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Venezuela’s disappointing new legislative leader is only slightly better than chavismo

Henry Ramos Allup is set to become the next president of Venezuela’s National Assembly today.

Without a doubt, the victory of the anti-chavista opposition in the December 6 elections was one of the most improbable and most impressive wins in world politics in 2015.Venezuela Flag Icon

With a two-thirds majority that the Mesa de la Unidad Democrática (MUD, Democratic Unity Roundtable) is still trying to defend from attacks from the ruling Partido Socialista Unido de Venezuela (PSUV, United Socialist Party of Venezuela), the opposition today took control of the Asamblea Nacional (National Assembly), the legislative branch of Venezuela’s government. That will continue to be true, no matter if the PSUV tries to invalidate a handful of MUD deputies or if president Nicolas Maduro tries to create an alternative chavista-dominated popular assembly.

For the first time since 1999, the chavistas haven’t controlled the National Assembly. Naturally, it was a momentous occasion. For now, the Venezuelan people seem firmly behind the opposition, in the hopes that they can push Maduro toward reforms to provide economic relief after years of socialist policies and, perhaps more damningly, widespread corruption, handouts to socialist allies like Cuba and Nicaragua and mismanagement of PdVSA, the state petroleum company, which has only accelerated losses stemming from the global decline in oil prices.

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RELATED: Venezuela’s opposition supermajority must prioritize recalling Maduro

RELATED: No matter who wins, the December 6 elections will not be chavismo‘s last stand

RELATED: A primer on the MUD, Venezuela’s broad opposition coalition

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But that’s also why it’s so disappointing that the MUD coalition chose as the president of the National Assembly the 72-year-old Henry Ramos Allup, a longtime fixture on the Venezuelan opposition and a throwback to the ancien régime that proved so corrupt and incapable that it opened the path to Hugo Chávez’s perfectly democratic election to the Venezuelan presidency in 1998.

Let’s start with the good news. Ramos Allup, it’s true, was chosen through a democratic process, an internal vote among the 112 MUD deputies. He easily defeated Julio Borges, another opposition figure close to former presidential candidate Henrique Capriles, by a vote of 63 to 49 over the weekend. He’s one of the few figures within the opposition to have some experience of Venezuelan governance before chavismo and, truth be told, he’s a tough and wily character who will not easily be rolled. (Though, almost immediately after the new majority took power in the National Assembly, the chavista deputies, including the former Assembly president Diosdado Cabello, promptly walked out).

Then again, for an opposition that hopes to present itself as a fresh movement of good government and reform capable to bringing change to Venezuela, it’s a curious choice. Continue reading Venezuela’s disappointing new legislative leader is only slightly better than chavismo

Venezuela’s opposition supermajority must prioritize recalling Maduro

Henrique Capriles (right) and Leopoldo López (left) campaigned together in the 2013 presidential election.
Henrique Capriles (right) and Leopoldo López (left) campaigned together in the 2013 presidential election.

I write Friday for The National Interest a follow-up post on Venezuela’s legislative elections. Venezuela Flag Icon

With the unexpected results, which not only gave the Mesa de la Unidad Democrática (MUD, Democratic Unity Roundtable) a victory, but a two-thirds supermajority in Venezuela’s National Assembly, a critical blow to the ruling chavista government of Nicolás Maduro.

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I make the case that the MUD must prioritize a recall referendum that could remove Maduro from office early in 2016:

In a “normal” democracy, it would not be atypical for a divided government to emerge, in the same way that Republicans today control the legislative branch and Democrats control the executive branch in the United States. Gridlock might come to dominate Venezuelan governance, it’s true. But Maduro, who lacks a powerful presidential veto, would be forced to accept the MUD coalition’s policy prescriptions to get the economy back on track, however painful the compromises for both sides.

Yet neither Maduro nor the chavista high guard has shown the slightest bit of respect for the democratic process. Though Chávez came to power — and stayed in power — on the strength of a bona fide popular and democratic mandate, his government and Maduro’s government have gone out of their way to make a mockery of democratic norms. They have diverted government funds, including the country’s dwindling oil revenues, to nakedly political purposes for so long that it’s difficult to know where chavismo ends and Venezuela’s government begins. They’ve imprisoned opposition leaders like Leopoldo López and former Caracas mayor Antonio Ledezma without due process on charges that even López’s prosecutor (speaking safely from exile in Miami) admits were politically motivated. Chavistas have dominated the Venezuelan media so thoroughly that it’s hard to speak of any real press freedom; in 2015, it had the worst record in South America, according to Reporters Without Borders. The outgoing head of the National Assembly, Diosdado Cabello, has bullied and harassed the opposition at every step, is reported to have ties to drug traffickers and other criminal elements, and shows no sign of accepting the docile role of loyal opposition leader. The list goes on and on (and Rory Carroll’s excellent 2013 book, Comandante: Hugo Chávez’s Venezuela, exhaustively catalogs the abuses, both petty and serious). Though there was once a democratic basis for chavismo’s legitimacy, its unique record since 1998 demonstrates that it simply cannot be trusted to execute the new National Assembly’s laws in good faith. In crisis mode, with the worst performing economy in the world, Venezuela simply cannot wait until the scheduled 2018 presidential election to turn the page on chavismo.

Though there is some risk of ‘overreach’ in calling a recall referendum, and though a snap presidential election could create real tensions within the MUD coalition, I also argue that the far greater risk is failing to learn the lessons of chavismo and the risk of a divided government wholly unable to meet the critical task of rebuilding Venezuela’s economy in the next three years.

No matter who wins, Sunday’s elections will not be chavismo’s last stand

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Despite a late surge in the election campaign, socialist president Nicolás Maduro still faces a major defeat in this weekend’s elections for Venezuela’s National Assembly.

