President of Ecuador William Lassoappointed businessman on tuesday Paul Arosemena as the new economy minister after indigenous protests that led to the president committing to pay compensation that would require more than $700 million a year.
Arosemena, who served as governor (representative of Lasso) in the coastal province of Guayas, replaced Simon Cueva, who resigned along with three other ministers.
Heads of Health Jimena Garzón, Transport and Public Works Marcelo Cabrera and Higher Education Alejandro Ribadeneira also resigned.
An economy ministry spokesman told AFP that Cueva’s departure was due to his “own decision” that was made “a couple of months ago”.
The president also appointed Maria Aguilera as the new Minister of Urban Development and Housing, replacing Dario Herrera, who became head of the transport and public works portfolio, in place of Marcelo Cabrera, who resigned for personal reasons.
President Lasso also appointed Andrea Montalvo as the new head of the Ministry of Education, Science and Technology (Senacyt) and Alfredo Ortega as director of the Ecuadorian Institute of Social Security (IESS).
Arosemena “will be responsible for reviving the economy of the entire country, which will lead to the creation of sources of employment and an improvement in the quality of life of the population, especially those most in need,” the ministry said in a statement.
Lasso, a former right-wing banker who took office 13 months ago, has faced recent protests from the powerful Indigenous Confederation (Konaye), which has been involved in uprisings that toppled three presidents between 1997 and 2005.
“Nothing more absurd”
At a swearing-in ceremony at the Government House, the President confirmed that the 18 days of demonstrations had cost about $1 billion, including $260 million due to falling oil production.
Lasso put it: “There is nothing more absurd than, on the one hand, asking for resources, fair welfare, of course fair, but at the same time attacking the source of income to meet these demands”, alluding to the paralysis of wells and pipelines due to protests .
With road blockades across the country and marches in several cities including Quito, the natives have rejected the high cost of living with a series of demands such as cutting the price of the country’s most widely used fuels by up to 21%.
The demonstrations, which killed six people and injured more than 600, came to an end after the signing last Thursday of a Catholic-brokered “peace act” in which the executive promised to cut fuel by 8%.
With the cut, which took effect on Friday, a gallon of diesel fell from $1.90 to $1.75 and a gallon of regular gasoline fell from $2.55 to $2.40.
change of police command
Lasso also sworn in Maria Aguilera in the Housing Development portfolio as its head Dario Herrera moved to the Transportation and Public Works portfolio, and Andrea Montalvo in the Secretariat of Higher Education.
The head of state has not yet appointed the head of the Ministry of Health.
He plans to take over the new leadership of the police this Wednesday, according to the President’s Public Relations Secretariat.
In the midst of an economic crisis, due to a time of low oil prices – the main export – and exacerbated by the covid-19 pandemic, the conservative government approved other compensations for farmers and the poor, which in total will require more than 700 million dollars a year.
The measures include an increase in the aid to the poorest, a subsidy for urea, and the cancellation of debts of up to $3,000 for peasants owed to state banks.
Among the commitments, the Lasso administration must also target additional fuel subsidies for the rural sector. Negotiations on this and other issues will begin next Thursday.
Ecuador was producing 520,000 barrels of oil per day as of June 12, the day before protests began that more than halved production.
As of Monday, crude oil production – the main export item – has recovered to about 475,700 bpd.
(According to AFP and EFE)
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.