Wednesday, March 11, 2009

Hugo Chávez,

Hugo Rafael Chávez Frías (pronounced [ˈuɰo rafaˈel ˈtʃaβ̞es ˈfɾias]) (born July 28, 1954) is the current President of Venezuela. As the leader of the Bolivarian Revolution, Chávez promotes a political doctrine of participatory democracy, socialism and Latin American and Caribbean cooperation. He is also a critic of neoliberalism, globalization, and United States foreign policy.

A career military officer, Chávez founded the left-wing Fifth Republic Movement after orchestrating a failed 1992 coup d'état against former President Carlos Andrés Pérez. Chávez was elected President in 1998 with a campaign centering on promises of aiding Venezuela's poor majority, and was reelected in 2000 and in 2006. Domestically, Chávez has maintained nationwide Bolivarian Missions, whose goals are to combat disease, illiteracy, malnutrition, poverty, and other social ills. Abroad, Chávez has acted against the Washington Consensus by supporting alternative models of economic development, and has advocated cooperation among the world's poor nations, especially those in Latin America.


Chávez's policies have evoked controversy in Venezuela and abroad, receiving anything from vehement criticism to enthusiastic support. The government of the United States claims that Chávez is a threat to democracy in Latin America. Many other governments sympathize with his ideology and/or welcome his bilateral trade and reciprocal aid agreements. In 2005 and 2006 he was named one of Time magazine's 100 most influential people.
Hugo Chávez has been married twice. He first wedded Nancy Colmenares, a woman from a poor family originating in Chávez's own hometown of Sabaneta. Chávez and Colmenares remained married for eighteen years, during which time they had three children: Rosa Virginia, María Gabriela, and Hugo Rafael. They separated soon after Chávez's 1992 coup attempt. During his first marriage, Chávez also had an affair with young historian Herma Marksman; their relationship lasted nine years. Chávez is divorced from his second wife, journalist Marisabel Rodríguez de Chávez.Through that marriage, Chávez had another daughter, Rosinés. Chávez has two grandchildren, Gabriela and Manuel.

Chávez was raised a Roman Catholic, although he has had a series of disputes with both the Venezuelan Catholic hierarchy and Protestant groups like the New Tribes Mission.Originally he kept his own faith a private matter, but over the course of his presidency, Chávez has become increasingly open to discussing his religious views, stating that both his faith and his interpretation of Jesus' personal life and ideology have had a profound impact on his left-wing and progressivist views. He often invokes God and asks for prayer in speeches, as he did when he asked Venezuelans to pray for Fidel Castro's health. He describes himself as Christian who grew up expecting to become a priest. According to him, as a result of this background his socialist policies have been borne with roots in the teachings of Jesus Christ.

Domestic policy,

Chávez's domestic policy relies heavily on the "Bolivarian Missions," a series of campaigns aimed at radically altering the economic and cultural landscape of Venezuela. Most of those were launched in 2003 and 2004:

Mission Robinson
Launched July 2003, Mission Robinson was billed as a campaign aimed at providing free reading, writing and arithmetic lessons to the more than 1.5 million Venezuelan adults who were illiterate before the 1999 election.
Mission Guaicaipuro
Initiated October 12, 2003, Mission Guaicaipuro sought to protect the livelihood, religion, land, culture, and rights of Venezuela's indigenous peoples.
Mission Sucre
Launched late 2003, Mission Sucre had the stated intent of providing free higher education to the two million adult Venezuelans who had not completed their elementary-level education.
Mission Ribas
Announced in November 2003, Mission Ribas bore the promise of providing remedial education and diplomas for Venezuela's five million high school dropouts.
On the first anniversary of Mission Robinson's establishment, Chávez stated in Caracas's Teresa Carreño theater to an audience of 50,000 formerly illiterate Venezuelans, "in a year, we have graduated 1,250,000 Venezuelans." Nevertheless, there were also significant setbacks.

