Jul
30
2012
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ICYMI: Cocaine’s Flow Is Unchecked in Venezuela

The New York Times
July 26, 2012
By William Neuman

LA MACANILLA, Venezuela — The Venezuelan government has trumpeted one major blow after another against drug traffickers, showing off barrels of liquid cocaine seized, drug planes recovered, cocaine labs raided and airstrips destroyed.

But a visit this month to a remote region of Venezuela’s vast western plains, which a Colombian guerrilla group has turned into one of the world’s busiest transit hubs for the movement of cocaine to the United States, has shown that the government’s triumphant claims are vastly overstated.

Deep in the broad savanna, one remote airstrip the government said it had disabled in a recent army raid appeared to be back in business. The remains of two small aircraft set on fire by the army had been cleared away. Traffickers working with the Revolutionary Armed Forces of Colombia, which operates with surprising latitude on this side of the border, appeared to have reclaimed the strip to continue their secret drug flights shuttling Colombian cocaine toward users in the United States.

There were no signs that soldiers had blasted holes in the runway or taken other steps to prevent it from being used again.

For years, the United States has been working with friendly governments in Colombia, Mexico, Honduras, Guatemala and other countries in Latin America, spending billions of dollars to disrupt the flow of drugs northward. But because of antagonistic relations with President Hugo Chávez of Venezuela, the reach of American drug agents, and the aid that comes with them, does not extend here.

“Our airspace has been taken over,” said Luis Lippa, a former governor of Apure State who plans to run again as an opposition candidate in elections in December. Referring to the grip of traffickers on the border region, he said, “Our national territory has been reduced.”

venezuela drug trafficking routes ICYMI: Cocaine’s Flow Is Unchecked in Venezuela

Radar data collected by the United States government shows what are believed to be illicit drug flights, mostly between Venezuela and Central America. Country names have been added. (Courtesy of: Joint Interagency Task Force South)

A map of flight tracks made by a United States government task force using data from long-range radar makes the point vividly: a thick tangle of squiggly lines, representing drug flights, originates in Apure, on Venezuela’s border with Colombia; heads north to the Caribbean; and then takes a sharp left toward Central America. From there, the drugs are moved north by Mexico’s well-established traffickers.

President Obama signed a memorandum in September that designated Venezuela, for the seventh time, as a country that failed to meet international obligations to fight drug trafficking. He cited a federal report that concluded that the country was “one of the preferred trafficking routes out of South America” and had a “generally permissive and corrupt environment.”

Venezuela says that it is caught in the middle — Colombia produces the drugs and the United States consumes them — and that it is doing all it can to fight back. In May, the government announced that the number of illicit flights it detected had been cut in half this year, although it declined to provide data to back up the claim.

“We are hitting drug trafficking hard all the time,” said Ramón Carrizalez, the governor of Apure, the border state where the drug flights originate, speaking in May at a news conference to announce the destruction of 36 hidden airfields. “Very few countries are carrying out a policy like ours.”

But the United States says Venezuela’s efforts are deeply hobbled by corruption, particularly by ties between the government and the Revolutionary Armed Forces of Colombia, known as the FARC, which controls much of the cocaine traffic in the region.

Since 2008, the Treasury Department has accused at least seven high-level military officers and current and former officials in Mr. Chávez’s government of aiding the FARC, and sometimes exchanging weapons for drugs. Defense Minister Henry Rangel Silva was one of those singled out by Treasury officials. Venezuela dismissed the accusations as imperialist meddling.

The White House Office of National Drug Control Policy estimates that as much as 24 percent of the cocaine shipped out of South America in 2010 passed through Venezuela, accounting for more than 200 tons.

More than half of that left from the hidden airfields in Apure, analysts say. They say that Venezuela’s central role as a transit point for drug shipments began after Mr. Chávez halted cooperation with the United States Drug Enforcement Administration in 2005, accusing its agents of spying.

Around the same time, Colombia, with assistance from the United States, began to tighten control of its airspace.

As a result, the traffickers jumped across the border to Apure, where an airstrip can be fashioned on the flat prairie in a few hours by dragging a log behind a pickup truck to smooth the ground.

“You can blow up an airfield here and it doesn’t matter,” said one resident, standing beside an eight-foot-deep hole that soldiers had blown in a runway near the Cinaruco River, the plains stretching out for miles. “They can make another one right next to it.”

But perhaps the main attraction for traffickers is that the federal government’s hold on large parts of Apure, the poorest state in the country, is tentative at best.

In many areas, residents say, the real power is held by the FARC, which they describe as moving around the state with alarming impunity.

One resident living in Santos Luzardo National Park, a picturesque preserve abounding in wildlife, said that last month two FARC members patrolled the remote area on motorcycles, asking farmers if they had heard any airplanes, apparently concerned that traffickers were using a nearby airstrip without paying.

The guerrillas also collect protection money from local businesses, ranchers and fishing camps along some parts of Venezuela’s long border with Colombia. One resident said that a small group of FARC members showed up at a homestead in December and set up camp for a week, using it as a base to patrol the area and possibly protecting drug flights. He said the owner had no choice about whether to accept, although the guerrillas brought their own food.

