Foreign-Funded NGOs in Ecuador: Trojan Horse for Intervention?
- 20 Feb 2017
Ecuador has come under fire for scrutinizing non-profits like Accion Ecologica, many of whom get millions from Europe and North America.
Ecuador, the tiny South American nation sandwiched between Colombia and Peru, rarely makes waves in the English-speaking world’s corporate mediascape. Last year, news traveled far on at least two occasions.
First, with an earthquake that killed at least 673 people. Second, when the government moved to investigate and potentially dissolve a nonprofit called Accion Ecologica in connection with deadly violence between members of an Amazonian tribe and police sent to protect a Chinese-operated mining project.
Ecologists and prominent activists friendly to the group, including heavy-weights such as Naomi Klein, called out what they characterized as a callous repression and criminalization of Indigenous people protecting the unparalleled richness of the Amazon and alleged state prejudice against an underdog non-profit organization that was only there to save the rainforest and its inhabitants.
Ecuador’s socialist government, on the other hand, sees the “underdog” label as misplaced.
NGOs may be seen as do-gooders, but that’s not always the case. As a country historically vulnerable to the whims of powers in the North, Ecuador has, under the administration of the outgoing President Rafael Correa, put up a guard against a new kind of public diplomacy from abroad that focuses on gaining the favor of civil society to indirectly execute their political priorities.
NGOs are flagged when they operate outside the bounds of the law and their stated objectives, indicators of potential pressure from outside funders to protect their interests rather than those of nationals.
“We’re an Ecuadorean NGO, born here in Ecuador and working for 30 years in the defense of the rights of the environment and of communities across the country, and for that work we are very well known, even at an international level,” Alexandra Almeida, president of Accion Ecologica, told teleSUR.
“But that doesn’t mean that a foreign organization could manipulate us with anything — with funds, with nothing — that’s how we operate.”
NGOs have rarely had to justify their work to anyone, let alone prove that they act for the good of the people only. But Ecuador is not an ordinary country. Rich in resources but export dependent, authorities are attempting to manage the many foreign hands trying to pull the country’s development in their favor.
Silent Action Meets Loud Reaction
This government is the first to scrutinize NGOs, but their scrutiny has not been limited to Accion Ecologica.
In 2012, Ecuadorean President Rafael Correa boldly declared that NGOs have been entering the country like never before during the previous decade. Many, backed by foreign states and foreign money, are out to destabilize the state, Ecuadorean leaders stated.
“Their interest is not the country, impoverished sectors, natural resources or strengthening democracies,” said Paola Pabon, director of the National Ministry of Political Management, which is responsible for tracking NGOs, in an interview with teleSUR last year. “What interests them is having control over governments, having influence over civil society to create elements of destabilization.”
Executive Decree 16, which went into effect in 2013, created a system to catalogue the financing, decision-making and activities of every registered social organization — a total of over 46,000 in the country, including non-profits, unions and community organizations, among others.
The resulting action saw 26 foreign NGOs expelled from the country for a lack of transparency and compliance with national law; in brief, for declaring themselves “non-governmental organizations” while acting on behalf of foreign governments. Among the more high-profile cases was Samaritan’s Purse, an evangelical missionary relief organization that received funding and support from USAID. Fifteen others were given two weeks to get their activities in order.
A handful of Indigenous organizations, which had previously mobilized against Correa’s government, attacked the decree via the Constitutional Court. Two years later, Ecuador reformed the regulations with Executive Decree 739, which fine-tuned the reasons for closing an NGO — the main one, “diverting from stated objectives” — and, caving to demand, eliminated the requirement for organizations to register projects financed from abroad.
Donor Nations: Generous or Greedy?
The trend that prompted Ecuador’s law was not without precedent.
Through the U.S. Agency for International Development, known as USAID, and the linked but publicly independent National Endowment for Democracy, known as NED, the United States pumped over US$100 million into Venezuela to create 300 new organizations credited with contributing to the coup d’etat against Hugo Chavez in 2002. In a similar move, USAID admitted that it tried to provoke a “Cuban Spring” by setting up Zunzuneo, a kind of Cuban Twitter, to circulate calls to protest.
The most common nonprofits close to foreign governments and private interests are those that stand tallest against their states. In Ecuador, that tends to be groups that work closely with Indigenous communities, with those protecting their right to their land and with those defending women and the environment. Funding by private foundations and corporations, while more widespread, is far less transparent and tougher to quantify. Big names like the Ford Foundation and Open Society, however, are well known for injecting funds into NGOs in the global south to advance specific political visions.