The "Bolivarian Missions" have entailed the launching of government anti-poverty initiatives, the construction of thousands of free medical clinics for the poor,the institution of educational campaigns that have reportedly made more than one million adult Venezuelans literate, and the enactment of food and housing subsidies. The infant mortality rate fell by 18.2% between 1998 and 2006. The government earmarked 44.6% of the 2007 budget for social investment, with 1999-2007 averaging 12.8% of GDP. The Gini coefficient has fallen from 48.7 in 1998 to 42 in 2007 (claims that the Gini has risen were based on data from two different (non-comparable) statistical series). During the Chávez Presidency, poverty and extreme poverty have gone down strongly: poverty fell from 59.4% in 1999 to 30.2% in 2006 and extreme poverty went down from 21.7% to 9.9% in the same period. Even critics like Instituto Real Elcano from Spain acknowledge these achievements although they cast doubts on the sustainability of these policies.

The Missions have overseen widespread experimentation in what Chávez supporters term citizen- and worker-managed governance, as well as the granting of thousands of free land titles, reportedly to formerly landless poor and indigenous communities. Several allegedly unused estates and factories have been expropriated to provide this land.

In March 2006 the Communal Council Law was approved, whereby communities that decide to organize themselves into a council can be given official state recognition and access to federal funds and loans for community projects. This skips the local and state governments that are perceived as corrupt.

The Chavez government also passed a number of laws protecting the rights of the indigenous people of Venezuela, including laws that recognize indigenous rights over the land they traditionally occupied, their rights to prior consultation concerning the exploitation of their natural resources, their rights to manage their own education system based on intercultural and bilingual principles, and a law providing that three native representatives shall sit in the National Assembly, as well as representation in municipal and regional assemblies in regions with a native population.

In September 2007, speaking at the inauguration of the school year, Chavez announced a new curricular programme to be adopted by both public and private schools, which would "promote values of cooperation and solidarity". While promising he would make education his top priority and increase funding, he spoke of his vision of the future of education, based around "learning to create, to live together, to value and to reflect."


Labor policy
Chávez has had a combative relationship with the nation's largest trade union confederation, the Confederación de Trabajadores de Venezuela (CTV), which is historically aligned with the Acción Democrática (AD) party. During the December 2000 local elections, Chávez placed a referendum measure on the ballot that would mandate state-monitored elections within unions. The measure, which was condemned by the International Labour Organization (ILO) and International Confederation of Free Trade Unions (ICFTU) as undue interference in internal union matters, passed by a large margin on a very low electoral turnout. In the ensuing CTV elections, Carlos Ortega declared his victory and remained in office as CTV president, while chavista (pro-Chávez) candidates declared fraud.

The Unión Nacional de Trabajadores (UNT—"National Union of Workers"), a new pro-Chávez union federation, formed in response and has been growing in membership; it seeks to ultimately supplant the CTV. Several chavista unions have withdrawn from the CTV because of their strident anti-Chávez activism, and have instead affiliated with the UNT. In 2003, Chávez chose to send UNT, rather than CTV, representatives to an annual ILO meeting.

Further augmenting state involvement in Venezuela's economy, Chávez nationalized Venepal, a formerly closed paper and cardboard manufacturing firm, on January 19, 2005. Workers had occupied the factory floor and restarted production, but following a failed deal with management and amidst management threats to liquidate the firm's equipment, Chávez ordered the nationalization, extended a line of credit to the workers, and ordered that the Venezuelan educational missions purchase more paper products from the company.

Under Chávez, Venezuela has also instituted worker-run "co-management" initiatives in which workers' councils play a key role in the management of a plant or factory. In experimental co-managed enterprises, such as the state-owned Alcasa factory, workers develop budgets and elect both managers and departmental delegates who work together with company executives on technical issues related to production.

Economic policy,

Venezuela is a major producer of oil products, which remains the keystone of the Venezuelan economy. Chávez has gained a reputation as a price hawk in OPEC, pushing for stringent enforcement of production quotas and higher target oil prices. At a June 2006 meeting, Venezuela was the only OPEC country calling for lowered production to drive oil prices higher.

Chávez has attempted to broaden Venezuela's customer base, striking joint exploration deals with other developing countries, including Argentina, Brazil, China and Russia. Record oil prices have meant more funding for social programs, but have left the economy increasingly dependent on both the Chávez government and the oil sector; the private sector's role has correspondingly diminished.

