Jamil Mahuad interview

Jamil Mahuad

 Former President Jamil Mahuad of Ecuador and Gabrielino this year granted him an interview where I talk out on the bank resecion and asked forgiveness from all the Ecuadorian although believed to be the correct decicion below a summary of the interview:


 InterviewThe silence is broken as ice broke apart. It took 12 years and three days after he was ousted from the presidency. Cambridge, the city where he lives, he wakes up covered with snow.It is winter for Jamil Mahuad. The "Pachecazo" as he calls the ruling of Judge Enrique Pacheco-revives the trial against him. And provides indications of possible embezzlement.The snow of years paints his temples. Turned 62. He lost his athletic figure of yesteryear. His face indicates the passage of nearly three decades. He admits that after the stroke he suffered in 1997 left the sport. He lives alone in a two bedroom apartment that rents on the 20th floor of a building affluent, near Fresh Pond, a small lake whose crystalline waters seen from the window of his room."Live from teaching, lecturing and consulting, and pay my bills, I have no fixed income, vary from month to month. I can spend here another 20 years if they want to keep me away from Ecuador and if I live that long, but do not prove thatincreased my heritage. "Drive a Toyota Sienna van 2006, chocolate-colored, second-hand bought it because it did not travel 50 thousand miles. Drive aided by GPS, the streets of Cambridge or Boston, a city adjoining, just separated by the Charles River. Knows by heart the route from his apartment to Harvard, the seat of the university that just celebrated 375 years of creation, where she teaches. "I have a huge fortune that I like to teach."Walk the campus as his home. In 1988 he became a graduate in Public Administration. Walk to the library donated by the family of the student who tragically drowned in the Titanic in 1912. Inevitably, the reference to the image that lampooned in late 1998. He ruled in August that year and predicted the severity of the economic crisis. "I did not create this figure, my explanation was caricatured."The Titanic sank with its crew. Ecuador, between 1998 and 2000 - plunged into the worst economic crisis of republican history. Unemployment rose from 8.5 to 19.8 percent, the value of a dollar fell from 5,426 sucres to 25 000, the minimum monthly wage fell from $ 18.4 to 4. The per capita income fell by 40 percent. Dozens of Ecuadorians died. Some of infarction. Others committed suicide saw their savings in sucres liquefied or monthly income of hundreds of thousands turned into a miserable few dollars. In subsequent years, more than two million people were forced exodus to the United States, Spain or Italy. His children were at the mercy of relatives, neighbors, friends ... No one has estimated the social cost and human generation will pay the children of the crisis."I apologize""Panic gripped the country. Technicians projected annual inflation of one thousand percent in two months would not have dollars to pay for imports. I suffered heavily in the decision. I decided to cut his arm to save his life. I regret the pain caused far but I'm sure he avoided a greater. "Mentally recreates the night of Sunday March 7, 1999, when as President outlined his team's strategy to close the bank (bank holiday) to set the freezing of deposits in the financial system.The previous Friday, the dollar rose to 12 000 sucres. The argument to freeze deposits is still irrefutable statement: "An extreme measure for extreme crisis, we are in hyperinflation banks clean morning: you have to freeze the money to continue buying dollars that should stop the bleeding ... 70 percent of the population has no bank accounts ... I spend teaching in many places, and no one has found an alternative. "No act of contrition. Thirteen years later there is no repentance, but a request. "These decisions were necessary to avoid a major disaster. But, I humbly apologize to everyone for the tremendous pain that caused him such measures inevitable. I ask you to understand that he had no choice, the crisis led to the freezing, it was the opposite. "Between 8 and March 12, 1999, Ecuadorians found closed banks. And from Monday, 15, braved the freezing of all or part of their bank deposits, under Presidential Decree 685. The following week, the Banco del Progreso, with over 750 thousand customers, closed its doors as its principal, Fernando Aspiazu seminar, accusing the government of Mahuad to obstruct the delivery of a Central Bank credit. Banks continued to fall like dominoes. Within months, the financial system was reduced by half.The indictmentVictor Granda, a lawyer and former deputy, is one of the accusers in the trial of exmandatario. Make connections between the bank holiday, the freezing of funds and the closing of Progress. "In the environment of the president had asked bankers to freeze funds, including Aspiazu Seminary, who tried to save