Drug trafficking complicates Noboa's reform plans in Ecuador
May 27 (UPI) -- President Daniel Noboa began his second term in Ecuador facing a series of critical challenges that will shape the country's direction over the next four years.
Ecuador is in the midst of a severe security crisis, with more than 8,000 violent deaths recorded in 2024 and a 58% rise in homicides during the first months of 2025, according to the Interior Ministry. The country has become a key route for international drug trafficking, fueling the surge in violence and insecurity.
During his inauguration speech on Saturday, Noboa focused on public safety, economic recovery and calls for national unity.
Drug trafficking drives 94% of crimes reported in Ecuador. Authorities have labeled more than a dozen gangs as terrorist organizations, many with links to international criminal organizations such as Mexico's Sinaloa and Jalisco New Generation cartels, as well as the Albanian mafia.
In response, the government has declared an "internal state of war," prompting backlash from human rights organizations.
Drug traffickers have established "liberated zones" where police have no control, and gang leaders continue to operate from inside prisons. Corruption has spread across Ecuador's political and judicial systems.
Noboa has vowed to regain control of the country's prisons, seize drug traffickers' assets and strengthen the equipment and intelligence capabilities of Ecuador's security forces to confront what he called "organized criminal groups operating inside and outside the country, with significant financing and weapons."
In the recent general elections, Noboa's party secured a relative majority in the National Assembly, giving him a chance to push forward his legislative agenda. Still, his government will need to build alliances to advance structural reforms, particularly on issues like security and the economy.
The opposition, led by allies of former President Rafael Correa, remains a powerful force and has raised doubts about the legitimacy of Noboa's government. The administration must obtain approval from Ecuador's National Court of Justice to move forward with its proposed reforms.
"President Noboa has strong public support to take tough measures against crime. He has the votes in parliament to advance his proposals, but lawyers, opposition politicians and human rights groups argue that many, if not all, of them are unconstitutional," said Ana Belén Cordero, former secretary of anti-corruption public policy.
Last year, Ecuador was hit by an energy crisis that caused blackouts lasting up to 14 hours a day in some parts of the country, disrupting homes, businesses and industry. Halted production resulted in over $2 billion in losses and led to the loss of 3,500 jobs.
The ongoing drought has crippled the country's hydroelectric-dependent energy system. Cordero said Ecuador relies heavily on electricity imports from Colombia and Peru, with whom relations remain strained. She also noted that nine private-sector energy projects remain stalled.
Ecuador's annual inflation rate stands at just 2.4%, and the unemployment rate is under 4%, but nearly half of the labor force works in the informal sector. Despite relatively stable macroeconomic indicators, the high level of violence continues to deter foreign investment, limiting the country's growth outlook.
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