Oct
11
2012
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After Sunday, What’s Next?

514473580 After Sunday, Whats Next?

Courtesy of: Luis Acosta / AFP / Getty Images

In the aftermath of Sunday’s vote, which saw Hugo Chávez elected to his fourth term as president, several things have become clear. Henrique Capriles, leading a unified and energized opposition, was the toughest challenger Mr. Chávez has ever faced. The Chávez government wielded its control of Venezuela’s media relentlessly, preventing Capriles’ message of unity to find pragmatic solutions to everyday problems from gaining any traction on the airwaves. Others have rightly pointed out the bias in Venezuela’s electoral authority, the CNE. Despite the unlevel playing field, Capriles, who doggedly marched through more than 250 towns, succeeded in turning nearly half the country to his cause.

Even though one’s initial impression of Sunday’s vote may yield a dreary sense of “more of the same,” the coming years promise to be crucial for Venezuela. Chávez’s victory brings with it none of the certainty of past triumphs. For one, the president’s cancer still looms over Venezuela’s future: despite his repeated denials, many believe that Chávez remains terminally ill. Given that Venezuela’s constitution stipulates that a new election be held if a president dies in the first four years of his term, the country’s rejuvenated opposition may have another chance to make its case before Venezuelans. Regardless of the president’s health, December’s gubernatorial and April’s mayoral elections give the opposition an opportunity to make further gains against Chávez’s socialist project.

And that opposition still has much to fight for. Chávez, ever the ideologue, is poised to direct his government to take over more of the private economy. The 2012 campaign has weakened Chávez’s political support, but it is unlikely to have shaken his commitment to his socialist project. After a few quiet months in the run-up to the election, we may see the pace of expropriations tick up again. In fact, just two days after Chavez’s election victory, Vice President Elias Jaua confirmed that the expropriation policy will indeed continue.

Venezuela’s stagnating economy may be in for a crushing blow, meanwhile, as Chávez’s election-year borrowing-and-spending may well lead to a currency devaluation. This borrowing, along with high global oil prices, has thus far papered over the cracks in Venezuela’s anemic economy. As Chávez poured millions into his populist reelection effort, he failed to address the fundamental weaknesses in the nation’s economy: food shortages, electrical outages and a crumbling public infrastructure.

But what goes up must come down: the poorly-managed state oil company PDVSA has continually operated under capacity; as prices fall, Venezuela’s leaders’ failure to plan for the future will redound upon the nation’s people. The fatal refinery explosion in Amuay is but a recent illustration of the consequences of PDVSA’s mismanagement.

Meanwhile, a fresh six-year term will shield Chávez from political consequences of the corruption within his government. Former judge Aponte Aponte shocked Venezuelans and, indeed, the hemisphere with his revelation that the government fed instructions to the nation’s judiciary. With Chávez no longer facing the public scrutiny of a campaign, the incentives for such corruption will only increase.

For those in the U.S. policy community, engagement in the future of Venezuela remains essential. Chávez, to be sure, is unlikely to curb Venezuela’s relationship with allies like China, Russia or Iran, or to liberalize Venezuela’s trade policy toward the United States. But the twin pressures of a possibly-fatal illness and a collapsing economy mean that, for Chávez’s Venezuela, the reckoning has yet to come.

 
Oct
4
2012
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ICYMI: Venezuelan President Faces First Real Threat

The Wall Street Journal
October 2, 2012
By José De Córdoba and Kejal Vyas

WO AL294 CAPRIL G 20121002203421 300x200 ICYMI: Venezuelan President Faces First Real Threat

Courtesy of: European Pressphoto Agency

CARACAS—Henrique Capriles is a skinny marathon runner and opposition governor who has done something no Venezuelan politician has managed in the past 14 years: pose a serious threat to President Hugo Chávez.

This Sunday, Venezuelans vote in presidential elections that will be the first time since Mr. Chávez won power in 1998 that the outcome isn’t a foregone conclusion.

Opinion polls vary widely, partly because Venezuelans mistrust pollsters. Some surveys show Mr. Chávez with a 10- or even 20-point lead. Others show the race neck-and-neck. Respected local pollster Consultores 21 said Tuesday its last pre-election survey shows Mr. Capriles ahead by 48.9% to 45.7%.

