Foreign Policy Fantasies about Venezuela
Thanks to Josh Eidelson for pointing out some of the flaws in Foreign Policy's latest (January/February 2006) cover story, "Hugo Boss: "How Chavez is refashioning dictatorship for a democratic age." The article is much worse than Eidelson describes it, as will be seen below. The idea that Venezuela is a dictatorship is absurd, as anyone who has been there in the last six years can attest to. All you have to do is go there, turn on the TV and listen to denunciations of the government on the biggest TV stations, pick up the biggest newspapers and see the same - in fact the media plays a non-journalistic oppositional role in politics that would not be allowed in most European democracies. Even in the United States, the long-lapsed Fairness Doctrine would quickly be brought back, if our media ever got to one-tenth the level of partisan political activity exhibited by Venezuela's major broadcast and print media, which make Fox news look impeccably "fair and balanced" by comparison.
Let me correct one error in Eidelson's description, which he may have gotten from the Foreign Policy article, before proceeding: the government of Venezuela has not been "keeping public databases on citizens' votes." All voting is by secret ballot in Venezuela, and there is no record anywhere of any individual's vote. What he might be referring to is the names of people who signed a petition to recall President Chavez in 2004. These petitions are a matter of public record, as similar petitions generally are in the United States; and in fact not only the government, but Sumate, the U.S.-funded opposition group that organized the recall effort, also kept a record of these signers. A legislator subsequently made the names of signers public, causing considerable controversy.
Now for some of the mistakes in the Foreign Policy piece by Javier Corrales:
"Chavez is "now approaching a decade in office." [p.33] Hugo Chavez took office in February of 1999. I have never seen anyone round up to 10 from a number just under 7. Perhaps the subtitle of this article should have been "Refashioning Arithmetic for an Innumerate Age."
"the poor do not support him [Chavez] en masse." [p.35] This can be refuted by any recent poll, as well as by opposition pollsters themselves. Chavez' recent approval ratings have ranged from 65 to 77 percent. Where does this support come from? The upper classes? Perhaps this is another arithmetic problem. Also, a look at the results of the August 2004 referendum, which Chavez won by 59-41 percent, shows one of the most polarized voting patterns in the hemisphere, with poor areas voting overwhelmingly for Chavez and the richer areas voting overwhelmingly against him.
"Chavez has failed to improve any meaningful measure of poverty, education, and equity." [p.35]As I noted in a prior post, the official poverty rate now stands at 38.5 percent, but that counts only cash income. For example, if the United States were to abolish food stamps and Medicaid, poor people here would be much worse off. Similarly, the subsidized food and free health care now available in Venezuela have significantly increased living standards among the poor. More than 40 percent of the country buys subsidized food, and millions of poor people have access to free health care that was previously unavailable. If these are taken into account, the measured poverty rate would drop well below 30 percent.
The poverty rate when Chavez took office, in the first quarter of 1999, was 42.8 percent. So there is a meaningful measure of poverty reduction, especially if non-cash benefits are taken into account. Also, the government declared in October that 1.48 million Venezuelans have been taught to read as a result of a massive literacy drive that began in 2003. Although there is so far no independent verification of the number, even if it turned out to be significantly overestimated, there is no doubt that a very large number of Venezuelans (total population: 25 million) have learned to read under the program.
"Following the 2004 recall referendum, in which Chavez won 58 percent of the vote, the opposition fell into a coma, shocked not so much by the results as by the ease with which international observers condoned the Electoral Council's flimsy audit of the results." [p. 39] Actually, according to all news reports at the time, they were shocked by the results; they announced that the referendum was stolen, and most of the opposition continues to maintain this position. There was nothing "flimsy" about the audit, and there is no more doubt about the results of this referendum than there is that Ronald Reagan beat Walter Mondale by a similar margin in 1984. I have explained this in a previous post, and in a paper refuting alleged statistical evidence of fraud, and so will not belabor the point here. Also, the Carter Center and the OAS did not simply "condone" an audit by the Venezuelan Electoral Council but were closely involved in the audit as observers and verified the results.
