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, July 31, 2008

Ecuadorean gov't, City Oriente cancel oil contract

IHT, July 31, 2008

QUITO, Ecuador: The Ecuadorean government said Wednesday that it has reached an agreement with U.S.-backed oil company City Oriente to end its operating contract.

Oil and Mines Minister Galo Chiriboga told a news conference that Ecuador will pay the company US$69 million and City Oriente will withdraw an arbitration suit contesting back taxes claimed by the government.

Chiriboga said Wednesday that the company will hand over its jungle oil wells to the government in April 2009. City Oriente is a Panama-based company backed by U.S. capital.

City Oriente pumps about 3,000 barrels a day in Ecuador — less than 1 percent of the country's daily output of around 500,000 barrels. City Oriente's contract was set to expire in 2021.

"This has been an open, frank process that has allowed us to show the country that agreements are possible, even to end contracts," Chiriboga said.

"It's very gratifying ... to have reached a solution with good terms to this conflict with the state," said City Oriente's chief executive, Jose Paez.

City Oriente had filed a claim with the World Bank's International Center for Settlement of Investment Disputes, contesting back taxes claimed by the government after it boosted its share of extra revenues from 20 to 50 percent in 2006.

President Rafael Correa's government is currently renegotiating the contracts of four other foreign oil companies, in a bid to boost its share of the nation's oil income.

Correa, a close ally of socialist Venezuelan President Hugo Chavez, signed a decree last year that nearly doubled to 99 percent the state's share of windfall oil profits, which are earnings on oil sold above prices fixed in company contracts.

Ecuador sticks with US dollar as currency

QUITO, Ecuador (AP) — Central Bank President Carlos Vallejo says Ecuador is going to keep using the U.S. dollar as its currency despite concerns that its weakening value may spur inflation.

The bank chief said Wednesday that the country's hefty oil exports and US$2.5 billion in remittances from Ecuadorean emigrants keep the monetary system sustainable.

Vallejo says that it would be "crazy" and to abandon the greenback under these conditions, but says the country needs to prepare for switching currencies if remittences wane or oil prices plummet.

Ecuador unveiled subsidies in June to combat soaring food costs tied to the lagging dollar.

The country switched to the U.S. currency in 2000 amid an economic crisis.

Correa's tightrope

Ecuador invites Iranian and Chinese investment in a planned refinery on the Pacific Coast.

From Southern Pulse Network, 30/07/08, via ISN

Ecuadorian President Rafael Correa announced on a 19 July radio show that Iran and China may invest in the planned refinery to be constructed in Ecuador's Manabi province on the Pacific coast.

It was an announcement loaded with political innuendo yet takes a step in the direction toward Correa's pragmatic plan to make Ecuador a regional hub of international trade between Asia and South America.

The refinery, named Eloy Alfaro Delgado is the result of a joint venture between Petroecuador and PDVSA, with 51 and 49 percent shares respectively. Correa and Venezuelan President Hugo Chavez were present for the ground breaking ceremony on 15 July, the same day the accords forming the joint venture were signed.

Construction on the US$6 billion refinery is expected to end in 2013, with the refinery supplying 300,000 barrels of oil a day to foreign markets and quite possibly to China alone.

China's involvement is more pragmatic than political. Ever eager for South American natural resources, China's involvement in the refinery is a clear-cut business decision, one that will lock up more refined petrol products for China and increase the likelihood that the refinery will actually be built.

Money from both Iran and Venezuela, however, remains in question.

Just three days prior to his radio announcement, Correa had met with a high-level member of Iran's Trade office, Majid Salehi. The two discussed trade cooperation and bilateral relations, according to a presidential office announcement. This meeting came on the heels of a May agreement for both countries to open trade offices in Quito and Tehran. Political ties between the two countries seem to have tightened, but it is not clear if this will translate for an real economic upshot for Correa.

Iran's ability to lend strong financial support to Ecuador's blossoming trade position is limited, according to World Markets Research, but the country's name on the project allows Correa plenty of rhetorical space, allowing him an opportunity to stoke nationalistic fires.

When announcing Iran's involvement Correa stated that "Iran has a lot of experience in the oil field, it has been a producer for a long time, almost a century.

Somebody may say: Iran, Axis of Evil, but what do I care what other countries think? We have to be masters of our own destiny. We have nothing against Iran. Iran has done nothing to us," Correa said.

Venezuela's participation in this project is under an equal amount of financial uncertainty, generating a level of instability in both this project and Ecuador's overall trade relationship with its South American ally.

According to testimony heard on 17 July before the US' Congressional Committee on House Foreign Affairs Subcommittee on the Western Hemisphere, PDVSA had to borrow some US$16 billion in 2007 to maintain operations. The company is under a number of international lawsuits for its inability to keep up with the deliverables as stipulated by supply contracts. And the company has in some cases sold off international assets to assuage its cash flow problem.

Meanwhile, Ecuador's Central Bank published in early February trade figures revealing that Venezuela has surpassed the United States as Ecuador's leading supplier of fuel. The small country does export crude oil, but has no refining capability, forcing it to import diesel, petrol, and other refined products.

In 2007, Ecuador imported some US$262 million diesel from the US, down from US$628 in 2006. Venezuela filled this gap with some US$423 in diesel exports in 2007. This growing dependence on Venezuela is yet another reason why Ecuador has pushed ahead with plans for a refinery.

Despite Venezuela's possible financial shortfall, Ecuador may find all the project financing it needs from China. The small South American country is an increasingly interesting position vis-a-vis its geographic advantages. And the Manabi refinery is but one development.

When the US military's lease on Manta terminates in 2009, Ecuador will likely use the Manta port and heavy-duty runway to construct a regional import/export center. If plans for a cargo rail line that will link Manta with Manaus in Brazil's Amazonas state come to fruition, Manta would indeed become a regional hub of trade activity, and with the refinery, make Ecuador that much more attractive in Asia's eyes.

Wednesday, July 30, 2008

Ecuador tells US to quit air base

BBC News, July 30, 2008
Rafael Correa
President Correa is against the presence of foreign troops at Manta

The US must stop using its only South American military base for anti-drug flights when its lease expires in 2009, the Ecuadorean government has said.

Ecuadorean officials said they had now formally notified the US that an accord under which the US military uses the Manta air base would not be renewed.

President Rafael Correa has long spoken out against the agreement.

Flights from Manta are responsible for some 60% of drug seizures in the eastern Pacific, US officials say.

A statement from the Ecuadorean foreign ministry said the US ambassador in Quito had been informed of the decision not to renew the lease.

Surveillance flights would end in August 2009 and the withdrawal of foreign personnel would be concluded by November of that year, the statement said.

Strategic value

The US and Ecuador signed the 10-year agreement on 12 November, 1999.

map

Some 300 US personnel are stationed at Manta in western Ecuador, from US Air Force and Us Navy aircraft conduct surveillance flights.

The base has clear strategic value for the US military but Washington has previously said it will respect Ecuador's decision.

US military officials have said there are no plans to set up an alternative base in neighbouring Colombia or Peru.

There have been concerns among some Ecuadoreans that operations from Manta have not just targeted the illegal drugs trade but have aided the Colombian government's fight against left-wing guerrillas, says BBC Mundo's Andean correspondent Carlos Chirinos.

