In Ecuador, the indigenous groups are protesting a roll back in fuel subsidies, this have brought the country to a standstill.
In an important breakthrough, they have arrived at an agreement with the government.
What is the story behind?
Ecuador had been roiled by unrest since the beginning of October 2019, when President Lenín Moreno enacted austerity measures following a $4.2 billion loan from the International Monetary Fund (IMF).
Under the deal reached between the government and protesters, Moreno will now withdraw the IMF package and reintroduce fuel subsidies.
On 7th October 2019, the protests forced Moreno to shift the government from Quito, the nation’s capital, to the coastal city of Guayaquil.
Although the protests were peaceful when they began, a spate of violent incidents caused Moreno to order a 24-hour curfew in Quito, and to deploy the army in its streets.
What led to the resentment?
In March 2019, the oil-dependent Ecuador secured a $10.2 billion bailout package from the IMF and other institutions, of which $4.2 billion were to come as a loan from the IMF.
The bailout package was necessitated by poor economic growth and deficits ever since oil prices dropped a few years ago.
The country’s growth slowed from 2.4% in 2017 to 1.1% in 2018.
Lenín Moreno, who defeated left-leaning mentor-turned-rival Rafael Correa in the presidential elections of 2017, has been trying to make Ecuador’s economy more market-oriented.
To meet the IMF’s targets, Moreno on 1st October, 2019 announced a rollback of fuel subsidies that were in place in the Andean nation since the 1970s.
How were the protests?
Course of the protest - After the government cancelled the fuel subsidies, petrol and diesel prices shot up, and a massive backlash followed on the streets.
Apart from clashes with security forces, protesters even entered some of Ecuador’s oil fields.
Several officers were taken hostage in different parts of the country.
The government had to be shifted from capital.
Indigenous people who led the protests make up more than a quarter of Ecuador’s population.
Facing stiff resistance, including calls for resignation, President pinned the blame on organised crime.
He also accused his predecessor Rafael Correa of plotting a coup against him, which was denied by Correa.
Result - On 14th October 2019, protesters who had been calling for the withdrawal of fuel subsidy cuts secured a major victory, as Moreno was forced to give in to their demands.
A new law will now be passed aiming to stop the misuse of fuel subsidies.