Corrales' attempt to raise doubts about the referendum result is particularly disturbing in light of recent events in Venezuela. Most of the opposition parties boycotted the Venezuelan Congressional elections three weeks ago, on December 4. "We had a problem with the Venezuelan opposition, which assured us that they would not withdraw from the [electoral] process if certain conditions were met. These were met and despite this, they withdrew," said Jose Miguel Insulza, head of the OAS, just this week.
The opposition's primary argument for boycotting elections is that they cannot "trust" the electoral process, based on the conspiracy theory, widely held by the opposition in Venezuela, that the recall referendum was stolen. (See http://www.tpmcafe.com/story/2005/12/2/17334/7970 )
Thus, with their own polls showing that they would win about 30 percent of the Congress, they opted for a long-term strategy of destabilization - to try to de-legitimize the government rather than participate in an open and transparent, democratic electoral process that was once again certified as such by international observers, this time including a 160-member team representing the European Union. Such has been the problem for several years: with the brief exception of the August 2004 referendum, wherein the opposition leadership temporarily agreed to play by the rules of democracy - until they lost the vote -- they had previously tried to overthrow the government by means of several oil strikes (one particularly economically devastating in 2002-2003) and a military coup in April 2002, which was supported by the Bush Administration. The Bush Administration also appears to be at least tacitly supportive of the opposition leaders' decision this month to withdraw from electoral politics altogether. In its zeal to create an imaginary "dictatorship" in Venezuela, the Foreign Policy article ignores this anti-democratic role of the opposition, supported by Washington. It is also worth noting that the opposition can pursue such tactics that would have no chance of success in most other democracies because it still controls most of the Venezuelan media.
The editors of Foreign Policy chimed in with a box [p.38] about Chavez accusing him of "meddling in the internal politics of his neighbors" - Bolivia, Brazil, Ecuador, Colombia, Nicaragua, and even Mexico. They neglect to mention that no evidence has yet surfaced for the allegations listed. Also, if Chavez is "meddling" inside Brazil and Colombia, it seems odd that he has such good relations with both of their presidents, who are at opposite ends of the political spectrum. Perhaps they do not appreciate the "threat" that this "dictator" poses to their countries and the region.
There is little evidence that Venezuela today is less democratic than it has ever been, and in fact by most standard political science measures it is more democratic. Venezuela's main governance problem is not a weakening of democracy but a failure to improve the rule of law, a problem that it shares with the region. Contrary to the images conveyed by the Bush Administration and Foreign Policy magazine, the Venezuelan state is not an authoritarian or autocratic state but a weak state, including the executive branch. That is why the main victims of political repression in Venezuela in recent years have not been from the opposition - even the leaders of the April 2002 coup against Chavez, who would have been convicted, imprisoned, and possibly executed in the United States, are almost all still at large. The real victims of political repression are pro-Chavez peasants organizing for land reform in the countryside. Many have been killed, often by hired assassins, sometimes for simply asserting their rights under the law. Impunity is rampant in Venezuela: the state at many levels does not have the capacity to enforce the law, often even against murderers.
In any case there is much more in this article that is inaccurate, grossly exaggerated, or misleading - in fact that describes most of the piece. But rather than wasting more space on this, readers may want to write to the editors of Foreign Policy -- fpletters@CarnegieEndowment.org -- and ask them why they printed something like this. And rather than just printing a 300-word letter, will they ever allow the publication of an article on Venezuela from a different point of view, one that better reflects not only the view of most Venezuelans, but most of this hemisphere? This is unlikely, but it is worth asking them why such an article would be forbidden. It would presumably have to be of much higher quality than the present one and more accurate, not necessarily pro-Chavez, but something that respects democracy, even when poor people repeatedly elect a government that the U.S. State Department doesn't like.
