MODERN ECUADOR HISTORY

For the next 20 years the conservatives retained the presidency. But agriculture exports were based near Guayaquil and political power and money grew for the liberals. By the 1890's the political tide had changed. Ecuador grew tired of restrictive conservative policies and corruption.

The conservative government was overthrown and Eloy Alfaro emerged as the liberal leader. Eloy was as liberal as Gabriel's had been conservative. He wanted to reduce the church's power, encourage capitalist development and enter Ecuador into the Modern Age.

New laws confiscated the church's land, permitted civil marriages and divorces, created land reforms, increased native rights, abolished capital punishment, and encouraged non-religious education. He created an infrastructure to deliver products to the rest of the world by improving foreign relations with the United States and other countries, constructing ports and completing the Quito- Guayaquil railroad.

The only thing needed to complete his plan was some profitable products to export, but without those products the country considered his works useless. Eloy lost popularity and the presidency after his second term. Like others before him he refused to step down and was forcibly removed from office and exiled to Panama. His successor died 4 months later and Eloy returned to regain power. His homecoming was not well received he was hung, torn apart, and burned in a public ceremony.

Political turmoil and the desire for a global economy have portrayed Ecuador's history. There have been 86 changes in government since becoming a Republic, each regime averaging a 1.75 years. Because of the instability the government has had little opportunity to mature and reflect populace opinions. In the 17 years between 1931 and 1948 none of the nation's 21 presidents successfully completed term.

CHANGING ECONOMIES

There were other problems for the country as well. In 1941, war broke out between Ecuador and Peru over a long existing territorial dispute in the Amazon Region. Ecuador claimed rights to the region because the initial expedition of the Amazon River was launched from Quito. However, Ecuador was under the Viceroy of Peru, Peru felt the area was rightfully theirs. The disputed area, almost twice the size of present day Ecuador, was rich in coffee, gold and oil. In 1942 during Peru's occupation of the territory Ecuador was compelled to sign the Protocol of Rio de Janeiro giving the land to Peru. To Ecuador the dispute was not settled and skirmishes continued until 1998 when a peace treaty was finally signed.

In the early part of the 20th century Ecuador's economy relied heavily on agricultural and fishing exports. During the 1960's foreigners began to export oil from the Amazon Region. The country would become a major exporter of oil in the 1970's and economic prosperity began. The world "oil crisis" in the early part of the decade finally gave Ecuador a place in the global economy. Today oil contributes over 1/3 of the country's exports.

Extracting oil has brought new problems; the cost of the new economy has been the rainforest's wildlife and the environment. Ecologists and the indigenous people of the Amazon region oppose the exploitation and want the government to return the traditional lands and the clean up of the rainforest.

In 1978 a new constitution was passed and the following year Ecuador returned to democracy. This return has not changed the major problems for the country the economy, political instability and corruption. The last three presidencies typify the challenges the country needs to overcome in order to prosper in the future.

Sixto Duran's (1992-96) quickly lost popularity after his election. His economic modernization plan cut government spending and public sector jobs putting many Ecuadorians out of work. His Development Law met harsh opposition from the CONAIE and other indigenous people of the Oriente. The law allowed for the commercialization of indigenous lands for farming and mineral extraction (primarily oil). The people of the Oriente created such pressure that the law was modified a month later protecting the landowners' rights. In 1995 the country renewed fighting with Peru in the Oriente. Though a cease-fire was signed, tensions grew when in 1996 the government purchased new jet fighters from Israel. Serious economic problems plagued the country and it could not afford the war. The expenses of the conflict combined with electricity rationing caused by the lack of hydroelectric power sent the country into yet another economic spiral. The country finally lost all confidence in their president when a huge corruption scandal was revealed. The Vice president fled to Costa Rica and 23 ministers were either impeached or resigned. The citizens called for the president's resignation. Today graffiti throughout the country still depict Sixto Duran as a traitor.

The country's distrust of Duran and the established government led to the election of the "anti-establishment" president Abdala Bucharam (1996-97) known as "El Loco". El Loco held office for less than 6 months. Increases in gas, telephone and electricity taxes led to a 300% rise in utility prices in 1996. He passed labor reforms allowing for the easier dismissal of employees, which infuriated labor unions. By January 1997 there were reports of widespread corruption and violent protests began. That February Congress declared him mentally unfit (Loco) and removed him from office. Bucharam refused to leave and barricaded himself inside the presidential palace. The military withdrew support forcing him to flee the country for Panama where he still lives in exile.

An interim president Fabian Alcaron (1997-98) replaced him. Fabian is currently awaiting trial. Allegations came to light that while serving as president of congress he authorized the hiring of numerous people by the government who did not serve any function. The allegations state that the jobs and salaries were political paybacks.

In 1998 Ecuador elected Jamil Mahuad as president. Mahuad's goals were to solve the country's economic problems and put an end to governmental corruption. His economic reforms are based on re-negotiating Ecuador's foreign debt and stabilizing the Sucre. While in office he signed a peace treaty with Peru and put an end to the 57-year old conflict. Economics in Ecuador grew unstable and within 2 years he was thrown out of office and the official currency of Ecuador the Sucre was abandoned for the US dollar.

Politics have remained unstable in 2003 Lucio Gutiérrez a former army colonel was elected president and when the people called for his resignation he fled the country amid rumors.

The current president Rafeal Correra is the first who seems to be taking Ecuador the opposite and positive direction. He has the overwhelming support of the populous. He has changed the power structure of the country to align the government with the interest of the people and not just the wealthy. Circumstances, which might be overwhelming to people of other countries, are mere challenges requiring patience in Ecuador. Ecuadorians have prevailed as peaceful, friendly people. Their varied backgrounds and views are put aside to defend the republic and meet challenges as a united country.

GALAPAGOS HISTORY

Discovery of the Galapagos Islands
Whalers in Galapagos
Charles Darwin visits Galapagos
Early Colonists - Settlement of Galapagos

ECUADOR HISTORY

Pre Columbian History
Inca Empire Extends to Ecuador
Spanish Conquest of Ecuador
Royal Audience of Quito - Spanish Rule
Republic of Ecuador
Modern Ecuador History