A draft of Ecuador's new constitution, backed by President Correa and approved by the Constituent Assembly, prohibits the presence of foreign bases on Ecuadorean soil.

The text will be put to a national referendum on 28 September.

Chevron Lobbyist: ‘We Can’t Let Little Countries Screw Around With Big Companies’

Chevron Hires Lobbyists To Squeeze Ecuador in Toxic-Dumping Case

by Michael Isikoff
From Newsweek July 29, 2008, via Common Dreams

WASHINGTON/QUITO, Ecuador - Few legal battles have been more exotic than the lawsuit tried over the past five years in a steamy jungle courtroom in Ecuador’s Amazon rain forest. Brought by a group of U.S. trial lawyers on behalf of thousands of indigenous Indian peasants, the suit accuses Chevron of responsibility for the dumping (allegedly conducted by Texaco, which Chevron bought in 2001) of billions of gallons of toxic oil wastes into the region’s rivers and streams. Activists describe the disaster as an Amazon Chernobyl. The plaintiffs-some suffering from cancer and physical deformities-have showed up in court in native garb, with painted faces and half naked. Chevron vigorously contests the charges and has denounced the entire proceeding as a “shakedown.”0729 03 1

But this spring, events for Chevron took an ominous turn when a court-appointed expert recommended Chevron be required to pay between $8 billion and $16 billion to clean up the rain forest. Although it was not the final verdict, the figures sent shock waves through Chevron’s corporate boardroom in San Ramon, Calif., and forced the company for the first time to disclose the issue to its shareholders. It has also now spawned an unusually high-powered battle in Washington between an army of Chevron lobbyists and a group of savvy plaintiff lawyers, one of whom has tapped a potent old schoolmate-Barack Obama.

Chevron is pushing the Bush administration to take the extraordinary step of yanking special trade preferences for Ecuador if the country’s leftist government doesn’t quash the case. A spokesman for U.S. Trade Representative Susan Schwab confirmed that her office is considering the request. Attorney Steven Donziger, who is coordinating the D.C. opposition to Chevron, says the firm is “trying to get the country to cry uncle.” He adds: “It’s the crudest form of power politics.”

Chevron’s powerhouse team includes former Senate majority leader Trent Lott, former Democratic senator John Breaux and Wayne Berman, a top fund-raiser for John McCain-all with access to Washington’s top decision makers. (A senior Chevron exec has met with Deputy Secretary of State John Negroponte on the matter.) Chevron argues that it has been victimized by a “corrupt” Ecuadoran court system while the plaintiffs received active support from Ecuador’s leftist president, Rafael Correa-an ally of Venezuela’s Hugo Chávez. The company says a loss could set a dangerous precedent for other U.S. multinationals. “The ultimate issue here is Ecuador has mistreated a U.S. company,” said one Chevron lobbyist who asked not to be identified talking about the firm’s arguments to U.S. officials. “We can’t let little countries screw around with big companies like this-companies that have made big investments around the world.”

But Chevron’s foes are not without their own resources. Just recently, Donziger and other trial lawyers in the case retained their own high-profile D.C. superlobbyist, Ben Barnes, a major Democratic fund-raiser. And they have tapped a capital connection that may pay off even more. Roughly two years ago, when Donziger first got wind that Chevron might take its case to Washington, he went to see Obama. The two were basketball buddies at Harvard Law School. In several meetings in Obama’s office, Donziger showed his old friend graphic photos of toxic oil pits and runoffs. He also argued strongly that Chevron was trying to subvert the “rule of law” by doing an end run on an Ecuadoran legal case. Obama was “offended by that,” said Donziger. Obama vetted the issue with Vermont Sen. Patrick Leahy (who has long worked on Latin American human-rights issues), and in February 2006 the two wrote a letter to the then U.S. Trade Representative Rob Portman urging the administration to permit the Ecuadoran peasants to have “their day in court.”

The Obama letter, written before the senator had even announced his run for president, is now the wild card in the Ecuador-Chevron dispute. Donziger said he has had no further discussions with Obama on the issue (although he has co-hosted a New York fund-raiser and, together with his wife, raised between $40,000 and $50,000 for Obama’s campaign). An Obama spokesman last week said the senator “stands by his position” that the case is a “matter for the Ecuadoran judicial system.” So now the prospect of an Obama presidency has given additional urgency to Chevron’s plea for help in Washington. Waiting until next year could leave the oil giant at the mercy of a judge in the Amazon jungle.

With Stephan Küffner in Quito

Ecuador says US must leave Manta air base

By GONZALO SOLANO - Associated Press Writer, via Macon.com

The U.S. military must stop using its only outpost in South America for anti-drug flights when Washington's 10-year lease on the base in Ecuador expires in 2009, the Foreign Ministry said Tuesday.

Leftist President Rafael Correa has repeatedly said that Ecuador would not renew the agreement to use the Manta air base, but Tuesday's Foreign Ministry statement said the South American nation has now formally notified the U.S. Embassy of the decision.

Some 300 U.S. soldiers are stationed at the Pacific base and flights from Manta are responsible for about 60 percent of U.S. drug interdiction in the eastern Pacific.

The statement said that surveillance flights will end in August 2009 "and the withdrawal of foreign personnel from the Ecuadorean Air Force base in Manta will end in November of that year."

The United States and Ecuador signed the 10-year agreement in Nov. 12, 1999.

U.S. military officials have said that Washington is not planning to set up an alternative to the base in either neighboring Colombia or Peru. The U.S. government has previously said it will respect Ecuador's decision.

A draft constitution backed by Correa that was recently approved by a special assembly, abolishes any foreign military bases on Ecuadorean soil. The draft charter must still be approved by voters in a referendum.

Ecuador produces very little cocaine, but is often used as a transit country for drugs sent from Colombia and Peru to the United States.

Ecuador Catholic Church Stance on Constitution under Fire

Quito, Jul 29 (Prensa Latina) The Ecuadorian Government questioned the Catholic Church for criticizing a Constitutional bill pending a referendum, and engaging in political campaign.

Augusto Barrera, coordinator between the Executive and the Constituent Assembly, which drafted and approved the new Constitution, expressed disagreement with the country's Episcopal Conference, which announced a campaign to warn of consequences of the initiative regarding abortion and family.

"It is not true that the Constitution favors abortion. It undoubtedly and clearly protects life and establishes protection and care from the very beginning that is conception," explained Barrera.

On Monday, despite Catholic Church's voiced disagreement with a text it considered contrary to life and family, it denied any involvement in politics in this country of 13 million inhabitants, mostly Catholic.

On Saturday, President Rafael Correa said some priests are campaigning from the pulpits against the Constitution with false arguments, saying that it is pro-abortion and totalitarian.

Constituent Assembly President Fernando Cordero presented the new Constitution to the TSE (Supreme Electoral Court) to be subject to a referendum, scheduled for September 28.

Ecuador Central Bank Board Names Vallejo President

By Stephan Kueffner

July 29 (Bloomberg) -- Ecuador's Central Bank board named former Agriculture Minister Carlos Vallejo as its second president in less than six months ahead of a Sept 28 referendum on a new constitution that would pare the bank's authority.

The five-member board picked Vallejo, its newest member, to succeed Robert Andrade, spokesman Patricio Naranjo said in a telephone interview. Andrade resigned a week ago without giving a reason.

