Crisis in Ecuador: The Chaos Explained

ecuadorian police and military dressed in riot and military fatigues are shown patroling the streets of Ecuador

Ecuador is currently facing a delicate political and social situation, undergoing a transition from its historically peaceful status among South American nations to one involved in a terrible power struggle of social order over drug trafficking and poverty-related challenges.


Recent years have seen a frightening surge in violence and organized crime, with the murder rate spiking to 46 per 100,000 inhabitants in 2023, significantly impacting the nation's security.

The Political Context

The last two decades have been characterized by ongoing political instability, ultimately leading to the current crisis. There have been 7 different presidents between 1997 and 2007.

Rafael Correa took charge in 2010, leading for a decade. But in 2017, when Lenin Moreno became president, things suddenly turned. His presidency was marked by controversial moves, including forgiving debts for big businesses, raising fuel prices, and removing the Ministry of Justice.

Moreno cut the prison budget, making problems worse. In 2021, when Guillermo Lasso became president, security issues escalated, leading to an alarming 80% increase in homicides between 2021 and 2022.

In a pivotal move in May 2023, Lasso invoked the "Muerte Cruzada," a constitutional mechanism dissolving the Congress and triggering presidential and legislative elections. This gave him the power to rule by decree for another six months.

This choice was a turning point in the Ecuadorian crisis, paving the way for a presidential campaign tainted by violence. The situation took a tragic turn with the assassination of candidate Fernando Villavicencio just days before the first round of elections in August 2023.

After all these events, Daniel Noboa became the president in October 2023, stepping into the role amidst a complex social landscape with a mere 12 months of effective governance ahead.

Additional Underlying Causes

Violence in Prisons

The increase in violence, especially since 2019, led to the first state of emergency in the prison system. Officials claim that prisons have turned into strongholds controlled by organized crime.

In the last four years, the country has witnessed unprecedented levels of violence and death in its prisons, impacting various neighborhoods across multiple cities. These incidents arise from the ongoing power struggle among criminal groups engaged in drug trafficking.

In its 2022 report, the Inter-American Commission on Human Rights (CIDH) emphasized a systemic crisis, pointing out that the prison population reached 36,599 people, well beyond the actual capacity of 30,169.

Economy

The rise in drug trafficking and organized crime in Ecuador is closely linked to how the country has used the U.S. dollar as its main currency since 2000. This choice still affects Ecuador's economy and plays a part in its social issues.

From 2000 to 2014, the rise in oil prices fueled a growth in the Gross Domestic Product (GDP). However, in recent years, this economic upswing has hit a plateau.

Switching to the U.S. dollar changed how money works in Ecuador. Farmers who used to sell things abroad had a tough time, and now big banks and corporations have enormous power.

The tough economic conditions have made it difficult for families to make ends meet. A family of four would need around $800 to cover basic monthly food costs, but the working class only gets half of that amount. Adding to this, rules from the International Monetary Fund (IMF) have decreased public investment. These various economic factors have led to increased poverty and fewer opportunities for people, making life in Ecuador economically challenging.

Drug Trafficking

Drug trafficking is the major force behind the rising destabilization in the country, impacting not only the general population but also institutions, the financial system, and the state itself.

Ecuador's crowded and underfunded prisons have become places where inmate gangs team up with international drug cartels, establishing Ecuador's presence on the global drug trafficking scene.

Even though Ecuador deals with challenges like poverty, a fragile law enforcement system, and common corruption issues seen in many Latin American countries, it still maintains a thriving foreign trade sector. Unfortunately, this also makes it an appealing hub for drug trafficking activities.

In 2023, a United Nations report showed that cocaine shipments from Ecuador to Western Europe went up significantly, jumping from 14% in 2018 to 29% in 2020.

The security crisis hits young people hard, as criminal groups try to get them involved. A study on drug laws found that 40% of people in Ecuador's prisons are between 18 and 29 years old.

Present Challenges

On January 9, 2024, a criminal group disrupted the live evening news broadcast of an Ecuadorian television channel, bringing attention to the country's ongoing crisis of violence and insecurity. This was an unprecedented event that caught the attention of the international community.

