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.
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5/1/2007; 12:23:26 AM

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Saturday, April 28, 2007



When I first read the paper by Corrales and Penfold, which I posted yesterday and which appeared in the Journal of Democracy, 18, 99 (2007), I thought I would highlight a few paragraphs in a post and leave it at that. But then I realized that there was little, if any, material that should not be there and the piece should be read as a whole. It not only provides an excellent reference to most of the political events of the last eight years, but it does so in very clear fashion, without wasting time on the details as much of what is said can be readily be found in many places, including this and other English speaking blogs. Perhaps the only point not mentioned that should have been in the paper is the bridge between the Constituent Assembly and the new Constitutional order which was the infamous “Congresillo” which without any legal or Constitutional basis, ran the country for months and appointed many of the so called “independent” powers that we still have today.

But there are a few points that need to be emphasized that are brought up in the paper that I think are relevant to both newcomers to Venezuela’s Chavista history, as well as those that have followed it from the beginning, because we either sometimes have a short memory, or because they reveal  the levels of improvisation and and how for Chavismo politics is the goal in itself :

---The paper correctly reminds us of one of the most surprising aspects of Chavismo for its first four or five years: Its inattention to social programs. Chávez not only cancelled most of the social programs his Government inherited, but the only new effort created up to 2003 was the Bolivar 2000 program, an infrastructure program led by the military which was mired in corruption and left very few tangible accomplishments. It was only the low popularity enjoyed by the President that led to the “Misiones” in late 2003.

This is important not only as a historical fact, but also as a reminder that Chavismo has spent eight years improvising and changing directions. Even today, XXIst. Century Socialism is an ill defined concept and many of the “battles” of the last two years, represent exactly the opposite of what Chavez was pushing for in 2001-2002. A good case in point is the heavy crude partnerships of the Orinoco Oil Belt, where one can still remember Chavez telling French representatives that he wanted to expand these partnerships with them, only to be taking them away from them today by force. Moreover, Chavez offers tracts of the Orinoco Oil belt to other nations state oil companies, while at the same time it is kicking out the national oil companies of Norway and France.

---The importance of clientislism in Chavez’ strategy is another one of the salient points of the paper by Corrales and Penfold. The proof of this is in how the resources of the misiones have little to do with the needs of the people being helped. It is much more than improvisation in this case, it is simply political. Resources are not allocated by the social needs of the poor, but rather by the political needs of Chávez and his MVR party. This obviously becomes very inefficient in terms of the goals of fighting poverty or attacking health problems, which explains in part the lack of results despite the huge resources spent.

---The paper talks about something which I have never addressed in the blog, which is how Chavismo did away with campaign financing in the 2000 Constitution which became a trap for the opposition, as the mechanisms of intimidation have made it more difficult for other political parties to obtain funding, while the line of division between Chavez’ MVR and the Government is almost non-existent and state funds and institutions are used without any scruples in political propaganda for Chavez. This has created a hug asymmetry, in the words of Corrales and Penfold, which certainly is detrimental to democracy. When Government campaign financing was eliminated in 2000, I recall thinking it could not be good to do that, but at the time I was still not conscious of the lack of scruples of Chavismo and how this would be used in the future to nullify the opposition or outspend it, like in the December Presidential election by a huge factor, without any possibility of a recourse with any instance.

---Finally, there is corruption. There has always been corruption in Venezuela, but the levels and the obscenity we have seen in the last few years are simply hard to describe. The effect goes from the simple signs of newly found wealth, symbolized by the Hummers that Chavismo seems to enjoy driving, to the meteoric rise of relatives of the leaders of Chavismo as multimillionaires, owners of banks, milk producing companies, farms and the like. We are not talking people becoming wealthy; we are talking about people who now own hundred million dollar enterprises, where no wealth at all existed in 1998 when Chavez came to power. And then, of course, are the friends of the revolution, those that have piggybacked on Chavismo, or quietly “opposed” Chavismo while becoming ten times wealthier than they were before. This corruption actually flows from the corruption at the political level: These people have had no qualms about enriching Government officials in order to enrich themselves and this symbiotic relation has turned those on both sides immensely rich. In eight short years, Chavismo has created a new oligarchy through corruption that easily outnumbers the old one in both wealth and the number of individuals who are now multimillionaires in US dollars. It is so blatant, that he new oligarchy owns jets, where the old one had propeller planes, and they can safely land in the La Carlota airport of Caracas, where Chavez decreed three years ago that only helicopters could land. Those not as well connected, use Aeropuerto Caracas, where jet planes have gone in these short eight years from being 10% of the plane population  to roughly 40%. Of course, the difference in their prices is at least factor of ten.

All, in the name of the revolution!


3:13:46 PM    comment []



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