paradigm shift disorder carlos zorrilla fv

7/31/2019 Paradigm Shift Disorder Carlos Zorrilla Fv

1/9

PARADIGM SHIFT DISORDER

Carlos Zorrilla

PSD: A condition afflicting individuals and governments that, once in power, implementpolicies contrary to the paradigm shift that is vital for the well-being of the planet and its

inhabitants, and for which they were elected to implement. Often, it is characterized by

demagoguery, hypocrisy and a reverting back to ruinous policies that violate human rights

and worsen environment degradation. It is aggravated by the lure of quick, easy, money

posed by extractive industries, such as mining and oil.

March 5, 2012. President Correa(r) and Yuan Guisen(c),China's Ambassador to Ecuador, look on as Ecuador's Minister of Non-Renewable Resouces, Wilson Pastor, signs the first mining exploitation contract, initiating large-scale mining in the country.Picture this if you can: A World Bank and a IMF extractive industries director are going over

the latest developments in South America over a cup of coffee in Washington. The World Bank

director turns to the IMF representative and says: Jeez, isn't it funny how things turn out!! So-

called progressive governments down south following pretty much our model of development

and implementing some of our least palatable extractive policies

It wasn't supposed to be this way. The political change that swept over most of South American

nations during the past decade or so, was supposed to usher in major paradigm shift: from the

anthropocentric to a more biocentric mode of life. From a capitalistic to a more genuinelysocialistic and democratic perspective.

In Ecuador, the transformation was about giving nature Constitutional rights, and people the

right to a harmonious, or integral way of life. It was meant to usher in a radical change from a

purely economic paradigm to a more holistic one; putting social, cultural and environmental

wealth on an at least equal footing with economic wealth. The whole idea of development was

to be radically transformed. Less materialism; more social, cultural, environmental health. Less

extractivism and natural resource pillaging; more sustainable initiatives benefiting local

economies. Sustainability was meant to encompass all three main pillars of development, and

not reaffirm what it means today: sustained, and infinite economic growth. The elements above

the surface: soil, water, biodiversity and forests would be seen as being worth far more than

1


2/9

subsurface minerals. Other species had a right to co-exist with humans. Importantly, the

impetus for most of these changes in perspectives came not from politicians, but from the

citizens, who were key protagonist in the re-writing of Ecuador's, and other Constitutions in the

region.

The shift was also meant to fortify civil society groups who expected to work closely withgovernment and help government in the transition, and take part in consolidating the changes.

Power itself was supposed to undergo a radical transformation- more in tune with the people and

respectful of the environment, and less responsive to powerful home-grown and transnational

economic interests. There was to be a major shift in geopolitics: less dependency on the

imperialistic North, more healthy South-South commerce, cultural and other exchange.

As far as the model of government, it was supposed to be the beginning of the end the ego-

power of the Caudillo- or strong-man- model of governing, and democracy would flourish.

Everyone thought that respect for free speech and freedom of expression would grow.

Parliaments were to be open to the people, and the Parliaments would really listen to what the

they said. Governments would rule by the Constitutions and the rule of law, and not based onpopulist policies. Genuine participatory government was to become the norm. It was taken for

granted that Free, Prior and Informed Consent for Indigenous Peoples and communities would

be fully respected.

I'm referring about the shift in governments and politics that has shaken South America in the

past 10 or so years and that put new leaders, some from the extreme left- some supposedly

progressive- into power. Ecuador, Bolivia, Argentina, Venezuela; perhaps Paraguay. Brazil for

many. The change was supposed to usher in a new whole new paradigm of development. No

more development schemes to ravaged Planet Earth in the name of economic growth and for the

purpose of creating avid consumers, meanwhile enriching Northern economies and feeding

unsustainable lifestyles. Capitalism was to be replaced by a green and democratic socialism.

Instead, we have leaders like Bolivia's Morales, an indigenous-campesino socialist leader who

came to power trumpeting human and environment rights, and who is now pursuing a road

through the middle of a protected area known as Tipnis. In late 2011, his government violently

repressed indigenous protesters who were marching to the capital to protest the plan. President

Morales claims that the road is needed to develop the country. It has been pointed out that the

road would also perfectly suit the commodities-export regional initiative known as IIRSA. In

spite of the international condemnation that the repression against the protesters sparked and

ongoing national resistance, Bolivia's president is still determined to go ahead with his plans.

