Foreign policy of Rafael Correa
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The foreign policy of Rafael Correa
Rafael Correa
Rafael Vicente Correa Delgado born is the President of the Republic of Ecuador and was the president pro tempore of the Union of South American Nations. An economist educated in Ecuador, Belgium and the United States, he was elected President in late 2006 and took office in January 2007...

is the policy initiatives towards other states by the current President of Ecuador, as differed to past, or future, Ecuadorian foreign policy. Correa's foreign policy is somewhat similar to that of the other leaders of the Bolivarian Alternative for the Americas
Bolivarian Alternative for the Americas
The Bolivarian Alliance for the Peoples of Our America is an international cooperation organization based on the idea of social, political, and economic integration between the countries of Latin America and the Caribbean...

 (ALBA) such as Hugo Chavez
Foreign policy of Hugo Chávez
The foreign policy of the Hugo Chávez government concerns the policy initiatives made by Venezuela under its current President, Hugo Chávez, towards other states...

 and Evo Morales
Foreign policy of Evo Morales
|The foreign policy of Evo Morales concerns the policy initiatives made towards other states by the current President of Bolivia, in difference to past, or future, Bolivian foreign policy...

. This entails a rough division between relations with other states of the Americas (led by the United States
Foreign relations of the United States
The United States has formal diplomatic relations with most nations. The United States federal statutes relating to foreign relations can be found in Title 22 of the United States Code.-Pacific:-Americas:-Caribbean:...

) and the rest of the world (namely Iran
Foreign relations of Iran
Foreign relations of Iran refers to inter-governmental relationships between Iran and other countries. Following the 1979 Iranian Revolution, the newly-born Islamic Republic, under the leadership of Ayatollah Khomeini, dramatically reversed the pro-Western foreign policy of the last Shah of Iran,...

).

Background

Rafael Correa took his first term of office as president of Ecuador on 4 December 2006 by the country's electoral court. This inauguration was attended by most regional leaders, as well as the Iranian President and Spanish Crown Prince
Felipe, Prince of Asturias
Felipe, Prince of Asturias de Borbón y de Grecia; born 30 January 1968), is the third child and only son of King Juan Carlos and Queen Sofía of Spain....

. His second term was commenced on 10 August 2009, the same day as Ecuador's bicentennial. The second term took place amongst greater fanfare with several South American dignitaries in attendance, such as President of Argentina
President of Argentina
The President of the Argentine Nation , usually known as the President of Argentina, is the head of state of Argentina. Under the national Constitution, the President is also the chief executive of the federal government and Commander-in-Chief of the armed forces.Through Argentine history, the...

 Cristina Fernández de Kirchner
Cristina Fernández de Kirchner
Cristina Elisabet Fernández de Kirchner , commonly known as Cristina Fernández or Cristina Kirchner is the 55th and current President of Argentina and the widow of former President Néstor Kirchner. She is Argentina's first elected female president, and the second female president ever to serve...

, President of Bolivia
President of Bolivia
The President of Bolivia is head of state and head of government of Bolivia. According to the current Constitution, the president is elected by popular vote to a five year term, renewable once...

 Evo Morales
Evo Morales
Juan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...

, President of Cuba
President of Cuba
--209.174.31.28 18:43, 22 November 2011 The President of Cuba is the Head of state of Cuba. According to the Cuban Constitution of 1976, the President is the chief executive of the Council of State of Cuba...

 Raúl Castro
Raúl Castro
Raúl Modesto Castro Ruz is a Cuban politician and revolutionary who has been President of the Council of State of Cuba and the President of the Council of Ministers of Cuba since 2008; he previously exercised presidential powers in an acting capacity from 2006 to 2008...

 and President of Venezuela Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...

. Correa continued to reiterate a promise to continue the "socialist revolution," his plans to end poverty and to continue "stamping out the structural causes of poverty." He also said the actions of the media were opposing his government.

Repudiation of Ecuador's foreign debt

Correa has called for a renegotiation of Ecuador's $10.2 billion external debt, at 25% of GDP, following the example of Argentine
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

 President Néstor Kirchner
Néstor Kirchner
Néstor Carlos Kirchner was an Argentine politician who served as the 54th President of Argentina from 25 May 2003 until 10 December 2007. Previously, he was Governor of Santa Cruz Province since 10 December 1991. He briefly served as Secretary General of the Union of South American Nations ...

. In his inaugural address on 15 January, Correa stated his belief that part of Ecuador's external debt is illegitimate, because it was contracted by military regimes. He also denounced the "so-called Washington Consensus
Washington Consensus
The term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...

." Correa has threatened to default on Ecuador's foreign debt, and to suspend review of the country's economy by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 and the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

; indeed, on April 26, 2007, he ordered the expulsion from Ecuador of the World Bank's country manager.

