Tuesday, February 3, 2015

Diosdado Cabello's head of security defects to the U.S. and accuses him of narcotrafficking

http://www.abc.es/internacional/20150127/abci-venezuela-cabello-eeuu-201501262129.html
By Emili J. Blasco
ABC.es
January 27, 2015 
With the arrival yesterday in Washington, DC, of protected witness, [Venezuelan Navy] Captain Leamsy Salazar, who until December was the head of security for Diosdado Cabello, a U.S. federal prosecutor has accelerated the preparation of a formal indictment against the number two in the Venezuelan regime. 
Salazar is the highest-ranking military officer to break ranks with chavismo and make formal accusations in the United States against senior government officials for their involvement in narcotrafficking. 
For almost 10 years, Salazar served as chief of security and as personal assistant to Hugo Chávez. After Chávez's death, Salazar went on to work for Cabello as his chief of security. 
Cartel of the Suns
According to sources close to the investigation, opened by the U.S. Attorney for the Southern District of New York, Salazar claims that [Cabello], the president of the National Assembly, is the head of the Cártel de los Soles (Cartel of the Suns) and therefore the leader of the narcostate that Venezuela became under Chávez. 
The Cartel of the Suns, primarily composed of members of the military (its name comes from the insignia worn on the uniform of Venezuelan generals), has a drug trafficking monopoly in Venezuela. The drugs are produced by the Colombian FARC [Fuerzas Revolucionarias de Colombia guerrillas] and taken to their destinations in the U.S. and Europe by Mexican cartels. Recent international figures indicate that Venezuela ships five tons of narcotics on a weekly basis. Ninety percent of the drugs produced by Colombia transits Venezuela. 
As an aide who constantly accompanied Cabello, Salazar witnessed events and conversations that incriminate the National Assembly president. Specifically, he saw Cabello giving direct orders for the departure of boats loaded with tons of cocaine; he has also provided photographs of places where mountains of dollars (sic) from narcotrafficking are stored, according to sources close to the investigation conducted by the Drug Enforcement Administration (DEA). 
On December 11, 2014, a shipment loaded with $10 million in cash was detained at Puerto Cabello, which is Venezuela's most important seaport. The shipment came from the United States and it is speculated that it could be a payment for drugs. A mistake within the organization probably led to its discovery and confiscation. 
Days later, in his weekly television program, rather than fueling suspicions that the money was related to drugs, Diosdado Cabello specifically accused the political opposition of being the recipient of this money, although he failed to provide any evidence. 
Cabello, who served in the military, cultivated a leadership role among members of the Armed Forces; but given Salazar's testimony and his respected record of military service, Cabello's support in the barracks may be significantly reduced. A navy captain, comparable to the army rank of colonel, Salazar has not been involved in any criminal activities, a fact that reinforces the value of his testimony. 
In his revelations, Salazar also implicates the governor of Aragua state, Tarek el Aissami, who also has links with Islamic networks, and José David Cabello, brother of the National Assembly president, who for several years served as director of SENIAT [tax agency] and minister of industry. José David Cabello is allegedly responsible for the finances of the Cartel of the Suns. Salazar mentions that [the state-run oil company Petróleos de Venezuela] PDVSA is a money-laundering machine (sic). PDVSA's former president from 2004 to 2014, Rafael Ramirez, was appointed in December as Venezuela's ambassador before the U.N. Security Council. 
Salazar's testimony, according to the sources cited, has ratified many of the facts already provided by Eladio Aponte to the DEA. Aponte was chief of the Criminal Chamber of the Supreme Court of Venezuela; in 2012, Aponte fled to the United States as a protected witness. 
The case against Diosdado Cabello is closely linked to the indictment announced last year by federal prosecutors in New York and Miami against the [retired] Venezuelan General Hugo Carvajal, who headed the Directorate of Military Intelligence for many years. 
The announcement came as Carvajal, alias "El Pollo," was arrested in July [2014] on the Dutch island of Aruba, neighboring Venezuela, at the request of U.S. authorities, who demanded his extradition. However, Aruba gave in to pressure from the government of [Nicolás] Maduro and allowed Carvajal to return to Venezuela. Carvajal was considered to be the head of the Cartel of the Suns. Salazar's information, on the other hand, places Carvajal under Cabello. 
Regarding the links with Havana, Salazar mentioned the regular use of PDVSA aircraft to transport drugs. A son of Chávez's and a son of former Cuban ambassador in Caracas, Germán Sánchez Otero, organized these shipments. Other Cuban officials are mentioned as part of the scheme. The final destination of these shipments was the United States. 
The sources related with this investigation speculate that Sánchez Otero, closely associated with Chávez, was removed from the post of ambassador following the discovery of a briefcase on one of these flights, which proved embarrassing for the Castro regime. The ambassador's son was arrested on one occasion when we traveled alone, while Chávez's son underwent treatment for substance abuse.

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The New York Times Editorial: Mr. Maduro in His Labyrinth.

Opinion Pages | EDITORIAL
Mr. Maduro in His Labyrinth
By THE EDITORIAL BOARD
JAN. 26, 2015
Framed portraits of the Venezuelan leader Hugo Chávez were propped up at various stops of President Nicolás Maduro’s recent whirlwind trip abroad, as the man at the helm of the nation with the world’s largest oil reserves begged for bailouts.
Posters of his predecessor also abounded when Mr. Maduro, a former bus driver, arrived home to a carnival-like welcome, as he drove the lead coach of a convoy that snaked through crowds of supporters.
Last week, in a speech before lawmakers, Mr. Maduro, whose approval rating has slipped to 22 percent as the Venezuelan economy teeters on the brink of collapse, again invoked his mentor in predicting a landslide victory in upcoming parliamentary elections. “I have no doubt that Chávez’s nation will deliver a great victory in the memory of Hugo Chávez in elections that are being held this year,” he said.
Since he was voted into office in April 2013 by a minuscule margin after Mr. Chávez’s death, Mr. Maduro has leaned heavily on the legacy of his predecessor, a populist who governed poorly but had magnetic charisma and shrewd political instincts. Woefully lacking on both fronts, Mr. Maduro has become increasingly erratic and despotic in a quest for political survival that seems more daunting by the day. Healthy oil export revenue allowed Mr. Chávez to build a robust network of patronage and create generous welfare programs during his 14 years in power. Those are becoming increasingly paltry on Mr. Maduro’s watch.
The tumbling price of oil, which accounts for 95 percent of Venezuela’s export earnings, has nearly destroyed an economy that has been managed dismally for years. Inflation rose to 64 percent last year. On Wednesday, the International Monetary Fund predicted that Venezuela’s economy would contract 7 percent in 2015, which could force Mr. Maduro’s government to default on its loans or significantly curtail the subsidized oil his country provides to allies in the Caribbean, including Cuba.
Mr. Maduro has been vague about the type of painful economic measures his government has been willing to embrace, yet he bafflingly has promised to expand social programs and raise salaries. Far from acknowledging responsibility for the crisis, he and his loyalists have blamed the revenue shortfalls on political opponents they accuse of enabling an international conspiracy.
They have jailed one of the most prominent figures in the opposition, Leopoldo López, since last February on trumped up charges of stoking violent protests a year ago. During Mr. López’s Kafkaesque trial, which is still in process, prosecutors have argued that he instigated bloodshed through subliminal messages.
Last month, the authorities in Venezuela charged another opposition leader, María Corina Machado, with plotting to assassinate Mr. Maduro — a ludicrous, unfounded allegation against another inspiring challenger.
The crackdown on the opposition, unobstructed by a weak and compromised press, appears to be an effort to divert attention from Venezuelans’ deteriorating quality of life. Security forces have been deployed to maintain order outside supermarkets, where people line up for hours to scrounge whatever is left on depleted shelves.
On a recent afternoon, a Venezuelan woman who had been waiting in line since 4 a.m. showed a television journalist from Al Jazeera English her forearm, where someone had written the number 413 with a black marker to establish her place in line. “Now we are like cattle,” the woman lamented. “This must end.”
Hours later, Mr. Maduro’s government responded with its standard effort to find a scapegoat for the national calamity. The head of the National Assembly, Diosdado Cabello, in a televised address, called the journalist, Mónica Villamizar, an American spy.

