Tag Archives: chavez

Overshadowed by scandal, Trump calls for López’s release in Venezuela

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Before Thursday’s jaw-dropping 77-minute free-form press conference, US president Donald Trump made a rare foray into Latin American politics on Wednesday night, publicly calling for the release of Leopoldo López, a Venezuelan opposition leader imprisoned by the chavista government since 2014. Venezuela Flag Icon

It was a surprising move by Trump, who was having dinner Wednesday night with López’s wife, Lilian Tintori, and Florida senator Marco Rubio. Trump joins many figures from across the political spectrum over the last three years, including former US president Barack Obama and Spanish prime minister Mariano Rajoy, who renewed calls to release López on Thursday.

López, on the third anniversary of his arrest, is now at the heart of the Venezuelan opposition struggle in its daunting task of removing an increasingly undemocratic chavista regime through democratic means. Despite Trump’s call on Twitter to free López, a Venezuelan appeals court upheld the opposition leader’s sentence Thursday morning, and foreign minister Delcy Rodríguez chided Trump in response.

In February 2014, when protestors were already taking to the streets against Maduro’s government (and when the economic situation, though dire, was far better than today), López was leading the way calling for peaceful protests in hopes of toppling the government through show of popular disapproval. Those protests, however, turned deadly when police deployed lethal force against the protesters and 43 people died. López was promptly arrested and, months later in September 2015, found guilty of public incitement of violence.  His imprisonment is widely considered to be politically motivated by international groups and figures ranging from the United Nations to the Dalai Lama, and his arrest was one of the reasons why the South American trading bloc, MERCOSUR, suspended Venezuela’s membership in December 2016, citing problems with human rights and the rule of law.  Continue reading Overshadowed by scandal, Trump calls for López’s release in Venezuela

Beyond Cuba: why Caribbean debt crisis could become American security crisis

Cuban president Raúl Castro met US president Barack Obama Monday morning in Havana. (Al Diaz/Miami Herald)
Cuban president Raúl Castro met US president Barack Obama Monday morning in Havana. (Al Diaz/Miami Herald)

It’s not just voters in Spain, Ireland and Greece who are weary of austerity economics.PRjamaicacubaUSflag

Voters in Jamaica last month narrowly ejected their prime minister, Portia Simpson-Miller, giving opposition leader Andrew Holness and the nominally center-right Jamaica Labour Party a razor-thin 32-31 majority in the House of Representatives. Though Jamaican politics has been famous since the 1970s for its polarization, Holness will govern with the narrowest margin in the House since 1949.

What he does with his mandate could matter not only for Jamaica, but the entire Caribbean.

Simpson-Miller, who took power in 2012 and secured yet another IMF bailout in 2013 for the debt-plagued island, marked some success in bringing the country’s debt-to-GDP ratio down from 140% to around 125%. For now, Holness is working with IMF officials, but he won election after pledging to spend more revenues on health care, education and stimulating the economy, part of a generous and populist 10-point plan that will be difficult for him to enact under current fiscal restraints.

The Caribbean’s self-cannibalizing debt crisis

Holness will find himself in a trap all too common in the 21st century Caribbean, where manufacturing, tourism and, in some cases, modest oil production, have not been sufficient to boost economies and incomes. Without higher GDP growth, Holness will face two difficult options. If his government spends too much, he’ll unwind the careful work of his predecessor and send Jamaican debt levels spiraling upwards again. If Holness spends too little, he will alienate the electorate that gave him a majority and that, like Americans and Europeans, are weary of roller-coaster economic uncertainty and a widening inequality gap.

It’s a story that is increasingly familiar across the region and, today, it’s not just Jamaica that is falling into the debt trap. Barbados and Grenada have both marked 60% increases in their debt/GDP ratios in the last 15 years, and the Bahamas, Bermuda and other countries, not typically associated with imprudence, are also struggling with rising debt. Islands like Martinique and Guadeloupe thrive as fossils of France’s colonial empire, thriving due to hefty subsidies from Paris. Trinidad and Tobago, only recently flush with the promise of offshore oil drilling, has watched its expectations plummet with global oil prices. Puerto Rico, a commonwealth of the United States, endures a grinding debt default amid prolonged economic misery with little hope that legislative action can fix its economy. Despite years of advanced warning, neither Democrats nor Republicans have the inclination or ability to provide relief from Capitol Hill.