In May 2007, evidence surfaced that some of the Ecuadorian government rhetoric might have been part of an alleged market manipulation
Market manipulation
Market manipulation describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency...

 to benefit Ecuador from movements in the price of financial instruments linked to Ecuadorian Bonds. A fall in Ecuador bond prices, ignited by aggressive default rhetoric, would trigger a buyback by Ecuador, financed by Venezuelan banks. This strategy collapsed due to operations engaged by Venezuelan financial institutions who profited from the market swings. Correa referred to the allegations as a conspiracy from a powerful banker. On July 26, 2007, Rafael Correa replaced finance minister Patiño, due to Patiño's appearance in a video recording, apparently discussing the market manipulation. Patiño then assumed a newly created position responsible for the Pacific coast region and later assumed the Politics Affairs Ministry.

Correa's political orientation has helped foster ties with Venezuela. The latter pumped in and supported Ecuador on a number of projects. But with the 2008 economic crisis and Ecuador's looming default on $510 million of bonds, there was rumour of a possible rift. The drop in the price of Ecuador's biggest export, oil, forced the country to use a 30-day grace period to decide whether to make a $30 million interest payment that was due on November 15. Venezuela apparently owns structured securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...

 tied to Ecuador's bonds that would then force Venezuela to pay $800 million if Correa does not make the payment. Venezuela's potential losses may cause a strain in relations between two, who meet every three months and espouse similar socialist themes. An analyst from Barclays said "Chavez will have something to say...[He] will encourage Correa not to default."

On December 12, Correa said that an interest payment due on Ecuador's national debt would not be made. He declared the country in default: "We are ready to accept the consequences". He described the debt as "immoral", saying the government would take its findings that past debt sales were tainted by graft and bribes to international courts.

In a radio address on December 13, Correa said that he wants to force a “big discount” on creditors, whom a day earlier he called “true monsters who won’t hesitate to crush the country”.

"I have lost sleep over this ... this will cost us tears and sweat but I think we are doing the right thing." Correa, who endorses anti-debt NGO Jubilee 2000's slogan "life before debt", is popular among Ecuadorians for his stance against foreign investors. He has already forced foreign companies to change contract terms in the oil and mining industries and ejected a major Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

ian building company in a dispute over a dam
Dam
A dam is a barrier that impounds water or underground streams. Dams generally serve the primary purpose of retaining water, while other structures such as floodgates or levees are used to manage or prevent water flow into specific land regions. Hydropower and pumped-storage hydroelectricity are...

 construction as he seeks to increase state income.

Buy back bonds

On April 16, 2009, Finance Minister Maria Elsa Viteri embarked on a trip to Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 in a mission to present Ecuador's offer to buy back global bonds 2012 and 2030 at 30% of their current value. Bond holders had until mid-May (extended to June 3) to accept or make an offer. According to the Finance Minister, at least 70% of bond holders have accept the governments' offer. On May 29, Ecuador made a payment of approximately 300 million dollars to part of the bond holders. The Finance Minister has said that on June 13, the government will reveal all the details of the repurchase. According to government reports, all or almost all of the bonds will be retired from the global market at a price of 30-35 on the dollar. These bonds constitute one fourth of Ecuador's debt. If Ecuador is able to retire these bonds, it would reduce the nation's debt by $2 billion dollars, making this a great economic victory for president Rafael Correa and his administration.

On June 11, 2009, Ecuador announced that it had successfully bought 91% of the bonds at a cost of 30-35 cents to the dollar. The Finance Minister said that the remaining bond holders will have another opportunity to sell their bonds at the same price of 35%. This move will nominally reduce the total foreign debt by $2 billion dollars (although it might lead to losing access to private financial markets in the future).

Colombia

Correa withdrew his government's ambassador in Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...

, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

, and ordered troops to the country's border following the 2008 Andean diplomatic crisis
2008 Andean diplomatic crisis
The 2008 Andean diplomatic crisis was a diplomatic stand-off between the South American countries of Ecuador, Colombia and Venezuela. It began with an incursion into Ecuadorian territory across the Putumayo River by the Colombian military on March 1, 2008, leading to the deaths of over twenty...

 in early March 2008. On 3 March 2008, Colombia's police said that documents found in a camp in Ecuador where Colombian troops killed Raul Reyes
Raúl Reyes
Luis Edgar Devia Silva , better known by his nom de guerre Raúl Reyes, was a Secretariat member, spokesperson, and advisor to the Southern Bloc of the Revolutionary Armed Forces of Colombia-EP...