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Oil Cash Waning, Venezuelan shelves lie bare - New York Times

JAN. 29, 2015
CARACAS, Venezuela — Mary Noriega heard there would be chicken. She hated being herded “like cattle,” she said, standing for hours in a line of more than 1,500 people hoping to buy food, as soldiers with side arms checked identification cards to make sure no one tried to buy basic items more than once or twice a week.
But Ms. Noriega, a laboratory assistant with three children, said she had no choice, ticking off the inventory in her depleted refrigerator: coffee and corn flour. Things had gotten so bad, she said, that she had begun bartering with neighbors to put food on the table.
“We always knew that this year would start badly, but I think this is super bad,” Ms. Noriega said.
Traffic in Caracas, where inexpensive fuel keeps old gas guzzlers on the road.Venezuela May Meet New Reality, and New Price, at the PumpJAN. 20, 2014
Venezuelans have put up with shortages and long lines for years. But as the price of oil, the country’s main export, has plunged, the situation has grown so dire that the government has sent troops to patrol huge lines snaking for blocks. Some states have barred people from waiting outside stores overnight, and government officials are posted near entrances, ready to arrest shoppers who cheat the rationing system.
Because Venezuela is so dependent on oil sales to buy imports of food, medicine and many other basics, the drop in oil prices means that there is even less hard currency to buy what the country needs.
Even before oil prices tumbled, Venezuela was in the throes of a deep recession, with one of the world’s highest inflation rates and chronic shortages of basic items.
One of the nation’s most prestigious public hospitals shut down its heart surgery unit for weeks because of shortages of medical supplies. Some drugs have been out of stock for months, and at least one clinic performed heart operations only by smuggling in a vital drug from the United States. Diapers are so coveted that some shoppers carry the birth certificates of their children in case stores demand them.
Now economists predict that shortages will get even more acute and inflation, already 64 percent, will climb further. The price of Venezuelan oil dropped this month to $38 a barrel, down from $96 in September.
“Things are going to be even worse because oil keeps Venezuela going,” said Luis Castro, 42, a nurse, standing in line with hundreds of others at a grocery store. He had arrived with his wife and 6-year-old son at 6 a.m., but by 11:30 a.m., they had still not entered. “We’re getting used to standing on line,” he said, “and when you get used to something, they give you only crumbs.”
The shortages and inflation present another round of political challenges for President Nicolás Maduro, who has vowed to continue the Socialist-inspired revolution begun by his predecessor, the charismatic leftist Hugo Chávez.
“I’ve always been a Chavista,” said Ms. Noriega, using a term for a loyal Chávez supporter. But “the other day, I found a Chávez T-shirt I’d kept, and I threw it on the ground and stamped on it, and then I used it to clean the floor. I was so angry. I don’t know if this is his fault or not, but he died and left us here, and things have been going from bad to worse.”
Venezuela has the world’s largest estimated petroleum reserves, and when oil prices were high, oil exports made up more than 95 percent of its hard currency income. Mr. Chávez used the oil riches to fund social spending, like increased pensions and subsidized grocery stores. Now that income has been slashed.
“If things are so bad now, I really cannot imagine how they will be in February or March” when some of the lowest oil prices “materialize in terms of cash flow,” said Francisco J. Monaldi, a professor of energy policy at the Harvard Kennedy School of Government.
Mr. Maduro spent 14 straight days in January traveling the globe in an effort to court investment and persuade other oil-producing nations to cut production and push the price back up.
“We have serious economic difficulties regarding the country’s revenue,” Mr. Maduro said to the legislature during his annual address, which had to be pushed back because of the trip. “But God will always be with us. God will provide. And we will get, and we have gotten, the resources to maintain the country’s rhythm.”
After months of toying with the politically taboo idea of raising the price of gasoline sold at pumps here, the cheapest in the world, he said that the time had finally come to do so.
And he reiterated his position that the country’s economic ills are the fault of an economic war being waged against his government by right-wing enemies.
Many economists argue that government policies are a big part of the problem, including a highly overvalued currency, price controls that dissuade manufacturers and farmers, and government restrictions on access to dollars that have led to a steep drop in imports.
Some investors fear Venezuela will default on billions of dollars in bonds, but Mr. Maduro has said the country will pay its debts.
Typically, in an election year like this one, when voters will choose a new legislature, the government showers supporters with goods, like refrigerators and washing machines, or other benefits, like free housing. But now there may not be enough foreign currency to import appliances and construction materials.
In interviews, shoppers did not say they were going hungry. Rather, many said the economic crisis meant eating canned sardines instead of chicken, or boiled food instead of fried because vegetable oil is so hard to get. Many said they ate meat less frequently because it is out of stock or too expensive. Fresh fish can be harder to find, in part, fishermen said, because they find it more profitable to use their boats to sell subsidized Venezuelan diesel on the black market in a high-seas rendezvous instead of hauling in a catch.
But social media in Venezuela is full of urgent pleas from patients trying to find prescription medicine.
Dr. Gastón Silva, the head of cardiovascular surgery at the University Hospital of Caracas, said that because of medical shortages, only about 100 heart operations were performed there last year, down from 300 or more in previous years.
Some patients who had been hospitalized awaiting surgery for a month or more were sent home in November because there were not enough supplies, and the operating rooms remained shut for more than eight weeks, Dr. Silva said, despite a list of hundreds of people awaiting heart operations.
He said the shortages stemmed from the government’s foreign exchange controls, which have kept medical importers from getting access to the money they need to make purchases abroad. 
Now with the low price of oil further restricting the government’s supply of hard currency, he worried the crisis would get worse.“We are getting to a breaking point,” Dr. Silva said. “If one thing is lacking, O.K. If there are no automobile parts, we’ll see. Food, that’s problematic. But health care, that’s more problematic. Where will it end?”
Mr. Silva said that a private clinic where he also works had sharply scaled back heart surgeries in the last four months of 2014 because of limited supplies.
A heart surgeon at another private clinic said that a colleague had smuggled an essential drug from the United States to keep the operating room functioning.
Ana Guanipa, 75, a retired government office worker, said that she had searched numerous pharmacies for her hypertension medicine.
“I’ve been looking all month, and I can’t find it,” she said, adding that a neighbor who takes the same drug gave her some. “I take it one day on and one day off so that it will last longer.”
On a recent morning, hundreds of people stood in line outside a big-box store, similar to Costco. Inside, many shelves were stripped clean. The large appliance and electronics section was empty. One aisle displayed hundreds of boxes of a single brand of toothpaste. There was no fresh meat; a cooler was filled with frozen pigs feet.
Most people came to buy only three items sold at government-mandated prices: laundry detergent, vegetable oil and corn flour.
Most people came to buy only three items sold at government-mandated prices: laundry detergent, vegetable oil and corn flour.
Every purchase was entered into a database, ensuring that shoppers did not try to buy the same regulated staples at the chain for at least seven days.
Soldiers patrolled the line outside, police officers were stationed inside and government officials checked identification cards, looking for fake ones that could be used to cheat the rationing system — or for immigrants with expired visas. An official from the immigration and identification service said that offenders would be arrested.
“This is pathetic,” said Yenerly Niño, 18, adding that she had waited more than five hours to buy the three subsidized products because she could not afford to buy them at the higher prices charged by street vendors.
“You do what you have to,” she said. “If you don’t do it, you don’t eat.”

