Structural constraints in times of resource nationalism: oil policy and state capacity in post-neoliberal Ecuador

ABSTRACT

This article explores the re-emergence of resource nationalism in Ecuador during Rafael Correa’s government. In 2010, Ecuador pursued a shift in oil contracts from production sharing agreements to service contracts. I argue that resource nationalist policies were intended to maximize rent appropriation and increase state control. Nevertheless, in order to spell out the complexities of natural resource governance in post-neoliberal Ecuador, it is important to integrate the structural constraints of the Ecuadorian state to enact resource nationalist policies. Despite the nationalist sentiments that originated these reforms, the renegotiation of contracts continued to benefit foreign corporations due to the centralized attitude of the Correa government and the perennial limitations of state capacity in the regulation of the industry.