In a set of free and fair elections, it would not be difficult to predict that Venezuela’s long-suffering opposition would win a wide majority in December 6’s legislative elections; for many Venezuelans, despite marked disadvantages, the question is not whether the opposition will win, but by how much.Venezuela Flag Icon

That doesn’t mean the anti-chavista coalition Mesa de la Unidad Democrática (MUD, Democratic Unity Roundtable) is anywhere near taking real power in Venezuela. No matter what happens, on December 7, Venezuelans will still wake up to president Nicolás Maduro, the oft-ridiculed successor to the late Hugo Chávez. Maduro only narrowly won the presidency in April 2013, following Chávez’s death, and Venezuela’s economy, already in dire trouble two years ago, has failed dramatically ever since.

What’s more, short of a massive supermajority, Venezuela will be gridlocked for the next three years when the next presidential election will held, at a time when its economy has reached crisis-level proportions of failure.

Dependence on oil revenues meant that even before global oil prices plummeted, Venezuelans were facing shortages of basic products, from food to medical supplies to toilet paper, and inevitable scenes of government-mandated rationing. Massive inflation, in tandem with an unofficially depreciating currency, has inflicted even greater economic pain for a country dependent on foreign imports, at least for those without access to US dollars. The economy is expected to contract by as much as 10% in a single year, making Venezuela’s the worst-performing in the world in 2015. Earlier this spring, conditions were so bad that chavista supporters took to throwing mangoes at Maduro at political events in desperate search of basic necessities. Maduro, meanwhile, has campaigned hard on Chávez’s memory and fear tactics that the opposition will reverse the government’s many social welfare programs.

Voters will be choosing all 167 members of the Asamblea Nacional (National Assembly), where the chavistas currently hold 99 seats, while the opposition coalition holds just 64.  Yet few observers believe that the Partido Socialista Unido de Venezuela (PSUV, United Socialist Party of Venezuela), the chavista party that for 16 years has governed the country in a way that’s blurred the line between political and governance activity, can win a majority in the elections. Datanálisis, one of Venezuela’s most respected polls, pitted the opposition coalition’s support at over 63%, with just 28% support for the chavistas in an October poll. Over at Caracas Chronicles, Francisco Toro argues that, for the first time in years, the December 6 elections represent the re-introduction of ‘politics’ to Venezuelan life.

But for a country where chavismo has now become so entrenched in its government and commerce, no one knows for sure exactly what the MUD’s margin of victory might be and how many seats it will ultimately procure. Under the dual voting system, most members are elected in single-seat districts, while 30% are elected by closed-list proportional representation. Rural areas, where the poorest voters support Maduro and chavismo more strongly for the generous social welfare programs introduced since 1999, are over-represented, as compared to urban areas, where the opposition’s support is strongest. A simply majority will give the opposition less power than a three-fifths majority or a two-thirds majority, with which the MUD could even forced a recall referendum against Maduro.  Continue reading No matter who wins, Sunday’s elections will not be chavismo’s last stand

Ramírez demotion headlines Venezuela’s cabinet reshuffle

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Since 2004, Rafael Ramírez has served as the president of Petróleos de Venezuela, S.A. (PdVSA), the country’s state-owned oil company, and since 2002, Ramírez has served as Venezuela’s energy/oil minister. Venezuela Flag Icon

That all changed on Tuesday, when president Nicolás Maduro announced a reshuffle of his government, the most significant since his controversial and narrow election in April 2013.

Ramírez, after Maduro and after Diosdado Cabello, the president of the Asamblea Nacional (National Assembly), was the most powerful of the chavistas remaining in government in the aftermath of Hugo Chávez’s death almost exactly 18 months ago. Since that time, Ramírez became, in addition to PdVSA head and oil minister, vice president in charge of economic affairs.

A longtime old hand within chavismo, he was among the most pragmatic and moderate of the chavistas. Ramírez may have run Venezuela’s oil industry into the ground, and he may have been as corrupt as anyone in Venezuela’s government. But he didn’t radiate the kind of socialist, true-believer aura of other leading chavistas, such as former planning minister Jorge Giordani and former foreign minister Elías Jaua.

In the Maduro era, Ramírez endorsed reforms, such as reducing the gasoline subsidy that keeps the price of fueling Venezuelan cars lower than anywhere else in the world and otherwise liberalizing the economy, including with respect to the massively overvalued bolívar

Asdrúbal Chávez, the cousin of the late former president, will become the next oil minister, while PdVSA engineer and executive Eulegio Del Pino, a close Ramírez ally, will be the oil company’s next president.

Though he was simultaneously named foreign minister, it’s hard to see how Ramírez hasn’t suffered a demotion for a country where 97% of foreign earnings derive from oil. As PdVSA head, in particular, Ramírez controlled the most enviable element of Venezuelan economic policymaking — he controlled the profits.  So while the move to foreign minister would be a promotion for many ambitious politicians, in Venezuela, it’s a way of sidelining Ramírez.  Continue reading Ramírez demotion headlines Venezuela’s cabinet reshuffle

Politics turns violent in Venezuela

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Though critics can dump a lot of problems on the doorstep of Hugo Chávez’s 14-year reign as president of Venezuela, the one thing that you can’t say about Chávez is that he used state violence (as opposed to expropriation, media censorship or other tactics) to undermine Venezuela’s rule of law, excepting perhaps the aborted April 2002 coup, a complex incident in Venezuelan politics in which neither the Venezuelan military, the Chávez administration nor the Venezuelan opposition was entirely blameless.Venezuela Flag Icon

It’s hard to extend the same credit to Chávez’s successor, Nicolás Maduro, in light of the violence against protestors in Caracas, Valencia and elsewhere across Venezuela last night.

A 22-year-old beauty queen, Génesis Carmona, was shot in the head in central Valencia Tuesday night, the fifth fatality in a series of escalating student protests against the Maduro government — the photo above shows Altamira, a relatively wealthy neighborhood in Caracas that’s seen some of the most tense confrontations of the past 48 hours.