Mark Weisbrot is co-director of the Center for Economic and Policy Research (www.cepr.net) in Washington, DC.


For all of Chavez failings, I do not understand why we have so deliberately made him an enemy. It doesn't take a genius to see that we are making enemies of the Venezuelan people by doing this; maybe we only care about the wealthy?
December 28, 2005 6:30 AM | Reply | Permalink
Since that time, the world is awash in US dollars. They were useful for foreign govts to own because we manufactured stuff they needed to buy. No more. But by fiat, they STILL need those dollars to pay OPEC for oil. The US is in the enviable position of trading dollars which it prints for 2.3 cents per hundred dollar bill for goods from China and services from India. And the bankers don't want that to change. In fact, since oil has gone from $30 to $60 a barrel, the bankers can print MORE MONEY! Saddam agreed to accept Euros in Sept 2000. Iran will open an oil bourse (exchange) in March 2006. Chavez has been threatening to do the same. Connect the dots. They line up.
December 28, 2005 6:55 AM | Reply | Permalink
The man is a force to be reckoned with not demonized which we do at our peril.
While the hegemon flails about its in ME quagmire, countervailing power centers are springing up all over the globe - even in our own backyard
Viva Hugo
December 28, 2005 8:52 AM | Reply | Permalink
Bush doesn't want somebody who will challenge his stupid ideas. The elites don't like Chavez. We want Venezuela's oil. If we have to launch some sort of covert action to get him out Bush will. That's why Bush supported the coup against Chavez. Chavez represents the Latin American common people who are sick of being exploited by elites and of being pushed around by morons like Bush. Chavez is right to be concerned about what Bush might do (as urged on by the kooky Pat Robertson). Of course we could develop a rational policy towards Chavez, Veneezuela, and the aspirations of the Latin American people, and also buy their oil, while we develop a rational energy policy at home to end our oil dependencfe. Fat chance of that happening with the Bushies in power. Did you say "maybe" we only care about wealthy people. After observing the Bush policies which only care about wealthy people in the USA there is no maybe. Bush doesn't give a damn about non-wealthy people anywhere in the world.
December 28, 2005 9:04 AM | Reply | Permalink
Perhaps Hugo represents the revival of an ideology where a government is actively involved in promoting the welfare of its weakest citizens. Now who would have a vested interest in having that ideology fail? Imagine, ordinary Americans might find the results of the Venezuelan experiment to their liking. I think Hugo is aware of this, and that is why he is selling heating oil at steep discounts to the not-well-off in New York State.
How else to innoculate Americans from a objective evaluation of Hugo's policies? Well, easy, turn him into an enemy of America.
December 28, 2005 9:40 AM | Reply | Permalink
NY Review of Books had an unflattering series on Chavez. Yet, a fair assement of Venezuela would include comparison with a country with comparative traditions and ethnic mix, say Columbia.
In Venezuela, journalists and artists are regularly "intimidated" by diatribes of the members of the government. NYT described a case of a film maker who made a movie about the problems of poor neighborhoods with crime, who was subjected to such high-handed critique. Yet, the article reported that people flocked to movie theatres showing the movie. So was it authoritarian intimidation or carping, unlike the one directed in this country against Michael Moore?
By the way of contrast, in Colombia an artist or a journalist subjected to threats may flee the country because the danger is not that of bad-mouthing but of assasination. The relationship of the government with death squads (a.k.a. paramilitaries) is murky at best . Democracy in Colombia is very sick and no quick cure is in sight. Democracy in Guatemala is nothing to brag about either.
I also do not recall such pre-occupation with "problems of democracy" duting excesses of Fujimori in Peru etc. Or agonazing articles how to put together Humpty Dumpty that is Haiti, where we got rid of an "imperfectly democratic president" and the mess became just worse.
