Background and History
Early Years - Inca Empire and Spanish Conquest (1500-1830)
Ecuador was originally part of the Northern Inca Empire until the Spanish Conquest in 1534. In 1822, almost 300 hundred years later, Ecuador gained its independence from Spain. Ecuador had joined Simon Bolivar’s Republic of Gran Colombia for eight years before becoming a separate republic in 1830.[1]
1800-1997
The 19th century was marked by instability and rapid succession of rulers. In the late 1800s the world demand for cocoa had helped stabilize the economy. In 1895 President Eloy Alfaro led a coastal-based liberal revolution that reduced the power of the clergy and opened the way for capitalism. By 1925, the decrease in demand for cocoa had renewed political instability and a military coup. After World War II, the recovering market for agricultural commodities and growth of the banana industry had helped restore prosperity and political peace. In the 1960s, political turbulence had returned followed by a military dictatorship between 1972 and 1979. Ecuador returned to a democracy in the 1980s and the beginning of the 1990s, however instability returned.[1]
Political Instability (1997-2006)
From 1997 to 2006 Ecuador faced political instability. In 1996, Abdala Bucaram took over as the President. Bucaram was corrupt and was deemed by congress to be mentally incompetent in 1997. Jamil Mahuad was elected in 1998 and on October 26, 1998 he concluded a historic peace agreement with Peru. Although he made peace with Peru he faced criticism due to increasing economic, fiscal, and financial difficulties. On January 21, 2000 the citizens of Quito, with help from the military, stormed the congress building and declared a three-person “junta” to run the country. Gustavo Noboa took over as President. [1] Noboa restored some stability to Ecuador by implementing the dollar and constructing a second major oil pipeline. On January 15, 2003, Lucio Gutierrez took over as president. He said he would lead an anti-corruption and leftist populist reform, but instead when he got elected he adopted relatively conservative fiscal policies and defensive tactics. He replaced the Supreme Court and declared a state of emergency to combat opposition. On April 20, 2005, Gutierrez abandoned his presidency due to enormous opposition. [1]
Correa Administration (2007 - Present)
Rafael Correa was elected President on January 15, 2007. A new constitution was drafted in October 2008. The new constitution requires elections for the president, vice president, members of the National Assembly, and provincial and local officers to be held every 4 years. Correa is currently the president of Ecuador. He advocates for social justice and is trying to reassert the supremacy of human labor over capital. He has increased spending on housing, health care, and other social programs. [1]
Ecuador was originally part of the Northern Inca Empire until the Spanish Conquest in 1534. In 1822, almost 300 hundred years later, Ecuador gained its independence from Spain. Ecuador had joined Simon Bolivar’s Republic of Gran Colombia for eight years before becoming a separate republic in 1830.[1]
1800-1997
The 19th century was marked by instability and rapid succession of rulers. In the late 1800s the world demand for cocoa had helped stabilize the economy. In 1895 President Eloy Alfaro led a coastal-based liberal revolution that reduced the power of the clergy and opened the way for capitalism. By 1925, the decrease in demand for cocoa had renewed political instability and a military coup. After World War II, the recovering market for agricultural commodities and growth of the banana industry had helped restore prosperity and political peace. In the 1960s, political turbulence had returned followed by a military dictatorship between 1972 and 1979. Ecuador returned to a democracy in the 1980s and the beginning of the 1990s, however instability returned.[1]
Political Instability (1997-2006)
From 1997 to 2006 Ecuador faced political instability. In 1996, Abdala Bucaram took over as the President. Bucaram was corrupt and was deemed by congress to be mentally incompetent in 1997. Jamil Mahuad was elected in 1998 and on October 26, 1998 he concluded a historic peace agreement with Peru. Although he made peace with Peru he faced criticism due to increasing economic, fiscal, and financial difficulties. On January 21, 2000 the citizens of Quito, with help from the military, stormed the congress building and declared a three-person “junta” to run the country. Gustavo Noboa took over as President. [1] Noboa restored some stability to Ecuador by implementing the dollar and constructing a second major oil pipeline. On January 15, 2003, Lucio Gutierrez took over as president. He said he would lead an anti-corruption and leftist populist reform, but instead when he got elected he adopted relatively conservative fiscal policies and defensive tactics. He replaced the Supreme Court and declared a state of emergency to combat opposition. On April 20, 2005, Gutierrez abandoned his presidency due to enormous opposition. [1]
Correa Administration (2007 - Present)
Rafael Correa was elected President on January 15, 2007. A new constitution was drafted in October 2008. The new constitution requires elections for the president, vice president, members of the National Assembly, and provincial and local officers to be held every 4 years. Correa is currently the president of Ecuador. He advocates for social justice and is trying to reassert the supremacy of human labor over capital. He has increased spending on housing, health care, and other social programs. [1]