Nikolas Kozloff

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It now looks as if Rafael Correa, a leftist candidate in Ecuador, has handily won his country’s presidential election. As of Monday morning, with about 21 percent of the ballot counted, Correa had 65 percent compared to 35 percent for Alvaro Noboa, according to Ecuador’s Supreme Electoral Tribunal. If Correa wins, he will preside over Ecuador for a four year term.

It’s yet another feather in the cap for Venezuelan President Hugo Chavez, who had long cultivated the aspiring leader’s support. What’s more, it’s a stinging blow against the Bush administration which now must confront a much more unenviable political milieu in the region. Ecuador now joins other left leaning regimes such as Brazil, Argentina, Uruguay, Bolivia, Nicaragua and Chile, all of which are sympathetic to Chavez.

Bush cannot dismiss the Correa victory as inconsequential: Ecuador is currently the second largest South American exporter of crude to the U.S. The small Andean country hosts the only U.S. military base in South America, where 400 troops are currently stationed. Correa opposes an extension of the U.S. lease at the air base in Manta, which serves as a staging ground for drug surveillance flights. The U.S. lease expires in 2009.

"If they want," Correa has said ironically, "we won’t close the base in 2009, but the United States would have to allow us to have an Ecuadoran base in Miami in return."

It’s no secret that Chavez and Correa had a personal rapport. During a short stint in 2005 as finance minister under the regime of Alfredo Palacio, Correa brokered a $300 million loan from Chavez. As a result of his diplomacy, Correa was forced out of the government. Allegedly, Correa pursued the loan deal behind Palacio’s back. He later visited Chavez’s home state of Barinas, where he met with the Venezuelan leader and spent the night with Chavez’s parents.

"It is necessary to overcome all the fallacies of neoliberalism," Correa has declared. Borrowing one of Chavez’s favorite slogans, Correa says he also supports so-called "socialism for the twenty first century."

Correa: "Whipping" Ecuador’s Politicians, and the U.S., into Shape

Unlike Chavez, Correa does not come from a military background but grew up in a middle class family; the young politician also dresses impeccably. He got his doctorate in economics from the University of Illinois and is a follower of left wing economist and Nobel prize winner Joseph Stiglitz.

To his credit, Correa spent a year volunteering in a highland town called Zumbahua and speaks Quichua, an indigenous language. Natives from Zumbahua remember Correa as a man who walked two or three hours to remote villages in a poncho and broken shoes to give classes.

Correa pursued an amusing campaign. During rallies, he would bounce on stage to his campaign anthem, set to the tune of Twisted Sister’s "We’re Not Going to Take It." As the music blared, Correa would break out a brown leather belt, which he would flex along to the music.

For Correa, the belt became the chief slogan of his campaign: "Dale Correa." In Spanish, the phrase means "Give Them the Belt." Correa promised to use that belt to whip Ecuador’s politicians into shape.

Correa campaigned on pledges to prioritize social spending over repaying debt. He has even stated that the Andean country might want to default. He also declared that he would renegotiate contracts with foreign oil producers doing business in the country. Correa says he wants to increase funds for the poor and opposes a free trade deal with the U.S.

"We are not against the international economy," Correa has stated, "but we will not negotiate a treaty under unequal terms with the United States."

Correa, too, has nothing but contempt for George Bush.

When he was recently asked about Chavez’s "devil" diatribe against the U.S. president at the United Nations, Correa remarked amusingly, "Calling Bush the devil offends the devil. Bush is a tremendously dimwitted President who has done great damage to the world" [after he was defeated by Noboa in the first round of voting Correa toned down his rhetoric, stating that his comments about Bush were "imprudent" and that Ecuador would like to continue its strong tries to the United States]

Noboa Plays the Chavez Card

In an effort to scare voters, Alvaro Noboa, a banana magnate in Ecuador, sought to label Correa as a Chavez puppet. Noboa, in an allusion to Chavez’s military background, labeled his adversary "Colonel Correa."

Correa, the Noboa campaign charged, was being financed by Venezuela. In a bombastic tirade, Noboa even declared, "the Chavez-Correa duo has played dirty in an effort to conquer Ecuador and submit it to slavery." If he were elected, Noboa promised, he would break relations with Caracas.

Correa denied that his campaign was financed by Chavez and in a biting aside declared that his friendship with the Venezuelan leader was as legitimate as President Bush’s friendship with the bin Laden family.

