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Foreign-funded NGOs in Ecuador: Trojan Horse for intervention?

Ecuador has come under fire for scrutinizing non-profits like Accion Ecologica, many of whom get millions from Europe and North America.

Part 3 - 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.

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