16 Oct 2019

Mass strikes and protests force Ecuador’s president to cancel austerity decree

Andrea Lobo

A mass protest movement of 12 days—involving mass marches by workers, indigenous peasants and students, three days of national strike, widespread roadblocks and the occupation of key oilfields—forced the US-backed administration of Lenín Moreno late Sunday to annul the elimination of fuel subsidies dictated by the International Monetary Fund (IMF).
The decision does not mean IMF reforms are permanently off the table, only that the Ecuadorian ruling class, in league with US and European imperialism, is buying time to formulate a new strategy to enforce devastating austerity.
After Moreno’s announcement from the coastal city of Guayaquil where his government had retreated, the streets of the capital Quito turned from a battlefield into a mass celebration, with chants, music, caravans and fireworks celebrating the rescission of the measures after heavy sacrifices on the part of workers and peasants. In total, the repression left 8 people dead, 1,340 injured and 1,192 arrested, according to Ecuador’s Ombudsman Office.
On Tuesday, fuel prices, which had risen dramatically, were sliding back down. The agency in charge of transportation fees said it would meet to withdraw the recent hikes. Schools and the national congress re-opened after nearly two weeks closed, while the government said that all state-owned oilfields would resume operations this week.
Moreno’s new decree, however, makes clear that the ruling class is only seeking a better footing to eliminate the subsidies, and that those organizations negotiating the retreat will play a key role in the next offensive, while they ram through a new labor reform and other social cuts also announced on October 2. These forces are exposed as loyal servants of the interests of foreign capital and the local financial oligarchy.
The workers and the toiling masses in Ecuador and internationally must use the breathing space to extract the sober lessons of this experience. This month’s events show that any struggle against social inequality and dictatorship must be based on the fight against imperialism and for the overthrow of the entire system of capitalist exploitation on an international scale. The genuine spontaneous anger of workers, peasants and youth may be sufficient to force the ruling class into a temporary retreat, but to transform society on the basis of socialist egalitarianism, a revolutionary Trotskyist leadership is necessary.
The repeal of “decree 883” eliminating fuel subsidies resulted after a round of talks between Moreno, his cabinet, and the indigenous leadership headed by the Confederation of Indigenous Nationalities (CONAIE), which was leading the protests in partnership with the trade unions and several opposition parties.
The breaking point for the government was the warning by these organizations that they were unable to keep a lid on social anger.
Initially, this fear led the trade unions to call off the national strike on October 4. The transportation union leader, Abel Gómez, declared: “Analyzing the situation in the country, the chaotic situation that the transportation system is in, and having expressed our disagreement with our government…the transportation workers responsibly announce to the Ecuadorian people the end of our strike.”
Then, during the first televised hour of the talks Sunday—the UN mediators asked the media to step out during the final three hours—the president of CONAIE, Jaime Vargas, said, visibly shaken, “I’m being pressured by the rank-and-file. ‘How much is the government paying you?’ they ask.”
Leonidas Iza, the head of the Cotopaxi indigenous movement, was even more explicit: “We are not seeing things objectively. Even we were surprised by the amount of people. I don’t think [ex-president Rafael] Correa could mobilize that. … Nobody wants war, but we need to resolve the issues now and that depends on who is ruling Ecuador.”
The repeal demonstrates that the ruling class’s greatest fear is that workers and peasants will break free from the organizations that have for decades channeled opposition behind one or another faction of the bourgeoisie.

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