The leadership change comes as President Rafael Correa campaigns for a new constitution that would strip the central bank of its autonomy, handing interest rate, foreign exchange, and lending policy to the executive branch. The central bank was already shorn of control over monetary policy when Ecuador adopted the U.S. dollar as its official currency in 2000.

``Vallejo hasn't shown himself to favor central bank independence,'' said Jaime Carrera, head of the Quito-based Fiscal Policy Observatory, a research institute.

Vallejo in an interview with Quito-based newspaper La Hora published yesterday said that Ecuador needed to be ready to drop the dollar in the event of a severe simultaneous decline in the economy's top two sources of foreign dollars -- crude oil and remittances sent home by Ecuadorean emigrants.

The bank has also begun to review the methodology of its macroeconomic data after criticism from Correa about the quality of the data and by economists like Carrera about delays in publishing the information. According to the bank, Ecuador's gross domestic product growth last year was 1.87 percent, the slowest in the Western Hemisphere.

``We've practically had no information since January,'' said Carrera. ``No matter what they publish we will question it.''

Ecuador to Hand in Constitution Text

Quito, Jul 29 (Prensa Latina) The Ecuadorian TSE (Supreme Electoral Court) will hand in around one million copies of the new constitution, to be submitted for a referendum on August 15, a source of that body reported.

An information campaign will be broadcast on national radio, television and press on August 15, and the Ecuadorian consulates around the world will be registering, until August 12, national citizens who voluntarily want to vote, according to TSE Vicepresident Rene Mauge.

The new Constitution, approved in the Constituent Assembly, has 444 articles and more than 20 provisional regulations, and received 94 votes in favor of the 126 assembly members.

Ecuador’s New Constitution Invites Future Problems

Late last week, Ecuador’s Central Bank Minister Robert Andrade resigned in the wake of the Ecuadorian Constituent Assembly’s resounding 94-32 vote approving a new constitution that is likely to strip the financial institution of its autonomy. If ratified in a countrywide referendum on September 28, the new constitution will be Ecuador’s twentieth such organic document since the country achieved its independence in 1830. President Rafael Correa of the Alianza Party has ferociously supported the drafting and eventual promulgation of the constitution in an effort to strengthen his executive powers and prospects for attaining his political and economic goals. However, Correa has stated that if the constitutional referendum is defeated, he will step down from office and that the ousted Congress will then take power. A complicating factor is that the popularity of the constitution with the general public has dwindled to a low point in mid-July of only 32 percent. This represents a dramatic drop from the 82 percent approval rating which was recorded at the time that the Constituent Assembly was created in April 2007. The proposed constitution has since been widely criticized for reflecting only the goals of the ruling coalition and not representing the interests of the entire Ecuadorian population.


The Constituent Assembly has been called upon for the past 8 months to fill the void left by the terminated Ecuadorian Congress, which was dissolved by Correa in November 2007 because he claimed it was “corrupt and inept.” However, Correa’s alternative to the undoubtedly “corrupt” congress has been an assembly dominated by his party, which holds 60 percent of the 160 seats and appears unrepresentative of other political parties. For a country that has experienced tremendous political strife and instability over the past decade-including three ousted presidents in the past ten years-the need for a strong, fair and abiding constitution is pressing.

Although Ecuador’s new 444-article constitution has many important provisions for improving the functioning of a number of the country’s basic institutions, Correa’s attempt to establish a stronger hold on executive power and increase state control of the economy has raised widespread doubts among the local business community and discouraged some foreign investment. If ratified, the constitution would allow Correa to maintain executive power until 2017, dissolve Congress and directly control monetary policy. His critics say that a significant increase in executive power may set the wrong precedent for a country that has suffered at the hands of ineffective leaders in recent decades. Some of the more conservative critics fear that the new constitution also features a leftist tilt such as stressing initiatives for state regulation of the country’s strategic economic sectors and the redistribution of idle farm lands.

It is evident that a majority of Ecuadorians feel the need for a revised constitution, as proven by the initial high approval ratings for the assembly’s formation. However, there is still reason to be concerned about Ecuador’s future stability due to a somewhat one-sided document which places too much power in the hands of the executive branch. At this point, some apprehension exists among the population over such concerns, which could lead to the rejection of the constitution by a majority of Ecuadorians in the September referendum. To slow down any move toward confrontation, what Ecuador really needs is an admirable constitution written by a variegated group of leaders, rather than one that is being accused of political bias and insufficient representation of the public will.

This analysis was prepared by COHA Research Associate Michael Katz
July 28th, 2008
Word Count: 600

Monday, July 28, 2008

Interview with Ecuador's President Correa

"We are not the problem. It's Colombia".

by José Zepeda*

Radio Netherlands, 26-07-2008

Ecuador is in trouble. Both with itself, due to a controversial new draft constitution, and with its neighbours. In an exclusive interview with José Zepeda, the head of the Latin American service of Radio Netherlands Worldwide, President Correa not only hits out at neighbouring Colombia but also at the indigenous population in his own country: "We are not making the mistake others make saying: ‘poor people, just let them talk nonsense´".

José Zepeda interviewing Rafael Correa
José Zepeda interviewing Rafael Correa (seen right)
Since Rafael Correa became president 18 months ago, Ecuador has had a progressive government. The president wants the state to take a leading role in the country's development without exerting the rigid control it had in the past.

Mr Correa believes in a mixed economy and a social system that guarantees citizens' fundamental rights, such as work, health care, housing and education. All this has earned him widespread praise, with some 60 percent of the population currently supporting him.

Crisis
A referendum on a controversial new constitution, however, is dividing the country. The indigenous population, in particular, had hoped to see some sort of positive discrimination enshrined in the charter to compensate for their longstanding discrimination. President Correa says his government is already doing everything it can to improve their position:

"Look, we are the only ones who really do not discriminate against the indigenous population. We don't treat them as a pitiful lot but as equals. When they talk nonsense and make mistakes, we tell them so. We are not making the mistake others make, saying: ‘Oh, poor people, just let them talk nonsense.'" All of Ecuador's established political parties are in the midst of a crisis. They have lost credibility because of their past failures. But there is real opposition: from the rich upper class, from some employers and from the far left. There is also opposition within the Alianza País (Country Alliance), the movement that backs the governing coalition. According to Mr Correa, this internal opposition comes from disloyal politicians with an agenda of their own. Economic players opposing the government control the media and have declared war on the president. Nonetheless, Mr Correa firmly rejects any state control over the media, which he wants controlled by civilian platforms.

Victim of aggression
Ecuador recently severed all ties with Colombia after Colombian troops crossed the border to attack a FARC rebel camp. President Correa underlines that his country is the victim of aggression as a result of internal conflicts in neighbouring Colombia.

"Half a million Colombians are living in Ecuador. Most of them have fled the violence in Colombia. In Ecuador they have found the peace and security they don't have in their own country. We have thirteen military units along the border, Colombia has only two. Because of the conflict in Colombia we spend over 100 million dollars to protect our northern border and they come here and bomb us."

President Correa
President Correa
Some doubt that Ecuador is really all that neutral. Many in Europe suspect that Ecuador's government, while not a direct ally of the FARC, has turned a blind eye to rebel activities launched from Ecuador. President Correa emphatically denies this. He blames the rightwing paramilitaries operating in Colombia, the drugs cartels, the cocaine plantations and the infiltration of Colombia's political establishment by the paramilitaries.

