2018-01-15
The fight for Freedom in Ecuador c.2001
Ecuador is still at risk, there is much to be undone for a decade lost on a much maligned philosophy that consumed Ecuadorians, in which almost everything was lost and the country was closer than ever to become another Venezuela, another Cuba. Ecuadorians still have to fight, they have to recover economically from so much corruption, graft and waste.
Nonetheless I believe that the only reason why Ecuador was not lost at all was due to the fact that there was a small group of people that kept fighting for Freedom with ideas. They were not many before 2001, but I am sure there are many more now after living under the guise of a revolution that promised to get Ecuador out of underdevelopment and poverty at the expense of their freedom.
A younger version of me wrote this paper attached back on my early days at Atlas, it was a market analysis, first step necessary to complete my Internship at Atlas Network. It was a way of providing intelligence for Atlas so see how to help the freedom movement in Ecuador and that required to research the local market. For me it was also a way to know better what was going in my country of birth, put ideas together see what could be done.
Fortunately or unfortunately things changed and rather than returning to Ecuador I got offered to stay at Atlas for a little longer, and a little longer and longer. So far is 17 years and counting with Atlas. But that's another story, what matters and the reason for me to share this is to perhaps inspire or perhaps tell a story that while so far has up's and downs it's a story of what happened back then and what could be done again today to change things for the better.
Yes Ecuador lost a decade from 2007-2017, but I have seen that there is more interest for the ideas of Freedom. Liberty doesn't sounds as fringe as it sounded back then, perhaps what Ecuador went through was necessary to forge on fire the Freedom Movement there. Only under great duress is that stronger things come out. I am only hopeful that things will get better and younger and more enthusiastic people will have better luck than what I had back then.
Word of warning back then my English was not in great shape having arrived in March and writing this in April 2001 and although I have become a better writer and speaker I still don't feel comfortable about my English, so please accept my apologies for my language shortcomings. Some of the actors in my April 2001 report are gone they disappeared in some instances, but in others their participants never left, they just kept the fight from different institutions or through their writings in local newspapers and today are important members of the civil society that keep the fight for freedom like a beacon from their current positions. I have added a strike-through at the end on the list of institution that have disappeared (PDF remains unmodified). Others have appeared but that is the work of others living currently in Ecuador to report. In any case read below to learn a bit more about the history of The fight for Freedom in Ecuador before 2001.
2009-01-20
La salida de la dolarizacion
http://www.cambiemosecuador.com/2007/04/bravo_dr_correa.html
2008-12-17
Cuando Ecuador eligió un presidente liberal
El Presidente de Atlas Alejandro Chafuen (mi actual jefe), cuenta siempre esta historia sobre cuando conoció a mi padre Rómulo López Sabando en una reunión con liberales latino americanos en Miami en 1985. Alex
le pregunto cual era el mayor desafío que la economía de libre mercado
enfrentaba en el Ecuador y la respuesta de mi padre fue "Ganar la
Presidencia de la República".
Mi padre fue presidente de la Cámara de Industrias de Guayaquil, y luchó junto con León Febres Cordero (Ex-
Presidente de la cámara y diputado en ese entonces) para promover un
gobierno liberal. Los esfuerzos realizados tuvieron tanto éxito que
León ganó la Presidencia. No solamente la ganó, lo hizo con un
lenguaje netamente a favor de la economía libre. La izquierda (Roldós) lo bautizó a Febres Cordero con el mote del "más insolente recadero de la oligarquía" por
ser tan directo en sus argumentos a favor de una economía libre.
Ecuador fue entonces en 1984 el primer país que habló de reformas de libre mercado en Latinoamerica,
mucho antes que Argentina, Perú, Brasil o Venezuela; en un continente
donde la única alternativa para un régimen de libre mercado era la
dictadura de Pinochet en Chile y el resto eran países gobernados por
dictaduras de izquierda. Como sucede en todas las cosas que hacemos
los ecuatorianos, siempre somos los primeros que hablamos de reformas,
como la dolarización o la privatización pero somos los últimos en
implementarlas o somos los que menos reformas hacemos. Ninguna reforma
liberal se hizo en el periodo de Febres Cordero, ni ninguna
privatización ocurrió (con excepción de la privatización de
Previsora). Su único triunfo claro fue luchar a brazo partido contra
la guerrilla y literalmente borrarla del mapa y ahorrarnos la tragedia
Colombiana o la noche oscura de Sendero Luminoso en el Perú. Para la
izquierda Febres Cordero se convirtió en la causa de todos los males que tenía el país.
