Feb
24
2012
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In Case You Missed It… Articles Roundup Week of 2/24/12

In this week’s roundup…  The Chávez administration hurled insults at opposition candidate Henrique Capriles following his landslide victory in the primaries; several Jewish groups publicly condemned Chávez’s anti-Semitic remarks against Capriles. Meanwhile, Venezuela’s Hugo Chávez heads to Cuba to undergo a third operation after doctors found another lesion where his last tumor was removed, stoking speculations about who will succeed Chávez if he is forced to step down.  A new report found that private construction in Venezuela is down 70 percent in the last two years, contributing to the critical housing shortage; Chinese loans drive PDVSA toward bankruptcy; Gold Reserve Inc. concludes oral hearings in ICSID arbitration against Venezuela; and Chávez continues to foster relationships with controversial governments, including Iran and Syria.

Venezuela’s Hugo Chavez faces an uprising at the ballot box, The Washington Post

Henrique Capriles Radonski, a 39-year-old Venezuelan state governor, won a primary election to become the opposition’s candidate against Hugo Chavez in October’s presidential election.

Chavez Media Say Rival Capriles Backs Plots Ranging From Nazis to Zionists, Bloomberg

Venezuela’s state media has accused opposition presidential nominee Henrique Capriles Radonski of offenses ranging from participating in a Zionist conspiracy to joining a Nazi-inspired effort to wipe out blacks and the poor.

El loco’s new foe, The New York Post

The reign of Venezuelan strongman Hugo Chávez faces its worst trouble in years. The normally fractured opposition has suddenly united behind one man, Henrique Capriles Radonski, in the Oct. 7 presidential election.      

Jewish groups decry ‘anti-Semitic’ Venezuelan state media article, CNN

A Venezuelan state media article about Chavez’s chief political challenger drew criticism from the New York-based Anti-Defamation League and the Los Angeles-based Simon Wiesenthal Center last week. 

AJC Decries Anti-Semitic Assaults in Venezuela Presidential Campaign, Market Watch

“If President Chavez wants to convince the world that Venezuela is a democracy, he needs to act now to show that there is no room for willful hate,” said AJC Executive Director David Harris.

Chávez Health Struggle Stokes Political Uncertainties, The Wall Street Journal

New uncertainties about Venezuelan President Hugo Chávez’s health are threatening to spur a power struggle to succeed him among the factions that make up his political movement, and boosting the hopes of a rejuvenated opposition planning for the presidential election this fall.

What Happens Next in Venezuela?, Foreign Policy

What happens if an incapacitated Chávez wins? Or, will a dying Chávez’s anointing of a successor succeed in overcoming a unified and energized opposition for the first time in a decade? Or, will voters, burdened by declining economic conditions and rising crime, opt for a new direction in the face of the uncertainty surrounding Chávez and the lack of a legitimate standard-bearer for his movement?

The republic vs. Chávez, The Miami Herald

You multiply it by 2.5 or 3 — depending on whom you ask. That’s how you usually translate the votes from the primaries into the final election results. Electoral experts insist that the three million votes obtained by Henrique Capriles in the Venezuelan primaries could bring him between 7.5 and nine million votes in the balloting against Hugo Chávez. Enough to remove him from power.

Private construction drops 70% in the past two years, El Universal

The president of the Venezuelan Construction Chamber, Juan Francisco Jiménez, stated that private construction has dropped 70% in the last two years. The situation was described as serious by the businessman leader, who said that the construction industry is necessary for the country’s development.

Thousands Of Homeless An Election Issue For Chavez, NPR

Oil-rich Venezuela is awash in hundreds of thousands of homeless. Many find places to live where they can — in half-finished shopping malls or under the grandstand at a race track. The huge number of homeless has become an election issue for President Hugo Chavez, who is seeking his fourth, six-year term.

Chinese loans put Venezuela over barrel, The Washington Times

Opposition groups in Venezuela are warning that billions of dollars in Chinese loans are driving the state oil company toward bankruptcy.

Gold Reserve Announces Conclusion of Oral Hearings in ICSID Arbitration Against Venezuela, Business Wire

Gold Reserve Inc. announces that the oral hearings held at the World Bank in Washington, D.C., and presided over by a three-member tribunal in the arbitration conducted under the auspices of the International Centre for the Settlement of Investment Disputes concluded, as scheduled, on February 17, 2012.

As Others Isolate Syria, Chávez Ships Fuel to It, The New York Times

A day before the United Nations General Assembly voted overwhelmingly to condemn President Bashar al-Assad of Syria this month for his bloody crackdown on the uprising in his country, President Hugo Chávez of Venezuela was conducting a very different kind of diplomacy on his own.

Iran and Venezuela, BFF, The NY Daily News

At a time when the world is rightly focused on the Iranian nuclear threat and its intentions against Israel, it is also important to not lose sight of that country’s clandestine dealings in Latin America. Its activities there serve multiple purposes. None of them is benign.

 

 
Feb
7
2012
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ICYMI:Save the Prosperity Infrastructure

Save the Prosperity Infrastructure
The Hill
February 7, 2012
By James K. Glassman

In declaring last month that he won’t abide by rulings of the main international forum for settling investment disputes, Venezuela President Hugo Chavez is following in the footsteps of Argentina’s leaders, whose brazen behavior is encouraging other nations to ignore the legal framework that gives investors confidence to invest trillions of dollars in faraway projects essential to global economic growth.