Probably a more effective opposition in Venezuela would be healthy, but it will not help if USA encourages silly and counterproductive tactics. Successive support of a militarty coup, of an illegal elitist strike and now boycott of elections all weakened the opposiion, and close identification with bussiness tycoons is not helping either.
December 28, 2005 10:24 AM | Reply | Permalink
Letter sent
Personal note...back in May a friend took me to enjoy a Giants game from his club-level seats at PacBell(SBC,ATT) and we got into a heated argument (lousy game) about Hugo.
Ever since, I have admired him from afar..from my Yahoo! Hugo Chavez alert....
He's sharp
I am a big fan
December 28, 2005 11:30 AM | Reply | Permalink
I can see why having a lackey in power in Venezuela would be more to our liking, but our current policy seems to me to be such a ... dated ... mistake. Maybe our Latin America policies are being formulated and executed by cronys from Texas or something?
Seems like we're muddling around making more enemies, needlessly.
December 28, 2005 12:18 PM | Reply | Permalink
The tradition-bound left rallieth....
I agreed that Foreign Policy's article pushed the authoritarian angle too hard. But let's not get carried away with Chavez as a democrat.
Corrales was right on in suggesting that most of Chavez spending is patronage, either being vetted by or done directly through Bolivarian Circles, in short, local MVR booster clubs. He was also right that Chavez did a lot of manipulating of the laws of the country and the constitution to pack the courts with friendly judges.
Something that deserves more thought are the consequences of Chavez' annexation of PDVSA in the wake of the strike. PDVSA is the only-revenue generating part of the Venezuelan government, and Chavez' use of the state-run "enterprise" to directly underwrite Bolivarian Circle-run social programs has been very detrimental to that entity's ability to invest in and improve its oil export capacity.
Also ignored are Chavez's absurd monetary policies in which the blackmarket exchange rate is something like double the official rate, which allows well-connected people to convert to dollars at the official rate and back into bolivares at the blackmarket rate.
Nor has there been any serious expansion of the Venezuelan economy into sectors other than oil - the propped currency is a substantial deterrant to this.
You don't have to believe the right wing's fevered nightmares about a totalitarian takeover in South America, nor love the esqualidos - who as far as anyone can tell are the well-to-do from the old order pissed about changing of the guard and unwilling to win voters the hard work and shoe leather way- to believe that Chavez is not an institution-respecting democrat, and to hope for better for Venezuela.
December 28, 2005 1:45 PM | Reply | Permalink
You don't have to believe the right wing's fevered nightmares about a totalitarian takeover in South America, nor love the esqualidos - who as far as anyone can tell are the well-to-do from the old order pissed about changing of the guard and unwilling to win voters the hard work and shoe leather way- to believe that Chavez is not an institution-respecting democrat, and to hope for better for Venezuela.
I'm unclear on the relationship between Chavez' economic policies and his status as a "democrat." Perhaps you could draw the connection a little more clearly: Chavez' currency policy is bad, therefore he doesn't respect democracy, is a logical construct that makes no sense.
December 28, 2005 2:08 PM | Reply | Permalink
Your use of a zero on electroniceric's comment above is outrageous abuse of the ratings system. It's a good, challenging comment.
Please stop censoring people. Your behavior with ratings is starting to look quite Stalinist. Member electroniceric doesn't even have a record of voicing conservative opinions here, and gets high ratings on many comemnts from this community.
READ JOSH'S GUIDELINES. There is no way that comment deserved a zero rating, putting in the "hidden comments" section.
Who the hell do you think you are, censoring what the general public (non trusted user status) can see?
December 28, 2005 2:51 PM | Reply | Permalink
I have also heard key complaints voiced in a column at RealClearPolitics.com (a clearinghouse for a lot of mainly RW opinion) by one of the boardmembers of Venezuela's oil production corporation (PDVD) from before Chavez: that Chavez has been resisting the possibility of massively increasing Venezuela's oil production. This is an extremely odd complaint in light of the sabotage of Venezuela's oil production by the opposition during the major attempt to topple the Chavez government recently; one wonders why, with oil prices so high, Chavez would not desire to increase production (with one estimate being that production could be more than doubled over the next five years.)
