There are always surprises, but probably not this time
13 February 2013
Hugo, Chavez, South America´s best known politician may, or may not, recover from what is obviously an extremely serious illness. But even if he does manage to recover, it seems unlikely that he will be able to maintain the political rhythm he and his followers have become accustomed to. Whether dauphin Nicolas Maduro or any of the other ‘pretenders’ could steer Venezuela as successfully as Chávez is an unknown, they have had plenty of time to prepare, but that does not always make it any easier, as others in similar situations have become painfully aware.
The larger question related to Chávez is his influence outside of his home country. He is the undoubted leader of the more radical brand of ‘twenty first century socialism’ and although the oil keeps flowing, the most prominent critic of United States influence in the region, although the Brazilians and the Argentineans , while not receiving the same attention in US media outlets, are in practice very little behind the Venezuelan leader. Who will inherit the Venezuelan leader’s legacy is therefore an important question for the stability of the region and its continued fight to free itself from the political and economic interference of the United States.
Heinz Dietrich, inventor of the ‘twenty first century socialism’ concept, has publicly speculated about who could possibly take Chávez’ place on the international stage, if that should prove to be necessary. Dietrich´s conclusion was that Rafael Correa, the Ecuadorian President, was the most obvious candidate, while warning that “Ecuador does not have the necessary clout that would enable Correa to fill the void that Hugo Chávez is leaving” . And while Correa himself has declared a lack of interest, there is little doubt that given his charismatic personality and evident ability to communicate, that welcome or not, he could easily find himself receiving increasing amounts of international media attention over the next few years.
There is a small problem however. The Ecuadorian president´s mandate runs out this year and the post Chavez debate will hardly concern him if he is not reelected in next Sunday’s (February 17th) presidential elections. Correa has never lost an election, and the opinion polls do in fact predict a win, with possibly enough votes to avoid a second round run-off. Unfortunately, the pollsters’ research is generally considered to be unreliable, lending the process a slight air of doubt, and there is at least a slender chance that another candidate might upset Correa´s apple cart, and set the pundits scurrying to find another ‘successor’ to Hugo Chávez.
The magnificent seven
Of the seven candidates challenging Rafael Correa, only two, the banker Guillermo Lasso and Alberto Acosta , the candidate for the left wing front, Unidad Plurinacional, appear to have any real chance of springing a surprise. The other five are in the race to position themselves for future electoral races (Mauricio Rodas of SUMA, although this could also apply to Lasso); consolidate a new party (Norman Wray, Ruptura); or to preserve their party´s seats in the National Assembly (Ex President Lucio Gutiérrez, Sociedad Patriotica, and Nelson Zavala of the PRE). The last of the eight, the curiously comic banana magnate, Alvaro Noboa, appears to be running in response to a battle over taxes, using the campaign in a rather futile attempt to take some measure of revenge on Rafael Correa.
While Lasso and Acosta may have to be given some sort of chance of forcing a second round of voting, for this to happen the pollsters would have to be making dramatic errors. With only a few days to go before election day, Correa is apparently riding high. In a poll carried out by ‘Perfiles de Opinion’ the incumbent had a voting intention of more than 60%. Others are not so generous, but no one gives him less than the 40% he would need to secure a victory in the first round. Acosta´s campaign people put him at 15% and growing, but even that, or Lasso´s 20%, would be far from enough to take either of them into a second round.
Guillermo Lasso´s numbers also probably represent the limit of his popularity. The banker likely has a high negative vote given that he acted as a chief economic advisor to ex President Jamil Mahuad, in exile since a financial meltdown threw the country into chaos in 2000; the destructive effects of that period have not been forgotten. Perhaps understandably, Lasso has been notably absent from the political field in the intervening years. The financier´s recent resurgence is due in part to the right´s need for a challenger who is not Lucio Gutiérrez, the very same colonel who led the military-civilian coup that toppled Mahuad, and who, despite finishing second in the last presidential election, is not viewed with much enthusiasm by the country´s right wing elites. Lasso’s campaign has also been helped by the financial resources at his disposal, and the fact the bank of which he is the major shareholder (Bank of Guayaquil) provided a convenient pre campaign promotional vehicle.
But the avuncular Lasso´s links with Mahuad have quite understandably been a problem for his now apparently stalled campaign. He is too easy a target and his presence as a major candidate speaks volumes about the lack of options on the right. The economy is another factor. The financial elites are doing quite well thank you very much; the country´s economy is rolling along at a healthy rate (last year GDP grew at slightly less than 8% and is projected to grow at around 4 to 5% in 2013) and are understandably ambiguous about fixing something that is evidently not broken.