Venezuela’s oil production allowed Chávez to circumvent violent repression by using money to buy and consolidate his support among his natural base — Venezuela’s poorest citizens who hadn’t benefitted from the petrostate’s largesse (and, increasingly, a corrupt ‘boligarchy’ whose continued prosperity depends on the continuity of the chavista regime).

Though the February 2014 protests aren’t as widespread as the ones that led to the 2002 coup against Chávez, economic conditions are much poorer today in Venezuela than they were 12 years ago, when Chávez was just three years into his presidency and the country exported more oil — and other products — than it does today.  The fact that five people are dead, with many more injured, is a serious escalation in a country where, though political polarization has been common for the past decade and a half, political killing has not.  Maduro’s government is censoring the media even more than usual, putting much of Caracas on lockdown and arresting protestors by the truckload.  Most fundamentally, governments in truly liberal democracies do not respond to political protest with lethal violence.  Chávez could point to legitimate majoritarian support throughout the entirety of his presidency, even if it obscured the deterioration of the rule of law and public institutions.  By contrast, Maduro’s increasingly violent response to protest underlines the fragility (or, perhaps, the illegitimacy) of his political support.  Continue reading Politics turns violent in Venezuela

Show us the long-form, Nicolás! (In which ‘birtherism’ comes to Venezuela.)

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So birtherism isn’t limited to the United States and the tea party movement’s nutty claim that US president Barack Obama was actually born in Kenya and not in the US state of Hawaii. Venezuela Flag Icon

As it turns out, Venezuelan president Nicolás Maduro is taking some heat over accusations that he was actually born in Colombia, not in Caracas, the capital of the country that he leads.

Maduro’s government is sinking under the weight of power outages, a return to expropriation (including a local toilet paper factory) and continued shortages of basic goods due to inefficient foreign currency exchange and a gap between the real and official value of the Venezuelan bolívar, which has led to ridiculous means to game the Venezuelan currency — one story earlier this week demonstrated how flights out of Venezuela are nearly 100% booked for months in advance as a way to arbitrage the difference in the official and actual rates.

Maduro, whose country is essentially locked out of conventional global debt markets, went to Beijing earlier this week (pictured above) to procure another $5 billion in financing (and $14 billion in development of Venezuela’s oil-rich Orinoco belt) from the Chinese government.  He picked another odd fight with the United States and came up with a truly nutty excuse for skipping the UN General Assembly meeting this week, which follows the possible implication of Venezuela’s government in the brazen attempt to transport 1.3 tones of cocaine from Caracas to Paris on an Air France flight earlier this month.

Rumors have swirled over the past months about Maduro’s birthplace and his nationality, but his chief rival in the April presidential election, Henrique Capriles, the governor of Miranda state, is ratcheting up the pressure.  Capriles and Walter Márquez, an opposition member of Venezuela’s Asamblea Nacional (National Assembly), took up the claim yesterday that Maduro was born in Bogotá:

Márquez claimed that he has documents and testimonies attesting to Maduro’s dual nationality.  “Nicolás Maduro lived in the Carora neighborhood, in Cúcuta (Colombia). There are testimonies of people who spent time with him. We found the record of the birth certificate of Nicolás Maduro’s mother. She was born in Cúcuta. I contacted people who can testify that Maduro was born in Bogotá,” Márquez stressed.

Márquez added that so far the supporting documents attesting that Maduro’s father is a Venezuelan have not been found. “We have a copy of the marriage certificate of his (Maduro’s) parents, and the birth certificate of his older sister. Later on, I will disclose documental and testimonial evidence proving Maduro’s Colombian nationality,” he stressed.

Maduro’s doing a pretty good job of discrediting himself these days, so further discrediting Maduro (instead of chavismo more generally) won’t by itself do much good for the opposition — and it could backfire against them.  By pursuing a ‘birther’ strategy, the opposition is giving the Venezuelan military or rivals within the chavista elite, such as National Assembly president Diosdado Cabello, an opportunity to remove Maduro and start anew once Venezuela’s basketcase economy truly hits rock bottom.

Even if Márquez and Capriles somehow had smoking-gun proof that Maduro was somehow ineligible for the Venezuelan presidency, it’s also pretty clear that Maduro could claim that he renounced his Colombian citizenship or he could do so and still remain eligible for the presidency.  But even if he didn’t, does anyone think that a chavista-dominated court system would even entertain removing Maduro from office?  It’s hard to see just why the opposition is pursuing this strategy, because it telescopes to the Venezuelan electorate that Capriles and the opposition are less interested in making their lives better than scoring political points — or even plotting a strategy that could win power.

But under the constitutional process for nationality in Colombia and Venezuela, it’s easy to see how Maduro might wriggle out of any ‘birther’ scandal, even without leaning on Venezuela’s corroded state institutions.

Article 41 of Venezuela’s ‘Bolivarian’ constitution — promulgated by late president Hugo Chávez in 1999 — states that only Venezuelans by birth who have no other nationality shall be permitted to hold the offices of President: Continue reading Show us the long-form, Nicolás! (In which ‘birtherism’ comes to Venezuela.)

Where Capriles and the Venezuelan opposition go from here

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Henrique Capriles’s last hopes of winning a recount in the April 2013 presidential election slipped away earlier this month when the chavista-controlled judicial system dismissed his complaints over the election.Venezuela Flag Icon

No one thought that, four months later, the opposition candidate had much of a chance of unseating Nicolás Maduro, no matter whether he actually won more votes.  But the decision two weeks ago of Venezuela’s top constitutional court not only dismissed Capriles’s complaint but fined Capriles around $1,700 for insulting the integrity of the court, and it suggested that Venezuelan prosecutors file a case against Capriles, who is also the governor of Miranda, for offending the institutions of the state.