Chavez told a television audience on Jan. 8: “We have to get out of that ICSID, and I tell you, We will not recognize any ICSD decisions.” Venezuela has 21 cases pending before the World Bank’s International Centre for Settlement of Investment Disputes, totaling $40 billion, or one-tenth of the country’s gross domestic product. The claims stem from expropriations of the assets of such U.S. energy companies Exxon Mobil, ConocoPhillips, and Chevron as well as Europe’s Repsol, ENI, and Staoil.

Chavez’s threat is only display of contempt for what can properly be called the “prosperity infrastructure.” One of the great gifts of Western civilization, this is the framework of international law and global trade rules, enforcement of the sanctity of contracts, and the power to ensure that the world’s oceans and air routes are open to commerce. While the infrastructure was developed mainly by the United States and Britain, its positive externalities extend around the globe. Everyone gains.

In their book Invisible Wealth: The Hidden Story of How Markets Work (Encounter, 2011), Arnold Kling and Nick Schulz show that today the most important sources of wealth aren’t natural resources or factories. They reside in what the authors call “the software layer,” which is “a set of expectations and rules about negotiating, financing, and post-purchase obligations” (p. 5). These are among the intangibles that comprise the prosperity infrastructure.

A World Bank study looked at the difference between the total wealth of a nation and subtracted from it natural and produced capital. The result is intangibles, and the study concluded, “The most striking aspect of the wealth estimates is the high values for intangible capital. Nearly 85 percent of the countries in our sample have an intangible capital share of total wealth greater than 50 percent.”

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Jan
27
2012
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In Case You Missed It… Articles Roundup Week of 1/27/12

In this week roundup: Leopoldo López withdraws from the Venezuelan opposition primaries and throws his support behind frontrunner Henrique Capriles Radonski, a man who TIME speculates may be the one to defeat Hugo Chávez this fall. Meanwhile, Chávez formally requests to leave the World Bank’s international arbitration forum; rampant crime further dampens Venezuela’s business climate; rumors persist that Chávez has less than a year to live; and finally, President Chávez’s daughter ignites a social media uproar by posting a picture of herself posing with a wad of dollar bills.

And then there were five, The Economist

The campaign to decide who will square off against Hugo Chávez in Venezuela’s October presidential election has, for the most part, been as dull as ditchwater. With all six contenders vowing to support the opposition Democratic Unity (MUD) alliance and unite behind the victor of the primaries scheduled for February 12th, mutual politeness has left many voters struggling to distinguish between one contender and another.

Venezuela Candidate Backs Rival, Pressuring Chávez, The Wall Street Journal

Venezuelan opposition leader Leopoldo López, who was among the three top contenders hoping to face President Hugo Chávez in October elections, withdrew from the primary field on Tuesday, saying he will back front-runner Henrique Capriles Radonski.

Capriles Radonski and the New Venezuelan Opposition, Foreign Affairs

In October, Venezuelans will head to the polls for the fourth presidential vote since Hugo Chávez took power in 1999. With the announcement earlier this week by Leopoldo López that he is ending his candidacy and throwing his support to Henrique Capriles Radonski, the young and charismatic governor whom many expect to be Chávez’s main contender, the opposition is gradually consolidating its power.

Candidate Capriles: Could This Man Defeat Venezuela’s Hugo Chavez?, TIME

To explain why left-wing Venezuelan President Hugo Chávez has stayed in power for 13 years, fans and foes alike point out that he controls the western hemisphere’s largest oil reserves. But he’s also been blessed with what is arguably the most incompetent political opposition in Latin America.

Venezuela Formally Requests Exit From Arbitration Court, Bloomberg Businessweek

Venezuela’s government officially requested to leave the World Bank’s arbitration court yesterday as demands pile up from abroad for compensation following a decade of nationalizations under President Hugo Chavez.

HRW: Global community should oversee Venezuela’s election campaign, El Universal

The global community is strongly recommended to oversee the whole process of the election for president in Venezuela to ensure that in the event of voting results not favorable to the government of President Hugo Chávez, the “politicized” armed forces and the judiciary will be “forced” to accept the results, HRW said on Monday.

Venezuela Rebuffed by U.S. High Court on Bandagro Bond Suit, Bloomberg

The U.S. Supreme Court refused to block an Ohio investor group from suing Venezuela over potentially $900 million in bank notes that the South American country says are forgeries.

Venezuela: counting the cost of crime, The Financial Times

It is no secret that Venezuela is hardly the most business friendly country in the world, with a president who habitually takes pleasure in grabbing private property, while a maze of government regulations act as an added deterrent.

Chavez still battling cancer, Spanish newspaper says, CNN

Cancer has spread in Hugo Chavez’s colon, spine and bones, and the Venezuelan president could have only nine months to live, Spain’s ABC newspaper reported Monday, citing medical records provided by unidentified intelligence sources.

Hugo Chavez’s daughter Rosines sets off furor of social media mockery, The Washington Post

For most Venezuelans, obtaining U.S. dollars in a tightly regulated economy is a nightmare. Apparently not for President Hugo Chavez’s 14-year-old daughter, Rosines, who posted a picture of herself holding a wad of greenbacks.