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Friday, January 31, 2014

Only in Venezuela

It is the same country I growth up? It doesn't seems like any more :-(
Caracas, La Trinidad...



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Tuesday, February 15, 2011

Venezuela: a minefield

Venezuela: a minefield

[02-13-11] The New Year has found Venezuela rife with problems. Complaints, exasperation and overall inconformity with how things stand have become compounded by unsatisfied expectations. Not a single area in the life of the country has been spared. Productivity is at its lowest and unemployment at its highest. The economy as a whole, but in particular the agriculture and industry sectors, as well as social services such as health and education, judicial services and personal safety, housing and transportation, are all in crisis due to current government policies.

Workers and Trade Unions, including those sympathetic to the government, are demanding respect for unfulfilled labor agreements. The oil industry, unable to cope with the government’s many demands, has resorted to increase its debt and to future sales contracts at prices well below the market. Electricity is rationed. During the dry season there is no water, and during the rainy season, when there is water in excess, there is no way to mitigate its damages. The hailed increased gas production never materialized and Venezuela has even had to import. Non-traditional exports have declined alarmingly and dependence on imports increased exponentially. In 2010, for the second time in a row, Venezuela’s BOP closes with a deficit above US$ 10 billion.

With risky brinkmanship tactics, the ‘revolution’ seems to be purposefully creating an atmosphere of anarchy in selected sectors of economic and social development. Not even culture has been spared. In a situation reminiscent of a "Maoist cultural revolution" of sorts, a revolutionary dogma has been imposed on the cultural establishment. Museums are accused of being "elitist spaces" and the national heritage they safeguarded left unattended, dispersed, or lost. In early 2011, the internationally-recognized ‘Jacobo Borges’ and ‘Alejandro Otero’ Museums were turned into shelters for the homeless since the homeless and displaced, in the words of the Minister of Culture, are in and by themselves "a work of art".

The government’s total incompetence during the twelve years it has held absolute power is clearly revealed by the inexplicable and unacceptable housing deficit, which now serves the President for his absolutely unconstitutional seizures of private property. After twelve years of smoke and mirrors, housing has now become the focus of the government’s concern, in a belated attempt to amend its negligence in this sector, as in many others. Housing developments plans in urban and rural areas were abandoned as a whole. The systematic, unjustifiable and at times violent expropriation of productive land, homes and businesses has left Venezuela paralyzed and bewildered.

Although the opposition’s current participation in the National Assembly has brought some fresh air into politics, efforts are however made by the government to restrict the exercise of the parliament’s oversight responsibilities and keep the "circus" going on. Universities has been systematically sabotaged by budgets cuts, while the appointment of a new Minister of Higher Education – who although a career educator is totally committed to the leader of the revolution’s designs like the rest of her predecessors - intends to mitigate the government’s previous mishaps in trying to reduce or eliminate the universities independence.

Time bombs are ticking all over Venezuela and the outlook for 2011 is not flattering. A forecasted 38% rate of inflation, among the highest in the world, will seriously further reduce Venezuelans’ purchasing power. The basic “Food Basket” is officially estimated at Bs. 3,600, while the “Basic Basket”, which includes other than food basics, at Bs 8,000, with annual increases of 30% and 43%. Unemployment is expected to be greater than 14%.

Over and above the unpromising omens that the current government's mismanagement announces for this year, the lack of civility in the country and among its citizens is particularly disturbing. Anxiety, restlessness and unease among Venezuelans have become pervasive. Violence, linked to un-satisfied daily basic needs, reduced purchasing power and unemployment, creates an implosive environment. Fortunately, polls show that Venezuelans’ most important wish is still to enjoy peace and unity through tolerance and respect.

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The Bolivarian Brain Drain


The Bolivarian Brain Drain - Newsweek - 06/30/2009

Hugo Chavez and his allies are tightening their grips, forcing the intelligentsia to leave in droves.

For just a moment, in the early days of his presidency, Venezuela's Hugo Chávez looked almost like a healer. "Let's ask for God's help to accept our differences and come together in dialogue," he famously implored his conflicted compatriots in 2002. Instead what Venezuelans got was an avenger. The government is seizing privately owned companies and farms. Labor unions have been crushed. Political opponents are routinely harassed or else prosecuted by chavista controlled courts. And now after a decade of the so-called Bolivarian revolution, tens of thousands of disillusioned Venezuelan professionals have had enough. Artists, lawyers, physicians, managers and engineers are leaving the country by droves, while those already abroad are scrapping plans to return. The wealthiest among them are buying condos in Miami and Panama City. Cashiered oil engineers are working rigs in the North Sea and sifting the tar sands of western Canada. Those of European descent have applied for passports from their native lands. Academic scholarships are lifeboats. An estimated million Venezuelans have moved abroad in the decade since Chávez took power.

