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Chávez must yield to election calls
Financial Times via yahoo.com ^ | January 8, 2003 | Ricarado Hausmann

Posted on 01/08/2003 4:08:18 AM PST by Cincinatus' Wife

Venezuelans used to take uneventful politics for granted. No more. They now march in unprecedented numbers against a president - Hugo Chávez - who is unable to keep things running. A six-week general strike has shut down much of the economy, including the oil industry. The crisis now competes with Iraq and North Korea for space on the front pages.

The decline in oil production has raised world prices and disrupted the supply of petrol in the Americas. Fiscal solvency has evaporated, raising the spectre of a default on Brady bonds and a crisis in the mostly foreign-owned banking system. What is fuelling the passions behind the protests?

The Venezuelan story has three main ingredients: poorly diagnosed bad economic performance; the perils of constitutional reform; and the totalitarian implications of revolutionary ideals.

After being the fastest-growing economy on record between 1920 and 1980, Venezuela experienced an extraordinary reversal of fortune in the following two decades, with income per capita falling by half. Disappointed with their lot, Venezuelans voted for a candidate who blamed corruption and privilege - not lack of growth - for their miseries and who offered a political agenda centred on constitutional reform. Since Mr Chávez took power four years ago, income per capita has fallen by another 20 per cent, in spite of high oil prices.

The constitutional reform approved in 1999 did away with a 40-year-old constitution that had generated enough political stability to ensure the transfer of power to nine elected presidents, seven of them running from the opposition. Enough checks and balances were put into the system and sufficient institutional space was created for political parties so that all constituencies found it in their interest to play by the rules and to search for consensus.

The new constitution, through design and circumstance, ended up concentrating power in the presidency and eliminating most checks and balances. It was drafted by a constituent assembly elected through a rule that gave Mr Chávez 92 per cent of the seats with just over 50 per cent of the vote, essentially disenfranchising the opposition. This winner-take-all assembly dissolved the elected Congress and appointed loyal supporters to the Supreme Court, the attorney-general and the comptroller-general without following constitutional procedures. In addition, the new constitution extended the presidential period, allowed for a one-time re-election and substituted a two-chamber congress with a one-chamber national assembly, in order to lessen the burden of consensus-building. This concentration of power has allowed the government to get away with murder, misuse public funds, arm violent gangs and disarm opposition local police.

Last, Mr Chávez's revolutionary ideology, for all its romanticism, inevitably involves a totalitarian system of values that is inconsistent with an open society. According to him, inherited institutions and organisations are a priori bad, income is a sign of corruption, merit a sign of privilege. Stealing is fine if you are poor. Consensus-building is a sign of weakness.

These ideas rub most Venezuelans the wrong way. After all, the country exhibits the highest social and political mobility in the hemisphere. The middle classes find that their dwindling incomes are well deserved, a product of the dramatic rise in educational attainment over the past generation. They feel that a society that does not reward effort, recognise excellence and punish crime is bound to become chaotic. But these values are eroded by the president in his interminable speeches.

To regain governability, the country must return to a political representation that expresses society's wishes and checks and balances to force consensus and limit abuse. This can be achieved only by new elections and reappointing the Supreme Court, attorney-general and comptroller-general. This would require constitut- ional reform or a constituent assembly.

The government has opposed this because it fears losing its power and impunity. The opposition, meanwhile, thinks it can impose it without negotiations. The deadlock is costing all dearly. The international community instead of just facilitating dialogue, as has been the case, should put its force behind a quick electoral solution.

The writer is professor of the practice of economic development at Harvard University. He was minister of planning in Venezuela.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: communism; hugochavez; latinamericalist; oil; strike; venezuela
Venezuela's Economy: From Bad to Worse

Hugo Chavez - Venezuela

1 posted on 01/08/2003 4:08:18 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife
CW - I'm still scratchin' my head over this whole matter. Why no intervention? Not even a good, old-fashioned funding of a bloodless coup? Perhaps there is something going on and it's just so well-kept and clandestined that we won't know about it for decades hence.
2 posted on 01/08/2003 4:14:26 AM PST by anniegetyourgun
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To: anniegetyourgun
Perhaps there is something going on and it's just so well-kept and clandestined that we won't know about it for decades hence.