The country´s economic health and Rafael Correa´s use of the available resources to bolster investments in Education and especially Health, an area where the results are more immediate and more than evident to those with little money have brought him high levels of approval throughout his mandate. The middle classes meanwhile have their salaries and expanding opportunities as well as a much improved highway system and a new airport. Overall social spending has, in fact, risen substantially, although in percentage terms the rise is not quite as impressive and Ecuador remains in the mid-lower ranks in terms of social spending as a percentage of GDP.
The fact that corporate power has grown under the present government is one of the major reasons cited by followers of Alberto Acosta (Unidad Plurinacional or Plurinational Front) for their opposition to Correa´s re-election. And while it is evident that with a healthy economy the wealthy are bound to do well, even consolidating their power through the proliferation of economic groups and a concentration of resources , the lack of change in the productive matrix (recognized by Correa himself) and the very slow reduction of the inequality index lend weight to left wing claims. The weakness of the reforms is a problem in another sense: without deep roots any transformation will be easily overturned by future right wing governments.
Ecuador´s governing Alianza País may not be economically right wing, but what has become clear over the years is that even in Venezuela or Bolivia Twenty First Century Socialism is not socialism at all, at least not in any recognizable form. This too is a sore point with many one time supporters of the ‘Citizen´s Revolution’, although it is hard to believe that there was ever much evidence that Rafael Correa himself was anything other than a very strong willed social democrat with a church based philosophy of ‘helping the poor’. Strong willed may be putting it too mildly. There is less talk today of dictatorship, a term promoted by the right and unfortunately adopted by the left, but there is no doubt that discipline is the order of the day. A series of punish and pardon exercises has been used to squash opposition to government policies or extraction schemes and to tame the right wing press and avoid situations such as the present standoff in Argentine where the media group Clarin and President Cristina Fernandez de Kirchener have locked horns. But the opposition press is not the only political force on the government´s list, and in fact, anything that looked vaguely as if it might comprise a political threat to Correa has been systematically attacked. The indigenous organisation CONAIE (Confederation of Ecuadorian Indigenous Nationalities) has been a major target for that very reason.
Despite having lost a lot of its political clout in recent years after a devastating alliance with Lucio Gutierrez that fractured the organization and resulted in a loss of credibility, this indigenous group is still a force in Ecuadorian politics. CONAIE and other indigenous organizations are one of only two social sectors with any real ability to put together a healthy political campaign outside the parliamentary system . And the fact that many of the major mining and oil exploration projects are also located in indigenous territory has lead to heightened tensions and conflict.
As a consequence indigenous leaders have been branded ‘terrorists’, arrested and jailed for short periods , and while apparently none are presently in jail a many of the charges are still pending : a time tested tactic for shutting people up. The trend is worrying, to say the least. The most recent and most serious case involves the Luluncoto 10, a group of young people arrested while planning a protest against the government as part of the mass demonstration of March 2012. Supposed members of the Group of Popular Combatants (GCP) none of the ten had committed any crime. The evidence against them consists of pictures of Ché Guevara, pamphlets, left wing books and more seriously, a manual for producing a bomb, a fact that while evidently not admissible as proof of intent, does raise serious concerns .
The major charge against the ten is that they belong to the GCP , something which the state has not been able to prove, and that that group exploded a number of pamphlet bombs in November 2011, also a supposition. The ten were held without trial until only recently, a period of approximately ten months. Seven men were granted bail before Christmas but two women are still being held; the trial has now been interrupted and will not conclude until after the elections. The Attorney General is quoted as saying that the group “planned to destabilise our democracy …… there are mobile phone messages which clearly show that their intention is to take power by force of arms”. But in the circumstances that seems laughable, and, all in all, it is difficult to see the case as anything other than a bad dose of paranoia.
The episode has produced an extensive but relatively low key response in the mainstream press (the GCP is hardly looked on with great sympathy). But on the left the issue has been roundly criticised and has become a cause célèbre; the issue of class is also important here. An interesting comparison could be made with the case of a communication sent to clients by the directors of four large banks. The e-mail suggested that a proposed tax increase on their profits, levied in order to increase welfare payments to the country´s poorest sectors, could have an impact on client´s savings. While the action produced a lot of noise from the government side, and whose results could have been extremely serious, much more so than a supposed pamphlet bomb, the only action taken was to fine eight directors of the four banks involved.
The constant campaigner
These events, concerns and forces (apart from the bankers) have found a voice in the Acosta campaign which is presently running well behind Rafael Correa. There are always surprises, and there may be some hidden support for Acosta in provinces whose indigenous populations are higher, but it seems more likely that the real battle will not be for the presidency but rather for control of the National Assembly. Here the left wing front lead by Acosta may have more success, although one of the major problems is that the alliance’s principal candidate on the national level, Lourdes Tiban, can only generously be described as being on the left and who does not generate much enthusiasm in the general population.