This exodus is splitting families and interrupting careers, but also sabotaging the country's future. Just as nations across the developing world are managing to lure their scattered expatriates back home to fuel recovering economies and join vibrant democracies, the outrush of Venezuelan brainpower is gutting universities and thinktanks, crippling industries and hastening the economic disarray that threatens to destroy one of the richest countries in the hemisphere. Forget minerals, oil and natural gas; the biggest export of the Bolivarian revolution is talent.

The Bolivarian diaspora is a reversal of fortune on a massive scale. Through most of the last century, Venezuela was a haven for immigrants fleeing Old World repression and intolerance. Refugees from totalitarianism and religious intolerance in Spain, Italy and Germany and Eastern Europe flocked to this country nestled between the Caribbean and the Andean cordillera and helped forge one of the most vibrant societies in the New World. Like most developing nations, the country was split between the burgeoning poor and an encastled elite. But in the 1970s and 1980s, Venezuelans were the envy of Latin America. Oil rich, educated, with a solid democratic tradition, they lived a tier above the chronically unstable societies in the region. "We had a relatively rich country that offered opportunities, with no insecurity. No one thought about leaving," says Diego Arria, a former Venezuelan ambassador to the United Nations, who lives in New York. "Now we have rampant crime, a repressive political system that borders on apartheid, and reverse migration. Venezuela is now a country of emigrants."

It's much the same all over the axis of Hugo, the constellation of 10 states in the Andes, Central America and the Caribbean that have followed Chávez in lockstep in the march towards so called 21st century socialism. In the name of power, justice and plenty for the downtrodden the leaders of the "Bolivarian alternative" in Bolivia, Ecuador, Nicaragua are rewriting their constitutions, intimidating the media and stoking class and ethnic conflicts that occasionally explode in hate and violence. (The military coup on June 28 that ousted Honduran president Manuela Zelaya, a key Chávez ally, is the latest example of the blowback from the Bolivarian revolution.) The middle classes and the young are taking the brunt. A study just released by the Latin America Economic System, an intergovernmental economic research institute, reports that the outflow of highly skilled labor, aged 25 or older, from Venezeula to OECD countries rose 216 percent between 1990 and 2007. A recent study by Vanderbilt University in Nashville showed more than one in three Bolivians under 30 had plans to emigrate, up from 12 percent a decade ago, while 47 percent of 18-year-olds said they planned to leave. Many established professionals have already made up their minds. "I ask myself if I'm not patriotic enough," says Giovanna Rivero, an acclaimed Bolivian novelist who is leaving for a teaching job at the University of Florida and has no plans to come back. "But Bolivia is coming apart. There are people who´ve known each other all their lives who don't talk to one another anymore."

In Venezuela, Chavez has pushed hard against anyone who refuses to accept his party line. Daniel Benaim was one of Venezuela's top independent television producers, turning out prime time entertainment and game shows for national channels with Canal Uno, a leading production house. "We had 160 employees and a 24/7 operation," he says. But after the failed coup against Chávez in 2002, the government cracked down on independent media and programming budgets dried up. In a month, Canal Uno was down to four employees and heading for bankruptcy. Benaim redirected his business to serve the international advertising market and raked in prestigious international awards, including multiple Latin Emmys. But opportunities for non-chavistas in Venezuela had dried up. One by one, he watched the people he trained over the years leave the country. "I used to give angry speeches about the brain drain. Now I have to bite my tongue," says Benaim, who is also moving to the U.S. "We had the best minds in the business, and now there's nothing for them here."

One of Benaim´s associates was Gonzalo Bernal Ibarra. He, too, had soared up the career ladder in broadcast television and until recently ran a campus network that reached 100,000 students. Everything changed in late 2007 when Chávez lost a refrendum to rewrite the constitution and began to crack down on his media critics, including Bernal. Strangers in jackets with weighted pockets--dress code for Chávez´s military intelligence police--began to follow him day and night. Then congress was set to pass a bill obliging schools to teach 21st century socialism. "I didn't want my kid learning that crap," he says. Even shopping became a trial as spiking inflation and government price controls emptied the supermarkets of basic goods like milk, eggs and meat. One day in late 2008, he opened a bottle of whiskey and held a yard sale. "I got drunk and watched my life get carted away," he says. He now lives in the Washington, D.C. area, with his wife and six year old daughter, and is trying to adapt. "I was living in the most beautiful, wonderful, funny country in the world. Now a third of my friends are gone. In another ten years, Venezuela is going to be a crippled country."

No industry has been harder hit by the flight of talent than Venezuela's oil sector. A decade ago, Petroleos de Venezuela (PDVSA) ranked as one of the top five energy companies in the world. Everything changed under Chávez, who named a Marxist university professor with no experience in the industry to head the company. PDVSA's top staff immediately went on strike and paralyzed the country. Chávez responded by firing 22,000 people practically overnight, including the country's leading oil experts. As many as 4,000 of PDVSA's elite staff are now working overseas. "The company is a shambles," says Gustavo Coronel, a former member of the PDVSA board, who now works in the Washington D.C. as an oil consultant. Up until 2003, researchers at the company's Center for Technological research and Development generated 20 to 30 patents a year. Last year it produced none, even though its staff has doubled. PDVSA produced 3.2 million barrels of crude oil a day when Chávez took control. Now it pumps 2.4 milion, according to independent estimates.

The decline has spread across Venezuelan society, heightened by cronyism, corruption and censorship. In May, on the pretext that scientists were pursuing "obscure" research projects such as "whether there is life on Venus," Chávez began to slash budgets at the university science centers, where the country's cutting edge public health research was carried out. Instead he poured petrodollars into official "misiones cientificas" (scientific missions), where the purse strings are controlled by Chávez allies. Now the country's most respected research institutes are falling behind. Earlier this year, Jaime Requena. a Cambridge University trained biologist at the Institute of Advanced Studies, was forced into retirement and stripped of his pension after publishing a paper charging that scientific research in Venezuela was "at a 30-year low." The number of papers published by Venezuelans in international scientific journals fell from 958 to 831, a 15 percent drop in just the last three years. At aged 62, with an aging mother, Requena has few options. "It's not easy to get another job at my age. I would leave Venezuela if I could. My friends and colleagues all have."

An estimated 9,000 Venezuelan scientists are currently living in the U.S. - compared to 6,000 employed in Venezuela. One of the victims is an internationally acclaimed life sciences expert, who quit his job as chief of a major research laboratory in Caracas to try his luck in the U.S. in 2002, but always nursed hopes of returning. "I sent the government a number of proposals and they never got back to me," he says asking not to be named for fear of reprisals against his relatives in Venezuela. "Now it's all about politics. If you are not with Chávez you will never get grants. You will be persecuted. This is a war on merit." Venezuelan medical science, he said, is groping in the dark. "The last epidemiological report Venezuela published was in 2005," he says. "We don't even know what diseases we have and whether they are increasing or decreasing. This is the Cuban model, of keeping people in the dark."