"They have pursued the most immoral and dirty campaign against me in an effort to link me with communism, terrorism, and Chavismo," Correa explained. "The only thing left is for them to say that Bin Laden was financing me."

Chavez, perhaps fearing that any statement on his part might tilt the election in favor of Noboa, initially remained silent as regards the Ecuadoran election. But at last the effusive Chavez could no longer constrain himself and broke his silence.

The Venezuelan leader accused Noboa of baiting him in an effort to gain the "applause" of the United States. Chavez furthermore expressed doubts about the veracity of the voting result in the first presidential run off in October, in which Correa came in second. In his own inflammatory broadside, Chavez accused Noboa of being "an exploiter of child labor" on his banana plantations and a "fundamentalist of the extreme right."

In Ecuador, Chavez said, "there are also strange things going on. A gentleman who is the richest man in Ecuador; the king of bananas, who exploits his workers, who exploits children and puts them to work, who doesn’t pay them loans, suddenly appears in first place in the first [electoral] round."

The Noboa campaign, in an escalating war of words, shot back that the Venezuelan Ambassador should be expelled from Ecuador due to Chavez’s meddling.

Ecuadoran Indigenous Peoples and Chavez

Judging from the early electoral returns, Ecuadoran voters, many of whom are indigenous, disregarded Noboa’s fire and brimstone rhetoric. Indians, who account for 40% of Ecuador’s population of 13 million, are a potent political force in the country. Correa has capitalized on indigenous support. He represents Alianza País, a coalition that garnered the support of indigenous and social movements which brought down the government of Lucio Gutierrez in April 2005.

What does the Correa win mean for Chavez’s wider hemispheric ambitions?

As I explain in my book, Hugo Chavez: Oil, Politics, and the Challenge to the U.S. (recently released by St. Martin’s Press), Chavez has long sought to cultivate ties to Ecuador’s indigenous peoples. Ecuadoran Indians have long feared that their traditional lands were being exploited to serve a rapacious United States intent on corporate expansion. U.S. missionaries have fueled the resentment. According to indigenous activists, the missionaries hastened the penetration of U.S. corporations. A key example, according to Huaorani Indians, was the petroleum industry which worked with the missionaries to open up traditional lands.

Chavez has done much to cultivate the support of indigenous peoples. He plays up his own indigenous roots, for example. He also expelled the Protestant New Tribes Mission from Venezuela, which he said was collaborating with the CIA.

"We don’t want the New Tribes here," Chavez declared. "Enough colonialism! 500 years is enough!"

In opposing the missionaries, Chavez has echoed the agenda of Ecuador’s indigenous peoples, who called for the expulsion of North American missionaries from their country. CONAIE, Ecuador’s indigenous federation, in fact endorses many of Chavez’s positions such as an end to U.S. militarization in the region and an end to neo liberal economic policies. CONAIE, like Rafael Correa, wants Ecuador to terminate the U.S. lease at the Manta military base. CONAIE, as well as the movement’s political wing Patchakutik, has backed Chavez. CONAIE in fact has condemned the "fascist" opposition in Venezuela and derided U.S. interventionism.

Chavez has not only cultivated political ties with hemispheric leaders but also with social movements from below. In an innovative move, Chavez has sponsored something called the Bolivarian Congress of Peoples in Caracas. CONAIE officials attended the Congress, as did Humberto Cholango, president of the Kichwa Confederation of Ecuador. Cholango remarked at the time, "no one can stop this [Bolivarian] Revolution in Venezuela, we will keep on defeating the Creole oligarchies and the Yankeesthe time has come for South America to rise up to defeat the empireLong live the triumph of the Venezuelan people."

Cholango is an important link in the future Chavez-Correa alliance. His Kichwa Confederation has backed Correa. In a communiqué, the Confederation wrote, "We will not let Noboa, who owns 120 companies and made his fortune by exploiting children in his companies, take control of the country to deliver water, deserts, oil, mines, forests and biodiversity to big private transnational corporations."

Ecuadoran Oriente: Area of Conflict

Chavez has exchanged oil for political influence throughout the region in such countries as Nicaragua, as I explained in my earlier Counterpunch column [see "A New Kind of Oil Diplomacy: In Nicaragua, a Chavez Wave?, November 7, 2006]. In Ecuador, Chavez may opt for a similar strategy but here the Venezuelan leader has to watch out for pitfalls that could reveal serious contradictions within his movement.