The residents also expressed fear and mistrust of government authorities. Most said they believed that local officials and soldiers were in league with the traffickers and that passing along information about the traffickers’ activities would result in reprisals. Residents said they had learned to coexist with the traffickers just as they had gotten used to the frequent sound of low-flying aircraft at night. But many said they were fearful and felt intimidated.

“We all knew what was going on, but no one said anything,” a man said of the smugglers who used a local airstrip. “What were we going to do about it? The one that should be doing something is the government. They should be constantly patrolling the area.”

Meridith Kohut contributed reporting from La Macanilla; María Eugenia Díaz from Caracas, Venezuela; and Jenny Carolina González from Bogotá, Colombia.

To read this article on The New York Times, please click here.

 
Feb
3
2012
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In Case You Missed It… Articles Roundup Week of 2/3/12

In this week’s roundup… President Chávez threatens to nationalize the country’s banks and companies if they fail to comply with his orders; Venezuela’s currency has inflated by 528 percent since 2003; the kidnapping of a Mexican envoy to Venezuela underscores the country’s deteriorating security situation; a new anti-terrorism law generates concern that it could be used to target dissidents. Among other news, Henrique Capriles Radonski gains Leopoldo López’s support as he heads into the opposition primaries on February 12, 2012.

Venezuela’s Hugo Chávez warns banks of nationalisation, BBC News
Venezuelan President Hugo Chávez has warned that he could nationalise banks that refuse to finance agricultural projects backed by his government.

Chavez Says He’ll Nationalize Companies That Don’t Limit Prices, Bloomberg
Venezuelan President Hugo Chávez said he will nationalize companies failing to comply with new price controls for consumer goods that the government is preparing to unveil. The price regulations may affect companies including Procter & Gamble Co., Colgate-Palmolive Co. (CL) and Johnson & Johnson.

Venezuela’s accumulated inflation hits 528% in nine years, El Universal
Between February 2003 (when price controls were first implemented) and December 2011, Venezuela’s accumulated inflation has skyrocketed 528 percent. This has hit the worker’s purchasing power, as they can buy 15 percent less than in 1998.

Fear grips Venezuela after kidnapping, The Financial Times
It almost became an international incident when thugs kidnapped the Mexican ambassador and his wife this week in Caracas, shocking the country’s diplomatic community and embarrassing President Hugo Chávez as Venezuelan crime rates continue to soar before October’s presidential election.

Venezuela passes anti-terrorism law; critics warn it could be used for crackdown on dissent, The Washington Post via the Associated Press
Venezuela’s congress has approved a law aimed at fighting organized crime and terrorism, though opposition lawmakers say they fear it could be used to crack down on dissent.

Venezuela’s new chance, The Washington Post
Polls show Mr. Capriles in a dead heat with Mr. Chávez, even though the president has benefited from a wave of public sympathy since revealing seven months ago that he had been treated in Cuba for cancer.

The man who would defeat Hugo Chávez, The Christian Science Monitor
Living with 30 percent inflation, regular power outages, and one of the highest murder rates in the world, however, the middle class has since tired of Chávez. A tough fight lies ahead. The candidate who will take on Chávez in Venezeula’s October Presidential election will be chosen in primaries held on Feb. 12. Young state governor Henrique Capriles Radonski is likely to take that mantle.

Henrique Capriles Radonski, Venezuela Presidential Candidate, Challenges Hugo Chavez, The Huffington Post
Time points out that the Venezuelan president has faced little competition in prior elections — but that changed when opposition frontrunner Leopoldo López threw his support behind fellow challenger Henrique Capriles Radonski, according to The Christian Science Monitor.

 
Dec
9
2011
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In Case You Missed It… Articles Roundup Week of 12/9/11

In this week’s roundup…After nearly 13 years of “21st Century socialism,” Hugo Chávez wants to remain in power for 30 more years; a new regional body, CELAC, is born in Caracas; the Venezuelan economy continues to weaken with prices rising, investments falling and a staggering inflation rate; Venezuela’s opposition candidates agree on need to reform country’s judicial and law enforcement systems; and Russian state-owned oil behemoth Rosneft strikes a $2.6 billion deal to refine Venezuelan oil reserves.

Chávez’s 40-Year Plan to Conquer Vice, The Wall Street Journal

Venezuela’s Hugo Chávez says his Bolivarian Revolution needs more time to produce its utopian fruits. “We barely have 10 years here,” he told a crowd of supporters in Caracas last week. “We will take it to 10 more and 10 more and 10 more to construct the new social virtues.” In that time, Mr. Chávez pledged, “we will deepen the socialist revolution: socialism, socialism and more socialism. We have to deepen the struggle and defeat the vices of the past that still persists among us: violence, insecurity, corruption, selfishness, individualism.”Considering that the human condition hasn’t changed much since we got kicked out of the garden, a 40-year plan to conquer vice seems pretty ambitious. But Mr. Chávez has never suffered a lack of self-confidence. Of course being an individual is hardly a vice. On the other hand, notably absent from his list was another perennial transgression that has yet to be defeated in Venezuela: the central bank’s sinful practice of printing money to finance the government.