Ecuador, by contrast, Mr Correa stresses, is the region's most successful country in combating the drugs cartels. It is the only Andean country, he says, with no coca plantations, guerrillas or paramilitaries. Ecuador, the president insists, has nothing to do with the Colombian conflict. It is its victim.

Aerial fumigation
Ecuador has lodged a complaint with the International Court of Justice in The Hague to force Colombia to stop fumigating illegal coca plantations. Ecuador estimates half the pesticides end up on its soil. Aerial fumigation stopped in February 2007 but Colombia has refused to rule out a resumption. President Correa underlines that the pesticides are no longer the only issue. The raid that killed FARC commander Raúl Reyes on 1 March was another serious violation of its sovereignty.

"We are a peaceful country and approach the appropriate judicial bodies, in this case the International Court of Justice in The Hague. But we don't rule out any other legal actions. We are using all diplomatic means to address the aggression of 1 March, which was one more instance of Colombia's hostility."

Outrage
Something that has prompted outrage across Latin America is the adoption by the European Union of the so-called Return Directive, which allows member states to repatriate illegal immigrants. Though the directive affects many Latin American countries, they have yet to take a common stance. Mr Correa currently heads the Community of Andean Nations but has so far failed to garner support for a joint protest. Ecuador views the directive as an act of aggression and a human rights violation.

President Correa, finally, urges all Ecuadorians living abroad to return home. All problems may not yet have been solved, he admits, but the country is on the right track. He hopes they will all come back to work for the country's future. But he stresses they have every right to stay abroad. Migration, Mr Correa underlines, is a human right and he will continue to do all he can to ensure human rights are respected everywhere in the world.

*RNW translation (cl)

Ecuador's Correa Urges Voters to Approve Wider Powers

By Stephan Kueffner

July 25 (Bloomberg) -- Ecuadorean President Rafael Correa, fresh from a special assembly's approval of his plan to expand government power over the economy and abolish central bank independence, urged citizens to support the proposal.

``To the new constitution, yes, a thousand times, yes,'' Correa said today in Montecristi during a ceremony marking the end of the assembly. Correa told the body, which passed the legislation last night and was dominated by his allies, that Ecuador is taking a ``decisive step'' to help its economy.

The new charter, which needs support from a majority of voters in a September 28 referendum, would give the government sole authority to set interest rates and allow presidents a second consecutive four-year term. The document would become Ecuador's 20th constitution.

The step toward a new constitution fulfills a pledge Correa made during his 2006 election campaign and follows a path set by allies Hugo Chavez of Venezuela and Evo Morales of Bolivia. Correa, a U.S.-educated economist, said during the campaign that a new charter would end chronic political instability and unequal distribution of wealth.

``We will triumph with a decisive and revolutionary 'yes' vote in September, for the new fatherland,'' Correa told a crowd in the port hub of Guayaquil yesterday. He also said he would increase subsidies for the poor next January to offset higher food prices.

Street Protests

Three Ecuadorean presidents elected since 1996 failed to finish their four-year terms in office. In each case, street protests in the capital city of Quito triggered their downfall, with the congress voting on two occasions to put power in the hands of the vice president.

Correa's new constitution may increase stability, analysts said. Still, they said the rules, which would allow a president to dissolve the legislature once a term, are slanted too strongly in favor of the executive branch.

The president may end up with too much power to name members of a new court charged with interpreting the constitution and giving the ``green light'' for impeachment proceedings, said political scientist Simon Pachano at FLACSO university in Quito.

The new constitution wouldn't scrap the electoral system of compulsory voting and proportional representation in congress that has contributed to the lack of stable coalitions in the legislature, he also said.

``There's an excessive concentration of power in the executive,'' said Luis Hernandez, a member of the Ethics and Democracy party, which is not aligned with Correa.

In his speech today, Correa denied accumulating extraordinary powers designed to favor his administration. Correa's allies say the charter strengthens the rights of low- and middle-income Ecuadoreans and boosts their access to social services and the judicial system, while fighting corruption by installing civilian oversight of public services.

Wayward Allies: President Rafael Correa and the Ecuadorian Left

Written by Daniel Denvir
UpsideDownWorld
Friday, 25 July 2008

Outside of Ecuador, most progressives consider President Rafael Correa to be a Leftist champion of social and economic justice. Inside the country, however, conflicts between Correa and the social movement Left—the indigenous movement, environmentalists and unions, among others—have become increasingly heated. On June 23, Constituent Assembly President and long-time social movement ally Alberto Acosta resigned his post after high-profile disagreements with Correa over issues of procedural democracy and indigenous, economic and environmental justice. Acosta headed the legislative body charged with writing a new constitution.

The new magna carta was approved by the Assembly on July 24, sending the text to a popular referendum this September. While social movements have been sharply critical of Correa, it is expected that they will join the “yes” campaign in support of the new constitution, fearing a right-wing resurgence if it fails. Critics within Correa’s Alianza País party and Leftist members of the indigenous party Pachakutik unanimously voted to approve the text. Leftist Martha Roldos, a member of the Ethical and Democratic Network (RED) abstained, citing a top down process.

To the degree that it exists, popular perception in the U.S. and Europe has been colored by Correa’s stance against U.S. hegemony in the region, along with his forceful rejection of Colombia’s March 1 attack on a FARC camp on Ecuadorian soil. The mainstream media has simplistically lumped him in with the Spanish-speaking "axis of evil" stretching from Bolivia and Venezuela to Cuba. The Left media has, on the other hand, under the assumption that the enemy of my enemy is my friend, championed him as a man of the people. Greg Palast, a well-known progressive journalist, wrote an article in terms so emphatically glowing that it is clear he spoke to no one except the President and his spokespeople when he parachuted into the country. A five-minute conversation with any social movement leader would have significantly complicated his analysis.

I myself arrived in Ecuador this past January excited about being excited about Correa, assuming (or hoping?) that he was part of this social movement propelled Left tide sweeping across the region. For Ecuadorian social movements, however, the doubts and uneasiness were present from the beginning. In 2006, Patchakutik, the electoral arm of the Confederation of Indigenous Nationalities of Ecuador (CONAIE), decided to run CONAIE leader Luis Macas for president. The CONAIE and other social movement groups only decided to endorse Correa in the second round where he faced right-wing Institutional Renewal Party of National Action (PRIAN) candidate Álvaro Noboa. A conservative Christian banana magnate and Ecuador’s richest man, Noboa represented everything that is socially and economically retrograde in the country.

Correa is a U.S. and Belgian trained economist who, before running for President was relatively unknown and had almost no history working directly with Ecuadorian social movements. As his dark horse candidacy gained steam, however, and he made it into the second round, he picked up some long-time social movement demands, including opposition to a Free Trade Agreement with the U.S. and a pledge to close the U.S. military base in the port city of Manta. He proclaimed a “citizen’s revolution,” promising to convene a Constituent Assembly to write a new constitution and to put an end to the “long night of neoliberalism.”

When Ecuadorians approved a referendum convening the Constituent Assembly in September 2007, social movements were cautiously optimistic. It was perceived as a chance to make gains on pressing social, economic and foreign policy issues. Social movements saw the election of economist and long-time environmental and social activist Alberto Acosta to the Assembly’s presidency as a particularly encouraging development.

