Ecuador Rejects Neoliberalism Ahead Of April Runoff

Andrés Arauz

In Ecuador, a rather remarkable shift is taking place. Andrés Arauz, a left-wing candidate, is headed to an election run-off with his opponent yet to be determined. Arauz won roughly 32 percent of the first vote, which was more than enough to finish ahead of every other candidate. He’ll face the second-place finisher in April. Arauz ran on a platform promising the end of industrial mining, justice for women and marginalized identities, sending a million families $1,000 during his first week in office, and raising taxes on the rich. His policy platform emphasizes a rejection of neoliberalism and a move toward a post-oil-dependent economy, as Ecuador’s economy has long relied upon its oil industry. 

Ecuador’s most recent president, Lenín Moreno, opted not to run again, likely because his approval ratings reached a paltry 7 percent in the midst of the COVID-19 pandemic. Moreno was elected as a successor to Rafael Correa. The latter had left the presidency with a 14.2 percent decrease in poverty and an increase in per capita GDP of 1.5 percent from 2006-2016. Correa’s presidency also served as a rejection of the International Monetary Fund (IMF), which has a long history of instituting neoliberal economic plans in countries that accept the IMF’s aid, leading to government spending slashes and increased inequality. 

However, Moreno quickly backtracked on Correa’s legacy, reinstituting neoliberal reforms, accepting IMF aid, and abolishing fuel subsidies, leading to massive protests across Ecuador. Rejection of the IMF’s neoliberal ideology is essential to any movement past capitalism that finally creates an economy that works for working people. Rejection of global finance capital (the IMF, the WB) and neoliberalism is also essential for any real effort at taking on climate change, as massive investment in clean energy, sustainable farming, healthcare, and housing are all necessary to avoid climate catastrophe. Those exact measures are the opposite of everything neoliberalism and austerity represent.

As of now, all indications point to Arauz winning the runoff in April.

However, the OAS is now getting involved in the election, which is a bad sign for things to come. The OAS has frequently served as an arm of right-wing neoliberal interests. They recently undermined left-wing politician Evo Morales in Bolivia in 2019, claiming voter fraud that was later disproven by the New York Times. The allegations of fraud enabled a right-wing military coup that forced Morales out of the office and led to police and military crackdown on left-wing protesters, to the disapproval of human rights organizations worldwide. 

The OAS also forced the left-wing candidate Jude Célestin out of the 2010 Haiti election run-off, using reasoning that was proven false by the Center for Economic and Policy Research. The OAS is primarily influenced by the United States and traditional colonial powers, who are very much opposed to left-wing economics and politicians. This creates an obvious reason for concern for any interference ran by the OAS, even if it only currently is for the sake of deciding Arauz’s April runoff challenger. Morales himself issued a warning via Twitter, calling on people to be attentive to the situation developing in Ecuador. Should the OAS remain present during the April runoff, anyone interested in solidarity with the working people of Ecuador and the world must use their voice, loudly, in an effort to be sure that a democratic process takes place. 

If Arauz wins, it will signal a continuance of the rise of left-wing governments within South America, as the left-wing party MAS won sweeping victories in Bolivia in 2020, and in Chile, Marxist candidate Daniel Jadue has consistently led in polls ahead of the November general election.