Jun
22
2011
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Turn Out the Lights, the Party’s Over

pic11 150x150 Turn Out the Lights, the Partys Over by Petardo de Petare

“Turn out the lights the party’s over they say that all good things must end.
Let’s call it a night the party’s over and tomorrow starts the same old thing again.”
-Willie Nelson

As soon as I heard of our government’s latest plan to ration electricity, I thought of the 1970s classic by American country music legend Willie Nelson. Yes, believe it or not, we too listen to Willie here in Venezuela, or at least I do anyways. The government’s latest rationing plan is proof positive that, when it comes to addressing our country’s power needs, the party’s over. The Chávez government has tacitly admitted that they have failed miserably in addressing the power needs of our country. The government’s incompetence in addressing any of the basic needs of our people has become more than a great inconvenience but a great disservice to Venezuelans, who on a daily basis face many challenges in achieving their dreams – from living in a safe neighborhood to having a remunerative job. To add insult to injury, the Chavistas do nothing but lay blame on others for their failures. When it comes to the power issue, they are now blaming us Venezuelans, chastising us for wasting too much energy. Energy Minister Alí Rodríguez Araque scolded us saying, “Demand is excessive.” Not to be left behind, Vice President Elías Jauá announced that “We need to take extraordinary measures to regulate the demand and stabilize the grid.” But, no one here in Petare is buying the government’s excuses.

It is worth asking how a country blessed with some of the largest oil reserves in the world is constantly subjected to power rationing and blackouts. Only under the leadership – or lack thereof – of the Chávez government can such travesty take place. First, the government blamed the Guri dam, the third largest hydroelectric power station in the world. The Guri supplies over 70% of the power consumed by Venezuelans. Last year, the Guri had very low water levels due to a severe drought. Tired of blaming Mother Nature, the government moved on to a more worthy enemy – private enterprise. On Phase II of their attacks, Chavistas accused large private businesses, such as shopping malls, of “wasting too much power.” As a result, the Sambil mall in Caracas was forced to close its doors early. Never mind two important economic indicators such as consumer spending and job creation. Who needs those? Phase III of the Chávez strategy was unabashedly political in nature. Our president and his posse accused the opposition of sabotaging our electricity for political gain – a perfect example of the pot calling the kettle black. Last but not least, in Phase IV, the blame has caught on to the rest of us – the Venezuelan people. According to the government, we are obsessed with “Yankee consumerism.”

They are running out of time and excuses. Today, the Guri is bursting with water, shopping malls are operating under a normal schedule, the opposition is gaining momentum and us, evil consumers, are going about our business as best as we can. And, the power outages continue. Why? Well, there are various reasons, all pointing to the government’s unwillingness to take serious steps to address this issue. For starters, our population has grown, and with it our energy needs. Despite that reality, the government has failed to make the power investments needed to keep up with the consumption growth in Venezuela. According to Gustavo Marcano, a member of our Chamber of Deputies, the government announced in 2005 the construction of 12 new power generation plants by 2008. Here we are, in 2011, and all remain unfinished.

Another important point to consider in the electricity crisis is the subsidies provided by the government. Experts argue that these subsidies actually backfire by encouraging increased consumption. Lastly, the specter of expropriation is also a factor in this crisis. In 2007, the government expropriated Electricidad de Caracas, owned by a U.S. company, AES. As everything else that falls into this government’s hands, the new CORPOELEC is a mismanaged and inefficient enterprise, which has been unable to make the necessary investments in the power transmission lines, for example, needed to transfer the power from the Guri to my home so that I can keep my lights on.

But what really makes us red with anger here in Petare is the fact that, while we are inconvenienced with power outages, our government, in its eternal need to seek approval abroad, is spending millions of bolívares in other countries to provide them power. In Nicaragua, Mr. Chávez spent $52 million to build the Nagarote power plant, and in Bolivia, $72 million were allocated for the Entre Rios thermoelectric plant. Last but not least, to please Mr. Chávez’s hero, Fidel Castro, our government spent $170 million to build a power plant in Holguín. It makes absolutely no sense!

By themselves, the power outages are a problem the government could very well overcome – at least, politically speaking. But when one combines the outages with the myriad of other major problems facing Venezuelans every day, it becomes increasingly harder to “spin” the government’s incompetence. In other words, the power crisis is not an isolated incident; it is a real life example of the government’s inability to manage any of the most basic needs of the Venezuelan people. That is why I believe that for this government, the party may soon be over. Sing it, Willie!

 
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.

 
Jun
17
2011
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In Case You Missed It… Articles Roundup Week of 6/17/11

In this week’s roundup…the Venezuelan President’s stint in Cuba stirs up questions and conflict back home regarding the constitutionality of enacting laws and governing Venezuela while abroad for an extended period of time.  Meanwhile, the ministers of the Chávez government begin to institute electricity rationing across the country as a way to address the power outages across the country.  Over consumption of energy is but the latest justification by the government for the power outages after previously blaming droughts, business consumption and sabotage by opposition activists.

 

Post-op Chavez runs government from Cuba, Reuters via Toronto Sun

Venezuelan President Hugo Chavez said he has his “full faculties” after surgery in Cuba and was still managing government affairs despite being ordered to rest for several more days. Chávez, 56, had a pelvic abscess successfully removed on Friday during a scheduled visit to Cuba, forcing him to postpone his return to Venezuela.

Venezuelan Congress Blocks Temporary Hand-Off Of Chavez’s Duties¸ Dow Jones Newswire

Supporters of Venezuelan President Hugo Chávez rejected a proposal late Tuesday in the national congress that called for a temporary hand-off of presidential duties during the leader’s recovery in Cuba from unplanned surgery.

Chavez’s medical absence in Cuba angers opposition, Reuters via The Gazette

President Hugo Chávez’s continued absence in Cuba after surgery has laid bare his one-man dominance of Venezuelan politics and infuriated opponents hoping to dethrone him in next year’s vote.

Lawmaker to file a complaint against Chávez and his ministers, El Universal

According to opposition deputy Alfonso Marquina (Un Nuevo Tiempo, UNT, state of Miranda), President Hugo Chávez and his Cabinet violated the Constitution and Venezuelan laws after because they enacted the Special Debt Law while Chavez was outside Venezuela and without convening a Council of Ministers.

Venezuela to Restrict Electricity Use for Second Straight Year on Blackout, Bloomberg

Venezuela, the largest oil producer in South America, will announce measures to curb electricity consumption for a second-consecutive year, prompted by a blackout in the country’s most-populous state, Zulia.

Venezuela Charges State Electricity Co Worker With Sabotage, The Wall Street Journal

Venezuelan authorities Tuesday charged an employee of state-run electricity company Corpoelec with sabotage, saying the act led to a major electricity failure across several states in May. In a statement, the attorney general’s office said it charged Luis Alfonzo Pena Nañez for his role in the power outage. The ministry also said it would charge another worker, Hugo Alberto Aguilar Caceres, on Friday. Under state law, the accused could face four to eight years in prison.