Aug
26
2013
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ICYMI: Chavez’s Inflation Bites His Successor

Wall Street Journal
August 25, 2013
By Mary O’Grady

OB YQ920 amcol0 G 20130825120857 e1377534741885 ICYMI: Chavez’s Inflation Bites His Successor

Courtesy of: European Pressphoto Agency

Hyperinflation and political witch hunts seem to go together. Just ask the Venezuelan opposition.

With the bolivar collapsing and prices spiraling higher, the government alleged this month that its No. 1 adversary, former presidential candidate Henrique Capriles, is linked to a prostitution ring that was using minors in the state of Miranda, where he is governor.

Lest that not be enough to turn Venezuela’s socially conservative working-classes against the popular Mr. Capriles, a leading congressman from the ruling United Socialist Party of Venezuela (PSUV) used gutter talk on the floor of the national assembly to accuse the governor of homosexuality.

Don’t suppose for a minute that this mudslinging is merely about destroying Mr. Capriles. The ruling chavistas, led by President Nicolás Maduro, need a circus because there is no bread—and that’s not a metaphor. At times in Venezuela, there really is no bread. Earlier this year there was, for a time, no toilet paper. Mr. Maduro knows he is in trouble.

The “proof” of the allegations against Mr. Capriles’s chief of staff, who is accused of running the sex ring, cannot be shown to the public, according to Mr. Maduro. He says that the “videos and photos” that the government confiscated in a raid are of “un-publishable orgies.” Venezuelans will have to use their imaginations while trusting the courts—now controlled by the military government—and the government itself to get to the bottom of it all. Developments will be reported on television, which is almost exclusively state-controlled and where most Venezuelans get their news.

Mr. Capriles has said that the allegations are an attempt to distract the population from the real problems in the country. The charges are certainly well timed. An official 46% devaluation in April took the bolivar-to-dollar exchange rate to 6.3 from 4.3. Those who actually need dollars are unlikely to get them at that rate. Instead they have to go to the black market, where one greenback costs as much as 38 bolivars, up from 22 in March.

The government forecasts that inflation will hit 40% this year. But Johns Hopkins University economist Steve Hanke, director of the Cato Institute’s Troubled Currency Project, says that the soaring cost for the bolivar in the market translates into an implied annual inflation rate of more than 250%.

Earlier this month Caracas-based economist José Manuel Puente described the perfect storm to the Los Angeles Times this way: “The slowdown in economic growth, high and persistent inflation and high levels of scarcities [of basic foodstuffs] will combine to make Venezuela’s the worst-performing economy on the continent, despite the extraordinary oil boom that the country is still benefiting from.”

A mid-July survey by the Venezuelan polling company IVAD, posted on the website lapatilla.com, suggests Mr. Maduro is having no luck dodging the blame like his predecessor Hugo Chávez did so deftly. Asked what are the principal problems facing the country, almost 82% of respondents named crime. More than 53% also pointed to shortages. The scarcity is caused by the price controls that the government is using to try to hold down inflation. Those controls could explain why only 31% named “the high cost of living.”

But more than 65% said the economic situation was worse or much worse than one year ago, and more than half blamed either the national government or Mr. Maduro for the country’s problems.

Because the allegations against Mr. Capriles by the PSUV included a pejorative term for a homosexual, gay-rights groups took offense. But Venezuela’s homosexuals needn’t feel special. Hate speech as a political tool has been common practice in Venezuela’s military government for more than a decade. Catholics, Jews, entrepreneurs and the bourgeoisie have all been on the receiving end.

Mr. Maduro, coached as he is by Fidel Castro, immediately recognized that gay rights are a priority for many members of the international left. So in the aftermath of the impolitic comments by his colleague in Congress, he quickly seized a gay-pride flag to wave while he continued his verbal assaults against Mr. Capriles.

Political nonconformists regularly singled out by chavista politicians for ridicule and acrimony won’t get off so easily. This week Mr. Maduro is expected to try again to force through congress an “enabling law” that will allow him to rule by decree.

Opposition Congressman Richard Mardo has already been stripped of his congressional immunity and is slated for trial on corruption charges. Other opponents are being investigated. The Venezuelan daily El Nacional reported this month that more than one third of congressional sessions in the first half of the year were spent “harassing the opposition,” including with physical violence.

The goal is to drum up mass hysteria against opponents. Apparently Mr. Maduro has decided that if inflation cannot be contained, Mr. Capriles and his allies will be.

To read this article at Wall Street Journal, please click here.

 
Aug
12
2013
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ICYMI: Venezuela Opposition Comes Under Siege

Wall Street Journal
August 9, 2013
By José de Córdoba and Ezequiel Minaya

Oscar Lopez left adviser 010 ICYMI: Venezuela Opposition Comes Under Siege

Courtesy of: Associated Press

CARACAS—Venezuela’s President Nicolás Maduro, the political heir to late populist Hugo Chávez, is ratcheting up intimidation of his political foes as his government prepares for key municipal elections amid a deteriorating economy.

