Past & Present

A Look At The Past

Before the Spanish arrived in Ecuador in 1533, a group of diverse cultures lived in various areas throughout the country. Archaeologists believe that many indigenous groups can trace their roots all the way back to the Mayas in Mexico. Many of these cultures, including the Valdivia, Machalilla, and Chorrera, may not have left any written records, but the highly sophisticated pottery, beautifully designed artwork, and gold masks that have been unearthed in Ecuador prove that these cultures were highly developed. By the 16th century, the Incas had conquered the highland areas of the country of Ecuador. Cuenca, in southern Ecuador, was the second-most important city in the Inca Empire. In 1526, when the Inca leader Huayna Capac died, he divided the empire between his two sons. Huáscar gained control of Cusco and Peru, while Atahualpa inherited control of Cuenca and Ecuador. This split led to a war for dominance, which weakened both sides. Because of this conflict, when the Spanish arrived in the mid-16th century, they didn't have much trouble defeating the Incas.

The indigenous cultures had a hard time under Spanish rule. Newly introduced diseases decimated the local population, and the Spanish system of encomienda (forced labor) broke the spirit and the health of the local people. Ecuador wasn't rich in natural resources and therefore wasn't of great value to the Spanish. In the 300 years before independence, Ecuador split its time between belonging to the viceroyalty of Peru to the south and to the viceroyalty of New Granada in Bogotá to the north.

Ecuador declared independence in 1820, but the independence forces weren't able to defeat the Spanish royalists until the Battle of Pichincha on May 24, 1822. At that time, Ecuador became a part of Gran Colombia, which consisted of Colombia and Venezuela. In 1830, Ecuador seceded from Gran Colombia and became its own separate republic. The rest of the 19th century was marked by political instability. Conflicts flared between the Conservatives, led by Gabriel García Moreno, and the Liberals, led by Eloy Alfaro. The Conservatives sided with the Catholic Church and Ecuadorians of privilege, while the Liberals fought for social reforms.

At the end of the 19th century, Ecuador was getting rich off cocoa exports, and the economy was booming. Later in the early 20th century, when the demand for cocoa decreased, political unrest ensued. In 1925, the military seized power from the former procapitalist leaders. The 1930s were a time of uncertainty for Ecuador: From 1931 to 1940 a total of 12 different presidents spent time at the helm. In 1941, war erupted between Ecuador and Peru over land in the Amazon basin region. In an attempt to settle the dispute, Ecuador signed the Protocol of Rio de Janeiro in 1942 and surrendered much of the disputed land to Peru.

The post-World War II era was a time of prosperity for Ecuador. The country became one of the world's leaders in banana exports. From 1948 to 1960, there were three freely elected presidents who were all able to serve their full terms. In 1952, President José María Velasco implemented social reforms, including improvements in both the schools and the public highways. But in 1960, when Velasco was again elected president, he was faced with a failing economy, and he was unable to hold on to power. During the next 10 years, a series of military juntas controlled the country.

The economy rebounded in the 1970s. Ecuador became the second-largest oil-producing nation in South America, after Venezuela. The oil boom led to an increase in public spending and industrialization. But by the 1980s, when the oil bubble began to burst, the country was again faced with serious economic troubles, including inflation and an insurmountable international debt. In 1986, the price of oil collapsed, and in 1987, an earthquake partially destroyed one of Ecuador's major pipelines.

Rodrigo Borja came to power in 1988. In an attempt to alleviate his country's problems, he increased the price of oil while severely cutting back on public spending. But that wasn't enough -- inflation soared, and civil unrest increased. In 1992, in a conciliatory move, the government ceded a large region of the rainforest to the indigenous people. In 1995, Ecuador again disputed its border with Peru in the Amazon area; it wasn't until 1998 that it finally settled with Peru and secured its access to the Amazon. The 3-year war proved to be a drain on the economy. In 1997, a national protest with overwhelming support of all the Ecuadorian people succeeded in ousting the corrupt President Abdalá Bucaram. The national congress appointed a new president and reformed the constitution. But again, low oil prices and the devastating effects of El Niño brought the economy to its knees.

Ecuador Today

On July 12, 1998, the mayor of Quito, Jamil Mahuad, was elected president. His biggest success was negotiating a peace treaty with Peru over the country's borders in the Amazon, but he was unable to turn the economy around. His popularity reached a low point on January 9, 2000, when he announced his decision to eliminate the sucre, the national currency, and replace it with the U.S. dollar. On January 21, 2000, the military and police "failed" to quell chaotic nationwide protests. Mahuad was forced to resign, and his vice president, Gustavo Noboa, became president. Noboa continued on the course of dollarization, and in September 2000, the U.S. dollar became the official currency of Ecuador. This move helped to decrease the country's international debt, but it hasn't been able to stem the inflation problem, and many Ecuadorians are still suffering economically under this policy. In the meantime, the government is trying to strengthen its oil business to bolster the economy. In February 2001, Ecuador made a deal with an international consortium to invest $1.1 billion to build a crude-oil pipeline, with the aim of increasing foreign investment in Ecuador.

In 2002 Lucio Gutierrez was elected president and the economic situation began steadily improving.

The situation with Colombia, however, remains volatile, as the Colombian government failed to make peace with the Marxist guerrilla group FARC. Ecuador has had to send troops to its border with Colombia to prevent the spread of hostilities to Ecuador and to protect the country from the very dangerous business of narcotics trafficking. The situation remains tense near the Colombian border and travel there is discouraged.

In April 2005, President Lucio Gutierrez was fired by Ecuador's congress for interfering with the Supreme Court. He was granted asylum in Colombia and Alfredo Palacio became President. In October 2005, Gutierrez returned to Quito and was arrested and thrown in jail upon his arrival. At press time, he is still vowing to topple the current leader and return to the presidency. Though he has some supporters, he does not have the following to run a campaign from his prison cell nor, most political analysts believe, to organize a coup. The security situation in Ecuador, at press time, is stable. The situation is only volatile in the political arena.