In a span of 24 hours, a series of 30 violent incidents unfolded, including police abductions, prison riots, and vehicle explosions, happening across different locations.

In response to this crisis, President Noboa declared the nation in a state of "internal armed conflict." He identified at least 22 transnational organized crime groups as "terrorist organizations and non-state belligerent actors."

Through a decree, Noboa provided a legal basis for the Armed Forces, in collaboration with the police, to use all available resources to neutralize these threats.

Responding decisively to the escape of Adolfo Macías, leader of a local criminal gang linked to the Drug Cartels, President Daniel Noboa declared a state of emergency and imposed a nighttime curfew.

The state of emergency, expected to last until early March, includes a six-hour curfew from 11 pm to 5 am, with security forces patrolling the cities during these hours.

@samincuenca

things have gotten very serious, very quickly — this is the first time i’ve felt afraid living here #ecuador🇪🇨 #ecuador #ecuador🇪🇨❤️ #cuenca_ecuador🇪🇨❤ #cuenca #livingabroad #lifeabroad #immigrant #fyp #fypシ #foryou #foryoupage #ecuadortiktok


In a significant development, Ecuadorian military and police forces successfully regained control of several prisons on Sunday, January 14, after the release of over 100 officials and prison guards who had been taken hostage.

Over the past six days, security forces conducted a total of 12,974 operations nationwide to address the complex security challenges facing the country.

The United States and neighboring countries have strongly condemned the recent violence in Ecuador, labeling the acts as "atrocious." A statement from the U.S. Department of State emphasized a commitment to support the fight against criminal organizations in a South American nation. In the coming days, a delegation of high-ranking U.S. officials is scheduled to visit.

Ecuador is facing a pivotal crossroads shrouded in uncertainty where the echoes of violence, political unrest, and the looming threat of drug trafficking cast a heavy shadow.

Story is developing.

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Have you ever met someone who seems overly confident, self-centered, or even downright rude? Maybe they constantly talk about themselves, disregard your feelings, or even manipulate situations to their advantage. And, if you're anything like us and countless other Latinas, you might've thought, is this person just a purebred a**hole, or are they a narcissist?

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Image by Sayuri Jimenez.

Nathalie Molina Niño has never been one to shy away from breaking barriers, and now, she’s focusing her attention on a new mission: demystifying corporate boardrooms for women, especially Latinas. Molina Niño is the President of Known, an asset management and financial services firm, a veteran tech entrepreneur and builder capitalist, and a board member at the iconic lingerie Brand, Hanky Panky, and others.

Like many corporate boards, Hanky Panky hadn’t publicly disclosed its board composition until recently. After the brand survived the challenges of the COVID-19 pandemic, Molina Niño decided it was time for more women, specifically more Latinas, to know what it means to be on corporate boards.

Coincidentally, the decision to finally be more vocal about this topic aligned with the start of Hispanic Heritage Month, which served as the perfect kick-off to the work.

"Something that rarely gets talked about and I think almost gets kept opaque by design is boards,” she explains in a recent Instagram announcement. “[This Latinx Heritage Month], that’s what I’ll be talking about.” Her goal? To equip more Latinas with the knowledge they need to navigate onto for-profit boards, where they can thrive and build multi-generational wealth.

For-profit corporate boards often feel like an exclusive club. And in many ways, they are, especially for Latinas, who hold the smallest percentage of board seats in Fortune 500 companies compared to other racial groups. According to the latest report from Latino Board Monitor, while Latinos hold 4.1% of these board seats (compared to 82.5% held by white people), only 1% go to Latinas. Molina Niño, a first-generation American of Ecuadorian and Colombian descent, is part of this boardroom minority.

When asked about her experience as a Latina board member during a recent Zoom interview, she said, “It’s been lonely. There’s not a lot of Latinas on boards.” She went on to explain that even serving on boards of Latina-founded businesses gets lonely because, “A lot of the times, people who serve on their boards represent their investors and, as a result, [...] you still don’t see a lot of Latinas on those boards.”

