 to 1990, Texaco deliberately dumped more than 18 billion gallons of toxic oil production process waste into unlined pits rather than injecting it underground.

In 1995, amid litigation, Texaco agreed to clean a number of waste pits in proportion to its interest in the consortium, at a cost of $40 million. In exchange, the government of Ecuador released Texaco from further liability. Chevron, which bought Texaco in 2001, has used this agreement as its primary defense against the ongoing legal claims.

American human rights activist and attorney Kerry Kennedy has taken up the cause of the Ecuadorian indigenous groups. Founding president of the Robert F. Kennedy Center for Human Rights, and the chair of the Amnesty International Leadership Council, Kennedy is a daughter of former U.S. attorney general and presidential candidate Robert F. Kennedy,

After a visit to the affected area earlier this month, Kennedy told reporters on a teleconference what she observed.

"I saw open air, unlined waste pits, full of oil sludge, built and abandoned by Texaco, never operated by any other company," Kennedy said. "I met a man whose home is just a few hundred yards from the pit. He told me he had 10 children, all of them have become sick, some covered with sores. He told me he has endured a stomach ache for over eight years. His chickens have died, his pigs have died, he said nothing grows near his home anymore."

Texaco built some 350 oil wells across 2,700 square miles of Amazon rainforest. From 1964 to 1990, the company dumped over 18 billion gallons of production water, a mixture of oil, sulfuric acid, and other carcinogens into the streams and rivers where people collect drinking water, bathe, and children swim, Kennedy alleged.

One of more than 900 unlined oil waste pits in the rainforest of northeast Ecuador. April 2009. (Photo by Raoni Maddalena)

"Texaco constructed over 900 oil sludge pits in the early, many the size of Olympic swimming pools. Unlike swimming pools, these pits were unlined with no concrete to protect the surrounding soils and waters from seepage. This allowed the poison to seep into the ground water, and, in a rainforest with heavy rainfall, they were uncovered, so the pollutants were constantly spilling out into surrounding forests and streams," she said.

"Texaco's trucks dumped more oil waste on the roads where people walked, often in bare feet because they could not afford shoes," Kennedy said. "Imagine the burns from sticky black tar-like like substances that stick to the feet baking in the hot sun along the equator."

"I saw enormous gas flares in the middle of the rainforest spewing venom into the air, poison which, because of the delicate ecosystem, will continue to cause damage for generations to come," she said.

"Texaco knew people would die because of what they were doing, and they ignored it," Kennedy accused. "People have died. There are 1,400 cancer deaths directly attributed to Texaco's waste. An entire group of indigenous people have been wiped out. What they did arguably amounts to criminally negligent homicide."

Kennedy said she would welcome the opportunity to speak with the Chevron Board of Directors about this matter. On October 15, she sent a letter to Board Chair David O'Reilly seeking dialogue. O'Reilly retires at the end of the year and will be succeeded by John S. Watson, the company has announced.

"As an American," she said, "I am appalled that a corporation from our country would treat innocent people with such disdain, and I am confident that as more Americans gain awareness of this behavior, Chevron will be held accountable."

Congressman James McGovern, a Massachusetts Democrat who visited the affected area last year and who is scheduled to attend the film premiere, wrote a letter to President Barack Obama in which he described the situation in Ecuador as a “terrible humanitarian and environmental crisis.”

McGovern said in the letter, “As an American citizen, the degradation and contamination left behind by this U.S. company in a poor part of the world made me angry and ashamed.”

In the oil-contaminated community of Yamanunka, Luis and his relatives show signs of cancer after drinking the water he collects in the river behind his house. April 2009. (Photo by Raoni Maddalena)

Chevron contends that after its participation in the consortium ended in 1992, Texaco Petroleum negotiated a settlement agreement with Ecuador and Petroecuador whereby Texaco Petroleum assumed responsibility for specified environmental remediation projects in proportion to its minority ownership interest.

In 1998, in company says, "after the requisite remediation work was performed and independently validated, Ecuador and Petroecuador released Texaco Petroleum and its affiliates from further liability."

"Ecuador assumed responsibility for any remaining impact caused by the consortium's pre-1992 activities as well as any future impact caused by Petroecuador's own ongoing operations in the former concession area," Chevron said in a statement September 23.