Taken together, the spiraling debt and economic stagnation of the Caribbean represents an overlooked security challenge in the years ahead that China, Russia or even the Middle East might exploit.

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Jamaica’s election didn’t generate the same excitement in the American media as U.S. President Barack Obama’s historic trip this week to Havana, the first since Calvin Coolidge visited in 1928. But it’s only the third time that Obama himself has traveled to the Caribbean at all – he visited Jamaica in April 2015, and he went to Trinidad and Tobago in 2009, when it hosted the 5th Summit of the Americas. Continue reading Beyond Cuba: why Caribbean debt crisis could become American security crisis

The comparison between Sanders and Venezuela is misguided and facile

'Socialism' may be at the heart of chavismo and the Sanders campaign, but they come from two very different political traditions.
‘Socialism’ may be at the heart of chavismo and the Sanders campaign, but they come from two very different political traditions.

One of the more popular comparisons of critics of Vermont senator Bernie Sanders is between the brand of ‘democratic socialism’ that Sanders has espoused in his Democratic presidential campaign and Venezuelan-style socialism.Venezuela Flag IconUSflag

But for reasons I’ll describe below, it’s a facile and wrong-headed comparison, and it’s an insult both to Sanders and to the Venezuelan opposition that’s struggling so hard against something much more insidious than just ‘democratic socialism.’

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RELATED: Eight things Americans should know about the Danish (and Nordic) welfare state

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Sanders has looked to countries like Sweden and Denmark, arguing that the US social welfare net should look more like the Nordic social welfare net. Those are countries that, by and large, conduct free and fair elections with a firm dividing line between government and party, squeaky-clean transparency, a tradition both of consensus-building  and more recently, a reformist nudge that’s tried to retool creaking social welfare system toward more competition and liberalism.

No one disputes Venezuela’s problems, which faces today probably the globe’s most painful economic crisis. They are immense.

But it didn’t get there through Scandinavian-style socialism. Or social democracy. Or democratic socialism.  Continue reading The comparison between Sanders and Venezuela is misguided and facile

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

Photo essay: Cuba on the cusp… but for what kind of future?

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HAVANA — On my first evening in Cuba , my bar ran out of mojitos, as fitting metaphor as any for nearly a week in the Cuban capital.cuba

Sure, it wasn’t the bar at Havana’s Hotel Nacional, but it was still a reasonably tourist-oriented cantina with a Chilean theme hugging the Malecón, the popular avenue that runs along the sea. For the record, the restaurant also ran out of shrimp and tostones (the fried plantain chips I’ve always thought taste like fried discs of baking powder with a hint of banana).

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I’ve been to poorer countries, but it’s hard to think of a place that’s more broken. The keys, the doors, the cars, the buildings, the stores, the distribution channels and yes, even the much-vaunted health care system. The idea that the United States and its legions of consumers and tourists will transform the country virtually overnight is incredibly fanciful.

For many Americans, there’s an element of romance to seeing old cars from the 1950s and the faded mojitos-and-daiquiris glamour of what was once a Caribbean playground. There’s also an electricity that comes from a place that’s so close geographically but so distant ideologically, politically, economically and culturally. One comparison that springs to mind is the 12-mile distance between Jerusalem and Ramallah.

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Another comparison is Korea — for all the easy talk about reconciliation between the United States and Cuba, the distances between the two countries are nearly as stark as those today between North Korea and South Korea. That isn’t quite so surprising because Fidel Castro came to power only six years after the 1953 armistice than ended the Korean War in quasi-permanent stalemate. Today, there is a Cuban-American culture that is as distinct from Cuban culture as Sicilian-American culture is from life in modern Palermo. Celia Cruz and Cafe Versailles belong to the former, Osmani García and the inventive home-grown paladar restaurants belong to the latter. Continue reading Photo essay: Cuba on the cusp… but for what kind of future?

