Democracy

all the facts and news in Venezuela on democracy and how it influences all decisions made by Hugo Chavez as president implications for democracy of the Venezuelan people

Jul
18
2011
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In Case You Missed It… Venezuela’s Docs Flee — So Does Chávez

Venezuela’s Docs Flee — So Does Chávez
It’s no coincidence that the president has returned to Cuba for medical attention.

By Mary Anastasia O’Grady
The Wall Street Journal
July 18, 2011

If we are to believe Hugo Chávez, doctors have removed a cancerous tumor the size of a baseball from somewhere inside his body. The type of cancer he has and the stage of its advance remain a Venezuelan state secret, but it is likely that he is a very sick man.

This news, for a leader who is only 56 years old, might have elicited a wide sweep of public sympathy under different circumstances. Instead, Mr. Chávez’s first-class treatment in a Cuban medical facility from a Spanish doctor has served to elevate the resentment many Venezuelans have about the declining quality of health care in their country.

The scarcity of basic goods in Venezuela is well documented. Just last week, the Venezuelan daily El Universal reported that its own survey of six supermarkets and government-owned food outlets found that out of 16 price-regulated staples, at least 10 were scarce.

Admittedly this was a narrow survey, but it garnered attention because it confirmed the daily experience of millions of Venezuelans. No cooking oil of any variety could be found in the six stores, and this included soy oil, which is not subject to price controls. Regulated cuts of meat were not available in the supermarkets; no price-controlled cheeses were found anywhere; processed corn flour was available in only one store.

Producers know why this is happening. In June, the food processor Polar asked the government to raise the price cap on corn oil because of the high cost of “the imported raw material.” Other companies have made similar appeals. But the government has good reason to resist: The easy money policy of the Central Bank of Venezuela (BCV) has provoked the highest inflation in the region, even with price controls on many products. According to the Spanish-language news outlet Noticias Financieras, the BCV reported that the cost of personal-care products was up 30.5% in the 12 months ending June 30. Food and nonalcoholic beverages climbed 22.3% over the same period.

Yet it is in health care where Venezuelans are feeling the inflation pain most. Hospital services are up 39.7% year over year, doctor and paramedic services are up 21.5%, and the cost of medicines and medical equipment has risen 17.4%.

These cost increases refer, of course, to private clinics and goods that are not subject to price controls. Wherever prices can’t be raised, both quality and supply are deteriorating rapidly.

One needn’t be sick enough for a hospital to appreciate the problem. Venezuelans report shortages of everything from aspirin to cholesterol drugs, and it’s likely this has triggered hoarding, which has exacerbated the situation.

Most medicines sold in Venezuela, prescription or over-the-counter, are imported or contain imported materials. This means that the distributor has to pay the market rate in dollars to suppliers abroad. Obviously if the government sets the retail price below the cost for the importer, the transaction will create a loss.

Chávez-nomics has been even more devastating for doctors in the public hospitals. Dr. Douglas León Natera of the Venezuelan Medical Federation (FMV) told El Universal on June 16 that doctors earn a mere 2,600 bolivars (roughly $325 at the market exchange rate) monthly, and that even though hospitals have become targets of the country’s rising crime, the government has failed to provide protection for health-care staff. Doctors also cite scarce and low-quality resources and long hours. On June 30 the FMV called a strike to protest low pay and arduous working conditions. Last week Mr. Chávez offered them a 30% raise. They refused to yield. They are, however, continuing to treat urgent cases.

Pharmaceutical importers have been reluctant to complain publicly about their difficulties; large companies that offend Mr. Chávez can become targets of nationalization. It’s a bit more difficult to nationalize a doctor. A strike is just one option. Many of Venezuela’s best doctors have fled the country, which explains how it is, according to the FMV, that in public hospitals there are 130,000 patients waiting for surgery.

In its 2010 annual report, the ministry of health acknowledged the shortage of doctors, particularly in specialties such as anesthesiology, neonatal care, cardiovascular surgery, neurosurgery and child cardiology. Private hospitals are also deteriorating now as the poor turn up for care with government medical insurance, but the insurer doesn’t fulfill its obligation to pay.

The government has admitted that a large number of doctors have fled, but it says it’s not worried. More than 25,000 Venezuelan students are now enrolled in Venezuela’s new Bolivarian medical schools or in medical schools in Cuba. Unfortunately the curriculum is not public, and Venezuelans are worried that the students spend more time studying revolutionary politics than anatomy. Mr. Chávez seems to understand this, if nothing else. His surgeon hails from Spain.

 
Jul
15
2011
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In Case You Missed It… Articles Roundup Week of 7/15/11

In this week’s roundup…Opposition leader Oswaldo Álvarez Paz pays a high price for publicly criticizing the Chávez Administration; the Venezuelan president may need chemotherapy to treat his cancer, yet his illness has not slowed down his implementation of harmful economic polices such as price controls; the shortcomings of the Venezuelan prison system are exposed as the Rodeo riots come to an end; and experts continue to expose the ties between Caracas and terrorist groups such as Hezbollah.