"Since Texaco Petroleum's departure, Petroecuador has drilled over 400 new wells in the concession area, compared to the 321 wells that were drilled during the consortium," Chevron said. "Compounding the situation, Petroecuador's environmental record as an operator has been notoriously poor, with more than 1,400 oil spills since 2000 alone."

Chevron argues that, "The current Ecuador lawsuit is an effort to force Chevron to pay for Petroecuador's own misdeeds. In collusion with trial lawyers suing Chevron, the government of Ecuador has violated its contracts with Texaco Petroleum as well as protections afforded to investors under the United States-Ecuador Bilateral Investment Treaty."

In September, Chevron filed an international arbitration claim against the government of Ecuador, citing violations of the country's obligations under the United States-Ecuador Bilateral Investment Treaty, investment agreements, and international law.

The ongoing legal case, Aguinda v. ChevronTexaco, began in October 2003 in the Superior Court of Nueva Loja in Lago Agrio, Ecuador after it was transferred from a U.S. federal court at Chevron’s request.

In late August, as part of its campaign to discredit Ecuador's courts, Chevron posted secretly-recorded videotapes on YouTube that purport to show a bribery scheme involving a trial judge who has since been removed from the case. Since then, a number of inaccuracies and discrepancies in Chevron's account of the tapes have been uncovered by journalists, and the company has refused to make the witnesses or full tapes available.

Ecuador's government has asked the U.S. Department of Justice to investigate Chevron's legal team for possible violations of the Foreign Corrupt Practices Act on the theory the company created the tapes to undermine Ecuador's judicial system so it could evade a liability.

Chevron also is currently under investigation by Ecuador's Attorney General for its role in the bribery scandal.

Separately, Ecuador's national prosecutor in 2007 indicted two Chevron lawyers for lying about the results of a partial remediation used to secure a legal release.

Earlier this year, New York Attorney General Andrew Cuomo announced he was investigating Chevron to determine if company management was misleading shareholders regarding its financial risk in Ecuador. Incidentally, Cuomo was formerly married to Kerry Kennedy from from 1991 until 2003.

People of Lago Agrio march against Chevron and Texaco. October 5, 2009. (Photo courtesy Amazon Watch)

Over a period of 20 years, the Lago Agrio field produced 1.7 billion barrels of oil with a profit of $25 billion. According to Chevron, 95 percent of the profit from the consortium went to the government.

On October 5, a march was held in Lago Agrio to mark the retirement of Chevron CEO David O'Reilly. Hoisting a coffin filled with effigies of Chevron executives and lawyers on their shoulders, protesters marched to one of the oil waste pits that Chevron claims to have remediated. They lowered the coffin into the still oily ground, symbolically burying O'Reilly and his colleagues.

"We the people in Ecuador want to say that this supposed development is killing our way of life," said Justino Piaguaje, president of the Secoya people, at the march. "We are enclosed in this small territory that does not guarantee life to our people because these territories are contaminated."

The Secoya people are asking Chevron's new chief to come to Ecuador for a first-hand look at the contaminated rainforest.

"To Chevron's new president, we want to send a message that we need remediation urgently. It's not necessary for people to continue dying," said Piaguaje. "We want him, John Watson, to come to Ecuador and see for himself what has happened to our people."

The film "Crude," scheduled to be shown in 40 cities across the country and for a 2010 release in the United Kingdom, is rumored to be in contention for an Oscar nomination.

Attending the Washington, DC premiere will be Luis Yanza, a representative of the affected communities in Ecuador and a winner of the prestigious Goldman Environmental Prize; filmmaker Berlinger; and Steven Donziger, the American legal advisor to the communities. Yanza and Donziger are featured in the film.

Copyright Environment News Service (ENS) 2009. All rights reserved.

Ecuador, Colombia and An Olive Branch

21 October 2009
Portrait of Ecuadorian President Rafael Correa, courtesy of Presidencia de la República del Ecuador/flickr

Ecuadorian President Rafael Correa
(cc) Presidencia de la República del Ecuador/flickr

Ecuadorian President Rafael Correa has extended the olive branch to Colombia, signaling that he has secured enough power to take a geopolitical risk on Colombia, an enemy contrived only to ensure victory at home, Samuel Logan comments for ISN Security Watch.

By Samuel Logan for ISN Security Watch

Ecuadorian Security Minister Miguel Carvajal has announced the suspension of a Colombian-Ecuadorian Security Commission meeting set for 16 October to normalize relations between the neighboring South American countries.

