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; 9:25:47 PM

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Monday, September 05, 2005



--Decentralization doublespeak: Last week, President Chavez “ordered” the centralization of all health care services in the country. Problem is, not only was it a mandate of the decentralization law of 1989 to decentralize health services and having municipalities assume the responsibility, but there are five articles of the 1999 Constitution promoted by Chavez, written and approved by Chavez and his party taht mandate too. Including articles 158 and 178:


Article 158: Decentralization, as national policy, must deepen democracy, approaching power to the population and creating better conditions, for the exercise of democracy as well as for providing efficient and effective services by the states:

Article 178: It is the competence of municipalities…:

5) Health and primary attention in health, protection….

But, true to his revolutionary character, Deputy Dario Vivas has a every simple explanation of how Chavez can do this: “The decentralization consecrated by the Constitution is centralized decentralization”…Oh! Now I understand it!

--When the law says 165 and it becomes 167: And speaking of laws, that same Constitution establishes the number of Deputies of the National Assembly in its Article 186, which clearly says there will be one Deputy for every 1.1% of the population (That is 90 Deputies), there will be three for each State (That is 72 Deputies) and there are three representing the indigenous population (That is 3). Get your calculator out 90+72+3=165, no?. Well, no, on August 31st. 2005 the Consejo Nacional Electoral approved two new Deputies for a total of 167, arguing that “a great number of inhabitants have insufficient representation

Why not 389, or 1,467, or 25,677? Hell, if we are going to violate the Constitution and they want representation let’s give it to them, after all the law and the Constitution are just nuisances…

--Our countries drug enforcement (in)capabilities: When the Venezuelan Government broke its collaboration with the US's DEA, it argued that it had its own capability to fight drug trafficking. Five days later they hailed the capture of 540 kilos of heroin, the largest such stash in the country’s history, as well as the arrest of the six members of the drug cartel sending it abroad. Well, what we were not told is that a week later the heroin was determined to be Aloe paste, which is what the “cartel” kept saying it was. Some capability!

--How to make service worse, without really trying: The number of ATM’s per client ithat banks have in Venezuela, s much lower ithan in Europe or the US for a simple reason: The ATM’s are all imported and the average amount accounts have in Venezuela is about a quarter of what they have in the US. Well, the Venezuelan National Assembly is considering a credit card Bill which among other pearls would require each ATM to have a camera and get this, a fingerprinting grabbing machine to prevent fraud! They haven’t asked how much it would cost or if it makes sense, they just thought they were being very creative. And they were, the banks say that if the law is approved as proposed, they will have to reduce the number of ATM’s significantly. Guess who gets screwed?

--Chavez on Katrina: It is truly cynical for Chavez to begin accusing the US Government of not being prepared for Katrina, five years after the Vargas tragedy, in which Chavez was not only not prepared, but was involved in getting the vote out and not the disaster, Vargas is still as unprepared as ever. Last February the tragedy almost repeated itself because all of the money spent was simply squandered, but the weather limited the scope of a new tragedy. Chavez should be as ashamed of Vargas as Bush of the failure to help the Katrina victims. Chavez should just shut up; he has no moral authority to speak on the case.

--Two on corruption and Government deposits: Yesterday both pro and anti Government media had articles on what I wrote the other day of corruption in the banking system. Eliazar Diaz Rangel, the pro-Chávez Editor of Ultimas Noticias (by subscription) gave the Government hell for so much money being out there in the banks and not where it should be: spent in programs for the people. Diaz Rangel asks why these deposits are invested in certificates of deposit where the funds are frozen for months. Luis Penzini, who is not pro-Chávez, is less direct (fear?), he calls for the President to issue a decree much like the much maligned Carlos Andres Perez issued forbidding public deposits in private banks. Penzini’s goal? To have the money use in the construction of homes. Penzini challenges Chavez when he says: “if you don’t issue it (the decree) you become an accomplice of the corruption”. You read about the size of that corruption here first, about time others spoke up. I remind you that my estimate is low, my numbers only included official deposits in the commercial banking system, as registered in their balance sheets, it does not include “inversions cedidas” (transferred investments) by which banks transfer the rights of an investment in a Government bond to the institution with an agreement to buy it back at a future date. These should be as much as 50% if not more than my estimates in the article and they do not appear in the balance sheet of banks.
8:15:32 PM    comment []



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