Ecuador’s Lasso faces governance struggle

Significance

President Guillermo Lasso has suggested he will seek to govern without the legislature, implying that he will make greater use of executive decrees and popular consultations. He has also threatened again to dissolve the National Assembly, triggering a new round of elections. All of these options carry risks and limitations.

Impacts

• The executive-legislature conflict will slow or potentially derail Lasso’s economic reform agenda.
• The IMF will continue to work with Lasso to help him introduce his economic reforms.
• The dispute will unnerve international investors, hindering hopes of private-sector-led economic recovery.