Chávez has redirected the focus of PDVSA by bringing it more closely under the direction of the Ministry of Energy and Petroleum. He has also attempted to repatriate more oil funds to Venezuela by raising royalty percentages on joint extraction contracts that are payable to Venezuela. Chávez has also explored the liquidation of some or all of the assets belonging to PDVSA's US-based subsidiary, Citgo. Citgo, whose profitability made many Venezuelans skeptical, has been paying record dividends to the government of Venezuela. Chávez said that "Venezuela had not received a penny from this enterprise for 20 years". According to Finance minister Nelson Merentes, the Venezuelan 2006 budget would get more income from taxation than from the oil industry, unlike formerly. A key non-oil related poverty reduction policy has been the application of the concept of the microcredit pioneered by Nobel peace prize laureate Muhammad Yunus of the Grameen Bank.

During Chávez's presidency from 1999 to 2004, per-capita gross domestic product (GDP) dropped 1–2%, but with the help of rising oil prices, the end of the oil strike, and strong consumption growth, recent economic activity under Chávez has been robust. GDP growth rates were 18% in 2004,[145] 9% in 2005,and 9.6% in the first half of 2006, with the private sector growing at a 10.3% clip. From 2004 to the first half of 2006, non-petroleum sectors of the economy showed growth rates greater than 10%. Datos reports real income grew by 137% between 2003 and Q1 2006. Official poverty figures dropped by 10%. Some economists argue that this subsidized growth could stop if oil prices decline, but the government argues its budget uses US$29 a barrel and 60 billion dollars in reserves as a cushion for a sudden drop.

Some social scientists and economists claim that the government's reported poverty figures have not fallen in proportion to the country's vast oil revenues in the last two years. The president of Datos said that, although his surveys showed rising incomes because of subsidies and grants, the number of people in the worst living conditions has grown. "The poor of Venezuela are living much better lately and have increased their purchasing power... [but] without being able to improve their housing, education level, and social mobility," he said. "Rather than help [the poor] become stakeholders in the economic system, what [the government has] done is distribute as much oil wealth as possible in missions and social programs."

According to government figures, unemployment has dropped by 7.7% since the start of Chávez's presidency. It dropped to 10% in February 2006, from the 20% high in 2003 during a two-month strike and business lockout that shut down the country's oil industry. According to the government, an unemployed person is a citizen above the age of 15 who has been seeking employment for more than one week. But, according to The Boston Globe, critics say that the government defines "informal workers, such as street vendors, as employed, and exclud[es] adults who are studying in missions from unemployment numbers." Critics also point to figures released by the president of the Venezuelan National Statistics Institute, Elías Eljuri, which showed that poverty had risen by more than 10% under Chávez (to 53% in 2004). Chávez called for a new measure of poverty, a "social well-being index". Under this new definition, poverty registers at 40%.[153] Eljuri denies changing the statistic and claims it is entirely income excluding social programs. The World Bank calculated a 10% drop in poverty.

A January 10, 2006 BBC article reported that since 2003, Chavez has been setting price controls on food, and that these price controls have caused shortages and hoarding. A January 22, 2008 article from Associated Press stated, "Venezuelan troops are cracking down on the smuggling of food... the National Guard has seized about 750 tons of food... Hugo Chavez ordered the military to keep people from smuggling scarce items like milk... He's also threatened to seize farms and milk plants..." On February 28, 2009 Chavez ordered the military to temporarily seize control of all the rice processing plants in the country and force them to produce at full capacity, which he alleged they had been avoiding in response to the price caps. The country's largest food processor, Empresas Polar, said that the regulated price of (plain) rice was well below the cost of production, and as a result 90% of its rice output was flavoured rice not subject to price controls. It also said that its plant was operating at 50% capacity due to raw material shortages; the government however claimed to have found 2 months' worth of raw rice in storage at the plant. On March 4, 2009, the BBC reported that Chavez had set minimum production quotas for 12 basic foods that were subject to price controls, including white rice, cooking oil, coffee, sugar, powdered milk, cheese, and tomato sauce. Business leaders and food producers claimed that the government was forcing them to produce this food at a loss.

A January 3, 2007 article in the International Herald Tribune reported that Chavez's price controls were causing shortages of materials used in the construction industry. According to an April 4, 2008 article from CBS News, Chavez ordered the nationalization of the cement industry, in response to the fact that the industry was exporting its products in order to receive prices above those which it was allowed to obtain within the country.