Más tarde en su carrera política, como alcalde de su ciudad Guayaquil, León
recuperó su imagen política y transformó a Guayaquil, en ese entonces
la Calcuta de América (con el perdón de Calcuta), en un lugar decente, moderno y vivible. Tuve la suerte de conversar con Febres Cordero un par de veces (gracias a la amistad de mi padre con León) y le pregunté porque nunca había hecho ninguna gran reforma de libre mercado durante su presidencia, especialmente si era cierto lo que me
estaba diciendo que se confesaba ser un gran admirador de las reformas
liberales de la Alemania de la Posguerra de Ludwig Earhart. Su única respuesta fue, "los intereses creados, los intereses creados no me dejaron".
El obituario de León ha estado en todos los medios de comunicación del país y del extranjero como el Washington Post.
Debo añadir que debido a la falta de reformas de libre mercado que tan
ardorosamente defendió en su campaña presidencial ha sido muy difícil
disociar el libre mercado de la Presidencia supuestamente "Liberal" del
régimen de Febres Cordero. El fue uno de los más grandes líderes que ha tenido el país y el refundador de Guayaquil como alcalde, pero la oportunidad histórica de promover el libre mercado simplemente se desperdició. Este es un ejemplo clásico de la advertencia que hicieraFriederich Von Hayek a el Fundador de la Fundación Atlas Antony Fisher sobre involucrarse en política para avanzar los principios de una
sociedad libre. Si, hay que involucrarse con los políticos, pero no
con los políticos de una determinada carpa política. Como bien lo
mencionan algunos amigos liberales, el gobierno de Febres Cordero fue de nombre de derecha, pero sus acciones coincidieron más con la del típico gobierno patrimonialista latino americano que cuida los intereses de los empresaurios pero no el interés general y los principios de una sociedad libre.
No es si no hasta reciente fecha gracias al trabajo de hormiga lento pero de grano en grano de Dora de Ampuero a través del Instituto Ecuatoriano de Economía Política (desde 1991), mi padre Rómulo López Sabando, jóvenes universitarios, académicos como Franklin López, el Movimiento Libertario en Quito (y ahora en el resto del país) liderado por Juan Fernando Carpio y más recientemente Fundación Ecuador Libre, iniciativa de Guillermo Lasso y dirigida por Pablo Arosemena y otros que mas que seguro se me olvidan, que la mala reputación dejada por Febres Cordero se ha ido borrando de a poco. Los Ecuatorianos han comenzado a apreciar la necesidad de reformas de Libre Mercado y más específicamente una sociedad libre, especialmente ahora que tenemos un
régimen Pro-chavista y castrista como el de Rafael Correa.
Lo que el país necesita no es otro líder como León Febres Cordero en el cual empeñar nuestras esperanzas si no convencernos y convencer a otros de que es necesario reformar el país y sus instituciones hacia un régimen de mayor libertad. Si en el camino
aparece un líder del talante de Febres Cordero y logra los cambios, en
buena hora, pero no debemos empeñar nuestra reputación e ideas en un
líder que nos llevará por los próximos 30 años en los altos y bajos del
fragor político y la lucha del poder por el poder. Paz en la tumba de
León el mejor alcalde en la historia de Guayaquil el pueblo ya le
agradeció y le ha dado un apoteósico despido en sus funerales. Solo la
historia lo juzgará por sus errores y omisiones como padrino de la
política, como Presidente y como el último caudillo. Nosotros los que
nos llamamos liberales tenemos en cambio la obligación moral de una vez
más empujar este carro a favor del país y nuestros esfuerzos deben una
vez más estar orientados a transformar nuestro país en una sociedad
libre y próspera sin privilegios (y sin caudillos).
Originalmente publicado en inglés en Atlas Network el 17 de diciembre 2008.
When Ecuador Elected a Free Market President
My father was president of the Chamber of Industries of Guayaquil, where he fought alongside Leon Febres- Cordero,( former president of the Chamber and a Congressman) for free market reforms. Their efforts were so successful that in 1984, Febres-Cordero won the presidency. Not only did he win, he won while preaching a free market message. The left called him “the most insolent oligarchy’s messenger ” for being so straightforward in his arguments for free markets.
Ecuador talked about free market reforms in Latin America before Argentina, Peru, Brazil or Venezuela; on a continent where the only other free market option was Chile under Pinochet’s dictatorship. As is always the way, Ecuadoreans have been the first ones to talk about many reforms, like dollarization and privatization, but the last ones to actually implement these reforms. No free market reforms or privatizations were ever accomplished (except for a bank privatization) under Febres-Cordero’s government. Their only success was fighting against the guerrillas, and literally wiping them out. His government became the favorite whipping boy of the Ecuadorean left.
