Ecuador faces new economic protests

Many in Equador are angry at the state of the economy

Ecuadorean union and church groups have called a two-day national strike to protest at the government's economic policy.

"We're going to take to the streets to reject the economic package, reject the miserable increases in salaries and the hikes in fuel and electricity costs," said Wilson Alvarez, president of the Workers' United Front union umbrella group.

Among those striking are some 30,000 doctors who will stage a 72 hour sit-down protest to press their demands for improved pay.

The latest actions follow January's bloodless coup in which former President Jamil Malhuad was ousted over his controversial economic policies.

The current President, Gustavo Noboa - who was President Mahuad's deputy - has pressed on with the previous government's ambitious plan to adopt the US dollar as the national currency, despite fierce opposition from unions and indigenous groups.

President Noboa has stayed with existing policies

The strike organisers were hoping that the Indian Confederation of Ecuador (Conaie), which along with rebel soldiers organised the January coup, would join the strike.

However in a statement, the organisation said that it would offer moral support, but would not actively participate .

Ecuador's woes began in 1998 after hugely destructive tropical storms and a fall in the price of oil, which provides about a third of the government's income.

Mismanagement

The crisis deepened in October 1999 when the nation defaulted on part of its $13bn foreign debt. Ecuador is still crippled by chronic inflation, currently running at 96% per year.

In the wake of these crises, Ecuador adopted the US dollar as its currency to shore up investor confidence.

However, indigenous groups oppose dollarisation on the grounds that it will raise prices.

The Ecuadorian Alternative Forum, formed by business and social groups, is advocating strengthening the national currency - the sucre - by having it on par with the dollar, one for one.

The Forum told reporters that dollarisation has undermined the economy and that their proposed system, similar to Argentina's, should be implemented.

Recent public opinion polls said 67% of Ecuadoreans opposed a court martial of the soldiers involved in the coup against President Mahuad.