the Banco del Progreso, and had three months to make up numbers." It refers to the creation of front companies linked to the same bankers, as alleged beneficiaries of loans.Jorge Rodriguez, an economist, is also prosecution. He joined the Anti-Corruption Commission which studied the record. "The accounts of the banks happy Progress Previsora ​​generated Filanbanco and freezing, with the need to cover their robberies and to coat with the state Deposit Guarantee Agency of the flaws affecting its liquidity and solvency." According to the complaint, after freezing aggressively the central bank gave loans to banks, devaluing the sucre and accelerating the dollar. The latter measure liquefied debts of the bankers and affected State. Both agree that the economic decisions of exmandatario constitute the crime of embezzlement. Mahuad said the central bank acted independently by the 1998 Constitution. And never managed any credit to private banks. In his team had at least four representatives of the financial sector: Guillermo Lasso, Alfredo Arizaga, Ana Lucia Armijos, Alvaro Guerrero. Lasso left the government in late 1999, following the non payment to a tranche of debt. He was governor of Guayas and super-Economy. Guerrero, principal of The Previsora, led the National Modernization Council. The Previsora ​​plummeted in state hands. We also detected that had granted loans to related companies.Dangerous Liaisons"Fernando Aspiazu posted revenues of 400 billion sucres that never existed," says Rodriguez. According to Providence, certificates of rescheduled deposits were forged to pay debts or require the NFL to receive them at face value.Prosecutors have a theory: the ultimate intention of the measures was martyred Ecuadorians saving bankers, who had Mahuad administration favors.The copy of the check for $ 3.1 million Fernando Aspiazu gave Mahuad's presidential campaign winding test the relationship between economic and political power. Look reported that Mahuad's presidential campaign cost 10 million dollars: one-third came from the Banco del Progreso.Pacheco Judge reopens the debate. His ruling, issued in late December, warning that "It is inferred that the bank holiday and the freezing of deposits were sorted by Mahuad assumed, rather than to avoid the bankruptcy of several financial institutions to protect and cover up those responsible" .Mahuad confesses to Look. Explains for eight hours on the political, economic and social development of their 18 months of government."My short presidency will be remembered for four events: the signing of peace with Peru, the management of economic and banking crisis with the decision to freeze deposits as one of the central elements, the new focus of social policy, through of direct subsidies to the poor who respect the following governments, and dollarization. Three are positive and provide the stability that the country now has, the handling of the economic crisis has a controversial component. "Four seasons. The signing of peace with Peru was the summer. At parties in Quito in 1998, just weeks after sealing, left the bullring on the shoulders. El Juli dedicated his slaughter."In 48 hours we would be invaded""I focused on making peace with Peru at the beginning of my administration. According to intelligence reports, the country would suffer an invasion within 48 hours after my possession. The best possible economic measure was peace. "The war with Peru in 1995 cost $ 600 million. The resolution of the conflict in its most critically-territorial demarcation is a case study that shows worldwide as an expert in negotiation.By a paradox, after the overthrow came from the southern border to the border with Peru. Keiko Fujimori and his daughter were waiting. He remained in that country several weeks. He was invited to Harvard for a lecture. The proceedings against prolonged his stay indefinitely.The winter of his brief tenure was marked by economic decisions. Outside, the thermometer reads one degree Celsius. Despite the cold, takes off his coat to wear the gray sweater hand-knitted by his mother, Rosita, gift last Christmas together. "I have the luck that my family can see me." In Ecuador did not return in 12 years. "All children under 18 do not know who I am, have in me the image others have painted, relentless."What responsibility does it support? An allegation of 533 pages, written by him, tells his version of history. It is the embryo of the book that is about to publish. Is incorporated in the open trial for 12 years, with 40 000 folios.His argument insists that a sum of international and national economic factors (effects of El Niño and crop failures, low price of oil barrel) shaped the beginning of the "Perfect Storm": "When all the essential elements that a viable economy are destroyed simultaneously. ""I had an oil price 12 times lower than the current reached seven dollars. The 90's was terrible for Latin America (nine presidents overthrown). In 2000 appeared