Meeting just a few miles away from the soon to be closed U.S. military base in the town of Montecristi, the Assembly has been a mixed bag of progress, stasis, retreat and confusion. On the one hand, the Assembly has broken with the neoliberal model by increasing state participation in the economy, enshrining the right to education and healthcare and, in a historic move, forcing rich people to pay taxes. It has also taken some important steps for the environment, recognizing that natural ecosystems are themselves the subject of rights.

Many indigenous, women’s, labor and campesino leaders, however, feel that this was a missed opportunity to confront historic injustices and embrace a more social and sustainable economic model. In addition, social movements have not viewed this as a particularly participatory process. Few Ecuadorian have a solid grasp on what is going on in Montecristi and many proposals were generated from the top down. Most glaringly, Correa has exercised near total control over the majority Assembly Members from his Alianza País party. There is a sense that Correa has taken over a process of change that other people—namely social and indigenous movements—have painstakingly built over the past decades.

According to Ivonne Ramos, a leader of the prominent environmental organization Acción Ecologica, the social movements’ sense of cautious optimism has descended into an open conflict.

“There have been different currents in the Constituent Assembly, some defending capitalism and neoliberlism, and others pointing to a new model. We see that many of the proposals aiming to undermine social movements’ demands are coming from the President," says Ramos. "The mining debate highlighted these different positions. The main power struggle isn’t between the President and the Right. It is between the President and the Left, including within his own party.” Acción Ecologica has close ties to the CONAIE and works with communities resisting mining and oil exploitation.

Economist Pablo Dávalos, who served under Correa when he was President Alfredo Palacio’s Finance Minister, says that Correa’s Leftist discourse conceals a developmentalist and neoliberal economic policy based on natural resource extraction. Dávalos has long argued that the forajidos, a new sector of the middle class created by dollarization, have been Correa’s base since the beginning.

“I think that the Correa government’s intention is to put the country in harmony with the new currents of global capitalism, particularly with regard to the exploitation of natural resources, the IRSA [multimodal infrastructural integration project] and territorial privatization," says Dávalos. "Correa is doing everything possible to integrate Ecuador into this new global division of labor as a provider of primary materials, commodities and energy.”
The media often contrast Correa internationally with right-wing leaders like Colombian President Alvaro Uribe and nationally with characters like Jaimie Nebot, mayor of the Ecuadorian coastal metropolis of Guayaquil. In Ecuador and abroad, this leads to an inaccurate, black and white, Right versus Left framework.

The Ecuadorian Right, whose pricey clothing and snow white skin stuck out in the Assembly, has been weakened and discredited, having corruptly presided over decades of disastrous free market economic policies. The main criticisms of opposition parties like the Social Christian Party (PSP), PRIAN and the Patriotic Society Party are that Correa is trying to turn Ecuador into “another Cuba or Venezuela,” supports abortion and is centralizing power. The first two charges are patently false, while the question of authoritarianism is more properly a complaint for social movements than the Right, whose fall from power can only be blamed on its own incompetence and unpopularity.

Dávalos has persisently argued that Correa’s “citizen’s revolution” is focused on what he calls the “moralization of politics.” Rather than fundamentally change Ecuador’s economic model, Correa and his forajido supporters, who have risen up through what they perceive to be a free and fair market, are focused on making the government more transparent. One social movement activist told me that, “Correa just wants to formalize everything. If someone sells you bubblegum on the streets, he wants to make sure that taxes are paid and that you get a receipt.” But the disgrace of what is widely referred to as the “partidocracy,” tainted by decades of corruption, lends Correa support far beyond his middle class base.

While Correa was elected and has consolidated power through a Leftist discourse prioritizing socio-economic justice and national sovereignty, he has increasingly moved to break ties with organized social movements. Many analysts say that Correa, buoyed by high approval ratings, is intentionally demonstrating that he need not depend on any organized body. Seeing alliances with the CONAIE, environmental and labor movements as restrictive, Correa is building an institutionally unmediated and populist relationship to voters, allowing him to be the country’s sole decision maker.

Correa, long known for lashing out against opponents on the Right, has increasingly made verbal attacks against social movement activists and Leftist politicians. On June 7, Correa made some particularly harsh comments on his weekly radio program, stating that enemies of oil and mining are not part of the Alianza País led process of “revolution.”

“I hope that the Leftist radicals who do not believe in the oil companies, the mining companies, the market or the transnationals go away,” said Correa.
Ecuadorian sociologist Natalie Sierra noted that Correa’s “is a government that has declared itself anti-neoliberal, but I always thought that the main anti-neoliberal struggles were those against the extractive model.”

His revolution has, to the Left’s dismay, remained one comprised of individual citizens and not organized movements. Correa has explicitly discarded relationships with organized social movements and relied on high levels of personal popularity to push through policies.

Repression in Defense of Oil and Mining Megaprojects

Correa’s government has consistently demonstrated that it is willing to use the police and army to repress social movement resistance.

The Correa government’s first major act of repression took place in November 2007. The President declared a state of emergency in the Amazonian town of Dayuma after protests blocked oil operations. Residents set up roadblocks to a number of oil fields, angry about the government’s failure to follow through on promised infrastructural improvements in the town of poor mestizo settlers (colonos). Violent repression followed and 23 people were arrested, many of whom were dragged from their homes at gunpoint. Shocked social movement and human rights activists demanded an investigation of the abuses and amnesty for the arrested protesters.

Correa initially threatened to resign if government's handling of the protests was investigated. In the end, Correa relented and the Assembly declared an amnesty for the arrested protesters along with hundreds of other jailed environmental defenders and social justice activists. The Assembly also determined that police had used excessive force against Dayuma residents. The repression in Dayuma put Ecuadorian activists on notice that Correa was committed to an economic model based on natural resource extraction and was willing to use force to defend it.

It was at this point, when his commitment to an economy based on oil and mining became clear, that activists and Leftist intellectuals increased their criticism of Correa. Critiques began to focus on the shift from U.S. and European foreign investment to the penetration of state companies, particularly from Brazil and China. The centerpiece of this realignment is the Multimodal Megaproject Manta-Manaos, referring to the cities in Ecuador and Brazil, respectively, that will be the multi-modal transportation and trade project’s two central hubs.

Unions have also criticized Correa’s economic policies, which they say are a continuation of the neoliberal, privatizing model. Oil workers union leader Fernando Villavicencio says that while he at first tried to believe that bureaucrats or functionaries misinforming Correa were causing problems at state oil company Petroecuador, it is now clear that these policies come directly from the President.

“The leader of the País Movement has consciously pushed an illegal project of privatizing oil...leading the public company Petroecuador to be dismantled," says Villavicencio. "These policies benefit the same old mafia groups and some new ones...They are doing what the Right and the partidocracy could not accomplish over the past 25 years.”

The government has also repressed anti-mining blockades in the southern highlands, calling protesters “antipatriotic” troublemakers, “carried away by their ideological obsessions.” Protesters claim that mining will ruin their land and poison their water. It appears that conflicts over mining will increase over the next few years. Correa and Canadian mining companies have mounted a large-scale advertising campaign linking increased mining to better jobs and a strong economy. With many communities prepared to resist mining operations, a battle is on for the sympathies of the broader public.

Most recently, on July 8, the National Police arrested 10 protesters in the Ecuadorian canton of Chillanes for opposing the concession of a nearby river for the construction of a private hydroelectric dam. The villagers had peacefully occupied community land in protest over the last six months.