No one thinks that the April 14 vote was incredibly fair — Maduro’s ruling chavista party, the Partido Socialista Unido de Venezuela (PSUV, United Socialist Party of Venezuela) has co-mingled party and government for so long that it’s impossible to separate the two.  Chavismo remains both the dominant party and ruling ideology in Venezuela, even after Chávez’s death in March.  The Maduro campaign wielded a huge advantage in its access to state-controlled media and funds, and that followed a massive spending spree last year in the leadup to Chávez’s own reelection in October 2012.  But there’s credible evidence that the vote was not incredibly free either, with reports of voter intimidation and manipulation by chavistas and by police and army officials.

Officials in Venezuela’s electoral commission (the CNE) point to a June audit that ‘confirmed’ Maduro’s 1.49% margin of victory.  But the CNE won’t release the logs of voter signatures and fingerprints that correspond to the voting machines, which might otherwise reveal how fraudulent the voting actually was.  Neither Capriles nor the broad opposition group, the Mesa de la Unidad Democrática (MUD, the Democratic Unity Roundtable), believe the result is legitimate.

Meanwhile, the chavistas are engaged in a slow-motion, cold civil war, and the Venezuelan economy is struggling with a combination of low growth, import dependency, depressed oil output, dysfunctional currency markets, and hyperinflation unseen since the 1980s.

So what happens next — and how does the opposition think about the future?  Continue reading Where Capriles and the Venezuelan opposition go from here

‘Pragmatic’ Merentes winning control over Venezuela economic policy, but to what end?

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When Venezuelan president Nicolás Maduro appointed Nelson Merentes as his new finance minister shortly after Maduro’s controversial election in April, no one knew whether Merentes would actually be the official in charge of economic policy.Venezuela Flag Icon

That’s because the former finance minister Jorge Giordani, the longtime policymaker in the era of former president Hugo Chávez, remained planning secretary — and in a huge public-sector country like Venezuela, there’s little left untouched by central planning.  Giordani, more than anyone else, was responsible for the statist economic policies of the Chávez era, including currency and price controls.

But this week, there was no mistaking that Merentes is now ascendant — Edmée Betancourt, who had served as president of Venezuela’s central bank (BCV) for just over three months, stepped down in favor of Eudomar Tovar, an economist who was most recently the head of Venezuela’s currency exchange (CADIVI).  Betancourt, a former commerce minister, was seen as closer to Giordani and the more ideological, statist wing of chavismo, while Tovar and Merentes are associated with a more pragmatic, moderate view of economic policy.  Rumors swirled last week that Giordani might soon leave the planning ministry, abandoning a recent push to raise taxes, to take up an ambassadorship soon.

Leave aside for a moment that in an era of central bank independence, neither Giordani nor Merentes would be dominating the BCV’s monetary policy in a country with sounder financial institutions.  If Merentes and Maduro really want to shake up Venezuela’s economy for the better, they should start by reintroducing a line between the ruling Partido Socialista Unido de Venezuela (PSUV, United Socialist Party of Venezuela) and the institutions of the Venezuelan state — starting with the BCV, but also with the national oil company, Petróleos de Venezuela, S.A. (PDVSA).

Merentes’s rise should provide at least some cautious optimism — if Giordani would have doubled-down on statist Chávez-era policies, at least Merentes seems to realize that Venezuela’s basketcase economy has some problems.  The central bank’s reserves are dwindling, Venezuelan GDP growth has slowed to nearly nothing, and inflation has reached its highest level since before Chávez came to power in 1999 on the road to a potential hyperinflationary collapse.

But it remains far from clear that Merentes is willing to embark upon a program of true economic reform or whether Maduro has both the political capital and the political will to enable him to do so.  Moves to devalue the bolívar both officially and unofficially earlier this year was a start in bringing the Venezuelan currency’s stated value in line with its real market value, but the currency has decline further in value throughout they year: despite an official value of 6.3 bolívares to the dollar, its real value has dropped from around 20 at the time of the April 14 election to more than 30 or 35 today.  Maduro took steps to tweak the currency exchange system through the introduction of SICAD auctions earlier this spring — because the vast majority of U.S. currency comes to Venezuela through the government’s sale of oil products, the government must develop a mechanism to sell those dollars to importers who need hard currency.  But neither Maduro nor Merentes have been in a rush to hold regular dollar auctions (only around $600 million has been auctioned off so far in 2013) or to deliver the actual dollars from the government to the private sector.  But the fuss over SICAD and currency exchange is really just a stop-gap measure — if the ‘pragmatists’ can’t even get this right, it leaves little faith in their ability to overcome more fundamental problems with Venezuela’s economy.

Maduro and Merentes still hope that they can borrow their way out of Venezuela’s current malaise, and the government had the brass to float the possibility two months ago that Merentes would go on a roadshow to New York and London to gauge appetite for Venezuelan bonds.  That roadshow plan quickly fell apart when it became clear that there’s little appetite for risky Venezuelan debt among global investors — yields on Venezuela’s benchmark bond have been in the double digits since Maduro’s election. Continue reading ‘Pragmatic’ Merentes winning control over Venezuela economic policy, but to what end?

It’s Diosdado Cabello’s world, the rest of Venezuela is just living in it

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Venezuela, just over a month after its still-contested presidential election, has made global headlines in the past couple of weeks for its chronic shortages of everything from toilet paper to church wine, with rationing soon to begin in the large western state of Zulia.  Venezuela Flag Icon

That means that the country’s economic collapse is proceeding more or less as depressingly predicted — with oil prices stagnating, and with the state-owned Venezuelan oil industry’s production reducing, it means that the country has fewer and fewer dollars to fuel its increasing dependency on imported goods, a shortage that’s been exacerbated by the government’s somewhat inefficient system of auctioning off the dollars to importers and the fact that the Venezuelan bolívar is fixed at an artificially high rate.