Later on, as mayor of his hometown Guayaquil, he recovered his political image by transforming the city from an ” American Calcutta”(no offense to Calcutta) into a decent and livable place. I had the chance to ask Febres-Cordero (thanks to my dad’s friendship with him) why he never implemented any free market reforms during his presidency, given his admiration for Ludwig Earhart’s reforms in Germany. His only response was that the special interest groups made reforms impossible.
You can view Leon Febres-Cordero’s obituary in the Washington Post. I might add, that due to his failure to implement the reforms he so ardently called for, it has been difficult to promote free markets in Ecuador. He was a great leader for Ecuador, but his great opportunity to implement lasting reform was squandered. His is a classic example of Hayek’s warning to Atlas’s founder, Antony Fisher against getting involved with politics in order to advance reforms.
It was not until recently, thanks to the steady work of Dora Ampuero (Instituto Ecuatoriano de Economia Politica established in 1991) and others (too many to name here) like my father, university students, Movimiento Libertario in Quito (Juan Fernando Carpio) and most recently Fundacion Ecuador Libre (winner of a 2008 Fisher Venture Grant), that the bad reputation left by Febres-Cordero has slowly been cleared away. Little by litte the people of Ecuador are coming to appreciate the need for free market reforms, especially after the Pro-Chavez-Castro regime of Rafael Correa.
Originally posted here
2008-12-01
La tragicomedia de la deuda.
http://www.cambiemosecuador.com/2008/12/tragicomedia-ec.html
See my last comment (spanish) about the analysis by Gustavo Coronel regarding Ecuador's debt repudial.
http://www.cambiemosecuador.com/2008/12/tragicomedia-ec.html
Tragicomedia: Ecuatoriana con produccion venezolana
Gustavo Coronel de Venezuela acaba de publicar un análisis del análisis (valga la rebundancia)de la deuda ecuatoriana hecha por el gobierno de Rafael Correa. En momentos de crisis económica mundial el Presidente ha decidido aislar al país de los circulos financieros y empeorar la situación del sector privado al ponerlo en riesgo de no conseguir lineas de crédito por incumplimiento del gobierno. Si bien aplaudo que se investigue la deuda usada ilegitimamente me parece una soberana estupidez negarse a asumir responsabilidad por las tonterías de gobiernos pasados.
Tal vez esto debería motivar una prohibición constitucional a que el gobierno se endeude con los contribuyentes o con los organismos financieros internacionales o que se emitan bonos de deuda. En todo caso les copio el informe de Gustavo Coronel y para los curiosos les anexoel informe completo de la deuda.
Update: Me acaban de comentar que el enlace correcto es este:
http://www.auditoriadeuda.org.ec/
2007-10-11
La nueva constitución del Ecuador
Ante el abrumador triunfo de la lista presidencial pareciera que no hay lugar para discusion o 'dialogo' acerca del contenido de nuestra futura constitucion. Esta constitución es la numero veinte o veitiuno, no importa, ya eso es parte de la historia.
Se necesitan únicamente de 66 votos para aprobar el contenido de nuestra futura constitución; dado que el gobierno los posee por completo una de las características que este gobierno y sus seguidores pregonaron por mucho tiempo; cuando eran minoría especialmente; era la de la 'democracia participativa' y el dialogo. Bueno pues al parecer con la venia de los votantes esta vez eso no sería necesario, y el propio gobierno ha manifestado que exigir más que la mayoría simple es lo que produce problemas en Bolivia. Sin embargo, con esta mayoría absoluta que le han otorgado los votantes al gobierno, nos enfrentamos con el peligro de que la misma no se moleste en meditar acerca de las consecuencias de sus actos o decisiones políticas, para con las minorías.
Rico, pobre, trabajador, banquero, industrial, comerciantes, etc., que no sea parte de esta mayoría ahora más que nunca quizás corre el riesgo de ser sacrificado por el bien común según como sea entendido por este gobierno y sus asambleístas. A continuación el IEEP ha realizado un estudio publicado en su sitio web sobre cuales deberían de ser los fundamentos constitucionales de la nueva constitución y un ensayo de constitución, que ponemos a dispocisión de los lectores para su evaluación.
Ecuador Fundamentos constitucionales
Veamos que tan dispuestos están al díalogo y si están dispuestos a por lo menos tomar en cuenta el 10% de estos fundamentos y ensayo de constitución como necesarios o críticos para el éxito de la nueva constitución.
2007-04-02
Attention ecuadoreans reading this Blog
2005-04-16
What is going on in my country
-www.ecuadorinmediato.com
-www.cre.com.ec
-www.radiolaluna.com
I have also made my comments (spanish) on the crisis in the other blog that I help manage Cambiemos Ecuador. To make a long story short there is no fix to the president's problems, he should quit and let the vicepresident take the post.
