Aug
12
2011
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In Case You Missed It… Articles Roundup Week of 8/12/11

In this week’s roundup… President Hugo Chávez returns to Cuba for a second round of chemotherapy;  Uncertainty still looms over the controversial, so-called “Sports Law”; Admission to Venezuela’s overcrowded prisons has been halted, triggering an overflow of inmates; three government officials are brought up on charges for the Rodeo prison riots; Rolling blackouts affect PDVSA’s oil output; and Venezuela finalizes new loans with Russia and China.

Chavez in Cuba for more cancer therapy, AFP

Venezuelan President Hugo Chavez was in Cuba on Sunday for a second round of chemotherapy treatment, following the removal of a cancerous tumor in June.

Sports chiefs say Venezuela’s government promises rules won’t restrict sponsorship, Washington Post via AP

Representatives of Venezuela’s professional sports leagues said Friday the government has assured them that new rules on private sponsorship will not strip critical revenue from teams across the South American country.

Police cells fill as Venezuela halts prison intake, Associated Press

Holding cells in Venezuelan police stations have begun to fill up a week after a government order to temporarily halt new admissions to the country’s overcrowded and violent prisons.

Venezuelan Authorities Charge 3 For Roles In El Rodeo Prison Riot, Wall Street Journal via Dow Jones Newswires

Venezuelan authorities Tuesday said they brought corruption charges against a member of the National Guard and two former directors of the El Rodeo prison facility, where a 27-day prison riot last month brought the South American country’s overcrowded incarceration system into the spotlight.

Venezuela Oil Upgraders Back Online After Power Outage – PDVSA, Wall Street Journal via Dow Jones Newswires

Venezuela’s four major oil upgraders have returned to normal operations after a power failure in a transmission line halted the facilities two days ago, state oil company Petroleos de Venezuela, or PdVSA, said Wednesday.

Venezuela Finalizing New Loans Totaling $8B with China, Russia, WSJ via Dow Jones Newswires

Venezuela is finalizing agreements for two separate credit lines of $4 billion each with Russia and China, with a portion of the financing earmarked for military equipment for the South American nation, according to Venezuelan state media.

 
Aug
5
2011
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In Case You Missed It… Articles Roundup Week of 8/5/11

In this week’s roundup… Venezuela’s National Assembly passes a controversial Sports Law which squeezes the private sector by imposing an additional tax on their gross revenues; Chávez prepares for a new round of chemotherapy; Canadian mining company Gold Reserve Inc. raises its claim against the Chávez government; inflations rises to 25%; up to 40% of Venezuela’s inmates could be freed; and the ties between Iran and Venezuela continue to grow.

Soccer-Venezuela courts controversy with sports law, Reuters

Venezuela is on collision course with world soccer governing body FIFA and the International Olympic Commission after its parliament approved a controversial sports law that threatens the autonomy of its sports federations.

Venezuela’s Hugo Chavez seeks aid from indigenous deities to help him survive cancer, The Washington Post via AP

President Hugo Chavez told a gathering of soldiers Thursday that he’s seeking divine support from the indigenous deities and spirits of Venezuela’s central plains to help him survive cancer.

Gold Reserves Inc raises claim against Venezuela, International Business Times

Canadian mining company Gold Reserve Inc said on Monday it has raised the amount it is claiming from Venezuela for seizing its two gold projects to $2.1 billion from $1.9 billion.

Venezuela’s annual inflation tops 25 percent, Bloomberg Businessweek via AP

Venezuelan officials say the country’s annual inflation rate has risen to 25.1 percent.

The Central Bank and the National Statistics Institute record a 2.7 percent rise in prices during July.

Report: Venezuela could release up to 40% of its prisoners, CNN

Venezuela’s new prisons minister believes that 40% of the country’s inmates do not belong behind bars, the El Nacional newspaper reported. The newspaper published an interview with Iris Varela on Sunday, in which she outlined her vision to fix the country’s overcrowded prison system

Venezuela Signs $1 Billion Deal with Iran to Build Houses, The Wall Street Journal

Venezuela signed a $1 billion deal with Iran to build 10,000 houses in the South American country, according to a statement on the Venezuelan Foreign Ministry’s website.