But, as is often the case in rightwing thinking, they will assume their own agenda as received wisdom, as the word of God, and then mount critiques based on that unstated assumption. So you have Tories assuming that copperheads and others in service to Tories masquerading privilegedly as progressives or leftists in the US, and dominating what are supposedly progressive institutions and venues, is legitimate "serving". One doesn't ask whether you support these policies and practices, only how you feel about "serving". Similarly,
what appears to be the case is that various foreign interests, particularly the US, want a major hand in the expansion of Venezuela's oil production -- possibly investment in exchange
for some kind of guaranteed access and control over the new or extra oil supply. Chavez may be resistant, not to increasing production -- and many were extremely impressed that the sabotage of oil production of their superthick oil (which has to be kept in a state of being pumped to avoid problems) was overcome quite quickly and completely, more effectively than generally predicted -- but to increasing production under US auspices and control. Although the dynamics of this issue may be hidden from public debate, it may very well be fundamental, as with Euros.
I think that the issue of Euros is only one element in the Iraq picture with Hussein. The larger oil issue is the control over Iraq's oil flow, which must not be confused with "stealing" their oil in any crude sense. But having a dependent client government and 14 permanent military bases harmonizes with an agenda of militarily surrounding Iran, and an agenda of having the leverage in Iraq to increase oil production to break OPEC, if needed, while also exercising crucial leverage globally against oil consumers including France, Germany and China.
The issue of the control of oil seems more likely to underlie Bush extreme hostility to Chavez rather than simply the Euros issue.
One other question I have is where the European and other advanced industrial powers come out on this. It has been my impression that their relations with Chavez have been basically fine, while liberals such as Joe Kennedy have remarked (and lamabasted in the RW media flak machine for it) that Chavez is certainly a democratic leader by Latin American standards. We again have the willingness of the Bush Administration, in the teeth of global opposition including from our advanced industrial allies over the politics of oil, as in Iraq.
It is also remarkable how supine the media are in the face of such extreme partisan positions, deviating sharply from world opinion as well as mainstream liberal opinion. 'Getting with the program and justifying the lying' and the suppression of elite-disfavored issues are hardly new. But we now have entered into a new level of rightwing partisanship in the "program" that everyone is supposed to get with, including rigging of campaigns and stealing of elections, and there is predictably a little grumbling from elite liberals as they go along with this, as they have been doing all along with a somewhat less clearly partisan (within the elite) pattern of enforcement.
But Foreign Policy is not FOX news. It is 'mainstream', and craven, just like the "Democratic" New York Times is with Matt Bai promoting agenda truth rather than fact truth on their pages.
Indeed, we have entered into an era not just of RW and Repuglican excesses, but of a new level of excessive cravenness on the part of the mainstream media, including the craven pseudo-opposition, in toeing the line of the ruling RW anti-Constitutionalists in power. I would NOT assume even the likelihood that this overall arrangement will be reversed soon, even in 2008, or easily. From the end of WWII, the state of affairs has marched steadily in that direction, starting under Truman before McCarthy (see Race Against Empire about the sea change in black media that occurred suddenly in 1947), with
the continuation of underground McCarthyism without accountability even after McCarthy was disgraced, the failure to even seriously address the Kennedy/King assassinations (except with bleating about "paranoia"), the massive degree of underground repression of which COINTELPRO and the FBI in CISPES are but laundering flagships, the utter failure from the 70s to today to pursue the kind of alternative energy program needed and supported by most Americans, and so on.
The emergence of a heightened degree of imperialism in the post-Cold War era culminates this process, the true direction of political development, increasing tolerance of things like homosexuality notwithstanding.
