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Ecuador Republic history

Due to the economic pressure of war and over-reliance in commodity (particularly oil) exporting for its economic needs, the government of Osvaldo Hurtado faced a chronic economic crisis in 1982, including inflation, budget deficits, a falling currency, mounting debt service, and uncompetitive industries. The 1984 presidential elections were narrowly won by Leon Febres Cordero Rivadeneira of the PSC. 

During the first years of his administration, Febres Cordero introduced free-market economic policies, took strong stands against drug trafficking and terrorism, and pursued close relations with the United States. His tenure was marred by bitter wrangling with other branches of government and his own brief kidnapping by elements of the military.

A devastating earthquake in March 1987 interrupted oil exports and worsened the country's economic problems.
Ecuador history, Rodrigo Borja CevallosRodrigo Borja Cevallos of the Democratic Left (ID) party won the presidency in 1988 running in the runoff election against Abdala Bucaram of the PRE. His government was committed  to improving human  rights protection and carried out some reforms, notably an opening of Ecuador to foreign trade.

The Borja government concluded an accord leading to the disbanding of the small terrorist group, "¡Alfaro Vive, Carajo!".

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