But the United States isn’t the only country to have funneled funds to Ecuador through NGOs.
Official numbers from Ecuador’s Chief Administrative Office of International Cooperation, or SETECI, show that since Correa assumed office in 2007 until 2015, foreign NGOs have managed over US$800 million from abroad. Top givers include the U.K. and Spain, followed by several European states.
No one, however, beats the United States. In that same period, the U.S. sent over twice the amount of money of the next-highest donor, with a total of over US$282 million and 780 projects, or 35 percent of all funding.
Of those funds, which only count NGOs based abroad that invested in local or regional projects, 13 went to projects in the Amazon led by non-profits like Care International, the Wildlife Conservation Society, the World Wildlife Fund, the Carnegie Endowment for International Peace and the Mitsubishi Corporation Foundation for the Americas. Projects based in Morona Santiago, the province where the anti-mining protests that led to the death of police office broke out, brought in over US$1 million from the U.S. since 2007.
The flow of funds is indicative of a broader attitude between receiver and giver, who “take advantage of the assumption that they have a perfect democracy, which is completely false – there’s a paternalistic attitude that must be regulated,” said Fernando Casado, research fellow at the National Institute for Higher Studies on public administration in Ecuador and Venezuela. Conversely, a flow in the opposite direction would immediately raise suspicion from developed countries, he added.
Yet money itself doesn’t tell the full tale: the funds are tied directly to foreign policy objectives, Casado told teleSUR. “The powers of the North have changed strategy.”
Each state has its own way. Germany, which has had 151 NGO projects in Ecuador since 2007, is known for meddling in affairs of developing countries through its Federal Ministry for Economic Cooperation and Development, or BMZ. When SETECI found that three-quarters of its funds went toward stopping another mining project in the Amazon’s Yasuni region last March, it kicked the German agency out of Ecuador.
The United States has several agencies do its work, the most prominent being USAID, NED — funded through money allocated to USAID by Congress — and the Broadcast Board of Governors. The stated missions: to promote development, democracy creation and a free press, respectively, while strictly adhering to U.S. foreign policy priorities.
“We should not have to do this kind of work covertly,” said former head of NED Carl Gershman on CIA missions to the New York Times in 1986. “It would be terrible for democratic groups around the world to be seen as subsidized by the CIA. We saw that in the 60s, and that’s why it has been discontinued. We have not had the capability of doing this, and that’s why the endowment was created.”
What Givers Want
The “work” the United States has set out for Ecuador — according to a 2016 Office of Inspector General report on the U.S. embassy leaked by WikiLeaks — is “to mitigate the effects of the contentious political environment created by the Ecuadorean Government” with the help of other government agencies, which play a “critical role.”
The report, intended for the eyes of the BBG and Congress, said the embassy was “actively engaged with civil society leaders and nongovernmental organizations to increase Ecuadorean awareness of and support for U.S. policies and values, promote Ecuadorean civil society and government accountability, and strengthen environmental initiatives.”
To set up a climate conducive to U.S. meddling, the U.S. Government Accountability Office included Ecuador on a shortlist with Colombia, Egypt and the West Bank/Gaza the year Correa was elected to closely study public opinion in “specific, targeted public awareness campaigns.”
It also either commissioned or was the beneficiary of a study from Stratfor, a secretive intelligence company contracted by the State Department and the U.S.’s multinational titans, which evaluated the extent to which Ecuador is manipulable by NGOs. The 2013 report, leaked by WikiLeaks, focused especially on how NGOs can influence trade policy and corporate regulation. Its conclusion: based on a scale likely defined in relation to other developing nations, Ecuador is fairly resilient to NGO pressure but has submitted in certain instances.
USAID sends hundreds of millions to local projects in Ecuador, some less explicitly political, but some indirectly benefiting opposition groups, according to U.S. Ambassador in Ecuador Adam Namm. BBG affiliate, TeleAmazonas, has been accused of fomenting strong opposition rhetoric against Correa. And the NED spends over US$1 million annually on dozens of local programs with broad objectives like “promoting citizen oversight of elected officials,” “monitoring due process and the independence of the judicial system,” “monitoring the use of public resources in government advertising” and “facilitating dialogue and consensus on democracy.”