December 28, 2005 3:02 PM | Reply | Permalink
I accept that Chavez is as democratically-elected as most presidents in the Americans, and the US should not be "meddling" in Venezuela's internal politics. But I am concerned by charges that Chavez is seriously anti-semitic
I've tried to verify whether this report has any validity. I found a Chilean report on the speech, but it does not contain the incendiary language. However, it is not a transcript.
December 28, 2005 4:11 PM | Reply | Permalink
I'm appalled, but reserve judgment until we can find out if this is psy-ops or it really happened.
December 28, 2005 4:16 PM | Reply | Permalink
As I said on my November 22nd post I think the JFK assassination is a Rosetta Stone that explains a lot that has happened since, especially in the area of domestic covert operations like this latest Bush/NSA thing.
December 28, 2005 4:21 PM | Reply | Permalink
<span>If you compare Chavez to the US and Western European standard of a "democrat" than I would say he is lacking. If you compare him to his neighbors and his predecessors, than I would say he is a democrat by the recent historical standards of Latin America. I'm personally annoyed at our national media's thrust to make him look like the next Fidel. My hope is that that the opposition will emulate what brought him to power, and try to spin a message that will win over a portion of Chavez's poverty-stricken supporters. Here's to wishing that Latin America will start resemble Scandinavia within our lifetimes.</span>
December 28, 2005 5:15 PM | Reply | Permalink
To some extent Chavez has himself to blame for this. If he would jetison the rantin' ravin' anti-American rhetoric that makes him sound like Castro on crack maybe he would not be portrayed that way. Unless someone devises a way to relocate an entire country, Venezuela will remain in the backyard of the USA and the sensible thing for a nation in its position to do is to cultivate good relations with such a powerful neighbor, not antagonize it by using it as a convenient scapegoat for anything and everything that goes wrong. Note that the president of neighboring Brazil, also a man of the Left, has adopted a pragamtic approach toward the Colossus of the North and he is not depicted here as a demagugue.
December 28, 2005 6:01 PM | Reply | Permalink
However, our media can do a job of ridiculing people when it's not really justified - e.g. the Dean srceam distortion. Chavez doesn't think Bush is the brightest bulb on the tree and finds it distasteful to bootlick the heels of a warmonger.
December 28, 2005 7:13 PM | Reply | Permalink
After looking at the publication you linked to where your charges were published, I call bullshit. Had Chavez really said something like that, it would have been published around the world in reputable media outlets -- notice how quickly, for example, MEMRI's twisted translation of Ahmadinejad's comments made the headlines. Frontpagemag looks like a mirror image of Stormfront: where Stormfront sees a Jewish conspiracy behind everything, Frontpagemag sees an anti-Jewish conspiracy behind everything. It's garbage, and should be treated as such.
December 28, 2005 8:10 PM | Reply | Permalink
I have left a comment on the blog of the author, Alex Beech asking her where she got the information. Since the comments are moderates, it has not appeared yet.
While I do find frontpage to publish scurrilous articles at times, this is not something that needs to be decided based on the reputation of the publication. It's a factual charge that can be verified or disproved.
December 28, 2005 8:27 PM | Reply | Permalink
To some extent Chavez has himself to blame for this. If he would jetison the rantin' ravin' anti-American rhetoric that makes him sound like Castro on crack maybe he would not be portrayed that way.
You are making a good point but my own opinion is that your being too mild. From following Venezuelan news closely, including blogs, for a segment of time about a year ago, and more recently checking in from time to time, I very much became convinced that he does this kind of thing very purposefully, it's very savvy ala Rovian tactics, possibly that he probably has some savvy international political advisors like Carville Associates helping him on this front. His reactions to the Bush administration are always tit for tat and media targeted, never secret diplomacy. In public appearances, press conferences and pictures of him, are obviously carefully planned, i.e., the Western suit if he's talking business, the beret if he's pandering to lefties, the painting of Simon de Bolivar or similar in the background if he's trying to look presidential. Those kind of outbursts get him good poll numbers with his base, and he often seems to do it when he has other problems. The Bush administration looked quite clueless countering it, they feed him like a troll exactly when he needs it.