Stung by native resistance to his government's development plans, Evo Morales recently tried to

discredit the opposition, allegedly stating that environmentalism is the new colonialism1. It's

hard to believe that someone like Evo Morales wouldnt know that modern environmentalism

was largely inspired by Native Americans, and disappointing that he would equate

environmentalism with colonialism, which was anything but green. But Morales is not the only

president in South America following tried-and-tested neoliberal development plans, or using

the police to violently repress the resistance said plans provoke.

In Ecuador, Rafael Correa, who was packaged to the public as a progressive and who was voted

into power partly based on his pro-environment platform, has followed some of the World

Bank's most effective prescriptions to allow the North to continue helping themselves to the

2


3/9

country's resources. His regime is dead set on transforming Ecuador, a mega biologically and

culturally diverse nation, into yet another mining country exporting raw mineral resources to the

North. The government, for example, is not satisfied that only 5% of the country has been

explored by mining corporations, and would like to see it expanded to not less than 40%, and is

looking all over the world for partners to start mining the Andes.

Correa's mining policies highlight the contradictions of his government perspective on

development perhaps like no other issue. For example, while outwardly supporting a green

initiative to leave massive amounts of petroleum under the Yasuni protected area in exchange

for cash from developed economies, Correa's government is opening new pristine areas for

mining and oil development. In the case of mining, it is specially tragic, since Ecuador is the

only Andean nation free of large-scale metal mining, and has the unique opportunity- and more

than enough renewable resources to do it- to choose a different development path, avoiding the

numerous and well-documented ills that mining development brings to developing nations.

Because of its great and irreversible environmental impacts, large-scale mining permanently

closes a country's door to develop sustainable economic activities wherever it operates.

Resistance and Mining

Correa's mining plans are being implemented in spite of virulent protests from campesino

communities and Indigenous Peoples, and after decades of experiencing all the problems that

petroleum development has inflicted on the country, its people, and the economy. Petroleum

development in Ecuador is synonym for severe erosion of ethnic diversity in the country's

biodiverse Amazon region, poisoning of untold numbers of rivers and streams and making

thousands of locals sick with cancer and other life-threatening diseases. Partly because of this

grim past with petroleum, and partly based on knowledge of mining's real impacts in tropical

rainforests regions and local communities, Correa's plans have met stiff resistance and sparked

widespread social protests in the country. The latest protests against mining in March of this

year showed that the resistance is not limited to impacted communities, or led by a handful of

organizations. The protests brought together thousands of individuals from most of the country's

indigenous organizations, campesino groups as well as from dozens of other civil society

groups- including several large unions- to the streets in Quito. It was a shock that the

government is still trying to assimilate.

Beyond oil development's social and environmental curse, the development has created a

noxious dependency on the black gold that has suppressed other sectors of the economy and

that, for decades, has been the main provider of the national budget. It also put blinds onfunctionaries that made it impossible for them to imagine a life without the money from

exporting commodities. Thus, now that oil is running out, what more perfect choice can there

be- and one that the World Bank would approve of- than to developed the country's untapped

mineral resources! What will happen 20-30 years down the road when the minerals also run out

and Ecuador's pristine places have been transformed into open pit nightmares leaching heavy

metals is not hard to imagine.

Along with the rush to open the whole country to mining by- you might have guessed it-

transnational mining companies, a whole development package is aggressively being sold to

the people. Development, in the best tradition of capitalism, is being equated with things like

high-paying jobs, paved roads, large hydroelectric dams, open-pit mines, clinics, computers and

3


4/9

so forth. In other words, material development. And, it's not that these things are are necessarily

all bad, the problem lies in that they reinforce the failed model of development that is killing the

oceans, wiping out biodiversity, and turning the planet into an oven and its citizens into

compulsive consumers. The extractive development model also keeps developing countries poor

and tied to exporting primary resources. For many who helped the current government come to

power, the regime's development plans is an unforgivable regression from what it was supposedto have been. In fact, disgust with his way of governing and his betrayal of the party's ideals

that President Correa was supposed to represent, drove many of his closest collaborators to

abandon his party's so-called Citizen's Revolution, and join the opposition.

The Compass Needle Shifts East (or, goodbye Uncle Sam, hello Uncle Cheng!)

