The instability began immediately. Ponce was so angry over Velasco's vicious campaign attacks on his government that he resigned on his last day in office rather than preside over the inauguration of his successor. During his campaign, "the National Personification" had promised government support to the masses of urban poor, many of whom had recently migrated to Guayaquil and other major cities in search of a decent job and a place to live. Velasco's populism continued into his inaugural address, when he renounced the hated 1942 Rio Protocol. He thus came to power with the adoration of the masses, but he saddled himself with expensive commitments to the poor at a time when deficits in the state coffers were approaching a critical level. Additionally, Velasco threatened Ecuador's shaky economy with what amounted to a declaration of hostilities against Peru and the guarantors of the Rio Protocol, namely Argentina, Brazil, Chile, and the United States.

Sensing the direction of the political wind in the wake of the Cuban Revolution, Velasco magnified his anti-United States rhetoric and included leftists in his government. Meanwhile, the United States encouraged Latin American governments to break diplomatic relations with Cuba. Before long, Ecuador's widening political polarization became manifest in outbreaks of violence between leftist students and the anticommunist right.

The rapidly deteriorating economic situation soon brought about a split in the velasquista coalition, however, with the left, led by Vice President Carlos Julio Arosemena Monroy [who was also president of the Chamber of Deputies] openly opposing the government in July 1961. By October relations between Velasco's government and Congress had deteriorated to the point where legislators and progovernment spectators engaged in a gun battle. Although dozens of bullet holes were later found in the Chamber, no one was injured.

A series of new sales taxes imposed during the same month in order to raise desperately needed revenues then sparked a general strike and a series of demonstrations and riots in several major cities. Amid growing chaos, Velasco ordered the arrest of his vice president, a move that opened him to charges of violating the constitution. On November 8, after only fourteen months in office, Velasco was ousted by the military and replaced by Arosemena, who was his constitutional successor as well as his leading opponent.

Arosemena came from a well-known Guayaquil family; his father had briefly served as president following a previous anti-Velasco coup in 1947. In an attempt to allay concerns about his being a dangerous leftist [as Velasco's vice president he had expressed warm sympathy for Cuban leader Fidel Castro Ruz and made a much- criticized trip to the Soviet Union], Arosemena named a cabinet that included Liberals and even Conservatives and quickly sent former President Galo Plaza on a goodwill trip to Washington.

Arosemena's insistence on maintaining relations with Cuba, however, became a major domestic political issue in Ecuador. Political opponents labeled Arosemena a dangerous communist, and part of the military went into open rebellion in March 1962. The following month, Ecuador broke diplomatic relations with Cuba, Poland, and Czechoslovakia. The crisis over Cuba proved to be very costly for Arosemena, who lost not only much of his local political support, but also the self-confidence to pursue his own, independent course. Afterward, the government drifted with little leadership from the president, who allegedly indulged in frequent drinking bouts.

The brief appearance of a guerrilla movement in the coastal jungle and a rash of small-scale terrorist incidents [many of which later were found to have been staged by right-wing provocateurs] also left Arosemena open to accusations of being either unable or unwilling to stop communist subversion. By early 1963, military conspiracy was again afoot. On July 11 the high command of the armed forces decided, without dissent, to depose Arosemena.

The four-man military junta that seized power announced its intention not to return the nation to constitutional rule until the institution of basic socioeconomic reforms, which both Velasco and Arosemena had promised but never implemented. This failure by their two civilian predecessors, the junta believed, had become a source of growing frustration within the lower classes, thus making them more receptive to the lure of communism. The junta combined its reformist anticommunism with the more traditional hard-line variety. After jailing or exiling the entire leadership of the communist left, the new government reorganized the nation's two leading universities in an effort to eliminate them as sources of left-wing political activity.

In July 1964, the junta decreed the Agrarian Reform Law to commemorate the first anniversary of its assumption of power. The law abolished the huasipungo system, the feudalistic land tenure arrangement widely used in the Sierra. However, the law resulted in little real improvement in the lives of the long-suffering Sierra peasants and died from lack of funding under subsequent civilian governments.

Meaningful reform was precluded, in part at least, by the increasingly cumbersome process of decision making within the politically heterogeneous, plural executive. Insubordination by the air force representative on the junta led to his dismissal and arrest in November 1965; thereafter, the junta had only three members.

