Chavez Flip-Flops, but Nothing Really Changes
Over the last few weeks, Venezuelan President Hugo Chavez
has had everybody guessing. In several announcements, he has
modified previous positions, changed courses of action, and
rectified policies.
All of this has left the international media wondering. "Weak
or wise" asks the BBC. "Master tactician or failing bungler?"
headlines the
Economist.
Beyond Chavez's reasons for his turnarounds, what matters is
the real impact these might have, both on Venezuelan domestic
politics and in the international arena.
Internationally, Chavez's call to the Colombian guerrillas,
FARC, to free their hostages and bring their guerrilla warfare to
an end has been the most notorious position shift. Only a few
months ago he was urging the world to de-list the FARC as
terrorists and recognize them as an "insurgent force."
The change of heart could be explained by the international
backlash from that call, the prospects of documents showing his
links to the FARC being exposed, or by the predicaments of the
increasingly isolated, divided and weakened FARC.
The Colombian government—as well as the
French—welcomed the new call. If anyone had any ascendancy
over the FARC to induce them to release hostages, it would be
Chavez.
The FARC replied that freeing the "prisoners" they hold has
always been their objective, provided, that is, the government
releases 500 guerrillas from Colombian jails. Initial expectations
for unilateral releases are waning and some analysts believe they
might only come as deserters from the guerrillas use them as
leverage for exile, avoiding prosecution.
On the domestic front, Chavez has found his positions
weakened by a combination of factors. Inflation, scarcities of
basic products, crime rates, and corruption are being felt by
everyone, Chavistas and anti-Chavistas alike, and have become
unmanageable by the political discourse alone.
The inefficiency of the government to deliver on basic needs
has rendered the promises empty. Extreme measures of state control
and the radicalization of the political process, implemented behind
the veil of an illusion of bonanza, are now being confronted with
increased mobilization of social sectors.
Chavez has the authority—conferred upon him by the
National Assembly—to legislate by decree. Thus he passed a
new Intelligence and Counter-Intelligence Law, only to repeal it a
couple of weeks later.The law explicitly forced every citizen to
co-operate with state agencies or face imprisonment. In Venezuelan
society—with its many unwritten codes—there is no
behaviour more reprehensible than snitching; to be a "sapo" (a
toad) or an informant is despicable and unforgivable. Venezuelans
reacted in outraged unison against the "sapo" law.
Despite the legislation being repealed, chances are the state
policing agencies will not reverse their current practices. The
regime has taken considerable steps in 10 years towards the
intimidation and harassment of dissenters, and these will continue
"de facto" albeit not "de jure."
Another "rectification" was the decision not to go
ahead—for now—with the proposed changes to the
education curricula for primary and secondary education. The
changes would have seen Venezuelan kids receiving a distorted
interpretation of the country's history, a highly ideological
version of contemporary issues, the imposition of militaristic
practices, and the glorification of Chavez's persona. Civil
society, parents and teachers mobilized against the proposal to the
point of preventing its immediate implementation.
But much has changed in Venezuela already, and will take
generations to reverse. The wider societal impact of turning
"merit" into a bad word, by privileging party loyalty over
technical skills or knowledge, is hard to tally. The effects of
innumerable government handouts, disguised as scholarships,
bursaries, subsidies, and other euphemisms, have contributed to
cementing a parasitic culture. People don't need to work, study,
produce, or have any initiative to receive direct buyouts, provided
they attend official demonstrations, hang up the propaganda,
register in the official party and vote.
This picture is also true of the new elite class, the
Bolivarian-bourgeoisie, which has amassed obscene fortunes through
contracting with the government, corruption and favours. In a
country where—with some notable exceptions—the
entrepreneurial class has somehow always lived under the protection
of the state, the last 10 years have seen this dependence increase.
An independent private sector has been all but crushed under
governmental controls as the oil revenues pay for an artificial
economy reliant on imports, resulting in the dismantling of the
production capacity of the local industry. So when, in yet another
shift, Chavez convoked some 500 local and foreign entrepreneurs
last week and announced his "new economic measures," these have to
be seen through this prism.
The elimination of a tax on financial transactions is, of
course, welcomed, even if it only represents acknowledgment of how
absurd it was in the first place. The elimination of bureaucratic
obstacles to access to foreign currency, up to $50,000 (US), for
local businesses in need of imported supplies is also welcomed, yet
it does little to revert the exchange controls or the artificially
over-valued local currency that kill any possibility of
international competitiveness.
The creation of a $1-billion (US) fund for the government to
invest in joint initiatives in chosen sectors only perpetuates the
discretionary spending and the paybacks for political favours.
Will these measures, reactivate local private production,
create jobs and help curb inflation? Probably not, but for Chavez
it widens the circle of those subsidized by his government. The
extension of the unsustainable model that has brought him thus far
might yet prevent his regime's defeat in the governors' and mayors'
elections in November.
Chavez's turnarounds can be perceived as big or small, or as
the result of calculated strategy or improvisations, but the fact
remains that very little will change as a result. The impacts of a
decade in power have already left an international and domestic
imprint that withstands circumstantial posturing.
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