This lack of representation drives Molina Niño’s determination to increase Latina presence in corporate boardrooms. By sharing her insights, she hopes to give Latinas a roadmap to claim their seats at the table. “If you don’t know where to go, it’s impossible to figure out how to get there,” she says.

The Road to the Boardroom

Getting onto a for-profit corporate board isn’t an overnight achievement, but it’s not an unattainable dream either. People often think you need to be a CEO or have a certain type of background, but that’s one of the biggest myths about boards in Molina Niño’s experience. What they’re really looking for is expertise — whether that’s in finance, marketing, sustainability, or even technology. If you have that expertise, you’re already an asset. It’s simply a matter of which road you should take.

Understanding what boards are and how they operate is key to unlocking opportunities. For-profit boards serve as the governing body for companies, overseeing direction and financial stability, and guiding CEOs and executives in decision-making. But Molina Niño emphasizes that not all for-profit boards are created equal.

“There are two kinds [of for-profit boards] [...]. There’s the publicly traded business board and then, on the privately held side, there are, I would argue, two types of boards [...] the traditional business board and the venture-backed business board,” explains Molina Niño. Traditional businesses are often family-owned or long-established and may only form boards to meet requirements, like securing financing or transitioning through an ESOP. Venture-backed boards, on the other hand, are typically filled by investors who hold major stakes in the company.

According to Molina Niño, understanding the difference between them is how you can create a successful strategy. With publicly traded business boards, the whole world is privy to them, so, “The way that you get in there is a little bit more transparent. Sometimes those publicly traded companies will hire a recruiter to help them find new board members,” explains Molina Niño. For private companies, on the other hand, there’s no legal requirement to make announcements. As a result, most people don’t know anything about them or their inner workings.

“Usually what happens in traditional businesses that don’t have venture-capital investments is that the Founders, Executives, or the board members, if one existed already, they usually go to their friends,” and people they deem experienced to fill board seats. In other words, it’s the founder’s decision, and that’s an entirely different approach than hiring recruiters. When it comes to venture-backed business boards, the seats on the board are filled by whichever investor writes the biggest check.

This is why an understanding of the different types of boards and acknowledgment of their own strengths is what will help Latinas define a sound strategy. Whether that’s working with a recruiter, networking and connecting with founders to build trust, or making the biggest investment.

The Path for Latinas

For Molina Niño, the key to getting more Latinas into corporate boardrooms is education. Knowing what a board looks like and how it functions is how you can position yourself to get on it. In openly talking about this, without the mystique it’s usually shrouded in, Molina Niño is providing women, especially Latinas, with invaluable insights. “If we had Latinas understanding what are the three types of for-profit boards I think that, on their own, they would be able to figure out what their best chance is and adjust their careers to make themselves more competitive,” states Molina Niño.

When asked about the impact of increased Latina representation in boardrooms, Molina Niño flips the narrative. “Boards don’t help Latinas by offering them seats; Latinas help businesses thrive by being on their boards,” she says. “The whole point of sitting on a board is that you have experience and expertise, and as Latinas, you also have some cultural experience that everyone wants. [...] At the end of the day, we [Latinas] have to realize that we have a ton to offer and we have to be selective about where we put that expertise,” she explains.

As demand for access to the Latina consumer rises, Molina Niño predicts that more Latinas will find themselves recruited into boardrooms. But she’s not content to sit back and wait for that moment. By openly sharing her journey and insights, she’s making sure other Latinas know their worth and have the tools to claim their place at the table. “I realized that quietly being on boards that helped me personally is not helping other Latinas. [...] I was lucky enough to have friends who could advise me and share their experiences, so that’s why I’m doing this,” she stated.

With Hispanic Heritage Month as the backdrop, Nathalie Molina Niño’s mission is clear: “My goal is just to give Latinas enough information so they can make a plan for how to eventually get on a board that they’re paid to be on and that will eventually help them build generational wealth.”

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Ever noticed how September in Latin America is just one big celebration? As we wave goodbye to summer and avoid winter as long as we can, the streets come alive with parades, music, and festivities. Many Latin American countries celebrate their freedom this month, commemorating their hard-fought battles for independence from colonial domination. Let’s dive into these significant days and understand what makes each unique.

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