Chávez Foe Convicted Over Remarks, The Wall Street Journal

A Venezuelan statesman and possible challenger to Hugo Chávez’s presidential re-election bid was convicted of publicly saying the country has turned into a drug-trafficking center, in what human-rights groups say is a government tactic to silence its foes through the country’s judiciary.

Chavez May Require Chemotherapy, Says Cancer Is No Longer a Death Sentence, Bloomberg

Venezuelan President Hugo Chavez said he may need to receive chemotherapy or radiation treatment after undergoing surgery in Cuba last month to remove a cancerous tumor he described as “almost like a baseball.”

Venezuela to Approve Price Regulation Laws Today, Chavez Says, Bloomberg

Venezuela’s President Hugo Chavez will approve a law to regulate prices and profit margins at a cabinet meeting today, Chavez said on his Twitter account. Finance Minister Jorge Giordani said on May 3 that the government was working to develop a national pricing commission to regulate prices and profit margins in order to combat inflation.

The fifth circle of hell, The Economist

An inmates’ mutiny highlights violence and overcrowding

On June 12th a visiting day at the El Rodeo jail complex outside Caracas turned into a shoot-out between gangs. In the firefight 27 people reportedly died, and over 70 were injured. Three more were killed when National Guard troops retook the jail’s Rodeo I unit, where they found assault rifles, hand grenades, a submachine-gun and 5,000 rounds of ammunition.

Hezbollah and Iran south of the U.S. border, some experts say, The Daily Caller

While most American attention to Hezbollah has focused on the Middle East, the militant Islamic group with ties to Iran has been gaining a strong foothold in Latin America, experts said at a House hearing.

“I believe the Hezbollah and Iranian presence in Latin America constitutes a clear threat to the security of the U.S. homeland,” Roger Noriega, a fellow at the American Enterprise Institute, said Thursday in front of the House Homeland Security Committee. “They have the motivation, and they have been steadily increasing their capacity to act.”

 
Jul
8
2011
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In Case You Missed It… Articles Roundup Week of 7/8/11

In this week’s round up…In the midst of the veil of secrecy around President Chavez’s condition, reports point to colon cancer. Venezuelan presidential contender Henrique Capriles still hopes he will face Chávez in the 2012 presidential elections. As speculations loom over Chavez’s cancer, the military might play a key role in the country’s future, Venezuela becomes the only oil producing country that has increased its debt, the nationwide consumer price index has jumped 2.5% in the month of June and Venezuela’s telecommunications agency began a new investigation of the TV channel Globovision for its coverage of violence in the Rodeo II riots.

Chávez Is Believed to Have Colon Cancer, Wall Street Journal

President Hugo Chávez appears to be suffering from colon cancer, according to two people with direct knowledge of the president’s condition. Mr. Chávez admitted he had cancer last week, but hasn’t disclosed what type.

Challenger for Venezuela Presidency Still Hopes to Face Chávez, Wall Street Journal

A state governor who is a leading contender to challenge the re-election bid of Venezuelan President Hugo Chávez said Wednesday that he hopes the incumbent will remain in the race despite questions about his health.

Venezuela’s military a key player amid uncertainty, AP via Newsday

As Chavez fights cancer, military could be key player in Venezuela’s political future

Venezuela’s military took center stage in the country’s bicentennial celebrations Tuesday, and it likely would be a key player in the country’s political future if Hugo Chavez were to be forced out of the presidency by cancer.

Venezuela is the only oil producer that increases debt, El Universal

Average debt-to-GDP ratio in the Middle East will drop 14.1 percent this year, according to the IMF

After eight years of high oil prices, it has become clear that oil exporters, except for Venezuela, have a consistent policy to save a part of revenues and reduce debt.

Data and projections from the International Monetary Fund (IMF) show that the Middle East and Central Asia petro-states have realized that oil does not escape the law of gravity. Therefore, they avoid the lack of fiscal control during times of booming oil prices.

UPDATE: Venezuela June Consumer Prices Up 2.5% On Month, Dow Jones Newswires via WSJ

Venezuela’s nationwide consumer price index jumped 2.5% in June, the central bank said Thursday, maintaining a quicker pace of inflation after three months of tamer increases.

Government officials have said they were making progress at slowing the country’s inflation rate, which is perpetually among the highest in the world. But many analysts believe consumer prices will likely increase even faster amid the uncertainty surrounding President Hugo Chavez’s illness.

Venezuela launches probe of TV channel’s coverage, Associated Press

Venezuela’s telecommunications agency began a new investigation of the TV channel Globovision on Thursday, this time for its coverage of violence at two prisons where inmates have battled troops.

Globovision takes a strident stance against President Hugo Chavez’s government. It has been the subject of six prior probes, including allegations of tax evasion and investigations of its coverage of protests, an earthquake and on-air remarks about Chavez.