I think the opposition and Bush are leaving Chavez just enough rope with which to hang himself. (politically speaking, that is)

3 posted on 01/08/2003 4:23:07 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife
Seems like that just leaves too much to chance....and preying dictators from other lands....
4 posted on 01/08/2003 4:25:02 AM PST by anniegetyourgun
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To: anniegetyourgun
It's my best guess and my hope.
5 posted on 01/08/2003 4:25:56 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife
Chavez has no intention of ever relenquishing power voluntarily. Not now. Not ever. He has some money stashed away in Swiss accounts and a villa in Cuba waiting if needed. But his intention is to be an oil baron billionaire President for Life dictator.

The key will be the military. Will they shoot civilians when ordered by Chavez and his behind the scenes Cubans to do so?

6 posted on 01/08/2003 4:32:03 AM PST by friendly
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To: friendly
Bush: U.S. oil reserves locked up tight - Chavez: claims role of "oil commander"

OPEC may open up spigots to allay strike, war concerns

Venezuela to Split State's Oil Monopoly - Replacement workers damaging equipment

7 posted on 01/08/2003 4:41:47 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife
Good morning, CW,

According to him, inherited institutions and organisations are a priori bad, income is a sign of corruption, merit a sign of privilege. Stealing is fine if you are poor. Consensus-building is a sign of weakness.

It sounds to me Chavez would make an excellent U.S. Democrat.

8 posted on 01/08/2003 4:47:54 AM PST by Gatún(CraigIsaMangoTreeLawyer)
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To: Gatún(CraigIsaMangoTreeLawyer)
Sadly, that did cross my mind.

Goodmorning Gatún(CraigIsaMangoTreeLawyer).

9 posted on 01/08/2003 4:49:42 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife
In an article you posted a couple of days ago, it read the “Government is speeding up the process of legalizing status to citizens of Colombian, Chinese, Cuban and Arab origin.” This has me very disturbed. It’s going to be difficult to rub out these outside fanatics once they get entrenched. I’m not seeing much hope for the Venezuelans. Someone has got to step forward and become the leader of the opposition and carry the banner so to speak.
10 posted on 01/08/2003 5:28:08 AM PST by Gatún(CraigIsaMangoTreeLawyer)
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Comment #11 Removed by Moderator

To: Cincinatus' Wife
Pressure is on as well.

National Review just picked up the Chavez/al-Qaeda story.
http://www.nationalreview.com/comment/comment-osorio010803.asp
12 posted on 01/08/2003 8:17:20 AM PST by hchutch (Mr. President, CALL HOWARD STERN!!!!)
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To: *Latin_America_List
http://www.freerepublic.com/perl/bump-list
13 posted on 01/08/2003 9:33:54 AM PST by Free the USA
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To: hchutch
Brit Hume covered the Chavez/al Queda connection last night on "Special Edition."
14 posted on 01/09/2003 1:37:04 AM PST by Cincinatus' Wife
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To: Gatún(CraigIsaMangoTreeLawyer)
Someone has got to step forward and become the leader of the opposition and carry the banner so to speak.

This is so important. The oppsition must agree (or at least enough of the groups) to have an impact. I think ousting Chavez is the glue that binds them together but they need something more. If there is someone, they need to surface. Perhaps there is someone but they're keeping a low profile for now. This is very frustrating. I can't imagine how it is on the ground. My prayers are with the people of Venezuela.

15 posted on 01/09/2003 1:40:32 AM PST by Cincinatus' Wife
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To: Cincinatus' Wife; Miss Marple; Luis Gonzalez; JohnHuang2; Poohbah; section9; Dog Gone; Axion
Hopefully the White House will get the hint, make a call to CIA, and do the 187 on Hugo Chavez that is long overdue.
16 posted on 01/09/2003 6:10:42 AM PST by hchutch (Trillions for defense, not one cent for tribute.)
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To: hchutch
I hope it doesn't have to come to that, but the more I learn about Chavez, the more I think he will never relinquish power voluntarily.
17 posted on 01/09/2003 6:34:42 AM PST by Dog Gone
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To: Dog Gone
I don't think there will be any choice.

What we need is Venezuela's version of Carlos Castano.
18 posted on 01/09/2003 6:38:23 AM PST by hchutch (Trillions for defense, not one cent for tribute.)
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