Oscar López, a senior aide to former opposition presidential candidate Henrique Capriles, was in hiding Friday after a government legislator said a warrant had been issued for the aide’s arrest. Days earlier, the apartment of Mr. López, Mr. Capriles’s chief of staff, was searched by military-intelligence agents, according to opposition officials.

“He doesn’t know what this circus is all about so he is taking care of himself” by going into hiding, said Julio Borges, a legislator and national coordinator of Venezuela’s leading opposition party, Justice First.

Mr. Capriles himself faces possible arrest after the Supreme Court on Wednesday rejected his challenge to Venezuela’s April presidential election, which Mr. Maduro won by a sliver but which was marred by allegations of fraud. The court went on to fine Mr. Capriles $1,700 for what it said was a “disrespectful” filing and said the opposition leader should be prosecuted for trying to undermine the election.

“It’s a way to attack Henrique and his movement,” Mr. Borges said.

A senior U.S. official said Washington is worried about developments in Venezuela. “The Venezuelan government is increasingly taking legal actions against the opposition, a development the United States finds profoundly worrying,” the official said. The wave of actions against opposition leaders like Mr. Capriles “raises legitimate and urgent concerns,” the official said.

Venezuela’s Attorney General’s Office declined to comment as did Venezuela’s Information Ministry.

Venezuelans go to the polls in December to contest some 335 mayors’ posts throughout the country, as well as hundreds of other local offices. The elections will be the first gauge of Mr. Maduro’s popularity since his win in April’s election.

In the run-up to the vote, Venezuela’s economy has shown signs of increasing stress after years of ramped-up public spending under Mr. Chávez, who died in March. The country’s inflation is north of 42%, common consumer goods like toilet paper are scarce, and despite high oil prices, Venezuela just defaulted on the payment of a $100 million bond of a nationalized steel company, spooking bond buyers. Divisions in the Chavista movement, nominally led by Mr. Maduro, are deep.

“This is clearly a wounded government as far as its mandate and its internal dynamics. And like any wounded animal, it can be dangerous. It is taking very severe steps to consolidate power,” said Christopher Sabatini, senior director of policy at the Americas Society and Council of the Americas.

Also this week, authorities jailed and froze the assets of the editor of a small independent paper and website, Leocenis García of Sexto Poder, who has published detailed reports of alleged government corruption. On Thursday, a judge fined two opposition newspapers—including El Nacional, the country’s most influential daily—1% of their 2009 income for showing a photograph of deteriorated conditions in a morgue. The judge said showing the photo was harmful to the welfare of children.

In Caracas, Juan Carlos Zapata, an author and political analyst, said the escalating repression shows a clear government intention to frighten the opposition. “They want to dismantle the opposition, they want Capriles’s aides to flee the country, and for Capriles to throw in the towel before elections,” said Mr. Zapata. “It’s an orchestrated plan to scare off the opposition.”

The Maduro government has said that it is simply rooting out corruption, regardless of political affiliation. Soon after taking office, Mr. Maduro launched an antigraft initiative that has resulted in the arrest of a handful of mid-level state officials.

The latest government moves follow last week’s stripping of parliamentary immunity by government deputies of a popular opposition congressman, by less than the constitutionally required two-thirds majority. Richard Mardo, who has built up a large following in the Chavista state of Aragua, now must face charges of alleged corruption.

Legal moves by the government against its foes are common in Venezuela. A study by Human Rights Watch found that as of May 2012, Venezuela’s Comptroller General’s Office had temporarily disqualified some 800 people, most of them Chávez foes, from running for office due to accusations of corruption—even though charges hadn’t been filed against them. About 300 people are still barred from running for office.

During his time in office Mr. Chavez routinely brushed aside international criticism as attempts to meddle with domestic affairs and plots to topple his government.

Meanwhile, the opposition is struggling to get out its message to ordinary Venezuelans. Globovisión, once a feisty opposition TV channel—and the only one that gave Mr. Capriles significant airtime—was sold earlier this year, and its coverage of Mr. Capriles has fallen sharply. News about Mr. Capriles is now relegated to a recently opened Web channel dubbed “Capriles TV.” Mr. Borges said that the opposition would have to work hard to get its message out by taking a “grass-roots” approach.

Opposition figures as well as analysts say the repressive wave points to the deep divisions in Mr. Chávez’s movement following his death. “Chávez was a kind of crazy glue that was able to keep different elements together,” says Mr. Borges.

Mr. Borges sees different power groups within the government fighting for influence and control. Within these groups are groups of powerful businessmen and executives who control different sectors of the economy such as the state oil industry, food imports, and the country’s other basic industries. “There are no institutions anymore, just different clans balancing each other,” Mr. Borges said. “Maduro is not president of the country, he is the boss of one of these groups.”

Analysts foresee a difficult time ahead for Venezuela. “It’s a disaster in the making because nobody is in charge,” says Riordan Roett, the head of Latin American studies at Johns Hopkins University.

