Equador:
Mass demonstrations against austerity program

February 5 saw mass protests in Ecuador's major cities as unionists, 
students and others protested against the economic measures imposed by the 
six-month old administration of President Jamil Mahuad.

The protests were called nationally by the Unitary Workers' Front (FUT), 
the Coordinating Council of Grassroots Movements (CMP), the Popular Front 
and the Confederation of Indigenous Nationalities of Ecuador (CONAIE), with 
support from other union and social sectors.

Some 25,000 people marched in Cuenca; 5,000 marched in the city of Loja; 
4,000 marched in Puyo; 3,000 marched in the city of Esmeraldas. Smaller 
demonstrations were staged in other cities.

In Riobamba, 4,000 marched with a giant float of the Titanic hitting 
an iceberg — representing Ecuador about to be sunk by "corruption and the 
lack of ability to govern". (President Mahuad has referred to Ecuador as a 
sinking ship.)

Schools were closed for the day, and some 12,000 police agents were 
mobilised around the country to prevent "disturbances".

However, the objective of the protests was "not to overthrow a government" 
but "to defeat the neoliberal model", union leader Marcelo Roman explained.

The protests were staged a day after the National Educators' Union (UNE) 
began an indefinite strike to protest against the current administration's 
refusal to grant public school teachers a salary increase approved under 
the previous government.

The Mahuad Government's austerity measures are the typical "neoliberal" 
package designed to please international banks, including the IMF, with 
severe cuts to government spending, wholesale privatisation and handouts to 
the banks.

The removal of state subsidies on basic necessities has brought cooking gas 
prices up by 410 percent and electricity charges by 360 percent, while food 
prices have risen 15 percent per month.

In January subsidies were similarly removed from telephone, drinking water 
and other services.

Other austerity measures have included a salary freeze and mass layoffs for 
public employees; the privatisation of state-run enterprises; and a plan to 
raise the retirement age for Social Security.

Speaking on television from Washington on the night of the protest 
demonstrations, Mahuad assured Ecuadoreans that he "understood people's 
frustration" but insisted that his economic measures were "painful, but 
necessary".

However, people are angry that the pain is being borne mainly by the poor. 
People are particularly angry about the Government spending US$1 billion to 
bail out failing local banks.

Another factor producing public anger has been the replacement of income 
tax by a one percent tax on financial transactions, a move which has 
affected the poor disproportionately.

No less than 41 per cent of Mahuad's proposed national budget, now before 
the Congress, is assigned to payments on the debts to foreign banks, with 
virtually no funds designated for social programs.

Union leaders warned that a national strike would be called if the 
neoliberal economic measures were not revoked by February 20. FUT President 
Fausto Dutan said that unions, student groups and indigenous organisations 
were due to hold an assembly on February 20 to set the date of the strike.

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Social Justice USA