President Lucio Gutiérrez's regime began its sixth month in office in an atmosphere characterized by social protests. Since the signing of the Letter of Intent with the International Monetary Fund (IMF), during the first weeks of government, social discontent has been increasing with growing force, as the above agreement includes measures of fiscal austerity, which, among other consequences, leads to a decrease in public spending, as well as the privatization of public resources, a matter which lies in the hands of the State. Since the middle of May, the country has been the scene of a teachers' general strike, protests by oil workers and other sectors, a reshuffle of the leadership of the armed forces and political leadership and a new a division of functions in the government. Meanwhile, the Confederation of Indigenous Nationalities of Ecuador (CONAIE) delivered a mandate to the President containing the people's demands and the promises that were made during the election campaign. Lucio Gutiérrez got into power as a result of the alliance between his own party, Sociedad Patriótica (SP), the Movimiento Pluricultural Pachakutik (PK) and the Movimiento Popular Democrático (MPD). During his campaign for presidency, Gutiérrez promised Ecuadorians a change in the structure of the State, reform of legislative and judicial powers, and fair social and economic policy for the inhabitants of this country. One of the reasons for the credibility of his promises was his own participation in the social movement of 21 January, 2000, led by indigenous peoples and the armed forces, who overthrew President Jamil Mahuad, who was accused of serious acts of corruption. On arrival in government, putting his electoral promises to one sidene of the reasons that his one of the reason s , the new head of state adopted the objectives outlined by the IMF, which lay down strict measures of adjustment, the scrupulous repayment of foreign debt, resulting in shortages in funds for education and health. It is for this reason that reactions against him have not taken long to materialize. In the middle of May the National Teachers Union (UNE) initiated a protest demanding funding for the forecasted budget for education and a pay increase for teachers. The protests, which included a hunger strike that ended on 13 June, came about in the wake of intense negotiations that were prolonged because of Minister of Finance Mauricio Pozo's reluctance to negotiate outside the confines of the writings of the IMF. During the period in which the UNE finalized negotiations with the regime, a new conflict began when the workers of the state oil company (Petroecuador) initiated a strike with the aim of curbing the Minister of Energy's, Crnl. (r) Carlos Arboleda (SP), intention to accelerate the privatization process of the four most productive oil wells, by establishing joint ventures that would favor multinational companies, damaging the country's economy. In contrast to the conflict over education, where the minister involved, Rosa Ma. Torres (PK), favored talks in order to reach an understanding, in the energy sector minister Arboleda was more inclined towards the use of force to quash the strike, leaving the labor union without a leader. The regime, backed by the employment sector and the media, has wasted no opportunities in capitalizing on the discontent in various segments of the population caused by the shortage of fuel supplies resulting from the strikes, by mounting an intense campaign against the oil workers unions, claiming that the unions are attempting to negotiate labor contracts with disproportionate financial benefits; a campaign which has been extended to public unions. As a consequence, various segments (health workers, electrical, legal, etc.) have, during this period, been involved in acts of protest and temporary stoppages, which are threatening to become more widespread. In this context, 16 June saw the first Summit of the Nation, People and Alternative Authorities in collaboration with CONAIE, which ended with a "Mandate" that was delivered the following day to President Gutiérrez. In this document, the indigenous movement demand the reorientation of the country's economic policy; a reform of legal powers; greater political participation for civil society; funding of agricultural policy as planned by the Ministry of Agriculture; nonintervention in Plan Colombia; the implementation of a referendum as regards the FTAA; the revision of the Manta base agreement; the moratorium of foreign debt; the execution of legitimate and comprehensive projects for social development and the implementation of political agreements to meet the needs of the people and the indigenous population. In addition, they are demanding the removal of those responsible for the Economic Front and of the Minister of Energy. The possibility of an indigenous uprising has not been ruled out. However, while the social foundation of electoral support is distancing itself, President Gutiérrez has strengthened the military and political front. On 17 June, General Oswaldo Jarrín resigned from his post as head of the Joint Command of the Armed Forces, after refusing to involve the Armed Forces in the eviction and arrest of the leaders of the oil union, outside legal proceedings, encouraged by the Minster of Energy. This resignation has proved advantageous for Gutiérrez in the removal the leadership of the Armed Forces as well as the leadership of the Police and replacing them with officials with more similar opinions to his own. At the same time, the mandate proposes lifting the sanctions against the military, which participated – alongside Gutiérrez – in overthrowing President Mahuad. The adverse reactions from the military ranks were immediate; there is an opinion that this will make way for a political management of the Armed Forces, which could precipitate instability. Even now there is a new wave of tension, taking shape inside the government, between members of the Pachakutik – Sociedad Patriótica alliance. On 13 June, Virgilio Hernández (Pachakutik) resigned from his position as vice secretary of the Home Office, revealing that there is a "dark circle" around the President of Ecuador comprised of a group of close family and leaders of the SP, led by Crnl. (r) Patricio Acosta, Secretary of the Administration, who is, in addition, armed with a special security and surveillance group. In the meantime, the opinion of civil society criticizes Gutiérrez's government for the obvious instances of nepotism, poor credibility due to sudden changes of opinion and inconsistencies in statements, distancing of those social sectors that put him into power, a weak front of close colleagues, an increase in military expenditure, international declarations in favor of Bush and Plan Colombia, and excessive compliance with the terms of the IMF and the payment of foreign debt, which are detrimental to the budget allocated for social areas and the economy of the main people's groups in the country. (Translation by ALAI)