In December 2006, the Venezuelan Ministries of Finance and Light Industries and Commerce instituted a 15% tax on imported toilet paper, which it described as being a "luxury."

According to the Banco Central de Venezuela, inflation dropped from 29.9% in 1998 to 14.4% in 2005.[168] During 2005, imported goods were cheaper than commodities made in Venezuela; variability in the price of goods was linked to import performance and exchange stability. In the second quarter of 2006, gross fixed investment was the highest ever recorded by the Banco Central de Venezuela since it started tracking the statistic in 1997. However, the BBC reported on February 15, 2007 that Venezuela's inflation rate rose to a two-year high in January, with consumer prices rising 18.4% in 12 months.

While the Venezuelan Government enjoys a windfall of oil profits, the business environment is risky and discourages investment, according to El Universal. As measured by prices on local stock exchanges, investors are willing to pay on average 16.3 years worth of earnings to invest in Colombian companies, 15.9 in Chile, 11.1 in Mexico, and 10.7 in Brazil, but only 5.8 in Venezuela. The World Economic Forum ranked Venezuela as 82 out of 102 countries on a measure of how favorable investment is for institutions. In Venezuela, an investor needs an average of 119 days and must complete 14 different proceedings to organize a business, while the average in OECD countries is 30 days and six proceedings.

Public spending in Venezuela has reached unprecedented highs, as measured by local currency Central Bank debt, which could increase inflation.

Chávez announced Venezuela's withdrawal from the IMF and World Bank after paying back all his country's debts to both institutions; he charged them with being an imperial tool that aims to exploit poor countries, news sources reported. But as of March 2008, Venezuela is still a member of both institutions. In June 2007, the Bank for International Settlements forecast an economic growth of 7% and a 18.9% inflation rate for Venezuela. In January 2008, Hugo Chávez stated that Latin American countries needed to begin their withdrawal of money from United States-based banks. His statement went on to say, "We should start to bring our reserves here," Chávez said. "Why does that money have to be in the north? You can't put all your eggs in one basket." and "imperialism is entering into a crisis that can affect all of us" and said Latin America "will save itself alone."

Foreign policy,

Hugo Chávez has refocused Venezuelan foreign policy on Latin American economic and social integration by enacting bilateral trade and reciprocal aid agreements, including his so-called "oil diplomacy". Chávez stated that Venezuela has "a strong oil card to play on the geopolitical stage..." He said, "It is a card that we are going to play with toughness against the toughest country in the world, the United States." Chávez has focused on a variety of multinational institutions to promote his vision of Latin American integration, including Petrocaribe, Petrosur, and TeleSUR. Bilateral trade relationships with other Latin American countries have also played a major role in his policy, with Chávez increasing arms purchases from Brazil, forming oil-for-expertise trade arrangements with Cuba, and creating unique barter arrangements that exchange Venezuelan petroleum for cash-strapped Argentina's meat and dairy products. Additionally, Chávez worked closely with other Latin American leaders following the 1997 Summit of the Americas in many areas—especially energy integration—and championed the OAS decision to adopt the Anti-Corruption Convention. Chávez also participates in the United Nations Friends groups for Haiti, and is pursuing efforts to join and engage the Mercosur trade bloc to expand the hemisphere's trade integration prospects.

Abroad, Chávez regularly portrays his movement's objectives as being diametrically opposed to "neocolonialism" and neoliberalism. Chávez has, for example, denounced US foreign policy regarding areas such as Iraq, Haiti, and the Free Trade Area of the Americas. Chávez's warm and public friendship with Cuban President Fidel Castro has markedly compromised the US policy of isolating Cuba diplomatically and economically. Long-standing ties between the US and Venezuelan militaries were also severed by Chávez. Moreover, his stance as an OPEC price hawk has made him unpopular in the United States. In 2000, Chávez made a ten-day tour of OPEC countries in a bid to promote his policies, becoming the first head of state to meet Saddam Hussein since the Persian Gulf War.

Rhetoric between Chávez and Bush was consistently hostile throughout the 43rd U.S. president's administration. In a speech, Chavez made personal remarks regarding Condoleezza Rice, referring to her as a "complete illiterate" when it comes to comprehending Latin America. On September 20, 2006 Chávez called Bush "the devil".

