The Devil's Excrement





  The Devil's Excrement
Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
Last updated:
4/2/2007; 9:20:22 PM

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Wednesday, July 06, 2005



After being postponed five times since September, the preliminary hearing to decide whether there will be a trial or not against the Sumate directive took place today. The judge will decide tomorrow if the trial will take place and in which conditions.

Note that despite that the Supreme Court indicated that in the event of a trial, the accused should be free, the Fiscal in charge of the case is asking that the Sumate directive be put in jail during the trial....

Yeah, right, they are such DANGEROUS criminals that the society is in REAL danger having Maria Corina and Alejandro Plaz walking the streets of Caracas!

27 military masked police officers wandering around with machine guns are OK...but Maria Corina! that's a no-no, she is a real threat!

I'll keep you posted.
Jorge Arena.

4:46:36 PM    comment []



[Before leaving, Miguel prepared this excellent post. Enjoy]
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While the phrase “To sow the oil” is quite famous in Venezuela, it was not until this week that I first read Arturo Uslar Pietri’s famous 1936 original article in which he first used that phrase. You can find that article here in Spanish. I thought it was worth translating to make it available in English too. I will translate a second article from 1961 by Uslar himself about the subject, when time allows it. While some of the terminology is certainly old fashioned, it is impressive how the basic concepts outlined in the article remain true even in the globailized world of today. To me this article shows the intellect and clarity of thinking of one of Venezuela’s most famous writers. While the first oil discovery in Venezuela was in 1914, it was not until the mid 1920’s that oil was discovered in amounts large enough for it to become our Devils’ Excrement.

To sow the oil by Arturo Uslar Pietri in Ahora

When one considers with some care the economic and financial panorama of Venezuela, the notion of the large role that the destructive economy plays in the production of our wealth gives us some anguish, that is, that one which consumes without concern about how to reconstructy the existing amounts of matter and energy. In other words, the destructive economy is that one which sacrifices the future in favor of the present, the one which taking things into the realm of fable writers, it is more like the cicada than like the ants.

In effect, in a budget of effectively rental income of 180 million, the mining sector figures in with 58 million or almost one third of the total income, without making estimates of the many other numerous indirect and important contributions that can be equally attributed to the mining sector. Public Venezuelan wealth lies currently, in more than one third, on the destructive utilization of the oil fields underground, whose life is limited not only for natural reasons, but the productivity of which depends on its entirety of factors and wills which have nothing to do with the national economy. This great proportion of wealth of destructive origin will grow without any doubt the day that mining taxes are made more just and remunerative, even to get close to the suicidal dream of some naive people that see as the ideal of the Venezuelan finances, to be able to pay the totality of the budget with only the mining income, which could be translated more simply this way: to manage to make Venezuela an unproductive and idle country, an immense parasite of oil, swimming in the momentary and corrupting moment and devoted towards an imminent and inevitable catastrophe.

But it not only does the destructive character of our economy reached this grave proportion, but it goes even further reaching a tragic magnitude. The wealth of the ground among us does not only not increase, but it tends to disappear, because agricultural production decays in quantity and quality in an alarming manner. Our scant fruits for export have seen their place in the international markets snatched by more active and capable competitors. Our cattle industry degenerates and gets poorer with epizooties, ticks and the lack of adequate crossbreeding. Lands get sterilized without fertilization, people grow crops using antiquated methods, enormous forests are destroyed without replacement, to be converted in firewood and vegetable coal. From a recently published book we take this exemplary data: “In the Cuyuni region more or less three thousand men are working who knock down, on average, nine thousand trees a day, which totals 270 thosuand in seven months, including the areas of the north, this totals one million and eight hundred and ninety thousand. Multiplying this last sum by the number of years that the beefwood tree was worked on, we would obtain an exorbitant amount of trees knocked down and you will get an idea of how far gone the beefwood tree is”. These phrases are a brutal epitaph for the beefwood tree, which, under different procedures, could have been one of the biggest sources of wealth for Venezuela.

The lesson of this threatening scenario is simple: it is urgent to solidly create in Venezuela a reproductive and progressive economy. It is urgent to take advantage of the transient wealth of the current destructive economy to create the healthy and ample and coordinated bases of that future progressive economy, that will be our true declaration of independence. It is necessary to get out the most income from the mines to totally invest it in aid, facilities and stimulus to agriculture, breeding and national industries. That, instead of oil being a curse that will turn us into useless and parasite people, it would be the lucky circumstance that will allow us, with its sudden wealth, to accelerate and strengthen the productive evolution of the Venezuelan people under exceptional conditions.

The part that in our current budget is dedicated to this true promotion and creation of wealth is still small and perhaps is no more than a seventh of the total amount of expenses. It is necessary that these outflows destined to create and guarantee the initial development of a progressive economy reach at least up to the level of the mining income.

The only wise and saving economic policy that we should practice is to transform the mining income in agricultural credit, stimulate scientific and modern agriculture, importing stallions and pastures, repopulate the forests, build the dams and canals necessary to regularize irrigation and the defective water regime, mechanize and industrialize the rural areas, create coops for certain crops and small owners for others.

This would be a true act of national construction, truly making use of the national wealth and this must be the goal of all conscious Venezuelans.

If we had to propose an insignia for our economic policy we would launch the following, which seems to us summarizes in dramatic fashion the need to invest the wealth produced by the destructive system of the mines, and create reproductive agricultural and progressive wealth: to sow the oil.

Arturo Uslar Pietri. June 14th. 1936


12:38:21 PM    comment []



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