The conflict with Colombia has also led to heightened accusations of ties between Colombian guerrillas and Ecuadorian social movements. On May 6, Ecuadorian police arrested five members of Ecuador Indymedia, accusing them of maintaining ties to the National Liberation Army (ELN) guerrilla group in Colombia.

Conflict with the Indigenous Movement Comes to a Head

The CONAIE made it clear early on that its top priority for the new constitution was the recognition of Ecuador as a “plurinational” state, meaning a state made up of many nations. Rather than a hollow symbolic gesture, plurinationality would ensure land, cultural and economic rights. Social and indigenous movements have, in particular, demanded that the principle of “free, prior and informed consent”—requiring communities to approve any resource extraction projects on their land—be enshrined in the new magna carta. Indeed, prior consent is not only about community control, but about a larger debate over whether large-scale mining is a sustainable path for economic development.

While the concept of plurinationality has been included in the proposed constitution’s text, prior consent was not. The text instead requires “prior consultation,” meaning that communities cannot decide whether oil and mining projects take place on their land. “Prior consultation is rather paradoxical,” according to Ivonne Ramos. “If I come and ask you if I can come and mess up your house, you say “no”, and I still go ahead and do it anyways. It doesn’t make much sense.”

Plurinationality and prior consent have created divisions within Alianza País, as well as between Alianza País and the CONAIE’s political party, Pachakutik.

On May 12, the CONAIE broke communication with the Correa government, accusing the President of continuing neoliberal economic and racist social policies. Later that month, most of Ecuador’s prominent social movements signed a letter backing the CONAIE and articulating other problems with the government.

The most recent insult to the indigenous movement has been the rejection, at Correa’s urging, of a proposal to make Kichwa an official language alongside Spanish. In response, Patchakutik’s four Assembly Members walked out in protest. They were joined by Alianza País Assembly Member Monica Chuji, an Amazonian Kichwa long affiliated with the indigenous movement. Many have criticized Correa for showing off his basic knowledge of Kichwa on the campaign trail while rejecting indigenous movement demands. On the second to last day of the Assembly, CONAIE President Marlon Santi called Correa a “racist.”

At 2 a.m. on the Assembly’s second to last work day, a compromise proposal was approved. It declares Spanish the “official language of Ecuador, while Spanish, Kichwa and Shuar are official languages of intercultural relation. Other ancestral languages are for official use for the indigenous nationalities in the zones that they inhabit and within terms determined by the law.” Shuar is an indigenous language spoken in the Ecuadorian and Peruvian Amazon.

Chuji says that the included text maintains the rights established in the 1998 constitution—which were in danger of being eliminated—but does not necessarily constitute a step forward. She considers the phrase “official languages of intercultural relation” to be profoundly vague, but says that there is space for improvements when the constitutional text is elaborated into law by a future legislature. One analyst told me that Correa's allies inserted Shuar at the last moment to undercut Kichwa, which spoken by two million Ecuadorians and the only indigenous language that could function as a national language. Indigenous activists were forced to accept the compromise, as they could not argue against the recognition of Shuar.

In an interview, Chuji criticized the Assembly’s failure to support indigenous rights, but nevertheless considers the new constitution a step forward. “While my analysis is overall positive, we’ve made very little progress on the topic of indigenous rights...but that Ecuador is a plurinational state has been included, even though it doesn’t include all of the content that it should, it is at least a first step and opens doors for future discussions.”

A majority of Assembly Members initially supported the proposition to make Kichwa an official language. But last week, Correa and the Alianza País executive committee pushed against it and succeeded in excluding it from the proposed constitution. Ecuarunari, the Kichwa federation of Ecuador, denounced Correa, saying “We, the indigenous peoples and nationalities, do not ask for a right just for ourselves. Rather, we demand that all of Ecuador assume and recognize its own historical, cultural and social value. To continue to not recognize the indigenous peoples and nationalities’ languages means the continuing displacement of indigenous cultures as tourist objects or as simple elements utilized to decorate the discourses at government inauguration ceremonies, for the inauguration of little infrastructure projects and political rallies. Kichwa is spoken while its legitimate representatives are insulted.”

The CONAIE sees language rights as central to preserving indigenous communities and cultures and criticizes opposition to Kichwa as motivated by racism. Just a few minutes before writing this sentence, I overheard someone in the Assembly pressroom make the linguistically improbable claim that Kichwa could not be included because it “does not have a grammar.”

In an interview on the Assembly’s second to last day, Pachakutik Assembly Member Gilberto Guamangate noted that gains on plurinationality and the rights of nature had been achieved but criticized the failure to recognize Kichwa as an official language. “We consider the fact that they have declared Ecuador a plurinational state” but not made Kichwa an official language “is basically making a body without a mouth.” He also emphasized that prior consent, while not achieved in the Constituent Assembly, could be fought for in the proposed National Assembly. Moreover, Guamangate noted that regardless of any political decision, stopping mining and oil projects would always be decided at the local level through community decision making and resistance.

Acosta’s Exit

Alberto Acosta’s resignation as President of the Constituent Assembly marks a break between social movements and Correa, leading to a major drop in the body’s approval ratings. Correa forced Acosta out after he insisted that the Assembly needed more time to finish the constitution, refusing to cut debate time.

While Alberto Acosta’s resignation as president of the Constituent Assembly was proximately caused by this procedural dispute with Correa, his departure reflects deeper divisions over economic and environmental policy within Alianza País. As disagreements over economic and environmental policies were building up between the two leaders, Acosta’s demand for an extension to finish the Assembly’s work infuriated Correa and led to the forced resignation. Acosta insisted that something as important as a new constitution should not be rushed. Correa, in contrast, thought that delaying the constitution—which will be sent to voters this September—would entail impossibly high political costs.

With three days to go until the end of the Constituent Assembly, Correa’s allies are rushing to fix a series of errors that the Editing Committee, in its hurry, missed. Instead of accepting responsibility for this predicament, Correa has attacked his own Assembly Members for allowing “barbarities” into the text and claimed that the errors were all made during Acosta’s tenure.

Acosta’s strong support for procedural democracy and refusal to engage in ad hominem attacks on his opponents has led to curious gestures of sympathy from the opposition Right and the conservative media, event though the Assembly’s former president is significantly to Correa’s left. Fernando Cordero, the Assembly’s new President, has aggressively limited debate and rushed to put the final touches on the proposed text.

As an Assembly Member, Acosta has been freed from his administrative and mediatory duties, speaking in favor of recognizing Kichwa and opposing cuts to teachers’ pensions. Correa has counterattacked, calling Acosta and other Leftist members of Alianza País “infiltrators” who should leave if they do not agree with the majority.

Chuji responded in a statement on Wednesday July 23, the Assembly’s second to last day, reminding Correa that Ecuador’s entire process of social change did not begin with his leadership. She emphasized that agreeing with the President was not the litmus test for Alianza País membership and that it was her responsibility to be faithful to her principals. She said it is strange that “they call us infiltrators or accuse us of having a right wing agenda for supporting human rights, social security, freedom of expression, the environment, justice, communication, the women’s agenda, campesino rights and the indigenous movement’s aspirations.”

As Ivonne Ramos notes, a strong disagreement over Correa’s proposed agricultural law was also a deciding factor in Acosta’s departure. The Assembly initially was debating and passing an Agriculture Law that would support food sovereignty and small farmers. It included the free circulation of seeds and government credits to small farmers.