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

ESSAY: How Gabriel García Márquez introduced me to Latin America

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Whenever I go to México City, I marvel at the way its indigenous history integrates into the fabric of the city. Nahuatl words, like ‘Chapultepec,’ meaning grasshopper, and ‘Xochimilco,’ a neighborhood featuring a series of Aztec-created canals, pepper the geography of the city. Those are just two of hundreds of daily reminders rooting Latin America’s largest modern megapolis of 8.9 million in the language and traditions of its pre-Columbian past. It’s where the Virgin of Guadalupe, a young Nahuatl-speaking girl, apparently revealed herself to Juan Diego in 1531 as the Virgin Mary, instructing him to build a church, launching one of the most compelling hybrid religious followings in the New World. Even the inhabitants of the notorious Tepito barrio worship Santa Muerte on the first of November with bright flowers, cacophanous marimba and not a small amount of marijuana, in celebration of the magical chasm between what is, for many Tepito residents, a gritty life and an often grittier death.

It’s the way that México City blends the mysterious and the mundane, matches the sacred with the profane and so blends the line between the indigenous and conquistador that it’s hard to know who conquered what. For all of those reasons, I often think of it as the unofficial capital of realismo magico.

So it’s natural to me that the literary master of magical realism, Gabriel García Márquez, made his home in México City for much of the last six decades of his life. It’s also where García Márquez died on April 17 at age 87.

It was his uncanny ability to blend the realistic with the magical that largely won him such adoration worldwide. But what makes the writing of García Márquez and the other authors of the 1960s Latin American Boom so electrifying to me is the way that it blended the literary with the political. Certainly, García Márquez’s writing was about family, about love, about solitude, about power, about loss, about fragility, about all of these universal themes. But his writing also explicated many of the themes that we today associate with Latin America’s culture, identity, history and politics.

His death wasn’t entirely unexpected. García Márquez was diagnosed with lymphatic cancer all the way back in 1999 and by the beginning of the 2010s, he rarely made public appearances anymore due to the grim advance of Alzheimer’s disease. By the time I made it to Latin America for the first time, he was already approaching 80, and I knew I’d have little chance of meeting him.

That’s fine by me, because I always considered him, through his work, my own personal ambassador to Latin America. Over the course of several treks through Latin America, Gabo still accompanied me through his writing — and along the way, he shaped my own framework for how I think about Latin American life.

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(8) Going up the Argentine Andes 2

When I was planning my first trip to Latin America, I brought with me a copy of One Hundred Years of Solitude. I saved the novel for this very occasion, a trek from Buenos Aires to Mendoza and then by bus over the Andes to Santiago. Technically speaking, I was on the wrong end of the continent for García Márquez. I packed some Neruda, some Allende and some Borges — and some Cortázar, too (mea culpa, I still haven’t clawed enough time to read Hopscotch).

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Nevertheless, García Márquez’s words transcended the setting of his native Colombia. Hundred Years, published in 1967, just six years after the Cuban revolution that undeniably marked a turning point in its relationship with the behemoth world power to the north, it came at a time when Latin American identity seemed limitless, and García Márquez mined a new consciousness that wasn’t necessarily Colombian or even South American. So much of the story of Colombia’s development from the colonial era through the present day is also cognizably Bolivian, Chilean, Mexican or Argentinian. After all, García Márquez, already a well-known figure, went on a writing strike when Augusto Pinochet took power in Chile in 1973, ousting the democratically elected Socialist president Salvador Allende, who either committed suicide or was shot on September 11, the day of the coup.

It was an intoxicating read. The sleek brown corduroy blazer I picked up in Buenos Aires with the affected hint of epaulets on the shoulders soon became what I called my ‘Colonel Aureliano’ jacket. Besides, where better to buy a Spanish language copy of his work than El Ateneo, perhaps the most amazing bookstore in the world?

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Hundred Years, of course, came highly recommended from the world that had discovered García Márquez decades before I was even born. It became an instant hit upon publication, catapulting García Márquez’s popularity beyond his more established peers, including México’s Carlos Fuentes and Perú’s Mario Vargas Llosa.

