Speaker 1:

Bullfighting in Ecuador. The country's Spanish colonial past is evident in this most bloody of sports. The style varies slightly, but the rules are the same. Bulls are taunted, exhausted, and then finally killed. The bullfight held over a long weekend is a popular pastime for Ecuadorians like Julio.

The colour and spectacle is a welcome break from the hardships of surviving in a country where over half the population live in poverty. As another animal falls to the ground, the matador receives a standing ovation. Julio lives with his wife and two young sons in the capital, Quito.

Speaker 2:

[Spanish]

Speaker 1:

They enjoy an early dinner together at home before Julio goes back to work late into the night. It's a rare treat for the family. Like many other Ecuadorians, this 34-year-old taxi driver works long hours, sometimes driving for 18 hours a day as he struggles to make ends meet in a country rocked by high unemployment.

He says he has no choice. He says that unlike many of his friends, he's lucky to still have a job. For now, he can put food on the table, but he fears for his family.

Speaker 3:

The situation here is getting very complicated. It is getting too difficult, but thank God, I'm not too shaken by it yet. Thankfully, I'll still have my job, and I'm fighting on.

Speaker 1:

On January the 21st this year, hundreds of protesters joined military officers and stormed the Congress building. They declared a new government in a bloodless coup d'etat, toppling the previous administration after only 17 months in office. This time, no blood was spilled as the fifth government in as many years was brought to power.

The presidency was ceded to this man, former vice-president Gustavo Noboa.

Gustavo Noboa:

[Spanish]

Speaker 1:

But this country of 12 million people is no stranger to violent protest. Now, a series of unpopular policy changes introduced by Noboa have led to fears that the uneasy peace that has lasted since January could soon end. On the streets, the talk is of disillusionment.

Speaker 5:

I think that internationally, we're seen in a bad light. We have no political or economic credibility. This is how I see our country. With regards to the future, I just hope things can change for the better.

Speaker 6:

Ecuador is in pieces. All these presidents don't do anything for Ecuador. They take all our money. The rich become richer, and the poor become poorer.

Speaker 7:

At the moment, there's no work. Everyone complains there's no work, but there's nothing. The government's not doing anything. We've changed the government, but there's still no work. There's so many people out of work, nothing.

Speaker 1:

150 kilometres east of Quito is the town of Otovalo. It's home to a traditional indigenous market attracting visitors from all over the world. Over one-third of Ecuador's population is Indian. Hundreds of tribes, once disparate and badly organised, have slowly joined forces in the face of political chaos.

During the past 20 years, the native voice has become a powerful one made up of over four million people. On the surface, January's events were led by an indigenous-military alliance. As soon as the government stepped down, the military declared the pact void.

The Indians called foul play. Many now wonder just how powerful they have become. Formed in 1980, the Confederation of Indigenous Nationalities of Ecuador, CONAIE, is now one of the largest of these representative groups. Their spokeswoman, Blanca Chancoso, talks of a wave of disruptive action against the government.

Blanca Chancoso:

Today, the government is in a position where if they continue with the same policies and laws as the previous government, they will be a leadership that will not survive a very long time. The people of Ecuador will rise against them, and this time, it will be a strong revolt, because we have no other choice. We cannot continue to suffer, becoming poorer and poorer with each move by the government. For example, their dollarization policy.

Speaker 1:

Former government spokesman Carlos [inaudible] now has more time to spend with his art collection. He says distance has given him a clearer picture of this year's events.

Carlos:

What I believe happened is that certain members of the military wanted to take advantage of these indigenous movements. They tried to make them look like the figureheads. In other words, they tried to turn the events into a popular movement, an indigenous movement.

In reality what happened was a coup d'etat of the worst case, the kind we used to see in the 60s and 70s. International laws prevented the military from presenting it as such due to international condemnation and the sanctions that could be imposed.

It all points to the fact that they used the indigenous movement to make it look like a move by the people, but as soon as the coup happened, the military dropped them. They turned their backs on them.

Speaker 1:

Today, the Congress building is peaceful. Ecuador's flag waves above the heads of people who pass the time of day in the Congressional Square, but Noboa inherited a country in ruins with a 16.5 billion US dollar foreign debt, the highest per capita in South America.

Thousands live in abject poverty. Now in a desperate bid to curb inflation and bring down spiralling interest rates, the government has turned to the American dollar. Rather than being greeted as a saving measure, the poor have denounced the movement. Black market currency trading, once endemic in the city, is now dead.

Replacing the sucre with the US dollar has won more enemies for the embattled leadership. Julio finds supporting his family increasingly difficult. Government monetary policy has increased the price of food and basic necessities. Julio now earns less per month than he did before the coup.

Julio:

People are hurt, but slowly, the people are waking up as the economic situation gets harder and harder. We all hope we will get better and that we don't have to resort to violence.

Speaker 1:

Matadors talk of breaking down a bull by showing it little respect. Noboa's government are continuing to press ahead with a series of reforms while popular opposition grows daily. CONAIE insists that they will stop at nothing to block the government's love affair with the US dollar. For the time being in Ecuador, the stand-off continues.

(silence)