Another problem is proportional representation. The method used to take into account minority voters has recently been changed, with the result that Alianza País candidates are likely to fare better in the final count, and could possibly be elected in large numbers. Two recent polls do in fact predict that Correa’s party could end up with a large majority in parliament.
A third factor is the efficiency that has become one of the hallmarks of the present government. The political arena is clearly part of the tendency and the constant campaign strategy already visible in governments in other parts of the world has now been instituted here in Ecuador. In the short term it seems virtually impossible for any opposition movement to overcome the electoral deficit, in particular against a President as popular as Rafael Correa. In the long term the result almost certainly signals the need for a reorganization of existing political organisations, something the new Constitution aimed at but which can now be seen to have been only partially successful given that 12 parties are registered officially for the February elections.
Correa´s way of doing politics is likely to become the norm, and given that no other presently existing electoral force has the capacity to mobilize resources and propaganda in the same way, any future challenge to Correa´s green machine will involve changes. What might that mean for the hard left, whose parties are generally small and operate with severely restricted financing? The options seem to be three: to operate even more marginally than at present; join forces with other less radical parties in a broad spectrum alliance; or leave the electoral scene all together. The right, with its financial resources, presently appears far better positioned to deal with this new state of affairs.
The consequences of victory.
On the electoral front, the Unidad Plurinacional will likely have some time to sort itself out after the elections are over. It is possible to win losing, however, and the positive side of this electoral exercise is that there is, in practice, a left wing front that, if the process can be maintained in the face of personal and organisational agendas, may be able to position itself well for the post Correa era. The big decision is whether that should be as an electoral force.
On the social front, nothing short of victory will be enough for the left wing opposition, the post oil economy proponents, the indigenous leaders or the organizers of anti mining protests. In Correa´s lexicon legitimacy is equivalent to victory at the ballot box and, as a consequence, if you do not win then you have no right to protest and impede the agenda, and if you do, then you had better watch out. And while a higher than expected vote for Alberto Acosta might have some momentary impact and strengthen the resolve of that opposition, in the longer term it is unlikely to have any great impact on the economic plan. It can be said of Correa and his agenda that ‘this man is not for turning’. The implications are a greater likelihood of mobilisation and confrontation over oil, mining and water projects and, on the part of the government, greater use of the police and armed forces and attempts to ‘convince’ local leaders of the value of these projects for their people as well for as the wider community. This local–national/rural- urban debate is in fact one of the two that underlies almost every issue, the other being how to avoid the trap of an extractivist economy and what that implies on every level.
Rafael Correa clearly falls on the National Urban side of the divide, and whether or not you agree with his methods, there is no doubt that he and his team are excellent strategists. They will be hard to defeat in any arena, including the political. As for the candidate himself, it seems likely that he will be reelected either in the first or second round of voting. And given the increasing sense that, if he lives, Hugo Chávez will no longer be the force he was, as President of Ecuador once again, Rafael Correa will be called upon to play a greater part in the ongoing battle for the soul of South America. It is a battle he clearly believes in, and an arena in which he will have the support of the majority of the regions leaders. The internal politics of his country look somewhat more complicated.
 A Cold War has apparently developed between Argentina and the US. The most recent events in the standoff are the cooperation between Iran and Argentina to investigate the bombing of a Jewish bank in Buenos Aires in 1994 in which 85 people died, http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?ID=301716&R=R1 and the ruling by an Argentinean appeal tribunal that ratifies an embargo on the assets of Chevron oil company due to a ruling in an Ecuadorian court that awarded damages against the company of US$19,000 million. http://www.eluniverso.com/2013/01/30/1/1356/corte-argentina-mantiene-embargo-activos-chevron-causa-ecuador.html and the dispute with the IMF over official financial data. Brasil has just refused to recognize the Apple Iphone trademark. http://www.bbc.co.uk/news/technology-21449890
 International recognized economist and ex President of the Constitutional Assembly which wrote the 2009 constitution.
 Partido Roldosista Ecuatoriano, PRE, was founded after the death of President Jaime Roldos in an air ‘accident’ in 1981, the year in which President Omar Torrijos of Panama also died in similar circumstances. The PRE’s de facto leader is the deposed and exiled ex president Abdala Bucaram who presently resides in Panama.
 With his wife Anabella Azin as his Vice-Presidential nominee,
 If is, if he wins 10% more than the second place finisher. Otherwise he would need 50% +1 to avoid a second round.
 Mahuad who now teaches at Harvard University was recently, and not so coincidentally, the subject of an Ecuadorian request to Interpol for his arrest and subsequent deportation. Perhaps unsurprisingly, the request failed.