Bill Clinton, in his autobiography My Life, confesses to zoning out of class one day in law school to finish it:  Continue reading ESSAY: How Gabriel García Márquez introduced me to Latin America

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

Will Venezuela or Argentina be the first to crumble into economic crisis?

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I write tomorrow for The National Interest about the dual economic crises in Venezuela and Argentina.argentinaVenezuela Flag Icon

The similarities between the two economic crises are uncanny — inflation, capital controls, dollar shortages, overvalued currencies, shortages, etc.

But the similarities don’t stop there.  Both countries currently fee political limitations to force policy changes to avert crisis — and that limit the political capital of the leaders of both countries, Venezuelan president Nicolás Maduro and Argentine president Cristina Fernández de Kirchner, to enact reforms:

Accordingly, normal political channels seem blocked through at least the end of 2015, despite the fact that both countries should be considering massive economic policy u-turns that will require significant amounts of political goodwill neither Maduro nor Fernández de Kirchner possess. But there’s an even greater inertia lurking beyond even the routine political impasse—a kind of political dead-hand control in both countries, on both a short-term and long-term basis.

First, both Venezuela and Argentina remain tethered to the political ideologies of chavismoand kirchnerismo, even though their proponents, Chávez and Néstor Kirchner, are now dead. Those policies may have worked over the last decade to achieve certain goals, including greater social welfare and poverty reduction in Venezuela and a rapid return to economic growth and competitive exports for Argentina. But it should be clear by now that chavismoand kirchnerismo are unable to provide answers to their respective countries’ economic woes today.

Even more broadly, I argue that beyond the shortcomings of chavismo and kirchnerismo, Venezuela faces a long-term resources curse and Argentina faces the long-term legacy of protectionism and statism of peronismo, which in each case underlie the current economic crises.  What’s more, the IMF-sponsored reforms in 1989 that led to the massive Caracazo riots in Venezuela and the IMF-approved lending tied to Argentina’s 1990s ‘convertibility’ crisis that led to the 1999-2001 peso crisis have undermined orthodox economic policymaking:

What’s more, ill-conceived attempts to rupture those dominant paradigms through orthodox ‘Washington consensus’ reform processes led to economic and political disaster. In both countries, leaders experimented with neoliberalism, facilitated by the misguided zeal of the International Monetary Fund, without enacting any corresponding safety nets or shock absorbers. The resulting crises led both countries to double down on their prevailing ideologies, thereby, ironically, making economic reform today even more difficult.

In both cases, the political, historical and economic legacies have prevented the broadly moderate, business-friendly, social democratic middle courses that much of the rest of South America has embraced to wide success, including Colombia, Peru, Chile, Brazil.

Chavismo offers no solutions for Venezuela’s violent crime

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Though Venezuela’s crumbling economy was the top issue in 2013, the country’s violent crime rate is now topping the 2014 agenda after the horrific murder of Mónica Spear, the 29-year-old television star and 2004’s Miss Venezuela, and her ex-husband were shot in an attempted robbery, after their car broke down on a highway Monday night.Venezuela Flag Icon

Violent crime in Venezuela didn’t spring up overnight, but even president Nicolás Maduro admits that 2013 saw a rise in crime.  But it’s been on the rise throughout the chavista era.  It’s a topic that I discussed earlier today on Fusion’s America with Jorge Ramos (in my first-ever live television interview — next time, I need to know where to put my eyes!).

When Hugo Chávez was first elected in 1999, he and his advisors thought that reducing crime in Venezuela was a matter of reducing poverty and inequality.  For all the faults of chavismo, you can point to a substantial reduction in poverty and inequality since 1999, though there’s obviously some debate as to whether the chavistas accomplished that goal in the most efficient, effective or sustainable manner.

Yet even as poverty decreased, violent crime increased steadily over the Chávez era.  Official figures aren’t available (and it’s doubtful they would be reliable even if they were), but Observatorio Venezolano de Violencia, an NGO that tracks violent crime, claims that the homicide rate is 79 per 100,000 — a rise in 2013 from a rate of 73 in 2012.  That makes Venezuela second only to Honduras, with a 2012 homicide rate of 91.6 per 100,000.

