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However, continuing economic problems undermined the popularity of the ID, and opposition parties gained control of Congress in 1990. In 1992, Sixto Duran Ballen won in his third run for the presidency. His tough macroeconomic adjustment measures were unpopular, but he succeeded in pushing a limited number of modernization initiatives through Congress.

Duran Ballen's vice president, Alberto Dahik, was the architect of the administration's economic policies,but in 1995, Dahik fled the country to avoid prosecution on corruption charges following a heated political battle with the opposition. A war with Peru (named the Cenepa War, after a river located in the area) erupted in January-February 1995 in a small, remote region where the boundary prescribed by the 1942 Rio Protocol was in dispute.

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Ecuador history, Abadalá Bucaram OrtizAbdala Bucaram, from the PRE, won the presidency in 1996 on a platform that promised populist economic and social reforms and the breaking of what Bucaram referred to as the power of the nation's oligarchy. During his short term of office, Bucaram's administration drew criticism for corruption.

Bucaram was deposed by the Congress in February 1997 on grounds of alleged mental incompetence.

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