, a top guerrilla boss, showed ties between the FARC rebels and Correa, including contacts about political proposals and local military commanders. Correa denied the accusations, calling them lies. Correa also said that a deal to release political prisoners – including former Colombian Sen. Ingrid Betancourt
Íngrid Betancourt
Ingrid Betancourt Pulecio is a Colombian politician, former senator and anti-corruption activist.Betancourt was kidnapped by the Revolutionary Armed Forces of Colombia on 23 February 2002 and was rescued by Colombian security forces six and a half years later on 2 July 2008...

 – was nearly complete before the 1 March 2008 Colombian raid into his country. On 5 March 2008, Correa and Venezuelan president Hugo Chavez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...

 met to discuss Colombia's attack and made a series of accusations against Colombia's government. During the meeting, Correa dismissed Colombia's president Álvaro Uribe
Álvaro Uribe
Alvaro Uribe Vélez was the 58th President of Colombia, from 2002 to 2010. In August 2010 he was appointed Vice-chairman of the UN panel investigating the Gaza flotilla raid....

 as just a "puppet" while others are the "puppet masters".

At a Rio Group
Rio Group
- List of Summit meetings :- See also :* Community of Latin American and Caribbean States, possible successor of the Rio Group* Union of South American Nations...

 summit held in Santo Domingo
Santo Domingo
Santo Domingo, known officially as Santo Domingo de Guzmán, is the capital and largest city in the Dominican Republic. Its metropolitan population was 2,084,852 in 2003, and estimated at 3,294,385 in 2010. The city is located on the Caribbean Sea, at the mouth of the Ozama River...

, Dominican Republic
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...

, on 7 March 2008, after a heated exchange of accusations between Correa and Uribe, the diplomatic crisis was temporarily resolved with Colombia's apologies for the attack and reassurances that it won't be repeated. Correa said that with this resolution Latin America was starting a new era where international principles of justice will have preeminence over power.

Currently, there are no diplomatic nor consular relations between Colombia and Ecuador. Correa has declined to resume diplomatic relations until Colombian government fulfill these five conditions:

1. Send an apology for the attack, which has been already done.

2. Send more troops to the south border of Colombia, now in hands of guerrillas and regular criminal bands.

3. Stop trying to link Ecuadorian government with FARC guerrillas.

4. Avoid using chemical products on the common border, which has caused several injuries on the local population, both Colombian and Ecuadorian, and

5. Help with the expenses for Colombian refugees on Ecuadorian soil. Ecuador is the country with the highest number of foreign refugee
Refugee
A refugee is a person who outside her country of origin or habitual residence because she has suffered persecution on account of race, religion, nationality, political opinion, or because she is a member of a persecuted 'social group'. Such a person may be referred to as an 'asylum seeker' until...

s on the occidental hemisphere.

India

On 16 November, 2008, Foreign Minister Maria Isabel Salvador met her India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

n counterpart, Pranab Mukherjee
Pranab Mukherjee
Pranab Kumar Mukherjee is the current Finance Minister of India and leader of the current Lok Sabha.Mukherjee is a senior member of the Cabinet Committees on Economic Affairs, Infrastructure, Parliamentary Affairs, Political Affairs, Prices, Security, Unique Identification Authority of India,...

, with a close relationship in oil and defence between these geographically distant countries high on the agenda. On the oil front, the new government in Ecuador reversed an earlier revenue-sharing agreement with West
West
West is a noun, adjective, or adverb indicating direction or geography.West is one of the four cardinal directions or compass points. It is the opposite of east and is perpendicular to north and south.By convention, the left side of a map is west....

ern oil companies and sought to strike a new partnership agreement with state-owned ONGC Videsh.

In the defence sector, Ecuador became the first country to sign a contract for purchasing the Indian made Dhruv
Dhruv
- Military :* HAL Dhruv, a multi-role helicopter developed and manufactured by India's Hindustan Aeronautics Limited...

 helicopter of which one will be for use by Correa. The Indian embassy appointed a Military Attache
Military attaché
A military attaché is a military expert who is attached to a diplomatic mission . This post is normally filled by a high-ranking military officer who retains the commission while serving in an embassy...

 amid brighter prospect for cooperation and more defence exports, as Ecuador has agreed to be the servicing hub in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...

 for Indian defence equipment.

Iran

Ecuador and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

 resumed diplomatic relations in the first year of Correa presidency. In December 2008, Correa visited Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...

 and signed several agreements. Responding to the intrusion of Colombian forces earlier that year, Correa is reported to have discussed the possibility of an arms deal with Iran. As a member of ALBA, Correa participated in a joint declaration of support to the Ahmadinejad government in June 2009.

Venezuela

Ecuador officially joined the Bolivarian Alliance for the Americas, a Venezuelan-initiated regional cooperation initiative, in June 2009.