And on a less serious note, thanks to Eduardo from Li-1 the new political campaign of the current president (Via Foxcorp)
2004-08-16
The resurrection of Guayaquil
2004-07-20
Investment in Ecuador
The whole problem started when oil companies using the current Tax code tried to get a refund on the taxes that were paid and when the tax forms were filled the state had the duty of returning the overpaid taxes. Instead of that the Internal Revenue Service said that according to their oil concessions they were getting enough from the state. In a clear violation of the same tax code the state refused to pay back the oil companies the overpaid taxes. The solution as I saw it was either Ecuador government paid back those taxes and then modifies it's own tax law or they paid back them but at the same time they modify the concessions to the oil companies. In any case the state had to bite the bullet and be the first one to comply with the law. Neither of those 2 options were taken.
So the oil companies decided to take the ecuadorian government to a higher international court and obviously they lost. Perez Loose op-ed hightlights the government contradictions that forces its citizens to comply with stupid regulations that are damaging to their own interests and the government itself is incapable of abiding to the same rules.
That denial that the rules are for everybody is root of all the problems with legal insecurity and the reason Perez Loose says, why people prefer to invest in guerrila battered Colombia rather than doing it in peaceful Ecuador. Ecuador is a country where anybody with a slight connection to a government official feels the right to be above the law. Very few people follow the law to its full consecuences.
Why nobody wants to respect it is the big question. The answer has two angles. The first one is pure and simple lack of tradition of respect. Since colonial times the law was designed not to impose some restrictions on freedom and recognize people's freedom, but rather as a tool of control and benefits to certain groups of power. That in turn has made the law a complex collection of restricitions and benefits that makes people think twice before complying with it. Only fools comply with the law. The law is not for smart people. My friend Enrique Ghersi likes to quote a peruvian dictator that said, "For my enemies the Law, for my friends everything". That in a way reflects why in Latin American countries the law is a tool of power, not freedom. Only those that we don't like should comply with the law following this logic.
In regards to the Law Ghersi says :
"The compliance of the Law is a cost benefit behavior. That is the reason why the people in Latin America barely comply the law, because it is too expensive to meet the regulations"
Getting back to the issue that Perez Loose points out, the Ecuadorian government should apply the same standards that requires to the general people. If they find it too hard to comply, then there is no reason for the people to comply with it.
2004-03-17
Blogging and good news from Ecuador
During this trial period I have discovered what RSS is, how trackbacks work and how ahead of the news you can be if you use Newsreaders or aggregators. I think I am hook into this and ready to go the next step further which is start paying for this service. I know there are some "free" options out there, but as I told one friend, I am not willing to spend more time learning more code from what I need to continue doing this for free.
Let's see then if I am able to continue blogging and making the paid subscription services of typepad worth. I have added a wishlist in case somebody out there considers this Blog worth reading and would like to make a gift. I have been considering also adding a Pay Pal account to receive donations or payments, but I am not so sure that I want to start keeping track of receipts and donations to declare taxes for uncle Sam. Maybe if in the future if I become good enough at this and people find my comments worth reading them, I will start accepting donations. In the meantime this Blog is just for my pure pleasure and readers are welcome to enjoy it too.
Finally looking out for some information to add to this BLOG I found this article by Carlos Alberto Montaner in english and spanish. What I like about this article is the fact that I have notice that Ecuadoreans (and I include myself) because of the recent political and economic crisis of the late 90's and early millenium, have become pessimistic and cynical about our future as a country. I don't know how much of what Montaner says is real and how much of it is just a facade that somebody painted to him (the cynical inside me). Nonetheless if this holds to be true it will be worth praising it and a proof that not all is lost in my native country, there is hope and future in it.
2004-03-03
Congratulations Dad!!
The CCCC is an independant organism that has less than a decade of existance in Ecuador. Their members are appointed by several members of the civil society like Chambers of industries, Universities, unions and ratified by the congress.
Traditionally the comitte has been in the hands of people that although might had good intentions has been biased by being most of their members foes of the market system.
Hopefully his nomination will bring a little more balanced view to that institution and together with the well deserve prestige of their members have a more effective role uncovering corruption in Ecuador. Ecuador in recent years have been considered as one of the most corrupt countries in the world. The CCCC has so far being considered one of the few organizations that have been pointing out corruption and have a high reputation. However most of their recommendations point out the moral problem but generally have been very unspecific about the institutional causes of corruption.
Corruption in my point of view is not only a moral problem, but also a transaction cost problem. I am not naive as some free market friends to think that only economic analysis and a simpler rules will solve the problem. Corruption is a problem that should be fought on both areas, the institutional and the moral roots of it. Corruption fight should not be a monopoly of the left, our free market friends should be more outspoken against corruption.
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