Nonetheless, after Hurricane Katrina battered the United States’ Gulf Coast in late 2005, the Chávez administration was the first foreign government to offer aid to the devastated regions. The Bush administration rejected the proffered aid.[185] Later during the winter of 2005, various officials in the Northeastern United States signed an agreement with Venezuela to provide discounted heating oil to low income families.

Chávez's socialist ideology and the tensions between the governments of Venezuela and the U.S. have had little impact on economic relations between the two countries. In 2006, the US remained Venezuela's largest trading partner for both oil exports and general imports; bilateral trade expanded 36% during that year

There have also been heated disputes between Chávez and other Latin American leaders, including one with former Mexican President Vicente Fox over what Chávez alleged was Fox's support of US trade interests. The dispute resulted in a strained diplomatic relationship between the two countries.

Another diplomatic row with Colombia, referred to as the Rodrigo Granda affair, occurred in 2004, after the kidnap of Rodrigo Granda, a high ranking member of the FARC.

In 2001, a dissension with Peru occurred over suspicions that Chávez's administration was protecting and hiding Vladimiro Montesinos, a former Peruvian intelligence director under the Alberto Fujimori administration, wanted for corruption. Montesinos was extradited back to Peru where he was incarcerated awaiting trial. Between January and March 2006, Chávez commented on the candidates of the 2006 Peruvian Presidential election, openly backing Ollanta Humala while referring to Alan García as a "thief" and a "crook". His support in fact backfired when Alan García used it to attack Ollanta Humala; García won the election. The Peruvian government admonished Chávez for interfering in Peru's affairs. Garcia and Chávez have reconciled their differences, ending the feud, and relations between Peru and Venezuela were restored.


Dmitry Medvedev and Hugo Chávez in Caracas, November 2008On July 27, 2006 Hugo Chávez and Russian president Vladimir Putin announced an agreement in Moscow which enabled the import of military equipment from Russia to Venezuela. On August 3, 2006 Chávez ordered the Venezuelan chargé d'affaires to Israel to return from Tel Aviv to Venezuela, protesting the 2006 Israel-Lebanon conflict. Israel responded by recalling its Israeli ambassador to Venezuela. Chávez responded with statements comparing Israel to Hitler and describing their actions as a "new Holocaust", and blamed the United States for their involvement.

On February 21, 2008 Hugo Chávez said that Venezuela will not recognize an independent Kosovo, warning that the eastern European nation's separation from Serbia could spark war in the region and that it could end in a disaster. He compared the situation with separatists in the state of Zulia and Santa Cruz in Bolivia. Chávez called Kosovo a region of Serbia and stated that Venezuela shares the position regarding this issue with Russia, China, Spain and many other countries. On March 24 he accused the United States of trying to weaken Russia by supporting independence for Kosovo despite opposition by Serbia and Russia.

In 2008, new EU rules on illegal immigrants allowing detention for up to 18 months before deportation triggered outrage across Latin America, and Chávez threatened to cut off oil exports to Europe.[199] In 2009, after initial rhetorical hostility,Chávez made overtures to the new Barack Obama administration in the U.S., saying, "Any day is propitious for talking with President Barack Obama."

Despite Chavez's active foreign policy, a 2007 Pew Research poll showed that majorities in Bolivia, Brazil, Mexico, Peru, Chile, and a slim plurality in Argentina had little or no confidence in Chavez's handling of world affairs, along with 45% in Venezuela itself. In 2008 confidence in Chavez as a world leader declined to 26% in Argentina, 12% in Brazil, and 6% in Mexico.

Chávez and the media,

Even before the April 2002 coup, many owners, managers, and commentators working for the five major private mainstream television networks and largest mainstream newspapers had stated their opposition to Chávez's policies. These media outlets have accused the Chávez administration of intimidating their journalists using specially dispatched gangs. Chávez in turn alleges that the owners of these networks have primary allegiance not to Venezuela but to the United States, and that they seek the advancement of neoliberalism via corporate propaganda.

According to Greg Grandin, professor of Latin American history at New York University, "[The Venezuelan] media is chronically obsessed with Chávez, and critical in a way that would be completely alien for most US observers." After the media-backed 2002 coup attempt, Venezuela passed 'social responsibility' legislation regulating the media but has largely declined to enforce it.