“The President then launched a campaign pushing his own Agricultural Law,” which “favors the importation of agrochemicals, it favors subsidies to an agribusiness model. Those who will benefit from this are the importers of agrochemicals, producers of agrochemicals, the sellers of agrochemicals, the massive companies that own monoculture crop export operations, and the people who control the circulation of food in this country," says Ramos. "This was in many senses the breaking point that led to Acosta’s resignation.”

The Agricultural Law, in its vision of development through active government support of national and transnational corporations, encapsulates Correa’s social and economic programs. While the increase in the state’s economic role is a break with neoliberal orthodoxy, Correa supports the basic contours of the current economic model, prioritizing “growth” through the exploitation of natural and human resources.

Intensive efforts by The National Federation of Campesino, Indigenous and Black Organizations (FENOCIN) and the CONAIE led to significant changes in the Agricultural Law. A shift towards supporting small farmers instead of agribusiness garnered Acosta and Pachakutik’s support, leading to the proposal’s overwhelmingly approval on the Assembly’s second to last day.

The mainstream media in Ecuador has tended to focus on these procedural issues instead of the social justice demands dividing Correa from the Left. I would guess that this is because it is one of Acosta’s only positions that the Right supports. But it’s not just Acosta’s legitimate demands on procedural questions, but “a fundamental difference over the model of economic development that Ecuador should follow” that, according to Ramos, has caused ruptures in the Constituent Assembly.

“Acosta was supporting a model that was friendly to people and the environment," says Ramos. "What we’re seeing now is a model totally capitalist and that favors the large groups of power. We see this in two ways. First, from the presidential decrees directly from Correa and second, in his direct interventions into the Assembly’s work.”

The Constituent Assembly legally possesses what is known as plenos poderes, or full powers. Plenos poderes makes the Assembly the country’s highest power and replaces the former Congress, which was declared “in recess” for the Assembly’s duration. But Correa and Alianza País’s executive committee’s forceful interventions have undermined the Assembly’s work and reputation. As progressive journalist and Correa chronicler Kintto Lucas put it, “The impositions of power are not agreements.”

CONAIE Vice-President Miguel Guatemal argued that Acosta’s resignation was just one of Correa’s many strong-armed interventions into the Assembly. “There was an ideological and political conflict. While Acosta defended our proposals, the President has opposed them. The National Constituent Assembly, with its plenos poderes, should be above the President. But this is not happening. The President decides whether something passes or not. The Assembly is just a technical group.”

Ramos, however, emphasized that under Acosta’s leadership the Assembly was at times able to exercise its plenos poderes. “We saw Alberto Acosta’s presence in the Constituent Assembly’s presidency as an assurance that crucial issues would be addressed, issues like the rights of nature, plurinationality, water, food sovereignty, transgenics, protected areas and collective and environmental rights. Some of these have been incorporated. Especially in the case of amnesties for arrested environmental defenders, we actually saw the Assembly exercising its plenos poderes.”

In an interview on the Assembly’s second to last day, Acosta said, “I have a certain bittersweet feeling. While I’m happy with what we’ve done I’m not happy with how we are finishing our work. There are too many topics that were very rushed, without a clear idea of how we can respond to so many outstanding issues. We should have taken a few more weeks.” But he went on to say that there were innumerable achievements—in areas such as education, healthcare and national sovereignty—that make a “yes” vote on the constitution the right choice.

While all of the Left is expected to come around to supporting the “yes” campaign, it is unclear what is next for Acosta and his followers.


Social Movement Demobilization and the Upcoming Referendum

Correa’s meteoric rise and high approval ratings have put social movements and the Left in a complicated position. In previous fights like those against Free Trade Agreements and the U.S. military base, social movements were able to clearly define themselves against conservative governments. Correa’s Leftist discourse and occasionally progressive policies have demobilized the Left, who now face the September referendum without a coherent strategy.

According to Ramos, social movements must take stock of the good and the bad in the new constitution. In addition, the political costs of not supporting the proposal must be evaluated.

“There is the question of public sympathy, which is complicated when you have a president with such high approval ratings. Any action that a social movement takes can be read, understood or publicized as an action in support of the Right, since this government is supposedly a Leftist one," says Ramos. "This has produced a climate of uncertainty over what positions to take, what actions to take.”

According to Dávalos, social movements have not articulated a united position because they have all been waiting until the final moment to see if the Assembly will support their priorities.

“The only united opposition right now is from the Right, which more than anything helps the government," says Dávalos. "This opposition allows the government to legitimize itself, to position itself against the Right, because the Right has little support and is so discredited."

The president’s break with the social movements should not be read as accidental. As Davalos points out, “Correa is trying to form a solid center-left block and marginalize the radical left and take on the right-wing—Jaime Nebot and Lucio Gutierezz. Neither of whom will win. This is his calculus, which isn’t bad. It is within the possible.” Correa will go on a publicity campaign for the “yes” vote, banking on his personal popularity to compensate for the Assembly’s falling support. And he does not need to win by a large margin. Correa just needs to marginalize the Left and take on a weak Right. He has no one who can beat him in upcoming elections if the Constitution is approved.

And it appears certain that these conflicts between Correa and the social movements will only increase over the coming months. At the Assembly’s closing ceremony, the President attacked “infantile environmentalism” and “infantile indiginism” as obstacles to Ecuador’s development. Verbal attacks will not make social movements, built through decades of struggle, disappear.

While a “yes” vote may be necessary to ensure the Right’s defeat, Dávalos argues that the Left needs to get back to what it does best: organizing. “I think that the Left needs to recuperate political space, space that has been co-opted by Alianza País, and generate its own proposals.”

Daniel Denvir (daniel.denvir [at]gmail.com) is an independent journalist from the United States in Quito, Ecuador and a 2008 recipient of NACLA's Samuel Chavkin Investigative Journalism Grant. He is the Editor-in-Chief at www.caterwaulquarterly.com and reluctantly blogs at www.glocalcircus.blogspot.com.

Ecuador offers parity for same-sex unions

Gay.com
Friday, July 25, 2008

Ecuador's 444-article draft constitution, which promises "socialism for the 21st century" and expands the powers of the country's leftist president, was approved Thursday by a majority of the National Assembly.

The constitution, the Andean nation's 20th, now goes to a national referendum Sept. 28.

Ninety-four of the 130 Assembly members backed the document sought by President Rafael Correa, the BBC reported.

Its 444 articles include a provision that same-sex unions be afforded the same rights as heterosexual marriages.

If approved, Ecuador would become the second Latin American country, after Uruguay, to legalize same-sex unions. Some states in Argentina, Brazil and Mexico offer such unions, and Colombia gives cohabiting couples property, inheritance and Social Security rights.

Among the constitution's other provisions:

The president can dissolve Congress once and Congress will have one opportunity to unseat the president, the Associated Press reported. In either case, general elections would be called.

The president controls monetary and credit policy, which are currently handled by the Central Bank.

The president can run for one four-year term of reelection.

Unpaid domestic work will be considered productive labor and those who work in the home are eligible for Social Security.

Military service will no longer be mandatory.

Foreign military bases or installations will be prohibited on Ecuadorean soil. The United States has operated anti-drug surveillance flights out of Ecuador's Manta air base since 1999. The 10-year lease expires next year, and will not be renewed.