Celac: “giant” born in another’s shadow, The Financial Times

“A giant has been born,” declared Hugo Chávez in his usual understated style at the founding of the latest Latin American regional body, Celac, which was formed over the weekend in Caracas. The 33 member body pointedly excludes the US and Canada – which raises the question: is it a non-American or anti-American alliance? (Conservative Latin countries such as Mexico, Colombia and Chile would probably suggest the former; the likes of Venezuela and Cuba the latter). More pointedly, if it is a giant as Chávez suggested, for the moment it looks like a blind and one-legged colossus, with one arm tied behind its back. As noted here and here the body lacks a secretariat, a building, a funding structure, or even rules on how to reach its anyway non-binding decisions. Rather than tackling such meat and potato issues, which are presumably central to any functioning multilateral body, the meeting ended instead with a fiesta and a bland communiqué about the desire for more regional cooperation. Still, the summit did give Chávez the chance to flaunt his “recovery” from cancer.

Venezuela: paying the Chávez price, The Financial Times

Christmas has come early for many Venezuelans this year. Around the country, state-subsidised “fairs” have been springing up where imported Chinese “white goods” are being sold at bargain basement prices. In a country where annual inflation is running at 27.6 per cent, people have been leaping at the opportunity to buy cheap Haier fridges at what Venezuela’s bountiful president has called “the Chávez price”. Massive queues have been appearing out of nowhere as consumers try to ease the deleterious effects of inflation – prices rose by 2.2 per cent in November alone according to central bank figures released on Tuesday. According to the government, the items on sale are going for as much as 55 per cent less than what they would cost in a privately-owned store. There’s one very good reason for that: the government can afford to charge much less as it has unlimited access to foreign currency at the cheap official exchange rate.

Venezuela central bank: Private investment down 43% in 2007-2010, El Universal

After two years of recession, soaring oil prices have created momentum for the Venezuelan economy to resume growth. However, economic imbalances, such as the collapse of private investments, represent a major stumbling block. The Central Bank of Venezuela (BCV) reported that between 2007 and 2010, the private sector’s investment in machines, equipments, and buildings that are used to increase production declined 43.6% to the lowest level in the last seven years. The BCV has not yet published specific data on private investment in 2011 and only releases the public sector’s statistics. Nevertheless, everything suggests that there has been no change in the mood of the business sector.

Venezuela November CPI Rises 2.2% Vs 1.8% In October, The Wall Street Journal

Venezuela’s chronically high inflation rate picked up last month, with the consumer price index climbing in November by 2.2% from the previous month and registering a 12-month rise of 27.6%, the central bank reported Tuesday. The figures show prices rising in key categories like housing services and food as President Hugo Chavez’s government aims to increase housing construction and embark on measures to regulate consumer prices in a bid to curb one of the world’s fastest inflation rates. Expectations for increased spending on social programs ahead of next year’s presidential elections are also seen exacerbating the jump in inflation. The oil-rich South American country had posted a 1.8% rise in the national consumer price index in October and a 1.5% jump in November of 2010.

Chavez: Venezuela willing to talk with Exxon Mobil, Bloomberg Businessweek via The Associated Press

Venezuelan President Hugo Chavez says his government would be open to negotiating with Exxon Mobil Corp. in a dispute over the nationalization of an oil project in the country. Venezuelan officials have previously said Exxon Mobil’s compensation demands are excessive. The Irving, Texas-based oil company turned to international arbitration after refusing to accept the terms of the nationalization in 2007. Chavez says he would be willing to “sit down with them and seek a friendly settlement, but that’s up to them and not to us.” Exxon Mobil declined to comment. Chavez said during a news conference Tuesday that his government has always sought agreements in such cases when possible.

Opposition pre-candidates: Impunity needs to be uprooted, El Universal

When asked about personal insecurity, the five opposition presidential pre-candidates agreed on the need to end impunity, and to make in-depth changes in the Judiciary, the Attorney General Office, and police corps in order to secure law enforcement. Presidential hopeful Henrique Capriles Radonski that said more than 100,000 Venezuelans have been killed over the last decade. He added that dignified employment and quality education are of the essence to break the vicious circle of violence.

Putin continues to court Venezuela, The Financial Times

It’s not hard to see why Vladimir Putin saw fit to take precious time out today in the aftermath of Russia’s controversial parliamentary elections last Sunday to meet with Venezuela’s vice-president, Elias Jaua. Much to the discomfort of Washington, the two countries are developing an ever cosier bilateral relationship and Russia’s state-run oil giant Rosneft announced a $2.6bn deal today to develop Venezuela’s extra-heavy crude oil reserves in the Orinoco. The idea is for Rosneft to have a 40 per cent stake in the Carabobo 2 block in a joint venture with Venezuela’s state oil company, PDVSA, which will control the remaining 60 per cent. Carabobo 2 has estimated reserves of 40bn barrels of oil, and potential production capacity of more than 400,000 barrels per day. For the privilege, Rosneft must pay an initial $440m on approval of the project by the Venezuelan authorities, and a further $660m after the final investment decision. Rosneft has also agreed to lend $1.5bn to PDVSA, though no more than $300m a year.