 According the Economic Commission for Latin América and the Caribbean, ECLAC, Ecuador’s social spending amounted to 9.3% in 2011, up from 7.5% in 2007 but down from 9.5% in 2010. The economy has of course grown substantially and the amount of constant dollars spent has therefore increased in proportion, by (a dramatic) 28.5% in 2009, 4.8% in 2010 and 6.2% in 2011. In terms of public spending Ecuador at 36% of GDP in 2010 was amongst the highest in Latin America. (Panorama Social de América Latina. ECLAC, January 2013 p173. Cuadro IV.1 AMÉRICA LATINA Y EL CARIBE (21 PAÍSES): GASTO PÚBLICO TOTAL, GASTO PÚBLICO SOCIAL Y GASTO PÚBLICO NO SOCIAL, 2008 A 2011
 There is another side to the story. Major increases in public service pay scales – teachers, police, armed forces and state bureaucrats – have also been a major feature of this government.
 Even though Ecuador is now amongst the least unequal countries in the region (headed by Venezuela and Uruguay) its Gini index is still just under 5. (Panorama Social de América Latina. ECLAC, January 2013. P 91. Gráfico II.2 AMÉRICA LATINA (18 PAÍSES): DESIGUALDAD SEGÚN DIVERSOS ÍNDICES, AÑO MÁS RECIENTE.
 Correa´s variety of politics was recently branded ‘Magic Socialism’ by the Quito based journalist Roberto Aguilar
 Rafael Correa is a practicing Catholic.
 The other being the National Teachers Union, UNE, whose political expression is the Marxist Leninist party, the Movimiento Popular Democrático, MPD. The union has successfully resisted attempts to divide it, but rising salaries and better conditions have weakened its core support.
 A new round of oil exploration concessions has been advertised and offers will be declared in March of this year. The 13 blocks, of 200.000 Ha. Each, are located principally in the south eastern –Amazon area of the country, and have been rejected by indigenous and environmental organizations http://pachamama.org.ec/?p=4473 .
 Recent conflicts include oil exploration around Sani Island and the Mirador and Fruta del Norte mining projects. http://www.salon.com/2013/02/10/to_get_the_gold_they_will_have_to_kill_every_one_of_us/
 Prominent amongst these is Pepe Acacho, ex President of the indigenous Shuar Federation, who was arrested in a combined Police and Armed Forces operation and taken by Helicopter to Quito. He was charged with terrorism and sabotage in connection with a September 2009 protest against proposed water legislation in which one person died. He was held for 7 days before the charges were thrown out as invalid. He was also charged with being an accomplice to the murder of Bosco Wizuma the man who died in the protests, and those charges are still pending despite the fact that the murder has never been resolved. Acacho is now a candidate for the National Assembly. El Comercio Pepe Acacho, preso en el ex penal García Moreno 02 febrero 2011. http://www.elcomercio.com/mundo/Pepe-Acacho-preso-Garcia-Moreno_0_419958104.html
 “Según informes de organismos de derechos humanos y de la Defensoría del Pueblo del Ecuador, en el 2011 existían 129 defensores de derechos humanos judicializados por el gobierno y por empresas privadas, así como 31 activistas políticos que tiene juicios en su contra o están sentenciados” Safiqy.org En Ecuador hay presos políticos que necesitan la solidaridad y compromiso de todos y todas. 22 June 2012 http://www.safiqy.org/perspectivas/la-politica/8549-en-ecuador-hay-presos-politicos-que-necesitan-la-solidaridad-y-compromiso-de-todos-y-todas.html
As of December 2012 47 social leaders were facing charges for terrorism. Lunes, 10 Diciembre 2012 ECUADOR: 47 DIRIGENTES AFRONTAN JUICIOS POR TERRORISMO. Agencia Ane http://radioequinoccio.com/inicio/item/3458-ecuador-47-dirigentes-afrontan-juicios-por-terrorismo.html
 The presence of the manual on how to produce a bomb raises questions about who knew about the manual, and about whether this was a serious plan to produce a bomb (in all likelihood a pamphlet bomb designed to attract attention and spread propaganda) and finally at what point the police or the authorities in general should intervene, if at all, if there is a suspicion that a pamphlet bomb could be made and could be used.
 The implicit accusation is that this group is the armed wing of the Ecuadorian Marxist Leninist Party, although no arms were found in the raid.
(20) “pretendían desestabilizar nuestra democracia… Hay mensajes de celular que claramente determinan que su intención es tomarse el poder por las armas.” Quoted in LOS DIEZ DE LULUNCOTO ¿TERRORISTAS? por Ramiro Ávila Santamaría.Lalineadefuego.info 29 January, 2013 http://lalineadefuego.info/2013/01/29/los-diez-de-luluncoto-terroristas-por-ramiro-avila-santamaria/
 Bank profits have been taxed in order to pay for an increase in welfare payments to the poorest sectors
 Market and Santiago Perez.
 The entire process of re-inscription of political parties was plagued by irregularities, principally the use of false signatures by all organizations involved, including the governing party.