Many analysts believe the most powerful faction is led by Diosdado Cabello, the president of the National Assembly. Mr. Cabello, a burly and bull-necked former army lieutenant who took part in Mr. Chávez’s failed 1992 coup, has close ties to the country’s armed forces and has reportedly built up a considerable personal fortune.

In late April, Mr. Cabello presided over the congress as a number of opposition legislators were beaten in the congressional chamber. At the time, Mr. Cabello didn’t allow opposition deputies to take the floor to speak until they recognized Mr. Maduro’s victory. Mr. Cabello has ruled the chamber with an iron fist ever since.

Javier Corrales, an expert on Venezuelan politics at Amherst College says that while Mr. Maduro has shown some signs of moderation—such as meeting with top businessmen, Mr. Cabello is openly confrontational. “This crackdown seems to come from Diosdado,” he said. “His instinct appears to be brute force.”

Mr. Cabello couldn’t be reached to comment.

To read this article at the Wall Street Journal, please click here.

 
Jan
4
2013
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ICYMI: Venezuelans demand answers on Chavez’s health

Washington Post
January 3, 2013
By Olga Khazan

Venezuelan officials have been tight-lipped about the health status of President Hugo Chavez, causing rumors about Chavez’s health status to swirl on Twitter and in the Latin American media.

Chavez has not been seen or heard from since a Dec. 11 surgery for an undisclosed type of cancer, and his administration has released few details about his status other than saying his condition remains “delicate” due to complications from a respiratory infection.

Chavez, 58, was elected for a fourth term in office with 54 percent of the vote in October and is due to be sworn in on January 10. If he dies before that date, the chairman of the National Assembly, Diosdado Cabello, will succeed him until new elections are held, but if he dies after that date, the vice president, Nicolas Maduro, would take over.

In the meantime, the suspense is killing Venezuela.

Spanish daily ABC kicked things off with this analysis of Chavez’s condition yesterday (translated from the Spanish):

Hugo Chavez has entered an induced coma in the last few days, with his vital signs very weakened, and maintained only through artificial assistance by the Havana hospital where he was admitted. Sources consulted by ABC confirmed Monday that they were soon planning to disconnect the artificial assistance that prolongs the life of the Venezuelan president.

The article goes on to say that Chavez “has a constant fever, won’t respond to antibiotics, hasn’t eaten solid food for three weeks, had 43.4 centimeters of intestine removed and a tracheotomy, among other health complications,” according to the Huffington Post.

Members of Chavez’s family, on the other hand, say his condition is stable. Chavez’s son-in-law Jorge Arreaza, who serves as minister of science, technology and innovation, tweeted, “Compatriots, DO NOT believe the ill intentioned rumors. President Chavez has spent the day calm and stable, accompanied by his children.”

But armchair oncologists have already weighed in:

“[Chavez] continues on artificial support at this point they are only prolonging unnecessary suffering,” José Rafael Marquina, a Venezuelan doctor who lives in Florida and is an opponent of Chavez, tweeted Wednesday.

“Most likely, he is showing signs of renal failure and a lung infection. But the biggest problem is that, with the delicate situation of the patient, his immune system must be weakened,” Marquina, who claims to receive inside information from the Venezuelan president’s medical team, told Colombian radio station Caracol.

On Twitter, the hashtag #TellTheTruthAboutChavez, as well as its Spanish equivalent, trended in Venezuela this week. Chavez supporters posted messages wishing for a speedy recovery:

“If all of us Venezuelans ask GOD with fervor and faith, surely he will have tend to our pleas, let us pray for Hugo Chavez and for his health,” tweeted Enrique Padron, a Venezuelan musician.

While others simply speculated as to who would take his place:

“People were saying the problem wasn’t Chavez but those that surrounded him . . . and now that’s exactly who we’re in the hands of #TellTheTruthAboutChavez,” tweeted Marcos Rodriguez.

The information vacuum has also provided fodder for Chavez’s opposition, which has called for the government to schedule constitutionally-mandated elections within 30 days if Chavez is too ill to return from Cuba, where his most recent surgery took place.

“To make us believe the president is governing shows a lack of seriousness that borders on irresponsibility,” opposition leader Ramon Guillermo Aveledo said at a news conference in Caracas, according to the Los Angeles Times.

Because Chavez’s vice president is more pro-Cuban than the National Assembly chair, Cuba may have an incentive to delay reporting Chavez’s condition for another week, argues Venezuela blogger Francisco Toro.

“And given the impenetrability of Cuban state secrecy, it’s hard not to speculate that even if the president has already died, we would have no way of knowing it,” Toro writes.

On the other hand, Venezuela is in poor financial shape, with large deficits that will likely necessitate unpopular austerity measures soon. In that case, National Assembly head Cabello may not be interested in running Venezuela — and fixing its economy — anyway.

Meanwhile, Arreaza has continued his optimistic Twitter campaign: Don’t worry, nothing to see here.

“Commander Chavez still battling hard and sends all his love to our people. Perseverance and patience!!!”

To read this article on the Washington Post, please click here.