That’s one of the reasons that Nicolás Maduro, even with the full force of a government that has excelled at blurring the line between the Venezuelan state and chavismo, only barely won election follow Hugo Chávez’s death and why his challenger Henrique Capriles is still waging a campaign in the court system, however quixotic, to expose voting fraud in April’s election that could well reveal that Capriles won the election instead.

Maduro’s loss weakened his already tenuous position within the ranks of chavismo, and the key power brokers under Chávez have largely retained their roles under Maduro, including Rafael Ramírez, the energy minister and the president of the state-run oil company, Petróleos de Venezuela, S.A. (PDVSA), and Jorge Giordani, the former finance minister who remains the planning minister under Maduro.  Forget the fact that new policymakers could potentially reverse course on Venezuela’s economy or that Giordani, Ramírez and Maduro appear to be doubling down on the same policies that have led to Venezuela’s precarious situation — it shows that Maduro lacks the power to replace his rivals with ministers who owe their loyalty to Maduro.

But as the economy melts down, it isn’t surprising to see chavismo itself breaking down.  The first major breach came a couple of weeks ago, when a purported recording of a conversation emerged between Mario Silva, who hosts the popular, massively pro-chavista ‘La Hojilla’ television program, and Aramis Palacios, a Cuban lieutenant colonel in G2, the Cuban intelligence agency.  Silva is as much of a true believer in chavismo as anyone in the top circle of Venezuela’s ruling elite, so if Silva has such wide doubts about Maduro (at one point he says, ‘we are in a sea of shit’), imagine what the rest of the government thinks.

It’s also, of course, somewhat of an international scandal as well — though Cuban intelligence long worked hand-in-hand with Chávez and the Venezuelan government, what exactly was a pro-Chávez talk show host doing talking to a Cuban spook?  The link between the two countries became an issue during the campaign, with Capriles attacking the generous oil subsidies to Cuba that Chávez initiated a decade ago, and Maduro is widely believed to have been Havana’s top choice to succeed Chávez.

But the recording was most tantalizing with respect to Diosdado Cabello (pictured above) and his role in Venezuela’s future — no one has more power in post-Chávez than Cabello, including even Maduro. Continue reading It’s Diosdado Cabello’s world, the rest of Venezuela is just living in it

We’re starting to see what Madurismo will look like in Venezuela

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It’s been nearly three weeks since I returned from Caracas to cover the Venezuelan presidential campaign, but the post-election situation there remains far from becalmed, unfortunately. Venezuela Flag Icon

Here’s a quick review of where things stand after another week that was, wherever you stand on the Venezuelan political spectrum, not a very good week for Venezuela and its political and legal institutions:

  • The opposition candidate Henrique Capriles, who leads the Mesa de la Unidad Democrática (MUD, Democratic Unity Roundtable) coalition, is taking his challenge directly to Venezuela’s Supreme Tribunal of Justice that contests over 2.3 million votes in over 5,700 polling stations from the April 14 vote.  A planned audit of the election will continue under the supervision of Tibisay Lucena, the head of Venezuela’s national electoral council, though Capriles and the MUD opposition have rejected the terms of the audit.  Although the audit will recount the votes, it will not audit aspects of the voting process, such as voter signatures and fingerprints, that could confirm that the votes were legitimately cast, not just properly tallied.  Capriles and his allies have also alleged a wider range of election-day concerns, including voter intimidation and dumped ballot boxes.  
  • In Venezuela’s Asamblea Nacional (National Assembly), which is dominated by the chavista party, the Partido Socialista Unido de Venezuela (PSUV, the United Socialist Party of Venezuela), opposition deputies have not only been prohibited from speaking, but were attacked in a vicious assault last week on the floor of the National Assembly while its chavista president, Disodado Cabello looked on with a smile.  No matter if you’re in Ukraine or in Venezuela, brawling politicians on the floor of a parliament are always unseemly:
  • Meanwhile, the government of president Nicolás Maduro has taken an increasingly harsh political line against the United States, attacking U.S. president Barack Obama for ‘meddling’ in internal Venezuelan affairs.  Maduro has railed against the Obama administration, which has not yet recognized Maduro’s victory on April 14, and which has aired concerns about the vote.  Maduro’s new administration has added additional tension to U.S.-Venezuelan relations by imprisoning a U.S. documentary maker on charges of inciting political violence in Venezuela.  Maduro, who suggested during the campaign that the United States may have caused the cancer that killed his predecessor, Hugo Chávez, has argued that the United States is fomenting post-election violence as well.  For good measure, he’s also accused former Colombian president Álvaro Uribe of attempting to assassinate him and he’s even attacked Peru’s foreign minister Rafael Roncagliolo.
  •  Maduro’s new cabinet, appointed in late April, looks much like the previous one, with many familiar high-level chavista faces retaining much of the power in Venezuelan government.  Rafael Ramírez remains the country’s energy minister and head of the national oil company, Petróleos de Venezuela, S.A. (PDVSA); Elías Jaua, a former vice president, will remain foreign minister; and Cabello remains the president of Venezuela’s national assembly.  The longtime head of the finance and planning ministry, Jorge Giordani, will remain merely planning minister and Nelson Merentes, formerly the head of Venezuela’s central bank, will become finance minister, a post he held briefly in the early 2000s as well.  Merentes’s promotion has caused some optimism internationally, and Merentes is seen as more of a pragmatist than Giordani and dislikes Venezuela’s currency controls, which have artificially skewed the flow of dollars to importers.  It’s not clear, however, that Giordani will relent control over economic policymaking, given that he’s been the economic czar of Venezuelan government since virtually the beginning of the Chávez era.

What is the sum impact of all of this?

So far, it seems that madurismo is the same as chavismo, but with less charisma, fewer petrodollars and the possibility of a more violent government than under Chávez.