The Bolivarian diaspora seems to be getting worse. Though census data is patchy, Latin American analysts say that outmigration from Venezuela, Bolivia and Ecuador has created sizeable enclaves in the U.S., Spain, Colombia and Central America. Panama City glistens with new buildings built by moneyed Venezuelan expatriates, who number some 15,000, up from a few thousand at the beginning of the decade. So many Venezuelans have flocked to Weston, a suburb of Fort Lauderdale, locals call it Westonzuela. There is hardly a middle class family in Venezuela without a son or daughter abroad," says Fernando Rodríguez, a columnist for the anti Chávez newspaper Tal Cual. In fact, far more people from the Bolivarian countries might be emigrating if it weren't for the global recession and rising hostility to outsiders, Venezuelan emigrants do not qualify as political refugees and enjoy no special advantage in the fierce competition for the 400,000 H1B work visas issued yearly by the U.S. for highly skilled migrants, three quarters of which go to Indians, who have an edge because they can speak English. "One reason we are not seeing more dislocation from these countries is that many people have no place to go," says Alejandro Portes, a sociologist who studies global migration at Princeton University.

Latin America has seen this before. Virtually the entire Cuban middle class fled to the U.S. after Fidel Castro's revolution, turning Miami into a business hub for Latin America while Havana moldered. The Cold War, stagflation, serial debt crises and massive unemployment drove the brain drain through the 1980s, Latin America's lost decade, especially in Chile, Colombia, Argentina, Peru and throughout Central America. By the early 2000s, some of the countries convulsed by dictatorship or guerrilla insurgency, such as Chile and Peru, had managed to reverse course, making their societies prosperous and safe. But other countries have struggled to bring their expatriates home. In the 1980s and 1990s, Colombia had become synonymous with cocaine, violent crime and guerrilla warfare, all of which drove some four million Colombians from their homes. Targeted by kidnappers and political thugs, tens of thousands of middle class professionals left the country. In 2002 Pres. Álvaro Uribe declared war on drugs and crime, and now onetime bandit cities like Cali, Medellin and Bogota are safer than ever and have even become models for the rest of crime-ridden Latin America. Yet the brain drain has not reversed. "Either the [emigrants] have found the American dream or they are not yet convinced that it's safe to return," says Jorge Rojas, of Codhes, a Colombian thinktank that tracks refugees. "It shows how difficult it can be to recover lost talent."

For the nations of the Bolivarian Revolution, this means some dark days are likely to be ahead. Even the wealthiest nations could ill afford to lose their best and brightest, and Venezuela, Bolivia, Ecuador and Nicaragua have all fallen in the World Economic Forum's competitiveness index. Fitch ratings recently demoted all three countries' debt to junk status, while the World Bank placed the Bolivarian trio of Bolivia, Ecuador and Venezuela in the bottom quarter of its ease of doing business, along with most of the African continent.

Though much has been made of how developing world migrants can mitigate underdevelopment by sending precious savings back home, remittances will not close the widening talent gap that is sapping societies of their ablest hands. "If a 20-something engineer or computer specialist leaves the country, who cares? But in ten years we'll be feeling the loss," says Rául Maestres, a human resources expert in Caracas, whose son and daughter recently left Venezuela -he to work at U.S. architecture firm, she to study advertising in Buenos Aires. "When you think about the opportunities we have lost, you could sit down and cry."

Still there may be a glimmer of revival. Ostracized at home and unwelcome abroad, expatriate communities are trying to turn distance into strength. Using the web, universities and the expatriate grapevine, foreign nationals from the populist countries are talking to each other and building ties with dissidents around the world. Back home opposition movements are making a stand, launching protest marches and candidates in a major city in each country--Guayaquil in Ecuador, Santa Cruz de la Sierra in Bolivia, Maracaibo in Venezuela. "We are putting together a web of exiles as a counterbalance to authoritarianism," says Coronel, who is tapping the diaspora for a gathering in Ecuador or Argentina in the next few months. "You could call it a kind of axis of freedom." That may sound optimistic given the stranglehold Chávez and his followers have on their countries. But given the growing numbers and brain power of Latin America's new dissidents, uniting their voices might just make a difference.
In Venezuela, Chavez has pushed hard against anyone who refuses to accept his party line. Daniel Benaim was one of Venezuela's top independent television producers, turning out prime time entertainment and game shows for national channels with Canal Uno, a leading production house. "We had 160 employees and a 24/7 operation," he says. But after the failed coup against Chávez in 2002, the government cracked down on independent media and programming budgets dried up. In a month, Canal Uno was down to four employees and heading for bankruptcy. Benaim redirected his business to serve the international advertising market and raked in prestigious international awards, including multiple Latin Emmys. But opportunities for non-chavistas in Venezuela had dried up. One by one, he watched the people he trained over the years leave the country. "I used to give angry speeches about the brain drain. Now I have to bite my tongue," says Benaim, who is also moving to the U.S. "We had the best minds in the business, and now there's nothing for them here."
One of Benaim´s associates was Gonzalo Bernal Ibarra. He, too, had soared up the career ladder in broadcast television and until recently ran a campus network that reached 100,000 students. Everything changed in late 2007 when Chávez lost a refrendum to rewrite the constitution and began to crack down on his media critics, including Bernal. Strangers in jackets with weighted pockets--dress code for Chávez´s military intelligence police--began to follow him day and night. Then congress was set to pass a bill obliging schools to teach 21st century socialism. "I didn't want my kid learning that crap," he says. Even shopping became a trial as spiking inflation and government price controls emptied the supermarkets of basic goods like milk, eggs and meat. One day in late 2008, he opened a bottle of whiskey and held a yard sale. "I got drunk and watched my life get carted away," he says. He now lives in the Washington, D.C. area, with his wife and six year old daughter, and is trying to adapt. "I was living in the most beautiful, wonderful, funny country in the world. Now a third of my friends are gone. In another ten years, Venezuela is going to be a crippled country."
No industry has been harder hit by the flight of talent than Venezuela's oil sector. A decade ago, Petroleos de Venezuela (PDVSA) ranked as one of the top five energy companies in the world. Everything changed under Chávez, who named a Marxist university professor with no experience in the industry to head the company. PDVSA's top staff immediately went on strike and paralyzed the country. Chávez responded by firing 22,000 people practically overnight, including the country's leading oil experts. As many as 4,000 of PDVSA's elite staff are now working overseas. "The company is a shambles," says Gustavo Coronel, a former member of the PDVSA board, who now works in the Washington D.C. as an oil consultant. Up until 2003, researchers at the company's Center for Technological research and Development generated 20 to 30 patents a year. Last year it produced none, even though its staff has doubled. PDVSA produced 3.2 million barrels of crude oil a day when Chávez took control. Now it pumps 2.4 milion, according to independent estimates.
The decline has spread across Venezuelan society, heightened by cronyism, corruption and censorship. In May, on the pretext that scientists were pursuing "obscure" research projects such as "whether there is life on Venus," Chávez began to slash budgets at the university science centers, where the country's cutting edge public health research was carried out. Instead he poured petrodollars into official "misiones cientificas" (scientific missions), where the purse strings are controlled by Chávez allies. Now the country's most respected research institutes are falling behind. Earlier this year, Jaime Requena. a Cambridge University trained biologist at the Institute of Advanced Studies, was forced into retirement and stripped of his pension after publishing a paper charging that scientific research in Venezuela was "at a 30-year low." The number of papers published by Venezuelans in international scientific journals fell from 958 to 831, a 15 percent drop in just the last three years. At aged 62, with an aging mother, Requena has few options. "It's not easy to get another job at my age. I would leave Venezuela if I could. My friends and colleagues all have."
An estimated 9,000 Venezuelan scientists are currently living in the U.S. - compared to 6,000 employed in Venezuela. One of the victims is an internationally acclaimed life sciences expert, who quit his job as chief of a major research laboratory in Caracas to try his luck in the U.S. in 2002, but always nursed hopes of returning. "I sent the government a number of proposals and they never got back to me," he says asking not to be named for fear of reprisals against his relatives in Venezuela. "Now it's all about politics. If you are not with Chávez you will never get grants. You will be persecuted. This is a war on merit." Venezuelan medical science, he said, is groping in the dark. "The last epidemiological report Venezuela published was in 2005," he says. "We don't even know what diseases we have and whether they are increasing or decreasing. This is the Cuban model, of keeping people in the dark."
The Bolivarian diaspora seems to be getting worse. Though census data is patchy, Latin American analysts say that outmigration from Venezuela, Bolivia and Ecuador has created sizeable enclaves in the U.S., Spain, Colombia and Central America. Panama City glistens with new buildings built by moneyed Venezuelan expatriates, who number some 15,000, up from a few thousand at the beginning of the decade. So many Venezuelans have flocked to Weston, a suburb of Fort Lauderdale, locals call it Westonzuela. There is hardly a middle class family in Venezuela without a son or daughter abroad," says Fernando Rodríguez, a columnist for the anti Chávez newspaper Tal Cual. In fact, far more people from the Bolivarian countries might be emigrating if it weren't for the global recession and rising hostility to outsiders, Venezuelan emigrants do not qualify as political refugees and enjoy no special advantage in the fierce competition for the 400,000 H1B work visas issued yearly by the U.S. for highly skilled migrants, three quarters of which go to Indians, who have an edge because they can speak English. "One reason we are not seeing more dislocation from these countries is that many people have no place to go," says Alejandro Portes, a sociologist who studies global migration at Princeton University.

