Feb
21
2012
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ICYMI: Chavez faces an Uprising at the Ballot Box

Venezuela’s Hugo Chavez faces an uprising at the ballot box
The Washington Post
By Jackson Diehl
February 19, 2011

On Feb. 12, 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. He won 1.8 million of an astonishing 3 million votes – double the turnout predicted by most analysts.

The next day, Capriles, a devout Catholic, was greeted by a commentary on the government-run Web site of Venezuelan National Radio titled “The Enemy Is Zionism.” Capriles, it explained, is the descendant of Jews. (In fact, his grandmother was a Holocaust survivor who emigrated from Poland to Venezuela.)

“In order to understand the interests embodied” by Capriles, the commentary declared, “it’s important to know what is Zionism, the Israeli ideology that he sneakily represents. . . . It is, without doubt, an ideology of terror, of the most putrefied sentiments of humanity; its supposedly patriotic impetus is based in greed.” And so on.

“Zionism,” it concludes, “is owner of the majority of the financial institutions of the planet, controls almost 80 percent of the world economy and virtually all of the communications industry, in addition to maintaining decision-making positions within the U.S. Department of State and European powers.”

Thus began the latest – and what will surely be the ugliest – political campaign by Chavez, a ruler who has served as a friend in need to Moammar Gaddafi, Bashar al-Assad and Mahmoud Ahmadinejad – and who now is facing his own homegrown democratic uprising. But Venezuela’s spring differs from those of Libya, Syria or Iran: Instead of pouring into the streets, Venezuelans – fed up with the chaos and violence of Chavez’s 13 years in power – are marching to the polls and trying to restore the country’s crippled and compromised institutions.

The opposition Capriles now heads has learned lessons that might benefit some of the revolutionaries of the Middle East. It tried and failed to oust Chavez with mass demonstrations and strikes; it foolishly boycotted elections it believed would be unfair; it indulged in endless internal quarrels. The result was the entrenchment of a strongman who has thoroughly wrecked what was once Latin America’s richest country and who now presides over the highest inflation and murder rates in the Western Hemisphere, shortages of basic goods and power, and a drug-trafficking industry whose kingpins include the defense minister.

Click here to read more.

 
Jul
8
2010
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Opposition to government takeovers intensifies in Venezuela

This article was originally published in The Washington Post

By Juan Forero

The Washington Post

Barquisimeto, Venezuela  - As in all major government takeovers of private companies in Venezuela, President Hugo Chávez declared that seizing beer-and-food giant Polar’s facilities here would mark another victory for the poor in the country’s march toward socialism.

“Why is it that Polar has so much money?” Chávez asked in a February speech made in this city in northwest Venezuela. “I say to the owner of Polar: Start making plans, because you are going to be out of here.”

Weeks later, a decree nationalizing Polar’s warehouses and offices in an industrial zone of Barquisimeto was signed. And Venezuelans, after nearly 12 years of state interventions under Chávez, expected the government to quickly sweep the company’s facilities in the country’s fourth-largest city from their current location and replace them with apartments. Chávez has suggested that he may even nationalize the entire company, which has plants and distribution points nationwide.

Except this time, the president’s plans went badly awry, exposing a mounting national opposition to a policy that has seen oil companies, supermarkets and factories taken over by the state, only to founder under the control of government functionaries.

Not only did Polar fight back by taking its case to the Supreme Court, but its employees have risen up, too, rallying in opposition to Chávez’s edict and holding all-night vigils here to prevent a takeover. Among those who joined the uprising was Henri Falcon, the popular governor of Barquisimeto, a former ally of Chávez who says the president has not considered the long-term consequences when nationalizing companies.

“The president arrives and it occurs to him to say, ‘This has to be expropriated,’ without taking into account the technical or legal criteria,” Falcon said in an interview last week. “We oppose this because it does not make sense. It is more an impulse of the president.”

The government has characterized the struggle with Polar as one between good and evil, with Chávez giving several speeches in which he has mocked Polar’s owner, Lorenzo Mendoza, who is one of Latin America’s richest men.

“We will see who can last longer, Mendoza, you with your millions or me with my morals,” Chávez said in a nationally televised speech in June. “Because you are rich one. You are going to hell, to heaven you will not go.”

The president has also called on workers to rise up against the elites. “I invoke the real Venezuelan working class for economic war against the bourgeoisie,” said Chávez, who has warned Mendoza that he could nationalize the entire Polar company, which accounts for 2.4 percent of the country’s non-oil gross domestic product and is the country’s largest private company. Its white polar bear logo is well known throughout Venezuela and other countries.

Mendoza, 44, has not publicly responded to the attacks, and Polar officials declined to comment about Chávez’s efforts to nationalize the installations here in Barquisimeto.