Both Germany’s BMZ and USAID are back in Ecuador following a deluge of NGO activity after the April earthquake. The workload of the National Ministry of Political Management has peaked ever since, said Pabon.
The Sneaky Alliance With Mother Earth
One pet project of USAID was the Conservation in Managed Indigenous Areas, or Caiman, which ended before Correa took office but was among several USAID programs to conserve the country’s biodiversity and promote alliances between Indigenous communities and private businesses.
Caiman worked with various groups working in ecological and Indigenous rights, including Accion Ecologica. For several years, Caiman had Accion Ecologica help them battle against the Ministry of the Environment and train park rangers to oppose contamination from oil and mining.
Whether or not USAID or foreign foundations have funded Accion Ecologica directly is unclear. Unlike many others in the industry, the non-profit does not publish its financial information on its website, and refused multiple requests from teleSUR for copies of audits. When asked, the organization’s president said she does not know specifics on foreign funders and could not answer.
Almeida did say that Accion Ecologica receives funds from Europe — from individuals, “small organizations, alliances, groups that form” around fundraising events on ecological issues. She did not say how much or cite specific names but mentioned Italy and Belgium.
A 2012 investigation from Andes, an Ecuadorean state publication, found that both Accion Ecologica and the Regional Foundation of Human Rights Advising, another powerful nonprofit, are financed by the European Commission, Oilwatch, the Netherlands embassy and a few international ecological networks. Almeida said the accusations were false.
While Europe may be the principal interested party in the success of Accion Ecologica, the U.S. is also well known to have played an active role in similar battles.
In 2013, the year after Correa took the lead against foreign NGOs and a year before he expelled USAID, Bolivia accused USAID of spending US$22 million to divide Indigenous groups on the exploitation and nationalization of oil in their lands.
“Since the right can’t find arguments to oppose the process of change, it now turns to campesino, Indigenous and native leaders who are paid by several NGOs and foundations with perks to foment a climate of conflict with the national government to deteriorate the process of unification that the country is experiencing,” said Morales as he gave USAID the boot.
Beyond Accion Ecologica
“Theoretically speaking, NGOs shouldn’t exist,” said Casado. NGOs operate within a logic of narrowing, minimizing and weakening the role of the state so they can keep filling holes in public services and keep their jobs, which are at risk of disappearing if the state works as it should, added Casado.
“They elect themselves representatives of civil society in general,” and yet their role is limited and entirely reliant on and responsive to funding, which at the end of the day remains in their pockets. Other social organizations and popular movements, said Casado, operate only on conviction.
If an NGO is completely free to operate without regulations, a country would open itself to any corporate and foreign interest that found an open hand, he argued. Latin America is intimately familiar with that process — of consolidating power in the monied class — and NGOs back similar corporate interests, only with a more benevolent face.
It’s near-impossible to identify the perfect case of foreign intrusion — and, as in Accion Ecologica’s case, near-impossible to prove. Multiple factors are always at play, from the ideology of individual members to the decision-making process to however events play out on the ground. Casado said that the first step to uncovering hidden interests is financial transparency — a move that faces stiff opposition precisely for the interests that it could reveal.
Ecuador’s answer is to carefully collect records and draw a clear line between what is acceptable and what is not. Foreign NGOs, state the decree, cannot participate “in any form of party politics, any form of interference or proselytism, any threat to national security or public peace or any other activity not permitted under their migratory status.”
When Accion Ecologica testified before the Interior Ministry and the Ministry of the Environment, it argued that it had been doing the same work — protecting the rainforest — for decades, always in a peaceful manner. The evidence presented showing they provoked violence through a series of tweets in and around the time of violent clashes was “a bit absurd, very absurd,” said Almeida.
In the end, the government’s case did not hold, and the Environment Ministry concluded there was not enough credible evidence to shut down the group. Accion Ecologica credited “pressure” from its supporters, as its representatives continue to urge for a deregulation of NGOs.
“It’s not only NGOs, but also any organization that will be at risk, especially their right to free expression and the right to free association” if the decree regulating NGOs remains intact, said Almeida.
Her position echoes those taken up by opposition politicians, whose one commonality is their depiction of Correa’s government as one systematically trouncing on citizens’ rights and freedoms.
In an election year, rhetoric makes the difference.
Dianileysis Cruz contributed reporting.
Source: TeleSur English