Neoliberalism and Elite Democracy in Ecuador (1981-2007)

Ricardo Restrepo Echavarría

doi:10.5539/res.v9n3p126

Abstract

This paper synthesizes the political economy of neoliberal elite democracy as a general trend and marks out its concrete historical manifestation in one of its more committed followers, Ecuador, from 1981 to 2007. As the American continent turned toward democracy, it also turned to neoliberal reforms. The neoliberal reforms espoused were performed under the theory of the primacy of personal security and property rights, the securement of which would lead to economic growth, leading to the benefit of society as a whole. The actual policies implemented, however, violated the personal security and property rights of many, while increasing inequality and promoting slow growth. A democracy that rules by formal elections to accumulate capital in elites without regard to truth and justice is an elite democracy. Elite democracy was the chosen politics of neoliberalism and neoliberalism was the chose economics of elite democracy. This paper provides a synthetic panoramic view of the history of the rise and life of neoliberalism and elite democracy in Ecuador, starting with the death of Ecuador’s first president of its current democratic era, continuing with the measures that lead to the steep accumulation of public debt for the gain of a few in the 1980’s, and the deregulation of the banking sector and transfer of its losses to the public in the 1990’s and the beginning of the Century, while growth lagged but inequality and political instability accentuated.

Highlights

Neoliberalism is widely held as the dominant global political economy of the last few decades
National economic growth was replaced by economic growth of elites, verified by sluggish national growth coupled with increased inequality
The political communication of neoliberal leadership focuses on guaranteeing property rights, rights of contract and personal security, in a framework of market liberalization

Summary

Introduction

Neoliberalism is widely held as the dominant global political economy of the last few decades. It is widely characterized as promoting a (private) market ideology through the advocacy of the primacy of private ownership and security rights, to which a small state corresponds, promising respect for the integrity and prosperity of the individual through the resulting economic growth. The small state, was substituted by minority elite dominance, held by the two pillars of: property accumulation of elites by dispossession of the majority in the name of property rights and free markets; and militarization and violence in the name of security and consensus. The aim is to contribute understanding of the nature of this global regime and, at the time, one of its more committed followers

Neoliberalism and Elite Democracy

From Neoliberal Minimalism to Neoliberal False Democracy in Ecuador

Findings

Conclusion