With hope of finding survivors fading Thursday, Ecuador began shouldering the cost of its devastating earthquake, announcing drastic economic measures to clean up the ruins of a tragedy that killed at least 570 people.
Under the measures announced by President Rafael Correa, Ecuadorans with assets of more than $1 million will have to fork over 0.9 percent of their wealth to help fund the recovery.
Correa, who estimates rebuilding will cost $3 billion -- or "two to three percent of GDP" -- also announced new income taxes, a sales-tax hike and a one-time levy on utilities in an address to the nation Wednesday night.
Saturday's 7.8-magnitude quake was the worst to hit the South American country in nearly four decades, crumpling hundreds of buildings and damaging roads and other infrastructure in tourist areas.
The official death toll rose to 570 on Thursday, with 5,733 injured. Scores of people are still missing.
Aside from the staggering human cost, the quake comes as a big economic blow to oil-producing Ecuador, which has already taken a hit from the drop in global crude prices.
The quake devastated resort towns along Ecuador's Pacific coast just as Correa's government was launching a major push to attract more tourists.
The South American country had only recently aired a Super Bowl commercial touting its beaches, islands and other charms with the slogan "All you need is Ecuador."
It was the first country ever to buy the American football championship's notoriously expensive ad airtime, which reportedly cost it more than $3 million.
- Taxed a day's salary -
Correa, a leftist economist, has faced virulent protests in recent months over plans to hike taxes, but appears to be betting the magnitude of the tragedy will drown out opposition to the new measures.
"The earthquake makes this kind of tax increase much more acceptable to the population, which will help (the government) get through the year better," said economist Alberto Acosta of consultancy Grupo Spurrier.
Correa, who has been in office since 2007, announced a new income tax equivalent to one day's salary per month. It will apply for a single month for workers earning $1,000 a month, two months for those earning $2,000, and so on up to five months for those earning $5,000 or more.
Correa also increased the sales tax from 12 to 14 percent for one year and slapped a one-time additional tax of three percent on utilities.
He said Ecuador would also seek to sell off unspecified state assets "to overcome this very difficult moment."
- 'Smells like death' -
In the coastal town of Manta, which was hit hard by the quake, emergency workers were untangling the remains of what was once a hardware store.
"It smells like death in here," said one, his face covered with a white surgical mask and large protective goggles.
The smell of decomposing bodies has grown increasingly strong in the tropical heat as workers continue seeking corpses in the wreckage.
The team of 18 volunteer firefighters flew in from Honduras to help their overwhelmed Ecuadoran counterparts. It was led by Marco Antonio Artica, a lieutenant colonel.
"We're not losing hope of finding people alive. But after more than 72 hours...," he said, his voice trailing off.
- Looting fears -
Many businesses up and down the coast have closed their shutters, fearing looters -- which has made it all the more difficult to find food and basic necessities.
Fears rose for thousands of people left homeless, prey to disease-bearing mosquitoes and dirty drinking water.
According to the latest official bulletin, "significant progress" had been made in restoring power, telecommunications and the dispatch of water and fuel to the affected areas.
Saturday's quake is the worst to hit Latin America and the Caribbean since the 2010 earthquake in Haiti, which killed between 200,000 and 250,000 people.
With hope of finding survivors fading Thursday, Ecuador began shouldering the cost of its devastating earthquake, announcing drastic economic measures to clean up the ruins of a tragedy that killed at least 570 people.
Under the measures announced by President Rafael Correa, Ecuadorans with assets of more than $1 million will have to fork over 0.9 percent of their wealth to help fund the recovery.
Correa, who estimates rebuilding will cost $3 billion — or “two to three percent of GDP” — also announced new income taxes, a sales-tax hike and a one-time levy on utilities in an address to the nation Wednesday night.
Saturday’s 7.8-magnitude quake was the worst to hit the South American country in nearly four decades, crumpling hundreds of buildings and damaging roads and other infrastructure in tourist areas.
The official death toll rose to 570 on Thursday, with 5,733 injured. Scores of people are still missing.
Aside from the staggering human cost, the quake comes as a big economic blow to oil-producing Ecuador, which has already taken a hit from the drop in global crude prices.
The quake devastated resort towns along Ecuador’s Pacific coast just as Correa’s government was launching a major push to attract more tourists.
The South American country had only recently aired a Super Bowl commercial touting its beaches, islands and other charms with the slogan “All you need is Ecuador.”
It was the first country ever to buy the American football championship’s notoriously expensive ad airtime, which reportedly cost it more than $3 million.
– Taxed a day’s salary –
Correa, a leftist economist, has faced virulent protests in recent months over plans to hike taxes, but appears to be betting the magnitude of the tragedy will drown out opposition to the new measures.
“The earthquake makes this kind of tax increase much more acceptable to the population, which will help (the government) get through the year better,” said economist Alberto Acosta of consultancy Grupo Spurrier.
Correa, who has been in office since 2007, announced a new income tax equivalent to one day’s salary per month. It will apply for a single month for workers earning $1,000 a month, two months for those earning $2,000, and so on up to five months for those earning $5,000 or more.
Correa also increased the sales tax from 12 to 14 percent for one year and slapped a one-time additional tax of three percent on utilities.
He said Ecuador would also seek to sell off unspecified state assets “to overcome this very difficult moment.”
– ‘Smells like death’ –
In the coastal town of Manta, which was hit hard by the quake, emergency workers were untangling the remains of what was once a hardware store.
“It smells like death in here,” said one, his face covered with a white surgical mask and large protective goggles.
The smell of decomposing bodies has grown increasingly strong in the tropical heat as workers continue seeking corpses in the wreckage.
The team of 18 volunteer firefighters flew in from Honduras to help their overwhelmed Ecuadoran counterparts. It was led by Marco Antonio Artica, a lieutenant colonel.
“We’re not losing hope of finding people alive. But after more than 72 hours…,” he said, his voice trailing off.
– Looting fears –
Many businesses up and down the coast have closed their shutters, fearing looters — which has made it all the more difficult to find food and basic necessities.
Fears rose for thousands of people left homeless, prey to disease-bearing mosquitoes and dirty drinking water.
According to the latest official bulletin, “significant progress” had been made in restoring power, telecommunications and the dispatch of water and fuel to the affected areas.
Saturday’s quake is the worst to hit Latin America and the Caribbean since the 2010 earthquake in Haiti, which killed between 200,000 and 250,000 people.
