Tag Archives: South America

May
19
2011
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Chavez perpetuates harassment of private sector and all opposition to his rule

Under the pretext of doing its due diligence in assessing the cause for the country’s food shortage crisis, the Venezuelan government unleashed yet another round of expropriations and threats of expropriations. On Wednesday, Venezuelan government officials carried out a surprise inspection of a warehouse belonging to U.S. agri-business giant Cargill as part of the government’s investigation of retailers for alleged hoarding and price-gouging.

President Hugo Chavez often blames “capitalist speculators” for shortages of goods, but critics insist the food shortages are due to the incompetent policies of the Chavez government. Fernando Morgado, former president of local business chamber Consecomercio, says Chavez’s constant threats and intimidating tone are exacerbating the problem.

Cargill is one of several U.S. companies which have subjected to government intervention and harassment in Caracas. Others include some of America’s most iconic companies – from Pepsi, McDonald’s and Wendy’s to Hilton Hotels.

A report released by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in May 2010 cites watertight evidence that the policies of President Chavez are wreaking havoc on Venezuela’s economy by discouraging foreign investments into the country. The ECLAC report concludes that, in 2009 alone, Mr. Chavez’s systematic nationalization of major industries has caused a negative inflow of $3.1 billion in foreign investment dollars in Venezuela.

Also on Wednesday, the mayor of Caracas ordered the expropriation of the daily El Nuevo Pais. The measure coincided with the paper’s extensive coverage of allegations that Iran is building missile bases in Venezuela, a story that was broken last week by a German newspaper.

“This appears to be a retaliatory measure,” said the paper’s editor, Rafael Poleo.”In the last few days, we had been reporting on the issue of the Iranian missile bases. We were the only daily in Venezuela doing this.”

 
May
18
2011
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When all else fails and an election is in sight…blame the private sector

With presidential elections nearing and as inflation and food shortages continue to pound Venezuela, President Hugo Chávez once again sets his crosshairs on the private sector. Feeling the mounting pressure of his failed economic policies, Mr. Chávez resorts – as usual – to desperate measures. This time the target of his old tricks is large food retailers.

This week, Mr. Chávez reinvigorated his campaign against supermarket chains accusing them of hoarding and speculation to “explain” the food shortages that plague Venezuela. Those charges have been vehemently denied by the National Association of Supermarkets and Services. Mr. Chávez’s accusations are nothing but his latest excuse for a problem that continues to hurt Venezuelans. In fact, according to a recent report by prominent Venezuelan research firm, Datanálisis, food shortages have increased from 12% to 20% in Venezuela – the highest rate recorded this year in Venezuela.

Mr. Chávez has threatened both EPA and Central Madeirense, large food chains that span across Venezuela, with expropriation if they don’t act according to “the book.” The last time Mr. Chávez went after a food chain was in January 2010, when he nationalized French-Colombian retailer Almacenes Exito, after accusing the chain of price hikes, when the Venezuelan government devalued its own currency.

The Datanálisis report states that shortages range from over 40% for powdered milk, 46.5% for cooking oil, 34.5% for chicken, 30.5% for beef, and 23.9% for sugar. Government-run supermarkets, according to the Datanálisis report, registered food shortages of 46.3% in Mercal and 44.8% in PDVAL stores.

Despite the government’s insistence on threatening expropriation, Venezuelans increasingly reject those policies. The same Datanálisis survey shows that 83% of Venezuelans expect the government and private sector to work together, something that seems to fall in the deaf ears of the Chávez government.

While hoarding and speculation are in Mr. Chávez’s bag of old tricks, he now has implemented a new bait and switch scheme in government-controlled food chains. Consumers are being forced to buy “package deals” to be able to get the food products they desire. Picture this: you want to buy chicken at your local government-run grocery store, but when you get there you realize that you must also buy mayonnaise, potatoes, and whatever else the store deems part of your “packaged” meal. You cannot purchase the chicken alone, you must buy it all! But, what if you don’t have the money to purchase the “package deal”? Tough, the government says, you’re just out of luck.

 
May
17
2011
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In Case You Missed It… Iran building rocket bases in Venezuela

‘Die Welt’: Iran building rocket bases in Venezuela
Jerusalem Post
By BENJAMIN WEINTHAL
May 17, 2011

German paper says Iranians paid cash to build mid-range missile launch pads on Paraguana Peninsula; Iranian engineers visited site in Feb.

BERLIN – The Iranian government is moving forward with the construction of rocket launch bases in Venezuela, the German daily Die Welt wrote in its Thursday edition.

Iran is building intermediate- range missile launch pads on the Paraguaná Peninsula, and engineers from a construction firm – Khatam al-Anbia – owned by the Revolutionary Guards visited Paraguaná in February. Amir al-Hadschisadeh, the head of the Guard’s Air Force, participated in the visit, according to the report. Die Welt cited information from “Western security insiders.”

The rocket bases are to include measures to prevent air attacks on Venezuela as well as commando and control stations.

The Iranian military involvement in the project extends to bunker, barracks and watch tower construction. Twenty-meter deep rocket silos are planned. The cost of the Venezuelan military project is being paid for with Iranian oil revenue. The Iranians paid in cash for the preliminary phase of the project and, the total cost is expected to amount to “dozens of millions” of dollars, Die Welt wrote.

The Paraguaná Peninsula is on the coast of Venezuela and is roughly 120 kilometers from America’s main South American partner, Columbia.

According to Die Welt, the clandestine agreement between Venezuela and Iran would mean the Chavez government would fire rocket at Iran’s enemies should the Islamic Republic face military strikes.

Meanwhile the German press agency (DPA) reported on Friday that Germany will not contest the placement of the Hamburg- based European- Iranian Trade Bank (EIH) on the EU sanctions list at the end of the month. The US Treasury Department sanctioned the EIH last year, saying it was one of the most important institutions in Europe for financing Iran’s missile and nuclear proliferation programs. Germany was the subject of criticism from American, French, British and Israeli officials because it refused to shut the EIH.

The EIH plays a crucial role in facilitating financial transactions for midsize German firms that are active in Iran. German- Iranian total trade amounted to over 4 billion euros in 2010, making German Iran’s No. 1 EU trade partner.