Colombia had requested the suspension shortly after an Ecuadorian judge formalized the extradition of Colombian General Freddy Padilla for his connection to the ongoing court case that began when Colombia attacked Revolutionary Armed Forces of Colombia (FARC) camps in Ecuador in early March 2008.

Ecuadorian President Rafael Correa remains committed to the thawing of relations, but he will not go against the judge, yet another sign that domestic pressures have motivated Ecuador’s decision to break relations with its northern neighbor, putting more urgent issues such the necessities of securing a common border or jointly combating the resilient FARC on the back burner.

Hours after the March 2008 bombing that killed FARC commander Raul Reyes, Ecuador exploded with the public outcry of an invasion. A larger, more powerful neighbor had made a unilateral and Machiavellian decision to attack a FARC camp on Ecuadorian territory; it had clearly disregarded the small country’s sovereignty, but the ends result was that the attack shook the FARC to its core, and as an organization it hasn’t recovered and likely never will.

At the time, however, Correa chose not to appreciate the silver lining. He was more concerned with his own internal battle to stay in power and rally a domestic support base for his political movement. Both presidents Evo Morales and Hugo Chavez have used the same strategy, focusing on the US to fire up support in their political bases.

Yet little in the region, and nothing in Correa’s political career, could compare with the Colombian invasion: an excellent opportunity to charge his country to the brink of war abroad so he could ensure victory at home.

Correa became president after a run-off election in November 2006, which he won after taking second place. At the time, he was the country’s seventh president in 10 years. The country’s political climate was tense, and Correa had to act fast to secure his mandate. He had initially garnered support by shutting down the unpopular Congress, renegotiating the country’s national debt, and calling for a Constituent Assembly, which was sworn a little over a month after Colombia bombed Reyes’ camps. Politically speaking, the timing was perfect.

Correa was re-elected as president in April 2009; it was the first time Ecuador had re-elected a president in 30 years.

Finally, in September, about a month after he was sworn in on Ecuador’s bicentennial, Correa extended the peace branch to his neighbor. His domestic agenda was on track, and he was well positioned at home to take more risks internationally, and Colombia was the first bullet point on his agenda.

On 8 October, Correa stated that if Colombia would reveal the location of FARC rebel camps in Ecuador, “we will capture them,” adding, “we can work together as we always have.”

Colombia has delivered information on FARC camps, and as the region waits to see where the political negotiations will head after this latest hiccup, sure proof of Ecuador’s change of heart will be the capture and delivery to Colombia of any number of FARC rebels operating on Ecuadorian territory.


Samuel Logan is an investigative journalist and author of This is for the Mara Salvatrucha: Inside the MS-13, America's Most Violent Gang, (relased by Hyperion in summer 2009). He is the founder of Southern Pulse | Networked Intelligence, and has reported on security, energy, politics, economics, organized crime, terrorism and black markets in Latin America since 1999. He is a senior writer for ISN Security Watch.

The views and opinions expressed herein are those of the author only, not the International Relations and Security Network (ISN).


Ecuador creates a world heritage ministry

QUITO, Oct. 20 (Xinhua) -- Ecuador has created a world heritage ministry to better share and take care of the country's natural and cultural resources, the presidential office announced on Tuesday.

After taking the ministerial office, former foreign minister Maira Fernanda Espinosa told reporters that the new ministry was expected to replace the mercantilism vision of natural, cultural and human resources of the country with a vision of collective and public welfare.

"The heritage is shelter and support of the dignity and identity of all the Ecuadorian people," said the new minister, adding that the Ecuadorian heritage is not an abstraction but rather a mirror aimed at funding a human, sustainable and inclusive society.

The United Nations Educational, Scientific and Cultural Organization has so far inscribed on its World Heritage list three cultural and as many natural sites from the Central American country.

Heritage Minister Fernanda Espinosa said that his portfolio, created with President Rafael Correa's instruction, "is perhaps one of the most promising spaces for the country because it is where we can put into practice the good living, and it is also aimed to place the public policies to relate to recognizing Ecuador a mega-diverse country."

Ecuadorian court declines extradition request for former Colombian minister

Colombia Reports, 20 October 2009

ecuador, santos, colombia news

Ecuador's National Court of Justice declined to process an extradition request involving the former defense minister of Colombia, Juan Manuel Santos, upon finding that the judge making the request had incomplete documentation.

