Overwhelmed by the economic instability of the late 20th century (1970-1980s). The Ecuadorian government turned oil revenues to pay state expenses and international credit. The intensification of the economic crisis and foreign debt motivated the state to implement neoliberalism. As a result, the Ecuadorian government retired from its role of maintaining social order and welfare; multinational oil companies flourished; and Ecuadorian communities struggled to preserve the life and health of their environment and nations as oil operations damaged their societies and lands (Sawyer 2004: p14). The effects of neoliberalism produced tense and ambiguous relations between the state, multinational oil companies, and indigenous peoples. Interactions exposed the conflicts in different interests and tactics to resolve the problems. They highlighted and affirmed Sawyers compelling contention that neoliberalism is a paradox (2004: 14). Lots of corrupt “slick corporate maneuvers, knowing state complicity, and oppositional indigenous tactics” (Sawyer 2004: 7) resulting from neoliberalism undermined its own purpose for stability and development.
Pressured by the World Bank, the Ecuadorian government implemented neoliberalism to rid of its national debt, ending up facilitating business for oil companies but making life difficult for Ecuadorian’s inhabitants. Sawyer explains that neoliberalism includes “government policies aiming to privatize, liberalize, and deregulate the national economy to increase foreign investment and increase export productions” (Sawyer 2004: p7). With its neoliberal program, the Ecuadorian government aimed to open ways for oil companies to perform operations...
... middle of paper ...
...ificing indigenous and poor lives to enhance rich peoples lives and gain profit. In essence, neoliberalism is and forever will be incomplete because its consequences do not benefit all.
Overall, neoliberalism produced loose, troublesome relations between indigenous and poor people, national oil companies, and the state. Interactions were shallow and efficient action was minimal. Neoliberalism failed to achieve its goals of stability and modernization and put national and local identities, the environment and peace at huge risk. It negatively impacted power, ties, and democracy by abandoning responsibilities, stifling voices, and obscuring reality.
Berlinger, Joe. 2010. Crude. Documentary film.
Sawyer, Suzana. 2004. Crude Chronicles: Indigenous Politics, Multinational Oil, and Neoliberalism in Ecuador. Durham: Duke University Press. Print.
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