For just a moment, in the early days of his presidency, Venezuela's Hugo Chávez looked almost like a healer. "Let's ask for God's help to accept our differences and come together in dialogue," he famously implored his conflicted compatriots in 2002. Instead what Venezuelans got was an avenger. The government is seizing privately owned companies and farms. Labor unions have been crushed. Political opponents are routinely harassed or else prosecuted by chavista controlled courts. And now after a decade of the so-called Bolivarian revolution, tens of thousands of disillusioned Venezuelan professionals have had enough. Artists, lawyers, physicians, managers and engineers are leaving the country by droves, while those already abroad are scrapping plans to return. The wealthiest among them are buying condos in Miami and Panama City. Cashiered oil engineers are working rigs in the North Sea and sifting the tar sands of western Canada. Those of European descent have applied for passports from their native lands. Academic scholarships are lifeboats. An estimated million Venezuelans have moved abroad in the decade since Chávez took power.
This exodus is splitting families and interrupting careers, but also sabotaging the country's future. Just as nations across the developing world are managing to lure their scattered expatriates back home to fuel recovering economies and join vibrant democracies, the outrush of Venezuelan brainpower is gutting universities and thinktanks, crippling industries and hastening the economic disarray that threatens to destroy one of the richest countries in the hemisphere. Forget minerals, oil and natural gas; the biggest export of the Bolivarian revolution is talent.
The Bolivarian diaspora is a reversal of fortune on a massive scale. Through most of the last century, Venezuela was a haven for immigrants fleeing Old World repression and intolerance. Refugees from totalitarianism and religious intolerance in Spain, Italy and Germany and Eastern Europe flocked to this country nestled between the Caribbean and the Andean cordillera and helped forge one of the most vibrant societies in the New World. Like most developing nations, the country was split between the burgeoning poor and an encastled elite. But in the 1970s and 1980s, Venezuelans were the envy of Latin America. Oil rich, educated, with a solid democratic tradition, they lived a tier above the chronically unstable societies in the region. "We had a relatively rich country that offered opportunities, with no insecurity. No one thought about leaving," says Diego Arria, a former Venezuelan ambassador to the United Nations, who lives in New York. "Now we have rampant crime, a repressive political system that borders on apartheid, and reverse migration. Venezuela is now a country of emigrants."

