Country Article / Postcards

Ecuador Now

Date: 04/20/2005

Dear International Living Reader,

I was descending from a high Andean pass on the way back to Cuenca from Vilcabamba on a sunny afternoon with fellow International Living readers Ron Wardell and Dave Brushaber when, as we approached Cuenca, I got a call on my cell phone informing me that President Gutierrez had been removed from office by congress. The vote was unanimous and in accordance with the constitution. Because the president had ordered a crackdown on demonstrators that resulted in a death, a warrant has also been issued for his arrest. As I write, he is hiding in the Brazilian embassy. Vice President Dr. Alfredo Palacio, a cardiologist, was sworn in this afternoon. People are celebrating in the streets.

These events are being reported worldwide, of course...but, to watch the news, you'd wonder if they were talking about the same place.

For example, I had this e-mail from a concerned reader: "Check out the Google news for the last week. When the rule of law is threatened, all citizens are threatened. In this case, American property owners are in particular jeopardy: People are visiting and buying on your recommendation…you should be on top of this. You certainly should be warning subscribers that conditions have changed."

Yes, by all means, you should know what's going on. However, you should know what's really going on. Here's the real story.

American property owners are not in jeopardy. The expats who live here and the readers who are traveling in the county right now are not worried, and there’s no reason to think we’re at risk.

I’ve met 12 readers here in Ecuador over the last two weeks, and not one has seen any evidence of a conflict. Whether they are men, couples, or women traveling alone, all have moved about the country and seen what they wanted to see without running into any disruptions. We have no property or land disputes, and land ownership is not an issue. I'm writing from Vilcabamba. It’s obvious that most people here don’t even know what’s been going on. The demonstrations elsewhere in the country (and tonight, celebrations) have been widely isolated and easily avoided.

What happened, however--whether it affects the expat’s life or not--is a serious constitutional issue. President Gutierrez was on the verge of being impeached last December, and, in an attempt to gain some congressional support, he took part in a plot in which his role was to "fire" the Supreme Court and replace them with new appointees. (This action, of course, was unconstitutional. It'd be like President Bush deciding to "fire" the U.S. Supreme Court to gain favorable rulings from its replacement.) Protests grew over the last few weeks, gaining in number and intensity, finally culminating in Wednesday's vote.

Readers often write to ask me, "Is Ecuador’s government politically stable?" My answer is, of course not. It’s never been stable and may never be in my lifetime. However, this fact has made no difference in my life or the lives my expat friends, some of whom have been here 30 years and have seen many presidents come and go. This country has seen seven presidents in the last 10 years.

If you’re coming to Ecuador, my advice is this: If you’re in Quito, avoid the area around the presidential palace on Plaza de Independencia. In Cuenca, avoid the university on 12 de Abril, as small groups of protestors may remain in these areas. Otherwise, you’ll probably see no evidence that anything is amiss.

Enjoy your trip.

Lee Harrison
For International Living

P.S. Six readers are here visiting Vilcabamba this week, and all seem to have fallen in love with the valley. Their only complaint is that inexpensive properties are becoming hard to find. If this beautiful valley is on your radar screen, plan on spending a little time digging to find what you’re looking for. I'd say you'll need a week at a minimum. Our new primary contact here is Andre Grossenbacher; reach him by e-mail at agrossenba@yahoo.com.

P.S. There have been changes to the immigration law since our last Ecuador: The Owner’s Manual was printed, particularly with respect to the moving of household effects. You can still bring your household effects duty-free, and the visa process remains relatively simple, but you should use the services of a first-rate attorney to guide you through the process. Full updated details will be included in the next edition of the manual. Meantime, our recommended attorney in this area is Grace Velastegui; contact her by e-mail at g racevelastegui@yahoo.com.

P.P.S. These recent events in Ecuador may well signal a dip in property prices. Hence, this could be, in fact, a good time to visit this country. In my travels over the last few days, landowners and business operators have mentioned that the political crisis is having an adverse effect on business and tourism. Recall that during the last crisis of this sort (in 2000), many readers and other investors profited greatly from the price dip and subsequent boom. While many readers wrote last night to see if I were still alive, a few others wrote to ask my assistance in getting here ASAP to get in on the opportunity. (Those of you who can't make it here right away can find out more about everything Ecuador has to offer by reading the report we sent to online subscribers on Tuesday, April 19, available here.)