VZCZCXYZ0000
RR RUEHWEB

DE RUEHQT #0154 0622103
ZNY CCCCC ZZH
R 032103Z MAR 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0110
INFO RUEHBO/AMEMBASSY BOGOTA 7991
RUEHCV/AMEMBASSY CARACAS 3414
RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3058
RUEHGL/AMCONSUL GUAYAQUIL 4137

C O N F I D E N T I A L QUITO 000154 
 
SIPDIS 
 
E.O. 12958: DECL: 03/04/2019 
TAGS: ECON PINR ETRD PREL EC
SUBJECT: NEW COORDINATING MINISTER FOR ECONOMIC POLICY BORJA 
 
Classified by DCM Andrew Chritton.  Reason: 1.4 b and d. 
 
¶1.  (C) Sum...



id: 195027
date: 3/3/2009 21:03
refid: 09QUITO154
origin: Embassy Quito
classification: CONFIDENTIAL
destination: 
header:
VZCZCXYZ0000
RR RUEHWEB

DE RUEHQT #0154 0622103
ZNY CCCCC ZZH
R 032103Z MAR 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0110
INFO RUEHBO/AMEMBASSY BOGOTA 7991
RUEHCV/AMEMBASSY CARACAS 3414
RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3058
RUEHGL/AMCONSUL GUAYAQUIL 4137


----------------- header ends ----------------

C O N F I D E N T I A L QUITO 000154 
 
SIPDIS 
 
E.O. 12958: DECL: 03/04/2019 
TAGS: ECON PINR ETRD PREL EC
SUBJECT: NEW COORDINATING MINISTER FOR ECONOMIC POLICY BORJA 
 
Classified by DCM Andrew Chritton.  Reason: 1.4 b and d. 
 
¶1.  (C) Summary.  Diego Borja replaced Pedro Paez in the high profile 
position of Coordinating Minister of Economic Policy in December 
¶2008.  Paez was apparently replaced because he was not able to 
accomplish important administration objectives in the economic arena. 
 Borja, an economist and politician, has switched among political 
parties several times, served a six month stint as Economy Minister 
in 2005/2006 (when he masterminded a controversial hydrocarbons law), 
and worked as the head of Ecuador's flower exporter association.  He 
appears to be the /government's point person on developing a GOE 
adjustment program to address its macroeconomic problems brought on 
by falling oil prices, exports and remittances.  End summary. 
 
BIOGRAPHICAL INFORMATION 
------------------------ 
 
¶2.  (U) Borja has been a member of several political parties.  He was 
elected to the Constituent Assembly in September 2007, as a candidate 
of the alliance between the social-democratic "Izquierda 
Democratica," the Poder Ciudadano Movement (which he founded), and 
two other democratic socialist movements, "Acuerdo Democratico" and 
"Nuevo Acuerdo Nacional."   Before forming the Poder Ciudadano 
Movement, Borja was a national leader of "Movimiento Nuevo Pais" (New 
Country Movement), where he was an adviser to Presidential candidate 
Freddy Ehlers, as well as alternate representative from Ecuador to 
the Andean Parliament. 
 
¶3.  (SBU) Borja served as Minister of Economy and Finance from 
December 2005 to July 7, 2006 during the Palacio administration.  He 
was behind the 2006 Hydrocarbons Reform Law that required private oil 
companies to share at least 50% of extraordinary revenues with the 
state.  In July 2006, Palacio called for the resignations of all his 
cabinet members; Borja offered his resignation after becoming 
involved in a contentious disagreement with Presidential Secretary 
Modesto Apolo over implementation of the hydrocarbons law.  Following 
the 2006 state seizure of U.S. Occidental Petroleum's assets in 
Ecuador, Borja was appointed to a commission to oversee the transfer 
and operation of the fields and was instrumental in creating the 
administrative unit formed to operate these fields. 
 
¶4.  (C) Prior to his role as Minister, Diego Borja was the Executive 
Director of Ecuador's largest association of flower growers and 
exporters, Expoflores.  He participated in and supported FTA talks 
with the U.S. during this time, representing the flower industry. 
However, he left the association on contentious terms, and Expoflores 
subsequently initiated a legal case stemming from some of his actions 
at the association.  In addition, some in the flower industry felt 
that he went against their interests in his later activities in the 
Finance Ministry (for example, with the hydrocarbons law, which they 
felt would cause important ATPA benefits to be terminated).  One 
person in the flower industry has called Borja a crook, without 
providing any specifics. 
 
¶5.  (U) Borja also worked as a consultant on competitiveness and 
productivity for institutions such as the Andean Development 
Corporation (CAF), taught economics at Catholic University in Quito, 
and served as a visiting lecturer at other universities in Ecuador. 
He has a Master's degree from the Catholic University of Louvain in 
Belgium (the same school were Correa got his Master's degree) and an 
Economics degree from the Catholic University of Ecuador.  He was 
born in Quito, Ecuador on May 1, 1964. 
 
¶6.  (C) Borja travelled to Washington in February 2009 along with 
Finance Minister Elsa Viteri to talk to the InterAmerican Development 
Bank, International Monetary Fund, and USG officials.  According to 
an IMF official, Borja was willing to provide economic data to the 
IDB and IMF officials.  In contrast, he said, Viteri was reticent and 
appeared intimidated by Borja.  The IMF official said that Borja 
seemed pragmatic about doing what was necessary to provide the IMF 
with data about Ecuador's economic program, and obtained Correa's 
agreement to provide fiscal data and send Ecuadorian technicians to 
talk the IDB and IMF staff about Ecuador's adjustment program. 
 
¶7.  (C) Comment:  Borja is often described as a political opportunist 
and pragmatist.  In contrast to his predecessor, Pedro Paez, an 
academic who appeared to accomplish little in his tenure, the GOE may 
need Borja at this time, as the GOE tries to maneuver through a very 
difficult economic climate.  Borja is not particularly close to 
Correa, but he is a political operator who will likely get more done 
than Paez.  It is an open question whether he has the economic 
instincts to implement a sound economic program. 
 
HODGES 

=======================CABLE ENDS============================