It's much the same all over the axis of Hugo, the constellation of 10 states in the Andes, Central America and the Caribbean that have followed Chávez in lockstep in the march towards so called 21st century socialism. In the name of power, justice and plenty for the downtrodden the leaders of the "Bolivarian alternative" in Bolivia, Ecuador, Nicaragua are rewriting their constitutions, intimidating the media and stoking class and ethnic conflicts that occasionally explode in hate and violence. (The military coup on June 28 that ousted Honduran president Manuela Zelaya, a key Chávez ally, is the latest example of the blowback from the Bolivarian revolution.) The middle classes and the young are taking the brunt. A study just released by the Latin America Economic System, an intergovernmental economic research institute, reports that the outflow of highly skilled labor, aged 25 or older, from Venezeula to OECD countries rose 216 percent between 1990 and 2007. A recent study by Vanderbilt University in Nashville showed more than one in three Bolivians under 30 had plans to emigrate, up from 12 percent a decade ago, while 47 percent of 18-year-olds said they planned to leave. Many established professionals have already made up their minds. "I ask myself if I'm not patriotic enough," says Giovanna Rivero, an acclaimed Bolivian novelist who is leaving for a teaching job at the University of Florida and has no plans to come back. "But Bolivia is coming apart. There are people who´ve known each other all their lives who don't talk to one another anymore."
In Venezuela, Chavez has pushed hard against anyone who refuses to accept his party line. Daniel Benaim was one of Venezuela's top independent television producers, turning out prime time entertainment and game shows for national channels with Canal Uno, a leading production house. "We had 160 employees and a 24/7 operation," he says. But after the failed coup against Chávez in 2002, the government cracked down on independent media and programming budgets dried up. In a month, Canal Uno was down to four employees and heading for bankruptcy. Benaim redirected his business to serve the international advertising market and raked in prestigious international awards, including multiple Latin Emmys. But opportunities for non-chavistas in Venezuela had dried up. One by one, he watched the people he trained over the years leave the country. "I used to give angry speeches about the brain drain. Now I have to bite my tongue," says Benaim, who is also moving to the U.S. "We had the best minds in the business, and now there's nothing for them here."
One of Benaim´s associates was Gonzalo Bernal Ibarra. He, too, had soared up the career ladder in broadcast television and until recently ran a campus network that reached 100,000 students. Everything changed in late 2007 when Chávez lost a refrendum to rewrite the constitution and began to crack down on his media critics, including Bernal. Strangers in jackets with weighted pockets--dress code for Chávez´s military intelligence police--began to follow him day and night. Then congress was set to pass a bill obliging schools to teach 21st century socialism. "I didn't want my kid learning that crap," he says. Even shopping became a trial as spiking inflation and government price controls emptied the supermarkets of basic goods like milk, eggs and meat. One day in late 2008, he opened a bottle of whiskey and held a yard sale. "I got drunk and watched my life get carted away," he says. He now lives in the Washington, D.C. area, with his wife and six year old daughter, and is trying to adapt. "I was living in the most beautiful, wonderful, funny country in the world. Now a third of my friends are gone. In another ten years, Venezuela is going to be a crippled country."
No industry has been harder hit by the flight of talent than Venezuela's oil sector. A decade ago, Petroleos de Venezuela (PDVSA) ranked as one of the top five energy companies in the world. Everything changed under Chávez, who named a Marxist university professor with no experience in the industry to head the company. PDVSA's top staff immediately went on strike and paralyzed the country. Chávez responded by firing 22,000 people practically overnight, including the country's leading oil experts. As many as 4,000 of PDVSA's elite staff are now working overseas. "The company is a shambles," says Gustavo Coronel, a former member of the PDVSA board, who now works in the Washington D.C. as an oil consultant. Up until 2003, researchers at the company's Center for Technological research and Development generated 20 to 30 patents a year. Last year it produced none, even though its staff has doubled. PDVSA produced 3.2 million barrels of crude oil a day when Chávez took control. Now it pumps 2.4 milion, according to independent estimates.
The decline has spread across Venezuelan society, heightened by cronyism, corruption and censorship. In May, on the pretext that scientists were pursuing "obscure" research projects such as "whether there is life on Venus," Chávez began to slash budgets at the university science centers, where the country's cutting edge public health research was carried out. Instead he poured petrodollars into official "misiones cientificas" (scientific missions), where the purse strings are controlled by Chávez allies. Now the country's most respected research institutes are falling behind. Earlier this year, Jaime Requena. a Cambridge University trained biologist at the Institute of Advanced Studies, was forced into retirement and stripped of his pension after publishing a paper charging that scientific research in Venezuela was "at a 30-year low." The number of papers published by Venezuelans in international scientific journals fell from 958 to 831, a 15 percent drop in just the last three years. At aged 62, with an aging mother, Requena has few options. "It's not easy to get another job at my age. I would leave Venezuela if I could. My friends and colleagues all have."
An estimated 9,000 Venezuelan scientists are currently living in the U.S. - compared to 6,000 employed in Venezuela. One of the victims is an internationally acclaimed life sciences expert, who quit his job as chief of a major research laboratory in Caracas to try his luck in the U.S. in 2002, but always nursed hopes of returning. "I sent the government a number of proposals and they never got back to me," he says asking not to be named for fear of reprisals against his relatives in Venezuela. "Now it's all about politics. If you are not with Chávez you will never get grants. You will be persecuted. This is a war on merit." Venezuelan medical science, he said, is groping in the dark. "The last epidemiological report Venezuela published was in 2005," he says. "We don't even know what diseases we have and whether they are increasing or decreasing. This is the Cuban model, of keeping people in the dark."
The Bolivarian diaspora seems to be getting worse. Though census data is patchy, Latin American analysts say that outmigration from Venezuela, Bolivia and Ecuador has created sizeable enclaves in the U.S., Spain, Colombia and Central America. Panama City glistens with new buildings built by moneyed Venezuelan expatriates, who number some 15,000, up from a few thousand at the beginning of the decade. So many Venezuelans have flocked to Weston, a suburb of Fort Lauderdale, locals call it Westonzuela. There is hardly a middle class family in Venezuela without a son or daughter abroad," says Fernando Rodríguez, a columnist for the anti Chávez newspaper Tal Cual. In fact, far more people from the Bolivarian countries might be emigrating if it weren't for the global recession and rising hostility to outsiders, Venezuelan emigrants do not qualify as political refugees and enjoy no special advantage in the fierce competition for the 400,000 H1B work visas issued yearly by the U.S. for highly skilled migrants, three quarters of which go to Indians, who have an edge because they can speak English. "One reason we are not seeing more dislocation from these countries is that many people have no place to go," says Alejandro Portes, a sociologist who studies global migration at Princeton University.
Latin America has seen this before. Virtually the entire Cuban middle class fled to the U.S. after Fidel Castro's revolution, turning Miami into a business hub for Latin America while Havana moldered. The Cold War, stagflation, serial debt crises and massive unemployment drove the brain drain through the 1980s, Latin America's lost decade, especially in Chile, Colombia, Argentina, Peru and throughout Central America. By the early 2000s, some of the countries convulsed by dictatorship or guerrilla insurgency, such as Chile and Peru, had managed to reverse course, making their societies prosperous and safe. But other countries have struggled to bring their expatriates home. In the 1980s and 1990s, Colombia had become synonymous with cocaine, violent crime and guerrilla warfare, all of which drove some four million Colombians from their homes. Targeted by kidnappers and political thugs, tens of thousands of middle class professionals left the country. In 2002 Pres. Álvaro Uribe declared war on drugs and crime, and now onetime bandit cities like Cali, Medellin and Bogota are safer than ever and have even become models for the rest of crime-ridden Latin America. Yet the brain drain has not reversed. "Either the [emigrants] have found the American dream or they are not yet convinced that it's safe to return," says Jorge Rojas, of Codhes, a Colombian thinktank that tracks refugees. "It shows how difficult it can be to recover lost talent."
For the nations of the Bolivarian Revolution, this means some dark days are likely to be ahead. Even the wealthiest nations could ill afford to lose their best and brightest, and Venezuela, Bolivia, Ecuador and Nicaragua have all fallen in the World Economic Forum's competitiveness index. Fitch ratings recently demoted all three countries' debt to junk status, while the World Bank placed the Bolivarian trio of Bolivia, Ecuador and Venezuela in the bottom quarter of its ease of doing business, along with most of the African continent.
Though much has been made of how developing world migrants can mitigate underdevelopment by sending precious savings back home, remittances will not close the widening talent gap that is sapping societies of their ablest hands. "If a 20-something engineer or computer specialist leaves the country, who cares? But in ten years we'll be feeling the loss," says Rául Maestres, a human resources expert in Caracas, whose son and daughter recently left Venezuela -he to work at U.S. architecture firm, she to study advertising in Buenos Aires. "When you think about the opportunities we have lost, you could sit down and cry."
Still there may be a glimmer of revival. Ostracized at home and unwelcome abroad, expatriate communities are trying to turn distance into strength. Using the web, universities and the expatriate grapevine, foreign nationals from the populist countries are talking to each other and building ties with dissidents around the world. Back home opposition movements are making a stand, launching protest marches and candidates in a major city in each country--Guayaquil in Ecuador, Santa Cruz de la Sierra in Bolivia, Maracaibo in Venezuela. "We are putting together a web of exiles as a counterbalance to authoritarianism," says Coronel, who is tapping the diaspora for a gathering in Ecuador or Argentina in the next few months. "You could call it a kind of axis of freedom." That may sound optimistic given the stranglehold Chávez and his followers have on their countries. But given the growing numbers and brain power of Latin America's new dissidents, uniting their voices might just make a difference.

