[stop-imf] Ecuador's progressive finance minister resigns

[Robert Weissman]

http://www.falkland-malvinas.com/Detalle.asp?NUM=6180

Mercosur
Saturday, 06 August

Fresh political turmoil brewing in Ecuador

The "accidental" presidency of Ecuador's Alfredo Palacio was startled
Friday by unions and powerful social organizations accusing him of betrayal
and hinting he could be ousted as was his predecessor just four months ago.

The resignation Thursday of Economy minister, Rafael Correa triggered a
chain of events that seems to have become a countdown for the Palacio's
administration.

Former minister Correa, the most popular figure in the government said his
permanence in the post had become "unsustainable" and news of his departure
brought out hundreds of protesters to the streets of the capital Quito who
were quick to remind President Palacio that he was enshrined following a
wave of mass demonstrations that helped oust his elected predecessor
Colonel Lucio Gutierrez.

Protestors and groups supporting Mr. Correa accuse Mr. Palacios of giving
in to international financial markets and United States "imperialism".

Apparently the World Bank has been unhappy with Mr. Correa's policies,
specifically his overhaul of a stabilization fund supported by Ecuador's
oil exports.

The eclectic Economy minister decided last month that some of the money
formerly reserved to pay back debt should be earmarked for social programs.

Actually Mr. Correa told Britain's Financial Times this week that World
Bank officials mentioned that decision as the reason for turning down his
request for a loan under Ecuador's existing agreement with the multilateral
organization.

Mr. Correa argued the WB objections were unfounded, since Ecuador had
complied with an agreement earmarking 70% of the stabilization account for
debt repayment until September 2004.

The London-based newspaper also reported that the World Bank might soon
announce a de-facto suspension of the entire 400 million US dollars loan
agreement with Ecuador.

Another cabinet member, Industry Secretary Luis Maldonado came out in
support of Mr. Correa saying that he will resign if President Palacio does
not comply with the original commitment to the people and social programs.

Further more Labour Minister Galo Chiriboga warned that his department's
initiatives depend on the continuity of the current economic program
(elaborated by Correa).

In a radio interview the former minister thanked all the support from
grassroots groups, Indian organizations and common citizens, but
highlighted that "it's not an issue involving a minister or a person, but
rather a new, fresh social economic policy, for the dignity of a country
that so badly needs it".

Mr. Correa insisted that his presence in the cabinet had caused concern
among "imperialists" and said the time had come for citizens and the people
to ensure "control of the government".

"I resigned because I was unwilling to accept presidential orders that
clash with my principles", said Mr. Correa who admitted he favoured closer
ties with Venezuela and President Hugo Chavez.

Meantime Quito radios kept calling on people to come out to the streets in
support of the ousted Correa.