In addition, if you read analysis from the area, you will see neighboring leaders, even friendly leaders, have make comments that are cynical about Hugo's performances. The recent gift of heating oil to the poor in Massachusetts, for example, is not out of grief for the gringos, it's for P.R.; the money would have been better spent on his own people, but he knows it gives them pride for him to be able to do that.
I am not stating an opinion here on whether it's good or bad, I'm just saying that he knows how to do it, to play Rove's game. He just waits for them to attack him, it's always a great opportunity for him. This is quite different than Castro, who has always been rigidly ideological, with that kind of pandering anathema. (Indeed, a punch from the U.S.A. always inspires Castro to a 6-hour harangue rather than savvy publicity use.) If anyone sees a sometimes played role of humble man of the people being picked on by smarter bullying leaders, that is just another ruse; he's very savvy.
I posted some thoughts related to this with the recent pumpkin/Halloween meme here; that one was such a creative and wacky response(and a new type for him) to what he saw as a political threat that I laughed aloud after reading it. Unfortunately, to my mind, it also mimicked Pat Robertson and Jerry Falwell and James Dobson techniques. I can only imagine how the Venezuelan middle class, which might be interested in having their children celebrate Halloween, might feel hearing his rant, i.e., puzzled and thinking, should they have fear, is this something he's going to seriously follow up on, or should they laugh cynically?
December 28, 2005 8:31 PM | Reply | Permalink
IMO, Chavez and the Saudi princes, both are sitting on a huge pool of oil, and exploiting that fact; but Chavez is doing much more for his people than the Saudi princes are doing for theirs. Moreover, the Saudi princes, in order to keep the support of the religious establishment, are financing extremist Islam that is a danger to us all - I do not see Chavez funding and exporting a dangerous ideology that way.
Therefore, all this hysteria about the 'orrible Hugo is so much hypocrisy, because a double standard is in play, one for Venezuela and a different one for Saudi Arabia.
December 28, 2005 8:53 PM | Reply | Permalink
One imagines he might have said or intended something like "the inheritors of those who crucified Christ", or simply "descendants" not in the literal but in the metaphorical sense. It was, after all, the Romans who crucified Christ; the Pharisees just filed the complaint.
December 28, 2005 8:57 PM | Reply | Permalink
Then please explain how the Superintendencia Nacional de Cooperativas has registered a total of 83,769 cooperatives with 945,517 members since 2001. These are all small business startups, and none of them are involved in the oil sector. The development financing for endogenous enterprises like these is a major policy initiative of the Chavez government.
Perhaps you've confused the Bolivarian Circles with the Missions. The Bolivarian Circles is a very autonomous, fragmented grassroots movement which is neither controlled or financed by the government. Indeed, various attempts by individuals to establish a cohesive national coordination have been repeatedly rejected by local and state organizational levels. The Missions, on the other hand do receive direct funding.
December 28, 2005 10:58 PM | Reply | Permalink
December 28, 2005 11:42 PM | Reply | Permalink
Regarding the comments by electroniceric, I am responding in bold below.
by electroniceric on Dec 28, 2005 -- 04:45:25 PM EST
The tradition-bound left rallieth....
I agreed that Foreign Policy's article pushed the authoritarian angle too hard. But let's not get carried away with Chavez as a democrat.
Corrales was right on in suggesting that most of Chavez spending is patronage, either being vetted by or done directly through Bolivarian Circles, in short, local MVR booster clubs.
This is made up. The programs delivering health care, literacy, and subsidized food are available to anyone without regard to politics. Believe me if they weren't, we would have read about it by now in the mainstream media (they are not friends of Chavez). Also the "Bolivarian Circles" don't have anything to do with this.
He was also right that Chavez did a lot of manipulating of the laws of the country and the constitution to pack the courts with friendly judges.
