The government of the South American nation of Ecuador is reportedly facing a robust pushback from indigenous groups to plans to press its oil industry into service to boost its economy by attracting foreign oil investors to the country.
Reports from the sector indicate that the government in Quito is facing “heavy resistance” from indigenous groups which it says had been given impetus by an upheaval arising out of government’s refusal to pull back a fuel price increase linked to austerity demands associated with a US$4.2 billion International Monetary Fund (IMF) loan.
While the substantive reason for the protest is linked to the fuel price increase, analysts say that the deeper motive reposes in a new push by indigenous groups against the government’s plan to allow for billions of dollars in investment in exploration that will penetrate deep in the Amazon region.