With a Correa administration in place, Chavez will be in an advantageous position to advance his plans for hemispheric energy integration. Ecuador’s state oil company Petroecuador has been involved in longstanding negotiations with Venezuela to refine its crude. Ecuador is also interested in acquiring Venezuelan diesel and gasoline to cover its own internal demand. Ecuador’s growing energy ties with Venezuela have been applauded by important figures such as Luis Macas, long associated with the CONAIE.

The dilemma for Ecuador is that, while oil represents about a quarter of the country’s GDP, many disadvantaged communities have been unhappy with development. The north eastern section of Ecuador, the "Oriente," has long been the scene of serious social unrest. I know something about the social and environmental conflicts in the area, having written a couple of articles about the Huorani Indians for the Ecuadoran magazine 15 Dias and the Quito daily Hoy.

In 1992, having just completed a reporting internship at WBAI radio in New York, I headed to Quito. At that time, North American as well as Ecuadoran environmental groups were concerned about Maxus Corporation, a Texas-based energy company. The influential company had the support of the government, the press, and North American Protestant missionaries. The Huaorani had just traveled to Quito, where they had carried out a protest in front of Maxus headquarters.

The Indians demanded that Maxus halt its construction of a highway in block 16, which fell in their traditional homeland. I flew out to the Amazon and interviewed the Indians who were living in deplorable health and sanitary conditions. In my articles, I dissected Maxus’ unconvincing propaganda and warned about imminent environmental problems.

Venezuelan Involvement in the Ecuadoran Oil Industry?

I left Ecuador in late 1993, and not surprisingly the unrest continued. In 2002, the government declared a state of emergency following protests in Sucumbios and Orellana provinces. Protesters hit the streets, demanding greater investment in their communities. Indigenous peoples in the area had long felt that they had not adequately shared in the benefits of oil development. The military used teargas to break up protests which blocked oil wells.

In August 2005 the disturbances continued, with an oil strike hitting Orellana and Sucumbios. At that time, Chavez came to the aid of Ecuadoran president Alfredo Palacios by agreeing to send Venezuelan crude to the Andean nation. At the time, Chavez expressed sympathy with Ecuador "because we [Venezuela] have already passed through this type of thing with the oil sabotage [the oil lock out in 2002-3 encouraged by the Venezuelan opposition]."

Early this year, Petroecuador was forced to suspend exports when protesters, unhappy about longstanding environmental damage, demanded the departure of U.S. oil company Oxy and took over a pumping station vital to the functioning of a pipeline. Protesters, led by local politicians from the Amazon province of Napo, demanded that the government pay them funds for infrastructure projects in local communities.

In March, the government put three provinces under military control when workers initiated a strike for unpaid wages and improved working conditions. At one point, the government declared a state of emergency in Napo, when protesters demanded that the oil companies invest more of their profits in the area.

Guadalupe Llori, the prefect of Orellana, remarked "If we are treated like animals we are going to react like animals. We could join the workers and demand the government respect our rights." Petroecuador technicians and troops finally took control of oil facilities and cleared strikers from vital sites.

In May, Petroecuador took over oil wells belonging to Oxy’s block 15 oil concession; the Ecuadoran state wants the Venezuelan state company PdVSA to refine 75% of the 100,000 barrels per day within the old concession. According to the Venezuelan newspaper El Universal, Ecuador is considering Venezuela as a possible partner in the fields formerly operated by Oxy.

Chavismo and Its Hemispheric Contradictions

If PdVSA had a presence in block 15, this would lead to a potential problem for Chavez. Having proclaimed its support for social and environmental justice, as well as indigenous rights, Venezuela would now be operating in an area long marked by social unrest and discrimination of indigenous peoples.

In the short term, Chavez may take some pride in the fact that Bush received another black eye in South America; what’s more Venezuela can now count on Correa’s support as well as the indigenous movement. But in the long term, Chavez could run the risk of alienating many of his supporters if Venezuela is perceived to be an accomplice in misguided development schemes.

In the coming years, will Chavez maintain his political support amongst disadvantaged peoples throughout the hemisphere, or will his popularity be tarnished by oil diplomacy? Up to now, Chavez has certainly used oil as an effective geopolitical instrument, but it may prove his Achilles Heel if he is not careful.