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:
9/1/2008; 8:32:55 PM

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Wednesday, August 13, 2008


In the last few days, El Universal has had a series of articles beginning with this one, on the abuses by high Chavista officials of the system which gives and finances homes to Venezuelans. The reporter cleverly used the website of the Ministry of Housing to discover that a number of high Government officials of Chavismo have benefitted from the Government’s housing program. Essentially he used the ID numbers of high Government officials to see which benefits they may have received and where. In fact, the reporter found out that some of them like multiple-Minister Eliezer Otaiaza benefitted beyond what the law allows, receiving the housing benefit more than the one time allowed by law.

Otaiaza’s case is the most emblematic; as he was given a mortgage two months after he purchased a fairly fancy home from the Government. A similar case occurred with the Minster of Feeding who benefited from a mortgage in 2000 and now received a townhouse in the same complex as Otaiza in the Tazon entrance to Caracas. Other high ranking military and former Ministers have also benefited from the Government’s largesse.

As usual, those that benefited seem to find nothing wrong with it, with one Minister saying that he is entitled to it, while Otayza says that the mortgage was not for a residential property, but for “an apartment where I have a library and a sort of office where I prepare talks and conferences”

Wow! In a country with a two million home shortage Mr. Otayza clearly shows and displays his revolutionary spirit and sensibility as well as his concern for the poor.

Which is nothing new, as Mr. Otayza jumped from one Government position to the other, building himself a luxurious gym next to his office at each new position  in a clear show of his absolute disregard for ethics or care for the people of Venezuela.

But what the reporter has not noted in his articles is the fact that it was absurd for the Government to be involved in the building if this housing complex in the entrance to Caracas. The complex is actually a fairly luxurious complex of apartments and townhouses named “Bosque Valle” which had no place in the priorities of the Government’s housing projects.

Because it makes no sense for the Government to be subsiding, financing and building these homes for the benefit of its high officials, while millions of Venezuelans live in shacks due to the incompetence and inefficiency of the Chavez administration.

Because while the Government twists, distorts and fakes poverty and literacy numbers, there is no place to hide when it comes to the dismal record of the Chavez Government in building and providing housing for the people of Venezuela. The numbers released by the Chavez Government numerically prove the abysmal results of his administration: Despite the oil windfall, the Chavez Government in its BEST year, has not been able to build as many housing units as the Caldera Government in its WORST year. (And that Government was terrible!)

And despite Chavez' pressure, promises and dozens of Ministers of Housing, the Chavez administration has been unable to build 100,000 units in any of its ten years in power (almost eleven now!), something that Caldera almost did in 1997 and much-maligned Carlos Andres Perez practically achieved in 1992. In fact, Chavez has never even reached the 50,000-unit level in any year, the average during the “terrible” years of the IVth. Republic, when oil prices barely touched US$ 15 per barrel.

But of course today we get a new promise form the former Minister of Culture Francisco Sesto, now Minister of Housing. that in eight years he will solve the country’s housing problem by building 200,000 units a year.

Sesto is actually an architect who has never cared about the subject of Housing or Urbanism, but after destroying the country’s culture now plans to use his incompetence and destructive powers on housing.

And we are supposed to believe him.

Because it was Chavez that said ten years ago that he would solve the country’s housing problem in the next ten years. But despite much higher oil prices that he ever dreamed of, during Chavez’ tenure the deficit in housing has actually increased and he has managed to destroy the capability of the Government building housing through mismanagement, political clientilism and inefficiency.

But there is efficiency by the robolution in building luxurious complexes like “Bosque Valle”, assigning the units to Chavez’ closest collaborators and even allowing them to move and expand the units even before they obtain the permit to occupy the units.

It is robolutionary housing at its best.


11:27:40 PM    comment []



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