Background and Relevance of Daniel Noboa
Daniel Noboa, a 37-year-old business administrator, was sworn in as Ecuador’s president on Saturday. He took office to complete the term of his predecessor, Guillermo Lasso, after winning a surprisingly large margin in the April election despite allegations of electoral fraud from his leftist rival.
Noboa’s Actions and Policies
War on Crime:
- Noboa has declared war on criminal groups, issuing decrees to deploy military personnel in streets and prisons.
- He has reinforced security at ports and extended sentences for drug-related and terrorism offenses.
Economic Reforms:
- Noboa signed a $4 billion agreement with the International Monetary Fund (IMF).
- He implemented budget cuts to address a fiscal deficit of $4.6 billion.
- He recently met with Chinese banks to discuss potential loans.
Focus on Public Investment and State Enterprises:
Noboa emphasized his commitment to public investment and improving state-owned enterprises, including the oil company Petroecuador.
He highlighted cooperation with the United States, Israel, and El Salvador to combat narcotráfico and attract foreign investment.
His administration has consulted Erik Prince, founder of Blackwater and private security executive, to advise on security forces. This move has drawn criticism from human rights defenders and opposition groups who boycotted his inauguration.
Challenges and Progress
Security Progress:
- Noboa promoted a 15% reduction in violent deaths for 2024, but such deaths increased by 58% in the first four months of 2024 compared to the same period in 2023, according to official figures.
Noboa clarified that the fight is against organized criminal structures with international networks aiming to destabilize the state and subjugate society through fear.
Economic Challenges:
- Noboa must seek funding amid a public debt-to-GDP ratio of 51.8%, high country risk that complicates bond issuance, and a decline in oil production—one of the country’s main exports.
He projects a 4% economic growth for the year, though the central bank forecasts only 2.8%.
Noboa secured mid-month the presidency of the National Assembly and most legislative committees, ensuring temporary majority support for his security and economic reforms.
Key Questions and Answers
- Who is Daniel Noboa? Daniel Noboa is a 37-year-old business administrator who was sworn in as Ecuador’s president to complete the term of his predecessor, Guillermo Lasso.
- What are Noboa’s main policies? Noboa has focused on intensifying the fight against crime, signing an agreement with the IMF, and implementing budget cuts to address fiscal deficits. He also aims to improve public investment and state-owned enterprises.
- What challenges does Noboa face? Noboa faces high public debt, country risk affecting bond issuance, and declining oil production. He also needs to address rising violent deaths despite his pledge for reduction.
- How is Noboa’s administration perceived? Noboa’s administration has drawn criticism for consulting Erik Prince and the perceived lack of progress in reducing violent deaths. However, he has secured legislative support for his reforms.
