May 23, 2003

Z's Rear View - Venezuela Style

I hope you didn't think we'd let Zelie get away without another insightful entry on the site. Here are her reflections after one short week in Venezuela over Easter.

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The view from the back of the bike this time around was not so much about visual input but rather about the mental and political. Venezuela impacted me by its beauty and diversity, but so much more so by its tenuous political situation. It is arguably one of the most fragile and volatile countries in the world today.

"Chavez is Saddam, Saddam in training. You just wait," said Juan, a Venezuelan banker who currently lives in New York, but was returning home to celebrate Easter week with his family. He was referring to Hugo Chavez, Venezuela’s democratically elected President who has been in power since December 1998, a date that almost any Venezuelan will remember. The former Army colonel rode to power on a platform of "peaceful social revolution" that spoke to the poor and disenfranchised, a platform that has become increasingly more radical as time goes on. His adoration and close ties to Cuban President Fidel Castro initially raised eyebrows and now seem to draw outright suspicion and ire. Even Chavez’s oratory style resembles that of Cuba’s leader; both can wax eloquent for hours. And both can speak to those who have nothing to lose.

"If you heard the man speak, you’d know why he’s still in power. The man is amazing," said a Wall Street Journal reporter who covered Venezuelan politics during the elections.

Once in power, Chavez asked for - and received - a referendum to reform the country’s constitution. Among other things, he centralized government powers and extended presidential terms from 5 to 6 years.

But more aristocratic locals feel that what he really wants is all out Communist revolution.

"He speaks of Venezuela as a revolution. He is a military man and this is his revolution. He is going to destroy this country just like Castro destroyed Cuba!" said Juan, a man of obvious wealth who fled his country years ago and would love to return—if only the leadership was different.

Not everyone has such strong distaste of the President. Indeed, if that were the case, he would surely have been ousted—successfully—by now (the one attempt that came close failed when they tried to replace Chavez with a corrupt dictator-like leader who had no popular support at all. The US backed the new leader then had to eat crow when Chavez rode back into power).

"Chavez is the best thing that has happened to this country. He has improved education, roads and health in a way this country has never seen," said a sports journalist and ardent Chavista we met on a beach on the island of Margarita. He was the only outspoken Chavista I spoke to during my quick visit, but the graffiti warfare of pro and con suggested a much larger population.

"Chavista" is scrawled in red spray paint mostly on the outskirts of Caracas and is much more visible in the surrounding smaller towns. Anti-Chavista graffiti populates most of the inner city walls.

No one argues that Venezuela’s economy is not experiencing scary times. In the late 80s the exchange rate was 4 bolivars to the dollar. Venezuelans were travelling around the world and experiencing exceptional wealth. At the time there were over one hundred flights from Europe a week into Venezuela, now there are apparently only several a week.

Three years ago the rate was 300 bolivars to the dollar and two months later that had changed to 600 to the dollar, meaning that within two months, all Venezuelan’s personal wealth had been cut in half. Today the exchange rate is 1600 to the dollar, over 2000 if you change on the black market. There is over 40% unemployment and growing, Juan estimates.

"What do the poor people know about recession?" asked one hotel owner, showing the outline of a strong class war. "They never had any money so they have nothing to lose. They see a few improvements and they think Chavez is God. They don’t understand anything about what’s going on."

As you can see, things are a bit tense.

According to this hotel owner, a redistribution of wealth seems to be next on the agenda; farmland has been appropriated for more "efficient" uses and government ownership of beachfront property has been extended from 30 to 80 meters. Anyone owning property within the new boundaries has just lost ownership of the land without any compensation, she said, adding that her B & B luckily resides just outside the 80-meter mark.

People might wonder why the country hasn’t exploded into revolution yet if things are really as bad as they say. According to Juan, it’s because Venezuelans are culturally an apathetic group who would rather complain than spring into action.

I don’t quite buy that the only reason this dynamic and charismatic president is still in power is because Venezuelans are apathetic. Some people are benefiting to a degree, although it`s not well publicized, and where they are is certainly still a mystery to me. The individuals I spoke with obviously had strong feelings, which colored their comments and possibly their facts, and the situation is much more complex than I’ve outlined here. (I’ve written this more as a tourist based on anecdote and not so much in my reportorial capacity).

For example, where the funds from the supposed 3 million barrels of oil produced EVERY DAY are going, is still a question I can’t figure out, unless you take the conspiratorial tone of locals and figure it’s padding the pockets of Chavez and his cronies.

But this is just a taste of what one will experience if they barely scratch the surface of Venezuelan politics. Sure, there were nice beaches in the country, and lots of pretty people, but there’s a lot more going on here and it’s just a matter of time before the country makes headlines once again – and quite possibly with a bit of violence. Chavez has offered another referendum at the midpoint of his tenure, which would fall around mid August of this year. Whether elections take place is anyone’s guess, but I, for one, will certainly be watching.

(Editor's Note: One Ex-Pat I spoke to said that all the wealth and infrastructure building of the 70's and 80's was funded through heavy international loans. He said the VAST majority of Venezuela's oil profits are going to pay off those debts to this day.)


Posted by Sully at May 23, 2003 09:40 AM