But employees said they opposed the government intervention because they think workers have fared badly at nationalized companies, where they have faced reduced wages and been unable to bargain collectively.

“At no time have we been taken into account and asked to say if we agree,” said Richard Prieto, head of one of the two unions that represent more than 800 workers here.

Workers also said that Polar offers wages and benefits that far outstrip those of other employers in Venezuela, including the state.

“We are saying no because we have seen the experiences of other expropriated companies,” said Juan Tacoa, president of the other union. “Here in Polar, we have benefits we know we would not have with the government.”

The stand taken by the workers has gone beyond the metal grates that surround the facilities from which the company distributes beer, wine and other beverages. A poll by Consultores 21, a Caracas firm, showed that 84 percent of the residents of Barquisimeto oppose the takeover. Nearly 70 percent said they thought the government would never build housing for the poor on the site, which is what Chávez says he envisions once Polar is removed.

The revolt against the president’s plans has been particularly embarrassing because it has come during a roiling scandal involving the state’s mismanagement of food distribution. Over the past two months, tens of thousands of tons of imported food bound for state-subsidized markets has been found rotting at ports and in warehouses.

Petroleos de Venezuela, the state oil company, was responsible for distributing the food, which included chickens, cereal and powdered milk. Food production has fallen precipitously under Chávez, while imports have sharply increased. Still, food scarcity and high prices have become nagging realities, which recently prompted the government to nationalize a string of supermarkets.

Polar, meanwhile, has grown in recent years into a behemoth that employs 30,000 workers and operates 14 plants and 75 distribution centers in Venezuela. Since Mendoza’s grandfather founded the company in 1941, it has expanded to produce everything from beer to butter to cooking oil to mayonnaise. Its most famous food product is the popular precooked flour needed for the cornmeal cakes that are a national staple.

“It’s a company like Kraft or Proctor & Gamble which sells a lot of staples, things that people use,” said Robert Bottome, editor of Veneconomia, a Caracas business journal. “And it has a tradition that goes back 60 years of maintaining quality and treating its customers well and its workers well. It should be a model for what all companies should be. Sounds corny, but that’s the reality of it.”

Last week, workers played dominos and table tennis as the sun went down — another night approached, in which they would make sure Chávez’s supporters did not storm the gates.

Big wooden palettes blocked entrances, and banners that were draped on fences and walls read, “Polar is everyone,” and “You’re not alone.” A bus filled with workers from another Polar facility arrived to help.

Taking a moment from playing dominos, Santos Freites, 42, who helps load trucks, said he had worked all day, gone home to eat and was now ready to settle in for nine more hours.

“This is our fight, our cause and the reason we are here is our jobs,” he said. “We are here because we need to defend our jobs, for our children and our families.”

 
May
28
2010
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Hugo Chávez’s implosion continues in Venezuela

The Washington Posts’s Jackson Diehl just published a must-read column in which he proves with numbers and bullet-proof arguments that the “the implosion of Chavez’s self-styled “Bolivarian socialism” is accelerating”.

In his piece, “Hugo Chavez’s implosion continues in Venezuela”, Diehl writes:

“Figures reported Tuesday by the Chavez-controlled central bank portrayed an economy that is completely out of sync with the rest of the region — and perhaps unique in the world in the degree of its current distress. Gross national product fell by 5.8 percent in the first quarter, while inflation remained at 30 percent. Private investment plummeted by 27.9 percent as capital continued to flee the country.

Private economists suspect the economic contraction is even worse than what the official figures concede. But let’s assume they are correct. Venezuela’s crash compares with quarterly growth rates of 8 percent in Brazil, Argentina and Mexico. It comfortably exceeds the collapse of Greece, which contracted by 3 percent in the first quarter.

Inflation in Caracas is triple the next highest rate in Latin America (Argentina) and is more than double that of the next worst economy (Pakistan) among the 56 tracked by the Economist’s website. Even Zimbabwe, which used to be considered the world’s economic basket case, looks good compared to Venezuela: it is expecting 6 percent growth this year, while inflation is under 5 percent.

In short, economic recovery is taking hold across the world — except in Chavez’s Venezuela.

When I pointed out back in January that Chavez’s revolution was collapsing, a chorus of left-wing bloggers rose up in protest.

The extremists among them claim that Venezuela is actually doing better than the rest of the world, because (loony version) Chavez is destroying evil capitalism or because (slightly less loony version) Venezuela’s implosion is irrelevant to the rest of the region.”

You can read here the entire piece.

Related columns:

Peter M. Burelli on Jackson’s Diehl column (PMBComments, May 27, 2010)

Hugo Chávez’s revolution crumbled (Jackson Diehl, Washington Post, January 25, 2010)