With no signs that Capriles is giving up his challenge, Maduro faces a real legitimacy problem, and he’ll continue to do so as long as Capriles challenges the election’s audit process in a court system that’s widely seen as tilted more toward politics than toward impartial interpretation of the law.  In the best case scenario, chavismo somehow lost 600,000 supporters between Chávez’s reelection in October 2012 and Maduro’s own election in April.  In the worst case scenario, Maduro and the chavista government simply bought, scared or muscled enough votes last month to steal the election.  It’s not an enviable position, especially given Venezuela’s ongoing economic troubles.

But Maduro also faces serious challenges within the PSUV and the ruling chavista elite.   Continue reading We’re starting to see what Madurismo will look like in Venezuela

CNE agrees to 100% audit of Venezuelan votes

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It’s been a testy week in Venezuela, to say the least, but the decision of the CNE (the National Election Council) to conduct a full audit of all of the votes in last Sunday’s election is an olive branch that could pull the country from the brink of tipping into violence and further instability.Venezuela Flag Icon

When I left Caracas on Tuesday afternoon, opposition candidate Henrique Capriles was canceling a planned rally on Wednesday after acting president Nicolás Maduro threatened that Capriles would not be allowed to hold the rally, accused Capriles and the opposition of trying to mount a coup against him, warned that he would respond to the opposition with a firm hand, all the while arguing that Capriles was the person inciting violence.

Wednesday was hardly any less tense, with Leopoldo López claiming that arrest warrants had been issued against him and Capriles, the chief justice of Venezuela’s top court, Luisa Estella Morales, ruled out a manual recount of all of the votes, and National Assembly president Diosdado Cabello refused to allow any opposition deputies to speak until they recognized Maduro’s victory as legitimate.

But late yesterday, the CNE’s decision came even as Maduro himself flew to Lima for a short emergency meeting of UNASUR (Unión de Naciones Suramericanas, or the Union of South American Nations), which recognized Maduro’s victory, despite issuing a stern call for peace.  It seems likely that the CNE decision may have been urged on by pressure from UNASUR, though that’s mere conjecture.

Maduro’s inauguration will proceed today as planned, though opposition officials will not attend.

Capriles has welcomed the CNE’s decision, though the CNE itself says the process of auditing results may take up to a month.  For now, though, both sides are backing away from a very fraught five days:

Capriles explained that the announced audit of 46% of the remaining ballots represents 12,000 ballot boxes approximately. “Irregularities will be found in those 12,000 boxes,” he noted.

The opposition leader stressed that the audit shall include the verification of fingerprints, the recount of ballots, and the review of tally sheets and voters’ lists.

One of the key issues is determining how many votes Capriles received abroad — his campaign claims that he won 55,000 votes to just around 3,500 for Maduro.  That’s not enough to make up the difference between the two (Maduro officially won 7.575 million votes to just 7.303 million for Capriles), but it could narrow the gap.  It’s widely believed, however, that many of the votes abroad won’t make it back to Caracas — Hugo Chávez prior to the 2012 vote closed the Miami consulate, forcing south Florida Venezuelans to travel all the way to New Orleans to register their votes.

It seems fairly unlikely that a very pro-chavista CNE would countenance enough wrongdoing to hand the presidency to Capriles, so I don’t know what the endgame is here.  Though Maduro may well have won on a purely numerical count, it’s impossible to know how many votes were bought, coerced or otherwise wrung out of an electoral machine that’s blurred the lines among the state, the state-owned oil company and the governing Partido Socialista Unido de Venezuela (PSUV, or United Socialist Party of Venezuela).

So the most likely scenario is that a long, drawn-out audit confirms Maduro as the winner.  That doesn’t mean Capriles has ‘lost’ in the full sense of the word, necessarily — he’s brought chavismo to the brink of defeat, and Maduro’s weak mandate is for the continuity of chavismo, not for Maduro’s leadership in its own right.  So it will likely be a very grim denouement for chavismo between now and 2019 — and the opposition will likely continue to grow in stature prior to 2015 parliamentary elections and a potential 2016 recall election to oust Maduro.  In the meanwhile, schisms are likely to open within chavismo as Venezuela’s economy continues to worsen between those who want to double down on chavista-style socialism (or even more Cuban-style socialism) and those who want to reverse course.

It won’t be pretty, but for now, at least, it won’t be so ugly as to involve violence against opposition rallies.  Given where Venezuela started its week, that’s not the worst outcome — even if you think Capriles is the rightful winner of Sunday’s vote.

Cabello comments indicate cracks in the chavista high guard?

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One key piece of data that I missed last night is the response of National Assembly leader Diosdado Cabello (pictured above), who tweeted the following last night:Venezuela Flag Icon

Profunda autocrítica nos obligan estos resultados, es contradictorio que sectores del Pueblo pobre voten por sus explotadores de siempre.

Deep self-criticism obliges us to note these results, and it’s contradictory that sectors of the poorest people have voted for their exploiters.

Cabello is the behind-the-scenes pragmatic bulldog of chavismo and he’s clearly the most relevant political leader within chavismo after the newly declared president-elect Nicolás Maduro.  Given the narrow victory that Maduro won, he may well now be chavismo‘s most relevant political leader.

That makes his rather subdued statement an important touchstone for where Venezuela’s ruling part is headed, and it’s somewhat more subtle than the full-speed-ahead, at-full-volume victory speech that Maduro delivered Sunday night.

Some background: he served as the governor of Miranda state from 2004 to 2008 — opposition candidate Henrique Capriles got his start in national politics in 2008 when he ousted Cabello by a seven-point margin to become the governor of Miranda.

Cabello has since 2012 been the president of Venezuela’s Asamblea Nacional (National Assembly), where the Partido Socialista Unido de Venezuela (PSUV, or United Socialist Party of Venezuela) and its allies control 96 seats to just 65 for the opposition.

If Maduro’s victory is not overturned following an audit of the election results, the next electoral test for chavismo will come in December 2015, when Venezuela holds its next scheduled parliamentary elections, and it seems fairly possible that Cabello and the PSUV could lose their majority.

