Financial Crime World

Ecuador Teeters on the Brink of Collapse as Crime and Corruption Run Amok

Ecuador’s Security Situation Spirals Out of Control

In a shocking turn of events, Ecuador’s security situation has deteriorated significantly, with crime and corruption rampant throughout the country. The once-thriving nation is now facing a historic low in law enforcement, due to a combination of factors including increasing poverty and inequality, reducing policing, and allowing gangs to transform themselves into cultural associations.

Factors Contributing to the Crisis

  • Former President Rafael Correa’s decisions have also contributed to the current crisis. He weakened Ecuador’s ability to combat transnational narcotrafficking by:
    • Closing a US military base
    • Ending cooperation with the US Drug Enforcement Agency
  • This move left Ecuador’s maritime exclusive economic zone, the fifth-largest in South America, largely unprotected.
  • Correa also put Ecuador’s ports and airports into private hands, making it difficult for the state to enforce cargo screening regulations.
  • He dismantled an elite investigative team of the national police, which was one of the country’s most effective units against organized crime.

Worsening Situation Under Successors

  • Former President Lenin Moreno focused on purging Correa’s loyalists from the government and steering Ecuador back towards a closer relationship with the US. However, he failed to address the growing security crisis, leading to:
    • Violent protests
    • Widespread corruption
  • Current President Guillermo Lasso has also struggled to contain the crisis. He spent most of his political capital pushing through economic reforms and has been accused of failing to take decisive action against organized crime.

Latest Scandal: Corruption within Lasso’s Inner Circle

  • Allegations of corruption within Lasso’s inner circle, including ties to the Albanian mafia, have surfaced.
  • Two police generals were caught discussing closing an investigation into the alleged mafia ties to protect the president.
  • The situation has led to widespread concern about the lack of vetting at the highest levels of government and the potential for organized crime to infiltrate the state.

Uncertain Future

  • Ecuador is now facing a period of great uncertainty, with two general elections scheduled in the next two years.
  • Candidates have yet to present comprehensive plans to address the country’s security crisis, leaving many wondering if Ecuador will be able to reverse its downward spiral before it’s too late.
  • One adviser to Foreign Minister Juan Carlos Holguin warned that if the situation is not addressed quickly, Ecuador could become a failed state within 10 years.

The Future of Security in Ecuador

With crime and corruption running rampant, it remains to be seen whether the country can regain control of its security situation and restore stability. Will Ecuador be able to reverse its downward spiral before it’s too late? Only time will tell.