If there’s one point to take away about the link between poverty and violent crime, it’s that the poorest Venezuelans are more likely to be victims of crime themselves.  Crime is higher in the cities than in the countryside, and it is highest yet in the barrios of Venezuela’s capital, Caracas — you’re much likelier to be murdered in the more lawless neighborhoods in the mountains overlooking downtown Caracas than in the wealthier and safer valley below.  While every murder is a tragedy, Spear’s death is just one of tens of thousands annually.  Justice rarely comes for many of those anonymous victims and their families, given that crimes are rarely investigated and even more rarely prosecuted.

Crime is a complex sociological phenomenon, so it’s not easy to point to one variable in particular as its direct cause.  Poverty may play a role, but it’s not a matter of ‘if x, then y.’  In the case of Venezuela, the more relevant factors include a high gun ownership rate, corruption and low trust in public institutions, and a climate of political polarization.  But the biggest factor is the weakening of the rule of the law over the past 15 years.

As Juan Nagel writes in Foreign Policy, Venezuela has very few judges and prosecutors, and many of them are corrupt.  Policemen and other officials commonly take bribes.  Jails are overcrowded and controlled by the criminals locked inside them. No one has much faith in the justice system.  If you look at the 2013 Corruption Perceptions Index, Venezuela is ranked 160. Afghanistan, North Korea and Somalia are tied for dead-last at 175.  That should tell you quite a bit about Venezuela’s culture of impunity.  It’s not just the justice system, either.  It’s the kind of ‘democracy’ whereby all of the state organs, from state media to the electoral commission to the courts to Petróleos de Venezuela, S.A. (PDVSA), the state oil company, have all been politicized and are today essentially levers to boost chavismo.  It’s the kind of ad hoc economic policymaking where rules change from one day to the next, or the Venezuelan president can expropriate a business or nationalize an industry on a whim.  That, too, corrodes the rule of law.

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That’s also why there’s very little chance that Maduro or any chavista regime is likely to reverse the decade-long trend of greater violent crime.  Despite a high-profile photo op with opposition leader and Miranda state governor Henrique Capriles (pictured above), Maduro (like Chávez before him) has worked to strip municipal and state governments of much of their autonomy by consolidating power over local budgets under the national government.  That’s especially true for states and municipalities controlled by the opposition. Continue reading Chavismo offers no solutions for Venezuela’s violent crime

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?

Is Peru’s Humala a modern-day Velasquista?

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It hardly seems like Ollanta Humala has been Perú’s president for two years — it feels like yesterday when we were assessing Humala’s first year in office.Peru Flag Icon

Jacob Bathanti, a Latin American scholar who blogs occasionally from Lima, where he’s working this summer, considers the similarities between Humala (pictured above, right) and his leftist military predecessor Juan Velasco Alvarado (pictured above, left), and also to Fernando Belaúnde.  But he also places Humala within an even broader tradition — here, in one sentence, he’s encapsulated mainstream Peruvian policy from much of the past half-century:

Official Lima, in so many manifestations, has always seethed with anxiety over these people, what they might do next (when it isn’t ignoring them). Humala’s big idea seems to be to resist the temptation to ignore the highlands, to push a broad economic integration into the national prosperity, satisfying the economic needs of those most likely to revolt – because it is in their nature, because they are sick of poverty, because to revolt is unfortunately at the moment justified, heck, pick a reason – before they revolt again.

But with three years left to go in his presidential term, Humala remains in many ways a chimera whose once-leftist rhetoric has dissolved into a presidency that seems to have no prevailing ideology.  That’s why it’s so tantalizing to look back to the Velasco years as a template for what Humala may yet try to accomplish — will he take up Velasco’s primary cause of pushing the fruits of Perú’s economic boom further down to the country’s poorest citizens?  Perú is somewhat remarkable among Latin American countries in that party identification remains incredibly weak, there’s no strong center-left and center-right party as such, and leaders easily slip from left to right and back again.  Humala’s predecessors, Alan García and Alejandro Toledo, both had their fair share of chameleonic moments in public life.