Venezuela marks coup anniversary in leadup to election

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CARACAS, Venezuela — On April 11, 2002, a large band of opposition supporters marched on Miraflores — the presidential palace — were met by chavista supporters, and exchanged gunfire meters from where Hugo Chávez and his advisers were sitting. A handful of protestors died and ultimately, in the following hours, Hugo Chávez left power for 47 hours. Right-wing businessman Pedro Cardona shortly took occupation of Miraflores, though his suspension of the National Assembly and failure to secure the support of Venezuela’s army slowly isolated him, and the Venezuelan army itself restored Chávez to power on April 14.Venezuela Flag Icon

On April 11, 2013, exactly 11 years later, Chávez’s supporters, having freshly mourned their fallen leader last month, will mark the final day of the snap presidential campaign in a massive rally for his successor, acting president Nicolás Maduro, throughout Caracas.

I don’t want to spend too much time rehashing what’s now become history, legend, and political fodder. It’s famously difficult to know just exactly what happened back in 2002, whether it was technically a full golpe (a coup d’etat) or not, the full role of the army in both pushing Chávez (briefly) from power and restoring him, who opened gunfire on whose orders, or even how many people died. But it came in a particularly tense year of transition, and it’s generally accepted that the coup — much like the general strike later that year — came as a result of Chávez’s ultimately successful attempt to assert control over the state-owned oil company, Petroleós de Venezuela, S.A. (PDVSA).

The quintessential film on the subject, despite its pro-Chávez leanings, is a documentary, The Revolution Will Not Be Televised, shot by an Irish film crew that just happened to be in Miraflores working on a piece about Chávez when the April 11 events rapidly spun out of control.

Another account — one that I think gets closer to the heart of the matter, despite the fact that it’s written by someone who has decidedly anti-Chávez sentiments, comes from Francisco Toro, one of the authors of the Caracas Chronicles blog, which posits that both Chávez and his opponents, having played brinksmanship games for months, finally went too far, leaving the Venezuelan army in the middle to keep both sides from escalating the bloodshed that day.

Though it’s eleven years later, and there haven’t been any coup or near-coup attempts since, it’s not without some irony that the anniversary hangs over Venezuela tensely three days before voters decide whether to reward chavismo with another six years in office or to turn to opposition alternative Henrique Capriles.

There’s been some discussion in the Venezuelan media over whether the armed forces are being deployed to help get out the vote for the governing Partido Socialista Unido de Venezuela (PSUV, or United Socialist Party of Venezuela), though military officials have backtracked from that claim in recent days. Capriles in an interview with El Universal earlier this week forcefully argued that Maduro and the PSUV should respect the election results, and cautioned that the armed forces would be responsible to ensure a peaceful transition. Though Chávez managed to commingle politics into every aspect of the state — from PDVSA to the central bank to state government — the military has retained relatively more of a patina of independence from politics than other state institutions.

Polls, which are not quite accurate in Venezuela, gave Maduro an edge in the leadup to the election, but that doesn’t mean Capriles is hopeless — he won a tough reelection as the governor of Miranda state in an otherwise dismal set of regional elections in December 2012 after placing just 11% behind Chávez in the October 2012 election — a better showing than any of Chávez’s rivals stretching back to 1998. Maduro is no Chávez, and since the 2012 presidential election, Venezuela’s economy has only gotten worse, and there’s been no appreciable improvement in the standard of living, some of the continent’s worst crime and power shortages throughout the country.

Because everyone assumes that Maduro will somehow find enough votes to win the election, no one really knows how easily Maduro and the chavistas would transfer power. Continue reading Venezuela marks coup anniversary in leadup to election

The policy case for Maduro in Venezuela

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In my earlier companion piece today, I discussed the policy case for electing Henrique Capriles as the next president of Venezuela in an attempt (however vain) to separate the emotional divide in Venezuela from the policy rationales that underline each candidacy.Venezuela Flag Icon

Separating the policy from the personal is even more difficult in the case of Nicolás Maduro, however, whose campaign at every turn has been one massive embrace of Chávez, not only as a predecessor, but as nearly a deity in his own right.  So far, the Maduro campaign begins and ends with ‘Chávez,’ and there’s no guarantee that once elected, Maduro would wield a sufficient personal mandate even to take sufficient control of Chávez’s Partido Socialista Unido de Venezuela (PSUV, or United Socialist Party of Venezuela).

There’s frustratingly little substance as to what Maduro (pictured above) would do with a six-year presidency, let alone whether he could come to dominate a governing regime with a handful of key powerbrokers, such as energy minister Rafael Ramírez, finance minister Jorge Giordani, and national assembly president Diosdado Cabello, none of whom will easily step aside from their relative and significant fiefdoms in government.

But, as I asked with respect to Capriles earlier today, what policy arguments should motivate a moderate voter who enthusiastically supported Chávez in 1998 but who’s become increasingly disenchanted about the reality of Venezuelan governance and who may be flirting with supporting Capriles — is there a rational case for supporting Maduro over Capriles?  Continue reading The policy case for Maduro in Venezuela

Book review: ‘Comandante: Hugo Chávez’s Venezuela’ by Rory Carroll

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I’ve been reading an increasing amount of material in advance of the Venezuelan presidential election on April 14 (and will be covering it in Caracas), so luckily for me, Rory Carroll’s newly released book on the Chávez era was right on cue.Venezuela Flag Icon

Like most thoughtful writing on Chávez and chavismo, Carroll notes how incredibly complex the phenomenon has been — Chávez is neither hero nor villain, and he captures with credibility the reasons why Chávez was, and remains, so popular with a majority of Venezuelans, especially the country’s poorest.

It’s a fascinating read throughout, very highly recommended — I learned something about Venezuela on nearly every page.