Not sure what this refers to; the expansion of the Venezuelan Supreme Court last year, from 20 to 32 judges, which gave the court a pro-government majority, was done by a vote of the General Assembly. I'm not defending that but I don't see where it violated the constitution; and of course in the United States, if there was a military coup and the Supreme Court ruled that the people who kidnapped the President could not be tried, my bet is that Congress would use its constitutional authority to impeach those justices and alter the composition of the Court.
Something that deserves more thought are the consequences of Chavez' annexation of PDVSA in the wake of the strike.
Annexation? PDVSA is a state-owned company. This is like saying the U.S. government "annexed" the Post Office.
PDVSA is the only-revenue generating part of the Venezuelan government, and Chavez' use of the state-run "enterprise" to directly underwrite Bolivarian Circle-run social programs has been very detrimental to that entity's ability to invest in and improve its oil export capacity.
No evidence of this so far. PDVSA's social spending (about $4.5 billion last year) is still just a fraction of the vast increase in the government's oil revenue. There is plenty more to invest as much as the government chooses to invest in oil production.
Also ignored are Chavez's absurd monetary policies in which the blackmarket exchange rate is something like double the official rate,
According to the Financial Times, on November 30, 2005, the black market premium was 18 percent.
which allows well-connected people to convert to dollars at the official rate and back into bolivares at the blackmarket rate.
Nor has there been any serious expansion of the Venezuelan economy into sectors other than oil - the propped currency is a substantial deterrant to this.
Not sure what this means, but the private sector is a larger percentage of Venezuela's economy today than it was before Chavez took office. It is true that Venezuela needs a development strategy that would diversify the economy away from its dependence on oil. But the "propped" currency -- I think he means the fixed exchange rate with currency controls -- does not seem to be an obstacle to this.
December 29, 2005 1:56 AM | Reply | Permalink
Second artappraiser. This has nothing to do with whether you agree or not with electroniceric's comment; the point is that electro's comment was made in good faith. If you think s/he's wrong, ARGUE it.
Considering the subject of this post and thread, the irony ought to be obvious...
December 29, 2005 5:45 AM | Reply | Permalink
Exactly.
And well put.
Anti-Bush is not anti-American.
Equating such is the work of the same people who would have everyone believe that supporting Bush and his war is equivalent with supporting the troops.
December 29, 2005 7:19 AM | Reply | Permalink
This is a great post. Lets be careful not to imagine Hugo as some democratic hero. While the FP article is bad and misleading, Hugo's social revolution is taking VE to a very dangerous place.
December 29, 2005 7:26 AM | Reply | Permalink
Was Chavez resistant to the idea of increasing oil production?
I think he was. I read that he was very active diplomatically and managed to improve OPEC compliance with quotas (he was chairman of OPEC for a while). Simple arithmetic: is it better to increase production by, say, 50%, and spend a lot in the process, or rather sell what you have for triple price?
We may think that this is against our interests, but it seems to be in the interest of Venezuela.
December 29, 2005 9:06 AM | Reply | Permalink
Isn't mush of the hatred for Chavez from the right wing really about land reform? Don't they see this as a modern domino theory, where agrarian reform could spread from Venezuela to other SA countries? I would aprreciate reading thoughts on this from those of you who are better informed than me.
December 29, 2005 10:09 AM | Reply | Permalink
Birch:
Aye. And here's to wishing that the U.S. would start resembling Scandinavia in our lifetimes!
December 29, 2005 10:40 AM | Reply | Permalink
He may have been speaking more broadly, i.e. that imperialists have taken control of the riches of the world. I can see where your concerns are grounded, but I did not see that on my first read. The irony is that the so called Christians now in power in the US, and the past dictators of many SA countries, were devout in their faith. Too bad they never applied the teachings of Jesus.
December 29, 2005 10:45 AM | Reply | Permalink
I don't see why someone has to accept either of these simp