One of the fundamental changes in the new development scheme was supposed to include a

shift in geopolitical orientation; lessening the connections to the imperialistic North, and

strengthen South-South exchange. However, instead of South, the economic and political

compass needle is increasingly pointing East. Iran, for example, has shown a great deal of

interest in Correa's government, and Ecuador responded by greatly expanding relations withIran and, at the same time, supporting the Gaddafi and Assad governments, in accord with

Chinese political interests.

Financially, the eastern shift is not much different. Loans from institutions like the World Bank,

the Inter-American Development Bank and the IFM have been almost completely eclipsed by

loans from Chinese state-controlled banks like the China Development Bank and the China

Export Import Bank. China, for example, has lent nearly 9 billions dollars to the Correa

government in the past couple of years to cover budget deficits during the past several years,

which is helping to fund his lavish, and popular, social programs. And it's not just only Ecuador

that is on the radar screen for Chinese financial institutions. according to a recent report2 ,in

Latin America, Chinas lending to the region in 2010 was more than the World Bank the Inter-

American Development Bank and the Export-Import Bank of the United States combined.

In addition to high-profile loans, China is also funding some of Ecuador's biggest infrastructure

projects, including the country's biggest hydroelectric project, and is interested in fully funding

a massive 13 billion dollar petrochemical complex on Ecuador's coast. For its part, Ecuador

signed special deals with the Asian giant to repay part of the loans by exporting a significant

percentage of Ecuador's exportable oil production. The loans are no gift to the Ecuadorian

people either; the country is paying about 7% interest on them, much higher than what other

international lenders charge.

And, as with the World Bank and other western international lenders those loans don't come

without strings attached. For now, the visible strings are access to petroleum and copper, but inthe future it could include other metals, agricultural land, lumber, and whatever other resource

the Chinese are in need of. Or, as BBC news article3 bluntly put it:

One of China Development Bank's specific tasks is to try to alleviate and, where

possible, eliminate bottlenecks in supplies of raw materials or land for China's economy.

This is cause for concern after Correa's recent statement that there is no limit to borrowing from

China.

An attractive aspect of these loans is that, from the perspective of governments like Ecuador's,

the money comes without those bothersome transparency, human rights, labor, respect of

4


5/9

Indigenous People's rights, and environmental safeguards. The loans also come without the

insistence from the lenders that the money be used to help the country mitigate poverty.

Needless to say, the flexibility is a real temptation for corrupt governments to misuse the

funds, and makes it easier to prolong their stay in power by subsidizing popular social programs,

regardless of their economic or environmental sustainability.

The Copper Connection

Ecuador's enthusiasm for Chinese financial support didn't stop with the petroleum deals. In

March of 2012, the country signed its first mining contract, paving the way for the construction

of Mirador, the country's first large-scale open-pit mine. Mirador happens to be a copper mine,

and it happens to be owned by a Chinese consortium made up of two of China's largest state-

owned corporations. In inking the deal, the Correa government didn't let legalities get in the

way, even after the nation's Comptroller General findings leaked to the press revealed 17 major

irregularities with the mining project, most of them sufficient to have annulled the project.

Another troubling factor in this particular grab for copper is that, according to an external audit,the project's Environmental Impact Statement was severely deficient, leaving out key data, and

not considering essential factors like seismic risks. Yet, the study was approved days before the

signing of the contract with the Chinese. The outrageous disregard of laws to accommodate

Ecuador's largest debtor is very disturbing, and is emerging as the model the government will

follow for other extractive projects. A similar disregard for the rule of law to facilitate other

mining and oil projects in the southeast of the country, which includes not respecting

community consultation processes, and redrawing boundaries of protected areas to

accommodate mining and oil interests, have helped further tarnish the government's discredited

environmental policies. Taken together, the flagrant disregard for the law sends a signal that the

government will push mining no matter what; even if that 'what' means gross violations of

human and collective rights, a severe weakening of democratic values and institutions, andwide-scale environmental degradation. A study released by the country's Ombudsmen in late

20114 on human rights violations drew attention to the link between the country's extractivist

plans and human rights violations, when it came to the conclusion that a significant share of the

violations were linked to resistance to extractive projects, and that there was a systematic

criminalization of the social protest. A study released in April of 2012 by one of Ecuador's most

prestigious universities came to similar conclusions5.

One unique aspect of the deal with the Chinese, which has raised some concern, is that Correa

pressured the companies to pre-pay 100 million dollars in future royalties. I know of no other

country in the world where mining companies pay royalties years before a mine is even built.