In 1965 Ecuador also saw a dramatic drop in its revenue from banana exports and, despite generous development assistance from the United States government and the Inter-American Development Bank, the junta suddenly faced an economic crisis of major proportions. The announcement of increased taxes on imports sparked the opposition of the powerful Guayaquil Chamber of Commerce, which in March called for a general strike. Long- disgruntled student groups and labor unions were only too happy to join in the protest, which rapidly spread to other cities. On March 29, 1966, following a bloody and demoralizing attack on the Central University in Quito, the disillusioned military reformers stepped down.

The following day, a small group of civilian leaders named Clemente Yerovi Indaburu, a non-partisan banana grower who had served as minister of economy under Galo Plaza, to be provisional president. In October a popularly elected constituent assembly drafted a new constitution and elected Otto Arosemena Gomez, a cousin of Carlos Julio and a political centrist, to act as a second provisional president. During his twenty months in office, the new constitution went into effect in May 1967, and popular elections for president were held in June 1968. Incredibly, Velasco--now seventy-five years old--was voted into the presidency for the fifth time, an incredible thirty-four years after his initial victory.

The weakness of Velasco's mandate--he managed only a plurality of barely one-third of the popular vote in a crowded field of five candidates--foreshadowed political difficulties that plagued him during his final term. His newly formed National Velasquista Federation [Federacion Nacional Velasquista--FNV] was far short of a majority in either house of Congress, and a failure to build any working coalition made for a stalemate in the legislative process. Even Velasco's own vice president, a Guayaquileno Liberal named Jorge Zavala Baquerizo, turned into a strident and vocal critic. Cabinet ministers came and went with astonishing frequency. This political impasse soon combined with the fiscal and balance-of- payments crises, which by now had become customary under the spendthrift habits and administrative mismanagement associated with each of Velasco's terms in office, to spawn a major political crisis. The turning point came on June 22, 1970, when Velasco, in an action known as an autogolpe [self-seizure of power], dismissed Congress and the Supreme Court and assumed dictatorial powers.

Velasco subsequently decreed a number of necessary, though extremely unpopular, economic measures. After devaluing the sucre for the first time since 1961, he placed tight controls on foreign exchange transactions and then decreed a number of new tax measures, the most controversial of which raised import tariffs considerably. Velasco attempted to compensate for his lost prestige by baiting the United States, seizing and fining United States fishing boats found within 200 nautical miles of the Ecuadorian coast. The intensification of the "tuna war" inflamed tempers in both countries; Ecuador dismissed United States military advisers, and the United States withdrew almost all economic and military aid to Ecuador. Such nationalistic adventures were of only momentary value to Velasco, however. In 1971, amid mounting civic unrest that verified the extent of the opposition, he was forced to cancel a scheduled national plebiscite in which he hoped to replace the 1967 constitution, with the charter written under his own auspices in 1946 the Constitution, Velasco argued, made the president too weak to be effective.

The president's autogolpe and his continuance in power were possible because of support from the armed forces. Velasco's key ally was his nephew and minister of defense, General Jorge Acosta Velasco, who continually reshuffled the high command in order to retain velasquistas in key posts. In the wake of a failed attempt to oust the powerful commandant of the Quito military academy in April 1971, however, Acosta himself was forced to resign his ministerial portfolio and was summarily dispatched to Madrid as ambassador. Having lost the man who was his linchpin in the armed forces and the only apparent heir to the velasquista throne, Velasco was left to the mercy of the high command.

Two circumstances proved critical in persuading the military to overthrow Velasco before the scheduled completion of his term in 1972. On the one hand, the state was due very shortly to begin reaping vast revenues under a 1964 petroleum concession. On the other hand, the overwhelming favorite to win the presidency in 1972 was Asaad Bucaram Elmhalim, a former street peddler who in 1960 had seized the leadership of the CFP from Guevara Moreno and later had twice been an extremely popular mayor of Guayaquil. Both the military and the business community regarded Bucaram as dangerous and unpredictable and unfit to be president, especially at a time when unprecedented income was expected to flow into the state coffers. On February 15, 1972, four months before the scheduled elections, the military once again overthrew Velasco, who was sent into his final period of exile. He was replaced by a three-man military junta headed by the Army chief of staff, General Guillermo Rodriguez Lara.

Direct Military Rule, 1972-79 |›|

Last Updated 24th July 2006 (DLW)

|Source: U.S. Library of Congress|||

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