ECUADOR: President Correa is Looking to Review the Constitution

The Constituent Assembly is the cornerstone of Correa’s plan to reform Ecuador’s political institutions.

Since taking office in January, President Rafael Correa has taken early steps to push forward with his broadly leftist “socialism for the 21st century” agenda. Despite opposition by the traditional political establishment, Correa has apparently secured a referendum on 15 April which is expected to approve the establishment of a Constituent Assembly that will be formed towards the end of the year to review the Constitution. The Constituent Assembly is the cornerstone of Correa’s plan to reform the political institutions he claims are responsible for Ecuador’s chronic institutional and political instability.

Although he has received general public support to date, with a narrow political support base, it is important for Correa to maintain public support in order to push forward his reform agenda. This could create dificulties in his relationship with Congress. While the economy is currently healthy and Ecuador made its international debt payment due in February, concerns remain over its willingness to continue to meet international obligations – an issue which will affect the investment environment. Correa has promised increased social spending and opposes a US-style of neoliberal economic management.. His ability to meet the political demands of the electorate for more government spending while maintaining a sound economy could largely depend on fluctuations in the global oil industry.