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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1/1/2009; 6:55:42 PM

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Tuesday, December 02, 2008


A concerned Hugo Chavez wants to expedite a referendum, as continued weakness in oil prices is likely to decrease his popularity fast in the upcoming months. If PDVSA is still selling oil for 90 day payment as had been the case in the past, Venezuela has yet to feel the brunt of the drop in oil prices and the largest drop will be felt early in 2009. Thus, Hugo is in a rush. If it looks iffy today that the people would approve a referendum to allow him to rule forever, as time goes by it will be more and more unlikely as the economy is likely to contract in 2009.

But even if all of the pressure is brought by Chavez onto the system to rush the process through to an early vote, it may not be as simple as he wants.

While Chavez has said that he wants this to be an amendment to the Constitution, this in itself is questionable and even if the Supreme Curt agrees with him, a ruling may take some time and the question of changing the maximum number of presidential terms from limited to two, to unlimited, seems more than just a simple cosmetic change as the autocrat wants everyone to believe.

At this time, Chavez seems to have chosen amendment over reform, simply because the Constitution says that the same reform may not be proposed twice. Of course, lawyers could argue that why wasn’t this presented as an amendment in 2007, as this was the crux of Chavez’ proposal last year.

In fact, I personally thought that the argument that “the people” could bring up the same question was fuzzier than what he wants to do now, even if still illegal under the Bolivarian Constitution.

But using the path of “the people” may be what Chavez wants to avoid altogether. Any such process would require that 15% of eligible voters sign a petition previously approved by the Electoral Board, a process that is not only cumbersome, but may be the subject of quiet tactics by the opposition which may delay it if the same rules as in the recall process of 2003-2004 are used.

We would be surprised if the CNE would even approve anything this year, suggesting we may not see a vote until March or April at the earliest.

But maybe Chavez should pay more attention to the numbers from Nov. 27th. Abstention was surprisingly low for a regional election, but it was likely to be the result in part of the high level of polarization at the local and regional level. In fact, last year’s referendum did not seem to arouse the same interest from Chavista voters. Thus, any lower participation, combined with less support for an eternal Chavez from his regional collaborators, is likely to lead to a ratification of last year’s referendum and more wasted months for Hugo Chavez.

Because in the end, the people in the poor urban areas were saying simply that they want their problems solved and they are tired of confrontation, crime and politics. Chavismo gave away 35,000 kitchen appliances in Petare and despite this did not manage to come even close in the vote. And Chavez’ handpicked buddies in Petare, Miranda, Carabobo, Alcaldia Mayor and Tachira, ended up losing, while in some cases the deserving candidates could have done much better than the buddies.

Which shows that these days, Chavez has very few advisors trying to tell him things like they are and suggesting alternative strategies which may work better than his own ideas.

But in the end, it will be the "people" that will tell Hugo to go away, fed up by waste, corruption and negligence.

What will Hugo do then? Select a succesor (His daughter?) or simply forget the democratic principles he has never believed in?=
11:48:52 PM    comment []



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