Undocumented immigrants will not be considered "illegal."

The appropriation of genetic resources that contain biological diversity and agricultural biodiversity will be prohibited.

Assembly Defines Ecuador Transition

Quito, Jul 24 (Prensa Latina) The Constituent Assembly determined rules for the Transition Regime in Ecuador if the referendum wins the Constitution during a marathon session concluding early Thursday.

This concerns an extensive day, started Wednesday, with two sessions, in which 14 different issues have been analyzed, whose work concluded today at about 06:00 local time (11:00 UTC).

The Assembly approved the controversial period of transition, reshuffling members of the Justice Supreme Court, and the preamble of the Constitution, a new Transition Law that changed the Supreme Electoral Court membership.

It also agreed unanimously that the ancestral Quichua and Shuar be the official intercultural languages.

The Assembly will go into recess from Saturday to September 28, date for the proclamation of the referendum's results on the Constitution.

This recess could be suspended transitorily by a decision of the Assembly president, due to justified special reasons.

In case that the 20th Ecuadorian Constitution is approved in consultation, the country will declare concluded the deputies period of the Congress ended last November 29 with the creation of the Assembly.

The Constituent should assemble after the referendum results are revealed to conform the Legislative and Supervision Commission and elect members of the National Electoral Council and Contentious Electoral Court .

This commission will work until the creation of the new National Assembly (Parliament), slated for early 2009.

Presidential, parliamentary, prefects, mayors and councillors elections could be convened in this period.

It is expected that the final approval of the constitutional text, which has 444 articles, begins today at 12:00 local time (17:00 UTC).

Ecuadorian Assembly Votes Constitution

Montecristi, Ecuador (Prensa Latina) - After eight months of continuous work, the Ecuadorian Constituent Assembly started on Thursday its last plenary session to approve the Constitution.

The session started one hour later than scheduled with a tribute to Liberator Simon Bolivar, on the occasion of his 225th birthday (July 24, 1783).

A proposal by Cesar Rodriguez to declare July 25 as a civic holiday, so that all Ecuadorians can watch the ceremony of presentation of Ecuador"s new Constitution, was approved by 81 votes in favor.

Rodriguez said the country is witnessing history in the making and called the entire population to take part in the ceremony. Later, President of the Constituent Assembly Fernando Cordero let members of the assembly state whether they agree with the 444-article constitutional text.

Previously, PRIAN (Renovating Institutional Party) representative Anabelle Azin announced that her group would vote against the text drafted by the Assembly, with a majority of members from Acuerdo Pais.

Members of PSP (Patriotic Society Party) also reiterated their opposition, while Acuerdo Pais ratified its vote in favor of the Constitution, which, in its opinion, represents the continuation of change towards a better future in Ecuador.

Assembly members from the Popular Democratic Movement and Diego Borja, from the Democratic Left, also announced their support to the 20th Constitution, as it offers clear guarantees for work, as well as the right to free education and health for the entire population.

After each and every 130 assembly members speak, the new legislation is expected to be subject to voting, thus closing a chapter in the process of changes started when economist Rafael Correa assumed power in January 2007.

FACTBOX-Major changes in Ecuador's proposed constitution

QUITO, July 25 (Reuters) - President Rafael Correa's allies proposed a new constitution late Thursday that would boost the leftist president's powers if a majority of Ecuadoreans approve it in a September referendum.

Here are some of the key constitutional changes approved in a vote at the 130-member assembly on the final draft:

ECONOMY

* The state would have more control and regulation over strategic sectors such as oil, mining and telecommunications, and could tighten regulation on monopolies.

* The president would manage monetary and lending policy instead of the central bank, which would lose its autonomy. Ecuador adopted the U.S. dollar as its official currency in 2000, but Correa has been a critic of the move that aimed to halt the rapid devaluation of the national currency.

* Forbid most international arbitration on future foreign contractual rows.

DEBT

* Create the concept of "illegitimacy" for some foreign loans and promote civilian audits of debt. The measure could give the government powers to repeal debt or a legal base on which to challenge credits in courts.

EXECUTIVE POWERS

* Allow immediate presidential re-election for a four-year term.

* The president could dissolve Congress but would have to immediately run for re-election. Likewise, Congress could fire the president but the move would trigger a legislative and presidential election.

COURTS

* Boost the powers of a Constitutional Court, which could be key for the president to stay in office if challenged by the legislature.

* Restructure courts throughout the country, including the top electoral tribunal, and overhaul the Supreme Court by reopening all positions on the tribunal to a new selection process.

LAND AND AGRICULTURE

* The state would have the right to expropriate idle farming land to redistribute it. Bans large land-holdings.

* There would be a ban on genetically modified seeds, with the exception of some crops approved by the president and Congress.

Ecuador president's allies propose new constitution

By Alexandra Valencia

MONTECRISTI, Ecuador, July 25 (Reuters) - President Rafael Correa's allies proposed a new constitution late on Thursday that would boost the leftist president's powers if Ecuadoreans approve it in a September referendum.

A cheering, flag-waving government-controlled assembly approved the proposal that would loosen presidential term limits and expand Correa's influence over the economy, Congress and judiciary if he wins the difficult vote. The issue had been debated for eight months.

Correa, an economist who took office last year pledging to fight political and business elites, needs the new constitution to shield himself from the sort of congressional or judicial offensives that have ousted several of his predecessors.

The fragmented opposition has branded him an autocrat who has seized TV networks, confiscated businesses and closed Congress. It accuses him of trying to amass powers in a similar way to his socialist ally Venezuelan President Hugo Chavez.

Correa is by far the most popular political figure in his oil-exporting country, and pollsters say he has a good chance of winning the referendum but will have to campaign hard to woo many wary Ecuadoreans before he can count on victory.

"We are going to beat them on Sept. 28... we are not going to let a bunch of mobsters dominate us forever," Correa said before the 130-member assembly passed the proposal in the coastal town of Montecristi.

If the new constitution passes, Correa will be able to run for re-election that could keep him in power until 2017.

In the decade before he took office, each elected president was forced out before completing his term by a mix of street protests, congressional pressure and court rulings.

CHAVEZ'S FOOTSTEPS

Correa is tracing the steps of other Latin American leftists -- in Venezuela and Bolivia -- who strengthened their governments with new constitutions that appealed to millions disenchanted by years of traditional political parties' rule.

He contends the constitution will help his government eliminate the influence of corrupt elites over political institutions and redistribute wealth from natural resource among the poor majority.

Foreign investors are closely watching the referendum campaign because it would gives Correa the power to increase state intervention in the flourishing oil and mining industries and to strip the central bank of its autonomy.

If the new constitution is approved, there will be general elections next year and Correa would be empowered to dissolve Congress if he wins.

It would also trigger an overhaul of the electoral tribunal and the Supreme Court, which several judges and opposition politicians say is aimed at boosting Correa's control over the judiciary.

"I say no to totalitarian rule by politicizing the judiciary," yelled Gilmar Gutierrez, an opposition leader during the debate. "No to prepackaged constitutional changes."

Political analysts say a shift in the balance of power under a new constitution would likely help Correa stay in office far longer than his three predecessors who were ousted during their four-year terms.

"More powers will help Correa bring political stability," said Patricia de la Torre, a professor at the Catholic University in Quito. "There are risks with more powers, but they are needed to change the country's political structure."