The gamble on the part of the Chinese is not much of an issue, since it has been shown thatState-owned Chinese corporations are willing to lose a lot of money- 600 million dollars in the

case of the Mecca Metro6, for example- in order to win political, and other kinds of favors from

countries rich in resources.

What the advanced royalty payment does is give the government money to use in the mining

region to attempt to neutralize the opposition and gain the support from the communities by

paving, building, wiring and sanitizing the place. It also makes it possible to show off minings

positive side (concrete 'development'). However, it also ties the hands of Ecuadorian

governments- present and future- to effectively avert, or control mining's insidious

environmental and social impacts.

5


6/9


7/9

Happiness is still king and, because it's difficult or inconvenient to put a monetary price on

ecosystem services or for the government tax them, these services are worthless. Poverty is still

measured only in dollars and cents, and the environmental destruction and social and cultural

havoc produced by mining and other extractive industries are still seen as unfortunate costs of

development; externalities for someone else to pay in another time.

As far as the living and non-living elements of an ecosystem are concerned, including human

communities, it matters not at all what economic or political system is the author of their

demise. Whether in the name of pure capitalism and free markets, or socialist or communist

principles that justify the destruction of our Home to, paradoxically, improve living conditions

of the human population, devastation is devastation.

Duality of ProgressThere's no denying that there have been some very positive changes in Ecuador, as well as the

other countries mentioned. Social spending has gone way up, there is less economic poverty,

and many economically impoverished citizens, for the first time, have access to basic services,

like free medical attention. Public education is also, in theory, free for everyone, to university. I

say in theory because the country was unprepared for the increase in demand for this and other

services, and the systems collapsed. And, like many other populist governments before it, this

one has also been accused of using these popular programs to buy support. But overall, and in

spite of the fact that the richer are richer these days in Ecuador, one cannot ignore the fact that

positive economic and social progress has been made. Parallel to these positive achievements,

however, the flush of financing is also going to some questionable ends, including funding sharp

increases in defense spending, putting Ecuador at the stop of defense spending per portion of the

GNP in South America7; higher even than Colombia, which has to confront a decades-long civil

war.

One Huge Step Backwards for Collective RightsOne of the most noxious policy decisions regarding development taken by the Correa regime,

and widely rejected by civil society and Indigenous groups, is that of not recognizing

communities or Indigenous People's right to Free, Prior and Informed Consent, or accepting

communities decision on development plans as binding. The President, along with key cabinet

members, have publicly said, on numerous occasions, that they equate the consultation process

with the simple act of socialization of projects, and that consent by affected stakeholders-

including local governments- is not to be considered. This refusal to recognize this key civil

society safeguard, and the right of these two fundamental civil society groups to choose a

different path of development, is seen as a huge step backwards in the establishment of

collective rights. It also makes a complete mockery of the government's sustainabilitydiscourse. Ironically, it's a policy expected more from the conservative right and capitalist

interests, than from the progressive left.

The Risks of Questioning Development

In Ecuador, persons and organizations who challenge the governments development plans are

either anti-development, agents of the political right, or just dumb, infantile ecologists, and/or

all of the above. Lately Correa has, as Morales, added a xenophobic ingredient to his attack on

the opposition to extractive development by saying that it is funded by rich gringos.

And, there is a lot to challenge. In this paradigm that refuses to die, there is no room for the

7


8/9

noble principles behind Sumak Kawsay- or harmonious living- and the rights of nature nature

become little more than nice terms to exploit. Human and Indigenous Peoples rights are seen as

obstacles to development, and development goals keep being set in shiny desks in the capitals,

far away from the land and people they would destroy or relocate. In other words, and as our

two imaginary functionaries from the Bank and the IFM might say: My oh my, business is

humming along as usual!'

To make sure nothing stands in the way of this new progressive steam-roller, if your

organization's idea of development is not in line with the government's National Development

Plan- which was done without any kind of meaningful participation from civil society- your

organization can lose its legal status and the directors become the target of aggressive smear

campaigns by government officials. If it occurs to you to exercise your Constitutional right to

resist extractive activities, you are arrested, labeled a terrorist and can be jailed for years.