The most jaw-dropping parts of the book are those that explain the ‘through-the-looking-glass’ nature of Miraflores, the presidential palace, and El Silencio, the colonial Caracas neighborhood that’s home to Venezuela’s government ministries.

This part of the book felt inspired by Ryszard Kapuściński’s The Emperor, a short (perhaps fictionalized) work on the final years of Ethiopian emperor Haile Sellassie II’s reign, so thick does the sycophancy hang in the air among Venezuela’s ministers — ministers nervously laugh over Chávez’s public claim that capitalism may have killed off life on Mars, and they fret when suddenly Chávez appeared in a yellow shirt (not the trademark red shirt that had become associated with his Bolivarian revolution) and announced there was too much read.  What follows is something out of Kapuściński or even Kafka:

Consternation around the palace. What to do? Some ministers hesitantly abandoned the color, worrying it was a trick.  Others flashed just a bit of red, trying to gauge the correct level.  When, a few weeks later, the comandante resumed wearing red again without elaboration, the crisis passed, and ministers reverted to red.

The winner of the survival game, Jorge Giordani, Chávez’s longtime finance minister, comes off as especially craven and incompetent, the ‘monk,’ a man of austere personal finances who turned a blind eye to widespread corruption and economic mismanagement, all while expending energy to retain his own favor in the administration.

The Castros in Cuba come off as wily as ever, having tapped into Chávez a willing disciple (or, less charitably, a dupe) to provide the ostracized island with precious fuel subsidies and cheap credit, and the relatively rapid infiltration of the G2 Cuban intelligence apparatus into Chávez’s security regime.

Here too are also details from the ill-fated April 11, 2002 coup against Chávez, and Carroll here paints one of the most damning portraits of Pedro Carmona, who took power for just hours and who, ‘drunk with power,’ literally failed to fit into the gold-plated sphinx chair, feet dangling, in the presidential office in Miraflores.

There are anecdotes a-plenty, too, like the episode of ¡Alo, Presidente! in which Carroll is invited to ask Chávez a question, lobs a mildly critical question, and is treated to a long diatribe about colonialism in the New World, Christopher Columbus and, oddly enough, given Carroll’s Irish background, the British monarchy.

We meet Giovanni Scutaro, tailor to chavismo (and, one suspects, everyone with enough money for fashion in Caracas), the American writer and Chávez enthusiast Eva Gollinger, and Baldo Sansó, a fast-talking executive at Venezuela’s state-owned oil company.

Later in 2010 during an energy shortage, we’re treated to Chávez counseling Venezuela to take three-minute showers:

‘Some people sing in the shower, in the shower half an hour.  No, kids, three minutes is more than enough.  I’ve counted, three minutes, and I don’t stink.’ He wagged his finger. ‘If you are going to lie back in the bath, with the soap, and you turn on the, what’s it called, the Jacuzzi… Imagine that, what kind of communism is that? We’re not in times of Jacuzzi.’

But it’s not all fun and games and showers.

Despite the histrionics of U.S. conservatives and others, Chávez’s administration been a largely bloodless regime, though there are plenty of chilling tales human rights shortcomings: stories of folks like Raúl Baduel, who was imprisoned on a politically motivated conviction after asserting the separation of the Venezuelan military from politics and becoming increasingly critical of Chávez’s rule, and María Lourdes Afiuni, a judge who delivered an acquittal of disgraced superstar Eligio Cedeño, who thereupon found herself imprisoned.  We also meet the Nuñez brothers of the El Cementerio barrio, caught in a bleak life-and-death struggle for survival as the leaders of El Cementerio’s gang in the rough hills above the Caracas valley.

Though Carroll could hardly have known his book would emerge nearly simultaneous with the death of Chávez, its publication comes at a time when both Venezuelans and non-Venezuelans are wondering about what comes next — under either Nicolás Maduro or Henrique Capriles.

I would have liked to see more discussion on how chavismo actually replicates many of the elements of the petrostate of the regimes that preceded it in Venezuela, and in other petrostate regimes throughout the world, as well as more discussion of the future of chavismo after Chávez, but those are topics that could easily be volumes of their own.  And it’s notable that neither Maduro nor Capriles play a starring role over the past 14 years.  Máduro himself is a bit player in the book, a sycophant who’s managed to survive in El Silencio from the earliest days of Chávez’s ‘Movement for a Fifth Republic’:

Whatever hour Chávez phoned, whatever law he wanted amended or revoked, Maduro assented.  He became head of the assembly in 2005 and then, despite not speaking any foreign languages, foreign minister in 2006, a post he held for six years.  He crisscrossed the world following Chávez’s orderes and reading Chávez’s script, never deviating, never ad-libbing, never proposing his own initiatives… When the comandante praised Maduro in public — ‘Look at Nicolás there, handsome in his suit, not driving a bus anymore’ — he just smiled.  Foreign ambassadors said the foreign minister grew into his job but that he never took a big decision.  Only Chávez was allowed to shine, so Maduro did not shine.  And thus he prospered.  He acquired an extensive wardrobe, put on weight, grew thick around the trunk.

That perhaps explains why Maduro, not the more cunning current assembly president, Diosdado Cabello, won Chávez’s pre-death endorsement as his successor.

Carroll begins with an anecdote from an interview from beloved Latin American writer Gabriel García Márquez, who wrote the following about Chávez on the eve of his inauguration in 1999:

While he sauntered off with his bodyguards of decorated officers and close friends, I was overwhelmed by the feeling that I had just been traveling and chatting pleasantly with two opposing men.  One to whom the caprices of fate had given an opportunity to save his country.  The other, an illusionist, who could pass into the history books as just another despot.

Carroll’s sophisticated treatment of chavismo produces examples of all of the above — Chávez as savior, Chávez as illusionist and Chávez as despot — and takes chavismo up as a mirror to reflect how all of those impressions have marked Venezuela for the past decade and a half.