In all polls, however, Mr. Capriles has been gaining ground. And while the president remains the favorite, Mr. Capriles seems poised for the best showing for an opposition politician against Mr. Chávez to date—an outcome likely to position him as the leader of the opposition for years to come.

A close election in this highly polarized country could reverberate far beyond Caracas. Venezuela holds the world’s largest oil reserves. Political turmoil could send oil prices soaring.

No one is sure whether Mr. Chávez would accept a narrow defeat. The opposition plans to have at least two witnesses at every polling station to make sure the vote is counted correctly.

Defeat for Mr. Chávez would transform the political landscape in Latin America. For the past decade, he has been a beacon for anti-American sentiment and symbolic leader of a populist left that governs in Bolivia, Ecuador, Nicaragua and Argentina.

Mr. Capriles, a 40-year-old known as “El Flaco,” or “The Skinny One,” says he would normalize relations with Washington and multinational companies, which have been hit hard by nationalizations under Mr. Chávez.

But the governor’s surge in the polls has little to do with promises to play nice with Uncle Sam or private companies. Rather, he has hit on a formula for challenging the populist president: veer to the left on economic issues and play up the populism. The state governor has vowed to keep Mr. Chávez’s emphasis on the poor as well as the president’s spending programs, some 30 so-called missions that provide everything from subsidized food and housing to free basic medical care.

“We have to improve, strengthen and legalize the Missions,” Mr. Capriles, the grandson of a Holocaust survivors, said in an interview. A devout Catholic, he describes himself as center-left.

Mr. Capriles’s economic team pledges to launch a $100 billion infrastructure spending program and start a cash transfer program for the poor modeled on Mexico and Brazil. It wants to raise the minimum wage and index it to prices—a move that worries economists in Venezuela, which has among the world’s highest inflation rates.

The head of Mr. Capriles’s Justice First Party, Julio Borges, said a Capriles administration would try to make social spending more efficient, but makes no bones about what sells politically in this oil-rich nation of 29 million: “Our movement is called Justice First, not Markets First.”

Mr. Chávez tells supporters that Mr. Capriles is lying about keeping the social programs. In a televised interview Sunday morning, the president complained that his rival is hiding his true colors. “The right wing has had to disguise itself as the left,” he said. Mr. Chávez’s message may be working: Some 44% of Venezuelans believe a Capriles victory would end their social handouts, according to Consultores 21.

And even in the face of Mr. Capriles’ surge, the charismatic president remains the favorite for the vote on Sunday thanks to a mixture of carrots and sticks. Last year, state oil monopoly Petroleos de Venezuela alone spent $30 billion on social programs at Mr. Chávez’s command, including new high-rise apartment towers for the poor that dot the Caracas skyline, according to company data. His government also controls most television and radio.

In the past, opposition candidates have run against a Chávez they have demonized, convinced that most Venezuelans disliked the president as much as they did. But they offered little to Venezuelans who sympathized with the president.

Mr. Capriles seems determined to win Chávez supporters. During the campaign, he has visited more than 300 towns, dashing through hard-bitten hillside slums. He tells crowds that Mr. Chávez did the right thing by putting the poor first, but that his government has been disorganized and corrupt.

Increasingly, he is getting a rock-star reception even in Chávista strongholds, with women throwing themselves at him to touch or kiss him. One fan, saying she wanted to see what he tasted like, bit the candidate in the hand.

Everywhere he goes, Mr. Capriles focuses on the daily ills that plague Venezuelans like electricity and food shortages, drawing a contrast to Mr. Chávez’s often grandiose goals. The president’s campaign platform calls for the development of a new geopolitical balance that “permits the equilibrium of the universe and guarantees peace on the planet.”

“The people have told us their problems with public services, blackouts, with highways, and with the lack of high schools and housing which the government keeps promising,” Mr. Capriles said during a recent stop in Mr. Chávez’s home state of Barinas.

Even if Mr. Capriles loses, he may get another shot. The president, who has battled cancer for much of the past two years, may be seriously ill. His health is a state secret in Venezuela. If Mr. Chávez dies within the first four years of his term, Venezuela’s constitution calls for holding new presidential elections.