Whereas before, it was the corporations who were going after the protest leaders, it is now the

State who criminalizes the protests. Since Correa came into office, for example, nearly two

hundred indigenous and campesinos have faced, or are now facing, terrorism or other similar

criminal charges for taking part in protests against mining and other extractive projects 4,5. In

fact, the main organization representing the Indigenous Peoples of Ecuador, CONAIE, and who

actively supported candidate Correa, has had to brunt relentless attacks from Correa the

President ever since they parted ways, primarily due to the government's mining policies. The

attacks against CONAIE is only one facet of a sinister and sustained effort to undermine the

influence of non-governmental organizations in the country that don't support the government's

development plans- and especially its mining plans. The lack of tolerance in Correa's

government for differing perspectives regarding the development model the country should

follow is frightening.

There are many other examples of the steep cost that civil society and nature in Ecuador arepaying for this version of Development Shift Disorder, and for questioning its premises. These

include, criminalization of the protest, concentrating power in the Executive Branch and fatally

debilitating the Legislative and Judicial branches of government, intimidating the country's free

press and hampering freedom of expression.

You probably think that we were out of our minds in believing that some of these fundamental

changes would take place, and you might be right. However, keep in mind that the principal

authors of the country's new Constitution that embodied most of the progressive above ideas

was the people; so this time much more was expected from the State. Also, if you've been

involved in walking the long road towards achieving social justice and environmental

sustainability, and serious about the need for urgent paradigm change redefining development'sbasic premises, then you know that hope springs eternal and that utopia is not a unreachable

dream, but a journey; a path we must constantly walk even in the face of overwhelming

obstacles and constant betrayals. Not to do so makes us accomplices of a paradigm so

destructive that it now threatens all life on Earth.

1. http://www.diaadia.com.ar/mundo/evo-le-cierra-puertas-estados-unidos

2.http://www.bloomberg.com/news/2012-02-17/chinese-loans-to-latin-america-top-world-bank-idb-combined.html

3. http://www.bbc.co.uk/news/world-asia-pacific-122129364.http://www.cedhu.org/index.php?option=com_content&view=article&id=116&Itemid=7

5.http://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechos%20Humanos%20(CD)%20.pdf

6. China Railway Corporation is the same company that is part owner of the Mirador copper mining project

8
http://www.diaadia.com.ar/mundo/evo-le-cierra-puertas-estados-unidoshttp://www.bloomberg.com/news/2012-02-17/chinese-loans-to-latin-america-top-world-bank-idb-combined.htmlhttp://www.bloomberg.com/news/2012-02-17/chinese-loans-to-latin-america-top-world-bank-idb-combined.htmlhttp://www.bbc.co.uk/news/world-asia-pacific-12212936http://www.bbc.co.uk/news/world-asia-pacific-12212936http://www.cedhu.org/index.php?option=com_content&view=article&id=116&Itemid=7http://www.cedhu.org/index.php?option=com_content&view=article&id=116&Itemid=7http://www.cedhu.org/index.php?option=com_content&view=article&id=116&Itemid=7http://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechoshttp://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechoshttp://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechos%20Humanos%20(CD)%20.pdfhttp://www.diaadia.com.ar/mundo/evo-le-cierra-puertas-estados-unidoshttp://www.bloomberg.com/news/2012-02-17/chinese-loans-to-latin-america-top-world-bank-idb-combined.htmlhttp://www.bbc.co.uk/news/world-asia-pacific-12212936http://www.cedhu.org/index.php?option=com_content&view=article&id=116&Itemid=7http://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechoshttp://www.uasb.edu.ec/UserFiles/372/File/pdfs/NOTICIASYSUCESOS/2012/Informe%20Derechos%20Humanos%20(CD)%20.pdf


9/9

http://www.time.com/time/world/article/0,8599,2033238,00.html7. http://www.defensenews.com/article/20120511/DEFREG02/305110006/South-American-Defense-Spending-

Doubles-5-Years-Report?odyssey=nav%7Chead

9
http://www.time.com/time/world/article/0,8599,2033238,00.htmlhttp://www.defensenews.com/article/20120511/DEFREG02/305110006/South-American-Defense-Spending-http://www.defensenews.com/article/20120511/DEFREG02/305110006/South-American-Defense-Spending-Doubles-5-Years-Report?odyssey=nav%7Cheadhttp://www.time.com/time/world/article/0,8599,2033238,00.htmlhttp://www.defensenews.com/article/20120511/DEFREG02/305110006/South-American-Defense-Spending-http://www.defensenews.com/article/20120511/DEFREG02/305110006/South-American-Defense-Spending-Doubles-5-Years-Report?odyssey=nav%7Chead

paradigm shift disorder carlos zorrilla fv

Documents