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             Congressional Research Service
    ~     Inferming Ih    legislative d ba e sin e 1914




Ecuador: Country Overview and U.S. Relations


Ecuador is a small, ethnically and geographically diverse
country of 18.3 million inhabitants located in South
America between  Colombia and Peru (see map, Figure 1).
Members  of Congress have expressed an interest in a broad
range of issues related to Ecuador, including strengthening
bilateral trade relations, combatting crime and drug
trafficking, limiting Chinese influence, and protecting
Ecuador's Amazon  and Indigenous communities.

Snap Electons and Current Conditions
Conservative President Guillermo Lasso took office for a
four-year term in May 2021. He sought to build on the
market-friendly political and economic reforms of his
predecessor, Lenin Moreno (2017-2021), who pursued
closer ties with the United States. Lasso encountered strong
resistance, including from the country's powerful
Indigenous movements  and a divided legislature.

On May  17, 2023, facing an imminent impeachment vote,
President Lasso invoked constitutional article 148, the so-
called cross death decree, dissolving the National Assembly
(Ecuador's unicameral legislature) and requiring snap
general elections to elect a president and all 137 members
of the Assembly to serve out remaining terms of office to
2025. Lasso did not seek reelection. The snap election was
held on August 20, 2023. A new National Assembly is
scheduled to be seated on December 8, 2023, and a new
President is scheduled to take office December 11, 2023.

The presidential candidate from former leftist populist
President Rafael Correa's Citizens' Revolution (RC by its
Spanish acronym) party, Luisa Gonzalez, came in first
place in the eight-candidate field with 33.6% of the vote but
fell short of the margin needed to avoid a runoff. Daniel
Noboa  of the pro-business National Democratic Action
(ADN  by its Spanish acronym) alliance placed second, with
23%  of the vote, and will face Gonzilez in a second-round
runoff election scheduled for October 15, 2023. According
to preliminary legislative election results, the RC gained the
largest slate with 48 National Assembly seats. The Build
Ecuador Movement,  allied with assassinated anti-corruption
presidential candidate Fernando Villavicencio, won 28
seats, followed by the Social Christian Party and the ADN
with 14 seats and 13 seats, respectively.

About 30%  of the prior National Assembly Members were
returned to office, and Indigenous representation dropped
significantly. Most analysts forecast a fragmented
legislature. Ecuadorians also voted by large margins in
national and regional referendums to halt oil and minerals
extraction in two ecologically sensitive regions of the
country, an outcome that could disrupt Ecuador's economic
development model. The election was marred by the
assassinations of Villavicencio and at least two other


Updated September  15, 2023


political figures, killings allegedly carried out by organized
crime groups.

Figure  I. Ecuador at a Glance


Sources: World Factbook (CIA), International Monetary Fund (IMF);
Ecuador's National Institute of Statistics and Censuses (NISC); Trade
Data Monitor (TDM).

Ecuador has seen a sharp rise in violence in the past three
years attributed primarily to illicit drug trafficking and turf
disputes between organized crime groups. Ecuador's
neighbors, Colombia and Peru, are the world's two largest
cocaine-producing countries. The homicide rate rose to
nearly 26 per 100,000 persons in 2022, almost double the
prior year and comparable to the homicide rates in Mexico
and Colombia. High-fatality prison riots prompted the
Lasso government to address poor conditions and gang
rivalries in prisons. In April 2023, the Lasso government
declared some Ecuadorian gangs to be terrorist
organizations, allowing further military support for law
enforcement efforts. Drug gangs are suspected of having
assassinated the mayor of Manta, Ecuador's fourth-largest
city, in July. In August 2023, following the Villavicencio
assassination, President Lasso declared a national state of
emergency. Insecurity is a top concern for Ecuador's
electorate, according to most polls.

Politica    and  Econo      ic Background
During a decade in power (2007-2017), populist President
Correa brought some stability to Ecuador's tumultuous
political scene. He presided over a public investment-driven
economic  expansion, with growth averaging 5% annually
between 2010 and 2014. Correa used that economic growth
to increase social expenditures and reduce poverty.
However,  his policies left Ecuador with significant debt to
China and more dependent on revenue from petroleum
extraction. Correa also governed in an increasingly
authoritarian manner, limiting civic freedoms and
restricting judicial independence. In September 2020,

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