a new player, China, to purchase goods from the region. He changed the rules. "The Crash that broke into EcuadorHernan Ramos was economic editor of El Comercio newspaper between 1998 and 2000. You are about to publish the book "1999: The Crash that failed to Ecuador." Two years of research, 540 pages, one hundred figures and tables, documents on the phenomenon. Does your hypothesis? The sinking of the Titanic occurred in 1912 but began in 1903 when the Wright brothers built the airplane."The economic crisis did not start Ecuadorian late 90's until early this decade, when the government of Sixto and Dahik was the scaffolding for an openly liberal model that reduced the presence of the state as regulator, miniaturized control scheme and allowed financial players reach certain levels of usury. The accumulation pattern changed from the model oil rentier financial speculation. " A system that Mahuad's regime did not create, nor questioned.For Ramos, Mahuad has the perfect alibi history: the country avoid bankruptcy avoiding bankruptcy of the private financial system. And while the argument of the Perfect Storm wields the former has its grip, it is also true that "In an economic decision and someone loses someone wins, the holiday sought to avoid the bankruptcy of the private financial system, there was no money in certain vaults because some bankers looted private funds, many impoverished Ecuadorians because they transferred their wealth to certain banks. "The Deposit Guarantee Agency (AGD) was created by Congress in early December 1998, covering unlimited deposits of private banks within and outside the country. It was a contradiction in applying the unlimited coverage. It was questioned as a tool to save the bankers, not depositors, with costs borne by the State: Silver Ecuadorians.The issuance of bonds (domestic debt papers) and claims that the central bank gave the bank proves that "The cost of the crisis moved to the state, these two items alone account for 3,500 million dollars," said Ramos. Studies located between 6,500 and 8,200 million final cost of the crisis.In a campaign, in 2006, then-candidate Rafael Correa set up a complaint against Mahuad, "For crimes against humanity" by freezing. Was forgotten.The AGD was born with the Social votes, they agreed that the Act would eliminate the income tax and replace it by one percent on the movement of capital. The day after its creation fell Filanbanco. The obligations of the owners went to the State. The Government of Mahuad was called the Social hostage. Congress and President Mahuad coideario, Juan Jose Pons, was communicating vessel. And of course, maintained a business partnership with the banker Aspiazu.Dangerous waters, still watersIn her apartment the temperature is warm. The waters of Fresh Pond, near the lake, are tame. He always felt safe around a water source. "One should seek their own element."Throughout his administration Mahuad was left covered by the tide, according to Ramos. "In late 1998 he arrived at the ankles, with the freeze went to his waist; days before deciding dollarization and the water was up to his neck."The former shows reflective. "Time and serenity are the two gifts I have given this phase of my life."He admits that the law that created the AGD was diminished in the legislature, which had only a third of votes. "A camel is a horse drawn by Congress." We had to protect savings not to deepen distrust in banking, it was known that the real situation was not transparentized balances. "Our government began external audits to determine what were the bad apples and separate them from the system, the banking system is healthy today."There was superintendent for three months because you did not send three names to the Congress, argues Glance. "I had two candidates, but met no votes in Congress."The Superintendent received the votes of Parliament had been working with Progress: controller and controlled were the same.Mention bothers him. He admits that his campaign received funds Aspiazu."A campaign costs. Or a billionaire or has a dark past where it was silver. It was not my case. I accepted contributions, paid no favors. " Does not mention that the Political Parties Law prevented receive funds from a state contractor Aspiazu was head of Emelec, disputed by the renegotiation of a millionaire electrical contract.