Mr. Capriles plays down his background as the son of wealthy entrepreneurs. Instead, he talks about his grandparents on his mother’s side, Polish and Russian Jews who survived the Warsaw Ghetto before emigrating to Venezuela with a suitcase of clothes and a movie reel that Mr. Capriles’s grandfather used to begin what eventually became Venezuela’s most important movie house chain.

Now a marathon runner, Mr. Capriles was a chubby, shy kid, says one of his best school friends, Alejandro Barrios. Mr. Barrios says that when they were both teens in high school, Mr. Capriles told him he wanted to be president. “I laughed out loud,” said Mr. Barrios. “He was just a normal guy.”

After law school, Mr. Capriles got an early jump on his political career, becoming the youngest ever member of Venezuela’s congress by winning a seat in 1998 elections, the same vote that brought Mr. Chávez to power.

Within two years, he became mayor of Baruta, a key municipality in the capital. In 2004, as mayor, he was imprisoned on charges that he had led a mob against the Cuban embassy during a 2002 coup, which briefly ousted Mr. Chávez from power. He spent four months in jail before being eventually absolved of all charges.

At the time, the jailing was widely seen as a government attempt to sideline Mr. Capriles as an up-and-coming opposition figure. But if so, it backfired. That same year, he won re-election as mayor with 79% of the vote.

He went on to defeat a key Chávez ally, Diosdado Cabello, to become governor of Miranda state. During his tenure, he expanded social programs like free food and housing. He also overcame efforts to undermine him from the federal government, including a move to disarm his state police.

Write to José de Córdoba at [email protected] and Kejal Vyas at [email protected]

To read this article on The Wall Street Journal, please click here.

 
Oct
3
2012
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Capriles continues to rise in latest polls

AP Henrique Capriles Capriles continues to rise in latest polls

Courtesy of: AP / Getty Images

In the 14 years Hugo Chávez has ruled Venezuela, he has never before faced a political challenge like the one he will confront on October 7. Despite the president’s enormous electoral advantage, opposition candidate Henrique Capriles has steadily risen in the polls since the campaign kicked off on July 1. He now holds a slight advantage in several well-respected polls.

Capriles’ success is the result of his campaign based on personal, “retail” politics, a stark contrast with Chávez’s staged events and extended discourses on socialist ideology. The young lawyer and former governor, mayor, and youngest ever president of the now defunct Chamber of Deputies has spent the last months on an exhausting town-to-town campaign through Venezuela. Capriles has visited more than 250 towns, speaking to individual Venezuelans about their everyday problems. He also enjoys the support of a united opposition which, for the first time, selected a single candidate to run against Chávez.

The strategy is a departure from the ideological battles that long defined Venezuelan politics. Capriles has instead focused on the crime, scarcity and unemployment that are the scourges of daily life for ordinary Venezuelans. As Chávez continues to extol the moral superiority of his revolution while offering little evidence to support it, Capriles offers solutions to the immediate problems that the nation faces. In doing so he has created personal connections with disillusioned Venezuelans and a strong – and growing – following.

His campaign’s success is reflected in the latest polls. A respected poll released just this week gives Capriles a three-point lead, and another recent poll had his advantage at two. A third puts the opposition 10 points behind, but puts undecided voters at 15 percent, leaving Capriles the opportunity to close the gap in the campaign’s final week.

The deep polarization in Venezuela makes the elections especially difficult to predict, as voters are sometimes unwilling to divulge their intentions for fear of losing their government jobs. Some polls register high numbers of undecided voters, more than enough to cover the widest gap between the candidates. Other polls, meanwhile, are baldly partisan and offer mere propaganda with little basis in real data.

More telling than the polls, perhaps, is the enthusiasm that Capriles is able to generate. Last weekend he attracted hundreds of thousands of supporters to his final campaign march in Caracas. Despite limited access to mass media due to the state control of most of the country’s television stations and an only recently united opposition party, Capriles has managed to inspire Venezuelans in a way that no other candidate has in the past 14 years.

What is certain is that Chávez is in the toughest election battle of his political career. What remains to be seen is whether Capriles is able to turn his rousing campaign into an electoral victory.