Because the stupid tosser decided not to pay off debts that the country could well afford and so defaulted on their bonds.
At which point no one will lend him any money. Thus, borrow from the Chinese against future oil revenues. Which does mean of course, that you’ve got to drill for the oil.
Entirely his own fault.
Funny argument Tim. Ecuador entered the 2000s with a large accumulation of debt ran up successive kleptocratic dictatorships. Practically I understand that paying off this debt might be worth the cost. Access to capital markets is really useful even if they are inhabited by the sorts of people who lend to money hungry kleptocracies. But that’s a tragedy, it definitely doesn’t make someone a “stupid tosser.”
The world is perfectly able to coordinate a response to the default on odious debts, but not to saving a rainforest and battling climate change. That also seems like a tragedy to me.
Tim also ignores the positive externalities of all this. Rafa’s policy of not paying off odious debts will push up the borrowing costs of dictators and tyrants. Seems like some lovely side effects to me. Pity that Ecuadorians have to continue suffering.