Source: Gaddafi wants Chávez to help sell oil, The Miami Herald

A Libyan delegation visited Venezuela over the weekend to seek help in selling Libyan oil on the international market, according to intelligence sources.

 
Jun
20
2011
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Chávez’s New Sports Law is an Air Ball

José R. Cárdenas DSC 0754 150x150 Chávez’s New Sports Law is an Air Ballserved in several foreign policy positions during the George W. Bush administration (2004-2009), including on the National Security Council staff.  He is a consultant with Vision Americas in Washington, DC.


How ironic that just as the U.S. State Department announced a basketball “sports diplomacy” visit to Venezuela, that country’s National Assembly is debating yet another grandiose Hugo Chávez project to virtually expropriate and nationalize Venezuela’s entire sporting sector.

Included in the U.S. delegation is NBA player Greivis Vásquez, a Venezuelan native, who will spend five days conducting clinics, visiting schools, and interacting with underprivileged youth.  Such exchanges are meant to present a “softer” side of the United States and can have value, provided that governments like that of Mr. Chávez don’t try to hijack them for their own narrow political purposes.

On the other hand, there is nothing redeeming about the Venezuelan government‘s latest harebrained scheme to exert government control over an increasingly large part of Venezuelan society.  If the Venezuelan government has its way, Venezuelan athletes chasing their sports dreams will soon encounter a vastly different environment – one most assuredly not for the better.

Mr. Chávez wants to designate the entire sporting sector – including sporting leagues and purveyors of goods and services – as “public services,” meaning that they must be made available to all sectors of Venezuelan society.  If a particular entity is deemed by a government bureaucrat not to be fulfilling that mission, it runs the risk of confiscation by the state. We have seen this movie before. This is usually the first step the government takes before it expropriates an entire sector of the Venezuelan economy. Declaring anything a “public service” it’s a sure sign that the government will exercise its power over that sector.

The new Ley Orgánica del Deporte (“Organic Sports Law”) is yet another Chávez promise that, while cloaked in noble rhetoric, will accomplish none of its goals and lead to declining sports opportunities, more inefficiency, and more corruption.

For example, the Venezuelan private sector has traditionally been able to claim tax deductions for their support of sporting activities – everything from buying uniforms for professional teams to building local facilities for underserved communities.  Under Mr. Chávez’s law, Venezuelan businesses will now be levied a new tax that would go directly to a National Fund for Sports Development, which will have sole authority to decide where and how the funding is spent.

It constitutes one more circumscription of the rights of individuals and the private sector to make choices and exercise freedoms. Moreover, with the government hovering over every sports enterprise and examining their decisions under threat of confiscation it will simply drive investment capital elsewhere.

There is even a more ominous dynamic at play here. An authoritarian system is usually defined as one in which the government exercises control of the political system, but usually allows relative freedoms in the economic and social sectors as long as no one challenges the prevailing political order. On the other hand, a government that invades the peoples’ social space is a dangerous slide into totalitarianism.

The days when millions of Venezuelans turn to baseball, basketball, soccer, or any other sports as a quiet respite from the country’s problems and political polarization could become a thing of the past. As history tells us, whatever sector of society the Venezuelan government touches is immediately politicized. Will all sports teams now be forced to wear red uniforms? Will pictures of Ché Guevara now replace the Maltín Polar logo or that of other popular Venezuelan brands common in stadiums?

The Venezuelan caudillo has always tried to hide his true colors behind an aura of democracy.  But as the government seeks to control more and more of Venezuela’s society, he fools no one. It would seem he is trying to emulate his idol, Fidel Castro, who has survived 50 years in power by maintaining a stranglehold on all facets of Cuban society. After all, when populations have to rely on the state for the delivery of all goods and services, dissent is inevitably suffocated. Cuba stands as the tragic example.

Mr. Chávez, of course, is not there yet, but think of the imagery of a frog in a frying pan. Turn up the heat too fast and it jumps off; turn up the heat slowly and it is cooked before it knows it. The Venezuelan people should oppose Chávez’s latest power grab before his dream becomes their nightmare.