In March 2010 Venezuela and Ecuador announced the creation of a number of bi-national projects and companies. Venezuela and Ecuador had already collaborated on oil and gas projects; Venezuela had also supported the 2007 creation of Ecuador TV
Ecuador TV
Ecuador TV is the public service channel of Ecuador established in October 2007 thanks to a provision of non-reimbursable funds of $5 million of the Economic and Social Development Bank of Venezuela ....

.

United States

On repeated occasions, Correa has announced Ecuador's unwillingness to renew a lease on the Eloy Alfaro Air Base
Manta Air Base
Manta Air Base / Eloy Alfaro International Airport is a combination civilian airport and military air base on the outskirts of Manta in the province of Manabí in western continental Ecuador. The airport, also known as Eloy Alfaro Air Base, is named in honor of Eloy Alfaro, a former president of...

 to United States Southern Command
United States Southern Command
The United States Southern Command , located in Miami, Florida, is one of nine Unified Combatant Commands in the United States Department of Defense. It is responsible for providing contingency planning and operations in Central and South America, the Caribbean The United States Southern Command...

. SOUTHCOM has the contractual right to leave a year after that date, but has announced it plans to vacate by September 2009. He told Oliver Stone
Oliver Stone
William Oliver Stone is an American film director, producer and screenwriter. Stone became well known in the late 1980s and the early 1990s for directing a series of films about the Vietnam War, for which he had previously participated as an infantry soldier. His work frequently focuses on...

 in South of the Border
South of the Border
- Music :* "South of the Border" , popular song, notably recorded by Frank Sinatra* "South of the Border" , 1997* South of the Border , 1964...

that:
We love the United States very much. I lived there. I studied there. We love the people of the United States very much. But obviously, the US foreign policy is questionable. That’s why when they want to pressure us to maintain their military base in our country, a foreign base that they don’t pay anything for, either, and they accuse us of being extremists because we don’t want the base—if there’s no problem having foreign military bases in a country, we set a very specific condition: we would keep the North American base in Manta, provided they let us put a military base in Miami. If there’s no problem with foreign bases, then we should be able to have one over there.


On February 7, 2009, Correa ordered the expulsion of US Immigration and Customs Enforcement attaché Armando Astorga for allegedly suspending $340,000 in annual aid because Ecuador would not allow the US State Department to veto appointments to the anti-smuggling police. He cited as evidence a letter Astorga allegedly sent (January 8) demanding that the anti-contraband police return all donated equipment. Subsequently, on February 17, Mark Sullivan, the US Embassy's first secretary in the embassy's office of regional affairs was given 48 hours to leave the country because of his "unacceptable meddling." Foreign Minister Fander Falconí
Fander Falconí
Fander Falconí Benitez is an Ecuadorian economist and politician. He served as Foreign Minister in the government of President Rafael Correa from December 2008 until handing in his resignation on 13 January 2010....

 said Sullivan, in a meeting with police in early February, questioned a decision by Ecuadorean Police Chief Jaime Hurtado
Jaime Hurtado
Jaime Hurtado González was an Ecuadorian politician of African descent aligned with the Democratic People's Movement, a deputy in the Ecuadorian parliament, and at the time of his death was standing for election to the Ecuadorian presidency.-Assassination:Sources loyal to the DPM state that...

 to transfer the head of the Special Investigations Unit to another police post.

On 4 April, 2011, Correa's government declared Ambassador Heather Hodges to be persona non grata
Persona non grata
Persona non grata , literally meaning "an unwelcome person", is a legal term used in diplomacy that indicates a proscription against a person entering the country...

and asked her to leave the country as soon as possible. The action came after the leak by Wikileaks
Wikileaks
WikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers. Its website, launched in 2006 under The Sunshine Press organisation, claimed a database of more...

of a State Department cable implying that Correa must have been aware of the alleged corruption of General Jaime Hurtado
Jaime Hurtado
Jaime Hurtado González was an Ecuadorian politician of African descent aligned with the Democratic People's Movement, a deputy in the Ecuadorian parliament, and at the time of his death was standing for election to the Ecuadorian presidency.-Assassination:Sources loyal to the DPM state that...

 when he appointed Hurtado the commanding general of the Ecuadorian National Police (ENP). The cable stated that, prior to Hurtado's appointment, the US embassy had "multiple reports that indicate he used his positions to extort bribes, facilitate human trafficking, misappropriate public funds, obstruct investigations and prosecutions of corrupt colleagues, and engage in other corrupt acts for personal enrichment.... Hurtado's corrupt activities were so widely known within the upper ranks of the ENP that some Embassy officials believe that President Correa must have been aware of them when he made the appointment. These observers believe that Correa may have wanted to have an ENP Chief whom he could easily manipulate." CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...

reported that the Ecuadorian government had called the allegation that Correa knowingly promoted a corrupt officer to head the police "unacceptable, malicious and reckless."
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