Rafael Correa, president of Ecuador was nearly killed by angry police who were protesting over cuts in pay. After being held captive for half a day, troops loyal to the president rushed to his rescue, fought through police barriers and freed Correa from his captivity. Some political leaders might interpret police anger as a manifestation of problems within their government, but Correa regards himself as a minor version of Hugo Chavez, the left wing leader of Venezuela. Most probably, business leaders played a role in the police action, but is claim that Barack Obama and Hillary Clinton somehow played a role in the conflict is simply rhetoric not backed by any evidence. Right now, the American president and the State Department are focusing on the Middle East, not the middle of South America.
The flip side of this episode is to cast doubt on Ecuador stability in the eyes of international business. Investors will think twice before placing money in a nation in which the president is at odds with major segments such as businessmen. It is time for Correa to take a page from Brazil, lessen leftist rhetoric and focus on developing his nation.