The last republic? The story's familiar: a small, oil-rich nation, with an anti-American government in a military feud with its neighbors. But it's not Iraq or Iran, or even in the Middle East -- it's Venezuela, reeling from political turmoil and economic chaos. Even as the world's attention is focused on the fighting in Baghdad and the imminent fall of Saddam Hussein, this Latin American nation could become a regional security risk.
Venezuelan President Hugo Chavez began his career as a military coup-plotter. In the early 1980s, he and fellow military officers formed a secret society, the Revolutionary Bolivarian Movement (named after Latin American revolutionary Simon Bolivar). In February of 1992, following the implementation of an economic program ordered by the IMF, Chavez led an aborted coup against then-President Carlos Andres Perez and spent two years in jail as a result, though not until after 10,000 soldiers followed his call and scores of lives were lost.
By the lates 1990s, Chavez had transformed himself from a failed conspirator to a mainstream politician, and Venezuela was on the ropes. Both profligate and incompetent -- Venezuela spent more on social programs than any of its neighbors, but its basic living indices, such as infant mortality, were many times that of other nations in the region -- the nation had reached a point where its oil wealth could no longer cover the serious problems at its core.
In 1998, Chavez rose to power on the shoulders of the poor, to whom he promised socialist reforms and an equitable sharing of that nation's oil wealth. He also played on ethnic tensions -- Chavez is, like 80% of the populace, a descendent of Africans and/or South American Indians, while the business and political elite have traditionally been individuals either of European descent or who have been socialized into neoliberalism.
Although many distrusted his revolutionary rhetoric, Chavez garnered widespread support amongst the poor and picked up enough votes from the middle class -- weary of forty years of corruption amongst politicans and the oil oligarchy -- to win by a respectable margin (Chavez garnered the largest minority of the votes, and parties serving as political allies made up the remainder). Massive inflation, widespread poverty and the lowest economic growth rate in South America combined to make for a volatile electoral situation, where the traditional (and American-backed) political parties garnered less than 10% of the votes cast.
THE BOLIVARIAN REVOLUTIONChavez quickly set about putting his revolutionary plans into action both abroad and at home. He visited with Saddam Hussein and Fidel Castro, and allegedly began providing Colombian rebel forces with munitions. Domestically, the military was purged and became a primary actor for the Chavez regime. The Senate was abolished and the Presidential term of office was extended.
During his tenure, Chavez has become something of a
cause celebre amongst the anti-globalization groups on both the left and the right; his political philosophy, a mixture of authoritarianism and populism, manages to strike chords on both ends of the spectrum.
An example of the radicalism of the Chavez faction can be found on the front page of the Chavez-linked
Asamblea Popular Revolucion, which "demand[s] that the Pope, religious leaders, Nobel Peace Prize recipients ... [and] human rights advocates ... be transported [
se trasladen] to Iraq and serve as human shields" as sign of their commitment to stop "murderous neocolonialism" [
el nuevo colonialismo asesino].
At the same time as he uses leftist rhetoric and policies, Chavez extols oligarchic rule by "strongmen [caudillos]" and excoriates the "imported bourgeois model of democracy" that "eliminates our leaders." It's tempting to conclude that Chavez seems to occupy the same niche as the Italian
Lega Norda or Slobodan Milosevic -- the paleoconservatives love him for his nationalist and authoritarian roots, and the radical left loves him for standing up to America, neoliberalism and most post-1936 economic theory.
Chavez has three primary enforcers: the military, which took over many domestic duties in the face of Senatorial dissen; the police, who have been used to intimidate dissidents and even kill anti-regime protestors during demonstrations; and the "Bolivarian Circles," neighborhood political organizations that, critics say, have been turned into armed militias equipped by Chavez at government expense.
Because the Venezuelan media is largely anti-Chavez, the regime has begun a crackdown on free expression, using laws that Human Rights Watch characterizes as "prohibiting broadcasts that subvert public order, discredit authorities and institutions, or propagate false or tendentious news ... barring even legitimate criticism of public authorities and institutions [and] conflict[ing] with international norms on freedom of expression." Radical leftists in the United States have defended these laws, saying that Chavez is acting on behalf of the Venezuelan public to "free" the media from its "corporatist" ties.
One year ago, a military and business coup managed to temporarily throw Chavez out of office. Around 600,000 citizens marched in Caracas, demanding the ouster of the regime. But two days later, a counter-revolutionary effort organized by the Bolivarian Circles forced the interim President, Pedro Carmona (head of the business alliance Fedecamera) to step down, and reinstated Chavez.