¿Froze to favor Progress? "If I take a measure to help a bank, it should not close but remain open. Closed because it is in critical condition. Until then, the Superintendent said it was fine. Remember that as President I firmly to uphold the decision, the bank gave no guarantees and the ECB did not give him credit. "Dollarization and wreckage of his governmentMonths later, after a cabinet meeting, Minister of Defense Intelligence reported on a plan to leave the country Aspiazu. "The detention order must come from a competent judge issued because the withheld taxes and not transferred to the Ministry of Finance. The combined operation was to run between the Ministries of Interior and Defense. You do not put in prison who want to protect, the protected person who feels called to the press not to indict the alleged protector ".In late 1999, analyzed resign because "There came a time when everything we tried failed. There was no way to do something effective, ineffective a president should resign. When analyzing this possibility opened the window of dollarization through an agreement with the PSC to vote in Congress. "According to the Central Bank at the end of December 1999, the dollar rose to 20,243 sucres. Hours before January 9 could not majority vote of the board of the Central Bank. That evening was supported by a voice close to the Social. With three votes in favor and two against it dollarized economy.All the studies say that the change would be set at 18 000 sucres per dollar, explains Ramos. The official announcement of 25 000 sucres was a surprise.Eleven days later, his regime was sunk by a human tide of indigenous and social groups. "How effective is that the scheme worked, and it underwrote the IMF, have criticized it but no one has changed and is one of the factors of stability of Ecuador.""I ask, like Obama, judge in the context in which I acted, I do not compare with God but with the chances I had."He lived the four seasons of power. The summer of the election victory. The spring of peace. The fall of the crisis. The freeze was the most critical point. In the winter of his life, exmandatario awaiting trial in history.His four seasonsSong that reflects his current views: their activity: "Thanks to Life" by Violeta Parra.Favorite Quote: "Love and do what you want", St. Augustine.His passion: Integra Global Advisory Council "Beyond Borders", which promotes mediation worldwide. And it supports peace initiative called "The Way of Abraham," to build a road from Turkey to Saudi Arabia, with sites of secure accommodation for the pilgrims. Involves sites where you can practice Islam, Christianity and Judaism.
 Your activity: is co-founder and Senior Advisor for Program Harvard International Negotiations and visiting professor at seminars for executives around the world participated in Leadership in the cycle "Global Agents for Change," Harvard Kennedy School. And in Negotiation participates in the loop "How to use your emotions in negotiations?", Harvard Law School. He has authored a book chapter titled, required reading in that study center. Currently, read books Jungian psychology and neurolinguistic programming.The four soles of his lifeJamil Mahuad admits being in love. The new sun of his life is Anita (Anna Vishart, Guayaquil dentist of 48 years). "It is an anchor of authenticity, generosity and selflessness with which we share a love of life and on the other and we know, with Gibran, that love is not looking at each other but looking together in the same direction." She visited with the Dalai Lama in September 2010 in Dharamsala.His daughter Paola is 32. He studied law and specialized in international relations but is exploiting his role as entrepreneur, is developing a line of aromatherapy products. "He brought into my life all the tenderness imaginable with integrity, intelligence, gentleness and courage."His mother, Rosita, "Able to give all without receiving anything in return. Always cool the heart, the open smile and a white soul. "His aunt Livia kept their faith. "After the stroke in 1997 she called me and said, 'I pray that if you remove everything, not take away your faith. Was heard. '"His theory of forgivenessDid you know that some Ecuadorians do not forgive?I understand, also suffered. I hope someday to have a more balanced judgment.You maintained a deliberate silence.I accept what I can not change. There is no way that a person can argue detention order from outside the country.I beg your pardon you who overthrew him?The Ecuadorian people reacted with anger and frustration at the pain he felt. This reaction is natural and understand.Judge Pacheco issued a summons to the plenary for embezzlement. Justice is not forgiving.There is a total change of energy in Ecuador on political judgments. This ruling is appealed. A president can not end up being judged by the deputy deputy deputy, whose resume is two merits, having been an officer of the Revenue Department and professor of English at an academy. The complexity of decision must be reviewed by a judge who can understand the context.Judge Pacheco said Jamil Mahuad sprayed saving Ecuadorians, that the freeze was assumed to prevent the failure of certain bankers.It was an act of economic policy. I pray that my decisions are judged in the context of the crisis. The judgment is void. You can not start a trial of a President without a prosecution for embezzlement before the Congress. No report of the Comptroller to establish injury. No reason exists for the trial and decided by the Second Chamber of the Court when I was dismissed, there was no fraud.