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A Special International Report Prepared by
The Washington Times Advertising Department - Published on April 21, 1999
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Congress plans to work with government to conquer economic crisis
Congress received a lot of blame from both Mahuad and the Ecuadorian people for the current crisis. However, Pons believes this "traumatic situation has been generated by certain economic realities." For decades, the government took care of the people. However, in order to meet massive debts, conquer inflation and promote growth, times must change. "We are no longer a petroleum rich country and we can't continue to live as if we are," Pons begins. "It is time for austerity and competitiveness. The paternalism of the state is at an end. We will no longer act as a business, but as a regulator of business." Pons knows change is difficult. Ecuador has been living with oil as king for 28 years. "It will be very hard to break the paradigms to which we have become accustomed. Reality will come as a shock." Many in Ecuador believe that Congress is a mismanaged, corrupt institution that has constantly fought against the President, rather than with him. Pons takes issue with this concept. "Congress is functioning constructively," he states. President Mahuad sent 10 very important bills to be approved into law. Pons explains that the reasons these bills have still not been debated or passed is that Congress was waiting for them. According to the Ecuadorian constitution, these types of bills must come from the executive branch; Congress can suggest that they be sent, but they can not generate the bills. Now Congress has 30 days to make their mark. Pons believes that Congress will make an honest, bipartisan effort to debate the bills. He says some will be approved and others rejected, while still others might make it through to law because of a lack of time. If Congress doesn't approve or reject a bill in 30 days, it automatically becomes law. Despite the current crisis Pons thinks, "Ecuador has the ability to come out stronger." The oil sector still has enormous potential. "Revenue can be increased by $500 million per year, with very little investment," he explains. The goal is to reduce corruption (eliminating it is almost impossible), increase collection of VAT and pass reforms of the legal code. A well-spoken politician, who easily switches from Spanish to English, Pons uses a variety of cliches. "We need to be lean and mean. People must shape up or ship out. We are on the right track." "Ecuador is a country with tremendous potential," he concludes. "We want to solve this crisis and we have the ability to do so." With every hour a vital one, Pons and his team head off to the next meeting. That night, President Mahuad announces that both the government and Congress agreed to a series of measures that will lead to the end of strikes and spread the effects of the austerity measures more proportionately. |
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Table of Contents (1) President Mahuad announces new economic plan |
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Down the street, taxis blocked the entrance to the Congress. On the streets, tree branches burned. From the front of the building came the sounds of celebrations and they weren’t St. Patrick's Day parades. People were commemorating the one-month anniversary of the murder of Congressman Hurtado. Meanwhile inside the white marble building, Juan Jose Pons, President of the National Congress of Ecuador, and his advisors were meeting to find a way for Congress and President Mahuad to come to agreements that would get Ecuador back on track.