The coup was foiled, but Chavez's troubles continued: managers and unionized workers at state-run oil company Petroleos de Venezuela S.A. (PdVSA) began a concerted strike to try and force him to step down and call new elections. The strike also failed, but crippled the oil industry, caused over $6 billion dollars (U.S.) in direct damages, and resulted in Chavez firing almost 18,000 workers from PdVSA (roughly 47% of the company's total workforce).
Today, efforts continue to call a national referendum to remove Chavez from power, but he has repeatedly ignored them, despite his own 1996 statement that he intended for Venezuela to have a system of "direct democracy ... where the people retain the right to remove, nominate, sanction and recall their elected delegates and representatives."
Recent opinion polls in Venezuela show that Chavez would lose a recall petition, with 60% of the population expressing support for a recall of the President. A majority of the nation also feels that Chavez has been a "setback" for democratic rule in Venezuela, which has had a stable, if corrupt, democracy for nearly five decades.
There are signs that Chavez, or forces acting on his behalf, are rooting out revolutionary forces. Earlier this year, the bodies of four Chavez opponents, three of whom were from the military, were discovered outside Caracas. A young girl who witnessed the attacks on the four was also shot and left for dead. The U.S. State Department has alleged that 137 extrajudicial murders by the government took place in 2002.
A WORSENING PICTUREAs bad as the situation was in 1998, today Venezuela is in even worse shape, with the always-fragile middle class rapidly vanishing into immiseration. A succession of natural disasters, from torrential rains that forced the relocation of thousands to a severe drought that has caused electricity rationing across the nation, has worsened the situation. (Chavez exacerbated the death toll from mudslides by refusing proffered American aid.)
The overall economic picture is grim: the economy is in a recession, inflation has reached runaway levels, durable goods sales are down by 75% in some sectors, national debt has increased almost fivefold, unemployment is at 18%, and poverty is rampant. Interest rates for private creditors run upwards of 40%, with Central Bank actions having little effect. (The Bank recently rejected an attempt by Chavez to directly set fixed interest rates for private banks.)
Foreign debt payments are a major issue, with the government unable to pay the $5 billion (U.S.) due in 2003. External debt currently stands at $22.4 billion, with another $9 billion in internal debt. The government has been using emergency measures such as debt swaps to try and minimize the short-term fiscal impact, and this week approved a plan to issue further bonds to keep current on their payments. (Chavez caused no small amount of havoc last month when he insisted the government needed to "restructure" its debt, when he actually meant "refinance.")
Although Chavez fell far short of his promises to the poor, he did markedly increase public spending on housing, accounting for a majority of the economic growth during the recent years. Massive apartment blocks -- hastily and shoddily constructed -- are rented to the lower classes at a net loss to the government, but still can't fill the desperate need for shelter. Other social programs have seen cutbacks or even elimination due to the dire economic environment.
Finance officials have begun to talk about expanding taxes on non-petroleum products to reduce the government's fiscal dependence upon oil. Needless to say, this will further depress economic performance and probably create further unrest amongst the middle classes.
Oil revenues are staggering back to pre-strike levels, but PdVSA is rife with allegations of mismanagement: military officers have taken over management slots, Chavez is supplying Cuba with credit rates so favorable as to effectively give them free oil supplies, and, according to some PdVSA employees, curious transactions are made that appear to be money laundering for drug cartels and international terror networks. It may well be that the effective destruction of PdVSA may be the lasting legacy of Chavez, long after institutions have repaired the damage done to Venezuelan democracy.
Other social pressures are beginning to appear: crime rates have soared since Chavez took office (Venezuela is now the 2nd most crime-ridden nation in Latin America), and less than 15% of murders in the nation are prosecuted. Although the faltering economy and political turmoil is certainly partially responsible, it's worth noting that the military has disarmed local police in an attempt to defang anti-Chavez mayors and local political leaders, thus making law enforcement virtually impossible.
Internationally, Colombia has repeatedly accused the Chavez regime of providing narco-rebels with munitions and safe havens across the Colombian border. In recent months, the Venezuelan military has begun cooperating with Colombia on security matters, bombing rebel positions and arresting FARC and NLA members in Venezuela. However, another round of political dislocation could create further problems for neighboring nations as rebels take advantage of Venezuelan inattention.
THE UPSHOTVenezuela seems poised for a revolutionary implosion. The military seems to be fractured along pro-Chavez and revolutionary lines, while the government itself has been segregated into Chavez and his cronies (who fill the National Assembly) on one side, and the politicians and bureaucrats who oppose him on the other. The same tensions are mirrored on the streets: the Bolivarian Circles intimidate and threaten opponents of the regime, while the middle and upper classes purchase firearms and secure their homes in preparation for the next round of violence.
With the economy continuing to collapse and political tensions rising, it's only a matter of time before another coup attempt shakes the nation. But next time, both sides will be ready, and the toll will be higher.