A court official who declined to be named saying he was not authorized to give information, told the AP that "as soon as the papers are completed, the process will continue normally," reported Miami's El Nuevo Herald.

"The president of the National Court of Justice returned the file on Friday to judge Francisco Revelo in Sucumbios province because the paperwork was incomplete," said the source.

The National Court of Justice must review the extradition request of former minister Santos, before the Foreign Ministry requires his extradition.

According to Ecuadorian authorities, Santos is responsible for the deaths of 25 people, including FARC then-second-in-command Raul Reyes, four Mexican students and an Ecuadorian civilian in a March 2008 attack on a FARC encampment located within Ecuador's borders.

As the raid was not authorized by the Ecuadorian government, President Rafael Correa broke off diplomatic relations with Colombia, citing violation of Ecuadorian sovereignty. The two countries are in the process of repairing relations.

Along with Santos, the Sucumbios court also seeks the Commander of Colombia's Armed Forces, General Freddy Padilla de Leon, for whom an arrest warrant is pending. The Colombian government, headed by President Alvaro Uribe, has closed ranks around Santos and Padilla de Leon.


Ecuadorian leaders’ assassination shows spillover of Colombian conflict


Statement by Andrea Lari, Senior Advocate:

"The recent assassination of two Ecuadorian community leaders who have been helping Colombian refugees along the border between Ecuador and Colombia represents another indication that violence and terror are no longer contained within Colombian territory but are generating increasing instability well beyond its borders.

"Miguel Lapo and Miguel Pinzón were murdered by unknown perpetrators on September 28th and September 29th. Mr. Pinzón was assassinated in the nearby town of San Martín. Mr. Lapo was killed in Barranca Bermeja, a town in Ecuador located just across the river from Colombia. This very community was visited by Representative Jim McGovern of Massachusetts in November of 2008.

"Refugees International visited the northwestern Ecuadorian province of Esmeralda in June of this year and received several reports of the presence of newly reorganized Colombian paramilitary groups operating in the town of San Lorenzo, close to the border. A number of leaflets threatening "social cleansing" of marginalized groups like drug addicts, thieves and prostitutes had been delivered to communities living in San Lorenzo. The same type of leaflets have been circulating inside Colombia in areas where newly organized paramilitary groups are active in criminal activities and trafficking of narcotics, while gradually exercising social control over communities.

"Refugees International calls for a thorough investigation by the Ecuadorian authorities into the murder of these leaders, while also calling on the U.S. government and countries neighboring Colombia to pursue a multilateral regional effort to address the humanitarian and protection dimensions of the Colombian refugee crisis. A starting point should be providing resources for expanding the presence of international humanitarian actors in border areas, given the increasing number of Colombian refugees fleeing their country. They should also assure support for basic services and infrastructure expansion which would benefit host communities and refugees alike."

Refugees International advocates for lifesaving assistance and protection for displaced people and promotes solutions to displacement crises.

Contact:
Vanessa Parra; +1-202-904-0319
Vanessa@refugeesinternational.org

UNICEF praises Ecuador for increasing social investment

QUITO, Oct. 16 (Xinhua) -- United Nations Children's Fund (UNICEF) on Friday praised the Ecuadorian government for its efforts to increase investment in social welfare in the first quarter of 2009 despite the global financial crisis.

In a report released Friday, Cristian Munduate, UNICEF representative in Ecuador, said among the around 14 billion U.S. dollars of central government budget, more than 3 billion went to social sectors, accounting for 24.5 percent of the total.

As of April, 46 percent of social budget had been allocated to such sectors as education, health, housing and social welfare, she said.

Investment in education, health, housing and social welfare increased 52.5 percent, 22.9 percent, 6.2 percent and 17.7 percent, respectively, compared with 2008, said the report.

The increased budget also went to programs which guaranteed the well-being of Ecuadorian children and teenagers, she added.

Ecuadorian Social Development Coordination Minister Jeannett Sanchez said she was satisfied with UNICEF's conclusion, but notedthere is still much room for improvement despite the positive results.

Ecuadorian Finance Minister Maria Viteri promised renewed efforts to increase social budget. "We are investing in hospitals, schools, infrastructure restoration despite the grave economic crisis," he said.