Throughout his presidency, Chávez has hosted the live talk show known as Aló Presidente ("Hello, President!"). The show broadcasts in varying formats on state owned Venezolana de Televisión (VTV—Venezuelan State Television) each Sunday at 11:00 AM. The show features Chávez addressing topics of the day, taking phone calls and live questions from both the studio and broadcast audience, and touring locations where government social welfare programs are active. Additionally, on July 25, 2005, Chávez inaugurated TeleSUR, a proposed pan-American homologue of Al Jazeera that seeks to challenge the present domination of Latin American television news by Univision and the United States-based CNN en Español. Chávez's media policies have contributed to elevated tensions between the United States and Venezuela.

In 2006, President Chávez announced that the terrestrial broadcast license for RCTV—Venezuela's second largest TV channel—would not be renewed. The channel's terrestrial broadcasts ended on May 28, 2007 and were replaced with a state network.[209] RCTV is accused of supporting the coup against Chávez in April 2002, and the oil strike in 2002-2003. Also, it has been accused by the government of violating the Law on the Social Responsibility of Radio and Television. The director of the station, Marcel Granier, denies taking part in the coup. RCTV is still broadcasting via cable and satellite and is widely viewable in Venezuela. This action has been condemned by a multitude of international organizations.However, Fairness and Accuracy in Reporting (FAIR) questioned whether, in the event a television station openly supported and collaborated with coup leaders, the station in question would not be subject to even more serious consequences in the United States or any other Western nation. In a poll conducted by Datanalisis, almost 70 percent of Venezuelans polled opposed the shut-down, but most cited the loss of their favorite soap operas rather than concerns about limits on freedom of expression.

Bolivarianism and Chavismo,

Chávez's version of Bolivarianism, although drawing heavily from Simón Bolívar's ideals, was also influenced by the writings of Marxist historian Federico Brito Figueroa. Chávez was well acquainted with the various traditions of Latin American socialism espoused by Jorge Eliécer Gaitán and Salvador Allende and from a young age by the Cuban revolutionary doctrine of Che Guevara and Fidel Castro. Other key influences on Chávez's political philosophy include Ezequiel Zamora and Simón Rodríguez. Other indirect influences on Chávez's political philosophy are the writings of Noam Chomsky and the teachings of Jesus as recorded in the Bible (Chávez describes Jesus as the world's first socialist.) Although Chávez himself refers to his ideology as Bolivarianismo ("Bolivarianism"), Chávez's supporters and opponents in Venezuela refer to themselves as being either for or against "chavismo". Thus, Chávez supporters refer to themselves not as "Bolivarians" or "Bolivarianists", but rather as "chavistas".

Later in his life, Chávez would acknowledge the role that democratic socialism (a form of socialism that emphasizes grassroots democratic participation) plays in Bolivarianism. Because his Bolivarianism relies on popular support, Chávez has organized the "Bolivarian Circles", which he cites as examples of grassroots and participatory democracy. The circles are forums for a few hundred local residents who decide how to spend the government allowance for social development. They usually decide for neighborhood beautification, mass mobilization, lending support to small businesses, and providing basic social services.





With respect to domestic policies, some among the American media claim corruption and crime are rampant under Chavez, that infrastructure and public hospitals are failing, that he has not fulfilled his major campaign pledges with respect to labor and land reform, the government bureaucracy is in decay and in chaos, that he has concentrated power of judicial and legislative branches in his hands, placing democracy in peril, and that contrary to widespread public perception, Chavez has failed to raise the poor economically and socially "beyond what is normal in the midst of an oil boom."

After the 2004 recall referendum, opponents insisted the Chávez government had engaged in "gigantic fraud"; however, international observers and exit polls confirmed the official result. The United States government claims that his cooperation in their war on terror is negligible or purposely indifferent with regards to the FARC and ELN, who are engaged in a conflict with the US-backed Colombian government; nonetheless, the US government says there is no evidence of a direct link between violent groups opposed to its policies and Chávez.

Several public figures have even gone so far as to call for the assassination of Chávez, most notably US Conservative Christian televangelist Pat Robertson. Other such requests have been expressed by Venezuelan actor Orlando Urdaneta and former president of Venezuela Carlos Andrés Pérez. The US Ambassador to Venezuela between 2001 and 2004, Charles Shapiro, also reported to the Chávez administration two potential assassination plots.