What Jacob writes comes as close to articulating, in one sentence, Perú’s prevailing 21st century ideology as I’ve ever read, and it really applies to just about every government in recent Peruvian history, except perhaps two.  The first is García’s first presidency from 1985 to 1990, which was a hyperinflationary socialist economic disaster.  The second is the authoritarian presidency of Alberto Fujimori from 1990 to 2000, which began amid a low-grade civil war against the communist Sendero Luminoso (Shining Path).

I find the comparison to Velasco particularly intriguing because it’s so rare that an army coup results in a leftist military-led government in Latin American history, and the similarities to Humala, the once-radical military man are simply too great to ignore.  In 2000, Humala led a short-lived anti-corruption revolt from within the military against Fujimori.  As it turns out, the revolt fizzled, Fujimori fled shortly thereafter and Humala was pardoned, but the similarities are hard to miss.  In the 2006 presidential campaign, Humala often cited Velasco as a political touchstone and even went so far as to say that his administration would finish the work that Velasco’s started.

Like Velasco and many before him, Humala is trapped between meeting the needs of a business elite that has kept GDP growth humming along (an elite that largely supported his opponent Keiko Fujimori in the June 2011 presidential race) and a restless majority still trapped in poverty (that largely placed its hopes in Humala).  The Peruvian economy is likely to dip to just 6% growth this year — still high, but troubled by slack Chinese growth, flat prices for gold, copper, oil and other commodities that comprise over two-thirds — but protests over Humala’s performance in office continue, and polls show that his popularity has declined from over 50% earlier this year to just 33% this summer.

But Humala has governed in a far different manner than Velasco on two of the most important matters of Peruvian governance — economic policy and foreign policy. Continue reading Is Peru’s Humala a modern-day Velasquista?

Meet José Mujica, the Uruguayan president who’s on the path to legalizing marijuana

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Although Uruguay’s austere president José Mujica grows chrysanthemums with his wife in his humble home outside Montevideo in his spare time, that’s not the kind of flower power that’s catapulted him to global headlines this week.uruguay

Instead, he’s moved forward, surpassing a key hurdle in making Uruguay, the Southern Cone nation of 3.3 million, the first country in the world to decriminalize and regulate the sale and purchase of marijuana when the lower house of Uruguay’s parliament, the Cámara de Representantes (Chamber of Representatives) passed a legalization bill by a narrow 50-46 margin late Wednesday, which will allow the bill to sail smoothly through the upper house and to enactment.

Far from transforming Uruguay into a drug haven, however, Simon Romero, writing for The New York Times, explains the highly regulated nature of what will become the Uruguayan marijuana market, which would place strict limits on the growth, use and sale of the drug:

Under the bill, which could become law as early as this month, people would be allowed to grow marijuana in their homes, limited to six plants per household. They would also be permitted to form cooperatives allowed to cultivate 99 plants. In addition, private companies could grow marijuana under the bill, though their harvests could be bought only by the government, which would market the drug in licensed pharmacies.

To buy marijuana in pharmacies, Uruguayans would be required to enter their names into a federal registry, which is intended to remain confidential, and would be limited to buying 40 grams per month. And in a move to prevent foreign tourists from flocking to Uruguay to smoke marijuana, the legislation would restrict legal purchases to Uruguayans. Marijuana use is already largely tolerated by the Uruguayan authorities.

As remarkable as it seems, and despite international criticism of the Uruguayan measure, it was only a matter of time before a Latin American country takes the step to legalize the drug.  Colombian president Juan Manuel Santos and Guatemalan president Otto Pérez Molina, neither of whom are exactly left-wing ideologues have both made strident calls for marijuana legalization, and other Latin American leaders, such as former Mexican president Felipe Calderón, have called into question the longstanding U.S. anti-drug policy that’s launched a 40-year ‘War on Drugs’ that turned out to become more a war on Latin America, wreaking havoc and escalating violence from México to Perú.  Even within the United States, public opinion is turning away from criminalization — California’s ‘medical’ marijuana industry is booming and voters in Washington and Colorado elected in November 2012 to legalize marijuana in those states.

