John Perkins on Ecuador

“Because of my fellow EHMs and me, Ecuador is in far worse shape today than she was before we introduced her to the miracles of modern economics, banking, and engineering. Since 1970, during this period known euphemistically as the Oil Boom, the official poverty level grew from 50 to 70 percent, under- or unemployment increased from 15 to 70 percent, and public debt increased from $240 million to $16 billion. Meanwhile, the share of national resources allocated to the poorest segments of the population declined from 20 to 6 percent. Unfortunately, Ecuador is not the exception. Nearly every country we EHMs have brought under the global empire's umbrella has suffered a similar fate.”

“Ecuador is typical of countries around the world that EHMs have brought into the economic-political fold. For every $100 of crude taken out of the Ecuadorian rain forests, the oil companies receive $75. Of the remaining $25, three-quarters must go to paying off the foreign debt. Most of the remainder covers military and other government expenses — which leaves about $2.50 for health, education, and programs aimed at helping the poor. Thus, out of every $100 worth of oil torn from the Amazon, less than $3 goes to the people who need the money most, those whose lives have been so adversely impacted by the dams, the drilling, and the pipelines, and who are dying from lack of edible food and potable water.”

“Jaime Roldos of Ecuador, who I also was involved in trying to bring around, he very strongly opposed our oil companies. Not “oppose,” isn’t the right word. What he said is, “Oil from Ecuador has to serve the interest of the Ecuadorian people. Therefore, the oil companies are going to have to pay a lot greater share to the Ecuadorian people or we’re going to nationalize them.” And he’d run on a very, very strong anti-American campaign, and we knew that if he didn’t change his ways, that something would happen to him. We were in his office making the same promises. You know, here we’ve got a couple of million dollars for you. Here we’ve got a bullet for you, basically. It’s done a lot more subtly than that, but that’s the short version. And three months before Torrijos, his airplane also exploded.”

“Driving from Quito toward Shell on this sunny day in 2003, I thought back thirty-five years to the first time I arrived in this part of the world... I found it fascinating and certainly exotic; yet, the words that kept coming to mind back then were pure, untouched, and innocent. Much has changed in thirty-five years. At the time of my first visit in 1968, Texaco had only just discovered petroleum in Ecuador's Amazon region. Today, oil accounts for nearly half the country's exports. A trans-Andean pipeline built shortly after my first visit has since leaked over a half million barrels of oil into the fragile rain forest— more than twice the amount spilled by the Exxon Valdcz. Today, a new $1.3 billion, three hundred-mile pipeline constructed by an EHM-organized consortium promises to make Ecuador one of the world's top ten suppliers of oil to the United States. Vast areas of rain forest have fallen, macaws and jaguars have all but vanished, three Ecuadorian indigenous cultures have been driven to the verge of collapse, and pristine rivers have been transformed into flaming cesspools.”

“There was a president elected, the President of Ecuador, Gutierrez, a few years ago and he ran on a very, very strong anti-U.S. ticket. And he said that if he was elected, he would make sure that the people of Ecuador get the fair proceeds from Ecuadorian oil. As soon as he was elected, he was visited by an economic hit man, whom I know personally, and read the Riot Act, told the things we mentioned earlier, you know, “I’ve got money for you or a bullet.” Within a month, he came to Washington. There was a famous picture shown all over Ecuador of him sitting, holding hands with George Bush. And very soon after that, he went against everything in his campaign promises. He cut sweet deals with the oil companies. He went back on the indigenous peoples, whose lands in the Amazon area he had promised to protect. And the Ecuadorian people went wild. They took to the streets. They protested and demonstrated and eventually threw him out of power. So this particular one backfired... the economic hit man did his job right. Gutierrez came around, and then the Ecuadorian people understood what was going on.”