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Monday, May 24, 2010

Venezuela a great example of misrule, mismanagement

Venezuela a great example of misrule, mismanagement

Published: Monday, May 17, 2010 at 6:58 a.m.

Venezuela has the largest oil reserves outside the Mideast and some of the largest known natural gas deposits. Yet the country is an economic shambles thanks to the mismanagement of its buffoonish and authoritarian president, Hugo Chavez.

This past week, he further crippled the economy by effectively banning private bond trading in order to stop Venezuelans from sequestering their savings in dollar accounts.

He instituted currency controls of 2.60 bolivars to the dollar for priority goods and 4.30 for nonessential items. The black market rate is 8.20 bolivars to the dollar. Not surprisingly, there is a thriving black market, widespread shortages and soaring inflation of more than 30 percent.

In 2003, when Chavez began experimenting with price controls, Venezuela was self-sufficient in beef. Last year it imported more than half of what it consumed. After his police began rounding up butchers for selling beef at more than the state-mandated price, beef disappeared almost altogether from the stores.

The same has happened with coffee. After expropriating roasting companies, coffee warehouses and plantations, production in coffee-producing Venezuela fell by more than 16 percent last year and continues to decline.

Because of lack of investment in the national grid - and with some help from a drought - electricity is rationed and there are frequent blackouts and mandatory power cuts. Similarly, since he barred Western firms from participating in Venezuela's oil industry, investment has fallen and the country has turned to the Chinese for help.

Chavez has been incapable of dealing with the country's chronic crime and the Economist newspaper describes Caracas as "the most violent capital in South America."

He has spent $4 billion on Russian weapons against the imaginary threat of a U.S. invasion. His foreign policy consists of trying to build an anti-U.S. alliance of "21st-century socialists" like Cuba, Nicaragua, Iran Bolivia. He has been accused, convincingly in the case of Colombia, of aiding communist guerrillas and harboring violent Basque separatists from Spain.

In advance of next September's congressional elections, he has begun jailing opposition leaders on assorted trumped-up charges, such as the crime of spreading false information - the false information being criticism of Chavez and his policies.

Venezuelans, to their credit, stubbornly cling to democratic traditions. Despite his control of the judiciary, suppression of the opposition media and lavish spending on his base in the sprawling slums, his re-election in 2012 is no foregone conclusion. There may be a limit to Venezuelans tolerance for lowered standards of living and diminished freedoms.

Chavez' explanation: "There's an economic conspiracy against the revolution to boost inflation, increase shortages and malaise among the people."
We know who the conspirator is.

The preceding editorial was written by Dale McFeatters of Scripps Howard News Service.

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Saturday, November 7, 2009

Accelerating the Bolivarian Revolution

Accelerating the Bolivarian Revolution - New Crisis Group briefing
Essential reading.

INTERNATIONAL CRISIS GROUP - NEW BRIEFING

Venezuela: Accelerating the Bolivarian Revolution

Bogotá/Brussels, 5 November 2009: Against the spirit of the constitution, President Hugo Chávez is accelerating his “Bolivarian Revolution” by implementing radical laws that affect basic rights and liberties and thwart the political opposition’s fair chances in the December 2010 legislative elections.
Venezuela: Accelerating the Bolivarian Revolution,* the latest update briefing from the International Crisis Group, examines how in 2009 the Chávez government has progressively abandoned core liberal democracy principles guaranteed under the Inter-American Democratic Charter and the American Convention on Human Rights. The executive has increased its power and provoked unrest internally by further politicising the armed forces and the oil sector.
It is exercising mounting influence over the electoral authorities, the legislative and judicial branches of power and other state entities.
“The December 2010 legislative elections promise to further polarise an already seriously divided country”, says Nicolás Letts, Crisis Group’s Colombia/Andes Analyst. “Unresolved social and mounting economic problems are generating tensions that exacerbate the risk of political violence”.

The government’s lack of capacity to correct serious deficiencies in the management of the state is provoking increasing social protest. The continued targeting of the political opposition and the mass media, coupled with growing economic, security and social problems, are deepening discontent. The opposition, which continues to be divided, is challenging Chávez through democratic means. However, it may in the future look to more violent alternatives for confronting him, if his government continues to shut off space for participation and restrict critics from expressing their views through democratic mechanisms.
Society at large is experiencing critical levels of insecurity and stark deficiencies in basic public services.
Tense relations with Colombia may take a toll on the president’s popularity at home.
While Chávez’s bellicose rhetoric towards Colombia is unlikely to elicit an armed reaction, it does
stimulate the potential for mounting trouble along the border. “Ten years of ‘Bolivarian Revolution’ have failed to produce significant and sustainable improvements in the living conditions of the poorer segments of society”, says Markus Schultze-Kraft, Crisis Group’s Latin America Program Director. “Chávez has proved to be a poor manager, with difficulties to administer the vast state apparatus he has created and cater for citizens’ legitimate demands”.


*Read the full Crisis Group briefing on our website:
http://www.crisisgroup.org
Contacts: Andrew Stroehlein (Brussels) +32 (0) 2 541 1635
Kimberly Abbott (Washington) +1 202 785 1602
To contact Crisis Group media please click here

The International Crisis Group (Crisis Group) is an independent, non-profit, non-governmental organisation covering some 60 crisis-affected countries and territories across four continents, working through field-based analysis and high-level advocacy to prevent and resolve deadly conflict.

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