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What’s even more remarkable is the rise of the Uruguayan president who’s likely to be the first to make it happen.  In a region with sometimes eccentric leaders, the 78-year old Mujica — or as he’s affectionately known among Uruguayos, ‘Pepe’ — stands out.

A former leftist guerrilla in the Tupamaros movement, Mujica spent much of Uruguay’s military government that spanned the 1970s and early 1980s in prison.  As Romero writes in a profile of Mujica for The Times earlier this year, prison life was about as grim as imaginable for the one-time rebel fighter:

He spent 14 years in prison, including more than a decade in solitary confinement, often in a hole in the ground. During that time, he would go more than a year without bathing, and his companions, he said, were a tiny frog and rats with whom he shared crumbs of bread.

The sometimes violent tactics of the Tupamaros, which drew its inspiration from Fidel Castro’s Cuban guerrilla effort, weren’t without controversy.  But though he rarely discusses those days, his wife, Lucía Topolansky, is also a former Tupamaro, and while he has long since eschewed the more radical elements of his past, he has retained a strikingly humble approach to material wealth.  Mujica, who drives himself in a 1987 Volkswagen Beetle, has been labeled by the BBC to label him as ‘the world’s poorest president’:

President Mujica has shunned the luxurious house that the Uruguayan state provides for its leaders and opted to stay at his wife’s farmhouse, off a dirt road outside the capital, Montevideo.  The president and his wife work the land themselves, growing flowers.  This austere lifestyle – and the fact that Mujica donates about 90% of his monthly salary, equivalent to $12,000 (£7,500), to charity – has led him to be labelled the poorest president in the world.

As president, he has presided over a strong economy, though the GDP growth rate has fallen from 8.9% in 2010 to 5.7% in 2011 and an estimated 3.5% in 2012 — a slowing growth rate, yes, but one that’s consistently overperformed Brazil’s GDP growth in the past three years, one that is now overperforming the increasingly troubled Argentine economy, and one that would make the United States or the European Union feel like it’s experiencing an economic boom.  Mujica has been an aggressive champion of freer trade, and for expanding Mercosur, the South American free trade bloc.  He’s also a proponent of wind and other forms of renewable energy, and he’s a tireless booster of Uruguay exports, half of which are agricultural products, notably beef and grain products.

But his real legacy, even before the push for marijuana legalization, has been on social policy.  Yesterday, for example, Uruguay’s same-sex marriage act took effect after the Chamber of Deputies passed the law on an 81-6 vote last December.  He’s also signed legislation legalizing abortion restrictions.  But while those measures had broad popular appeals, polls have shown that up to two-thirds of Uruguayan voters are wary of legalizing marijuana.

As Uruguayan presidents cannot run for consecutive terms in office, much of Mujica’s devil-may-care approach to controversial issues, especially drug legalization, lies in the fact that he’s not running for reelection.  But it’s also in keeping with his honest, everyman persona, which has afforded him broad popularity, even among his critics. That popularity has made it easier for Mujica to champion unpopular issues, just as it has made it easier to deflect the loquacious president’s gaffes, such as when he was caught on tape disparaging both Argentine president Cristina Fernández de Kirchner and her late husband, former president Néstor Kirchner: ‘esta vieja es peor que el tuerto,‘ which roughly translates to ‘the old woman is worse than the cross-eyed one.’

But unlike the Kirchners, who have hewn a relatively populist neo-Peronista course for Argentina, which remains shut out of global capital markets, and unlike other leftists like the late Hugo Chávez and Nicolás Maduro in Venezuela, Mujica has been firmly on the lulista left, and like former Brazilian president Luiz Inácio Lula da Silva, he’s spent his political career moving from leftist roots — even more radical than Lula’s trade union roots in Brazil — to the political center.  Continue reading Meet José Mujica, the Uruguayan president who’s on the path to legalizing marijuana

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