Biodiversity vs. economy: The dilemma of Ecuadorian politics

Mega Diversity is the term used to refer to those countries that have a majority of diverse species, especially the endemic species (species unique to the region). There are 17 countries listed as Mega Diversity countries by Conservation International, Ecuador falls 6th on this list. The massive biodiversity of the region is due to the fact that the country has four different natural geographical zones- coast, mountain range, the Amazon and the Galapagos Islands. Three of the world’s ten biodiversity hot areas are found in the country, as well as red-listed animals, birds, and reptiles. Ecuador is home to around 8% of the world’s amphibian species, 5% of reptile species, 8% of mammalian species, and 16% of bird species. To put this broadly, Ecuador is home to more species than the United States and Canada, although the country is only 0.2% of the world’s land area. Ecuador is the first country to write ‘right of nature’ (Pachamama) in its 2008 constitution, but inspite of this, the mega diversity status of Ecuador is under threat caused by resource extraction and deforestation. The high levels of deforestation are so alarming in the country that it is a constant threat to the conservation of certain species and plants that are intrinsic to a specific region. The fading forest cover has resulted in countless species at the risk of extinction and indigenous people being forced to displace. Further, the mining activities have contributed to increased pollution of natural water sources, contaminating them and thereby negatively affecting aquatic life, a notable incident being the 90’s Chevron-Texaco crude oil spill in the Lago Agrio region.

Threats to Ecuador’s Mega Diversity – the Case of Yasuni National Park

Despite being a hotspot of biodiversity in flora and fauna, Ecuador ranks second among Latin American countries in terms of deforestation, with 42 percent of the land covered in forest. The high levels of deforestation in Ecuador are caused by high levels of resource extraction mainly in the form of mining and oil extraction. Ecuador has been a major oil exporter since 1967 after the discovery of great oil wealth beneath the Ecuadorian Amazon region. However, without the knowledge or agreement of the public, the government has awarded mining concessions to roughly 1.7 million hectares of forest reserves and indigenous territory. The country is so dependant on oil extraction as the backbone of its economy that the government has to frequently oversee their commitment to preserving biodiversity and indigenous rights. In 2016 oil extractions began in Yasuní National Park, a UNESCO recognised Biosphere Reserve, shocking the international community.

Yasuní National Park is home to endangered white-bellied spider monkey (Ateles belzebuth) and giant otter (Pteronura brasiliensis), and the near-threatened golden-mantled tamarind monkey (Saguinus tripartitus); along with a plethora of other unique flora and fauna. Moreover, the park is home to three indigenous tribes, the Huaorani, Tagaeri, and Taromenane. However, with the oil extractions, both the biodiversity and the lands of indigenous population are under great threat. The Galapagos National Park and the Marine Reserve of Ecuador, UNESCO World Heritage Sites, are also in danger.

When the government faced a $3 billion debt crisis in 2009, then President Rafeal Correa had to reach an agreement with China on ‘oil for cash.’ Oil prices were surging at the time when the agreement was signed, but the commodities bubble was short-lived. Ecuador would have to come up with a lot more oil to repay its loans as a result of this. They didn’t have a choice but to begin extracting in the oil-rich Yasuni National Park. Rafael highlighted Ecuador would leave the oil on the ground and safeguard indigenous rights if the international community agreed to compensate the country for lost revenue. After the international community failed to offer funds to help Ecuador get out of debt, Correa’s government had no choice but to approve permission for oil exploration. As a result of extractive interest, the park’s oil-rich zone within the ITT (Ishpingo-Tambococha-Tiputini) project is also at risk.

Biodiversity and developing countries in the neoliberal world order

The country’s dependence on oil extraction and export has led to negative development rather than positive development in the country in terms of poverty alleviation, job creation, a stable economy or a stable government. The Ecuadorian example confirms Jeffrey’s Sachs findings of a negative association between oil exports and economic growth and the association of oil dependence with fragile economies, corrupt government and the frequent interference of foreign countries on their foreign policies to extract mineral wealth. This situation is not exclusive to Ecuador but is happening in almost all developing economies where the government is pressured to give contracts to transnational corporations for mining and oil extraction. All 17 mega diversity countries of the world are developing countries that struggle to run under political and economic instability; making things difficult to make strategic action plans to conserve all that is left of biodiversity and forest cover in the world. A developing country like Ecuador being economically disadvantaged is struggling to take the huge responsibility of biodiversity and indigenous lives. These countries often fall victims to transnational corporations, businesses and foreign governments who are more concerned about extracting the oil than protecting biodiversity. As Noam Chomsky famously quotes in his Profit over People “Fascism is Capitalism with gloves off” and “Neo-Liberalism is Capitalism with the gloves off”. They systematically rationalize cooperate domination of the society by making it sound as if fair and democratic allocation of goods and services only through free market policies, but at the macro level it threatens “social welfare” in the developing countries. Neoliberalism doesn’t always act as an economic system; it also exerts its domination as a prominent cultural and social force, by favoring elite interest for profit.

Oil extraction increased to pay off debts, on the other hand, the last of the world’s major biodiversity hot spots in Ecuador is under threat of getting decimated by oil extraction activities. The livelihood and habitat of indigenous people in the forest are also getting affected due to increased deforestation and pollution. The future of Ecuador’s Mega diversity and indigenous life is a great question as the country is struggling with an unstable economy and with governmental support to large scale extraction. Different agents of neoliberalism are also at play to the disadvantage of a developing country like Ecuador often in the form of large transnational oil corporations and through foreign interference in domestic politics. The current problem that Ecuador faces in sustaining its Mega diversity status can only come by means of economic diversification. Instead of viewing biodiversity conservation as the responsibility of domestic Ecuadorian affairs, the international community and those countries involved in mining projects should take responsibility by promoting sustainable investment. Ecuador can only reverse the negative consequences that are intensifying through strong regional and international partnerships, along with continual monitoring of the condition of biodiversity and indigenous life by environmental and human rights organizations.

Vrinda Aravind
Vrinda Aravind
Vrinda Aravind is a research scholar in the Department of International Studies, Christ University Bengaluru, Karnataka, India. Her areas of interest include neo-colonialism, democracy, post modernism and liberalism.