October 1st., 2007

Chavez Receives Flattery And Warnings

“We feel represented by you, paladin of world peace, we applaud your braveness and courage, at the United Nations Assembly and at Columbia University”, expressed Chavez to Mahmoud Ahmadinejad, in the third visit of the Iranian President to Venezuela.  Ahmadinejad returned compliments proclaiming that Chavez has dedicated his life to the advance of world revolution and to the awakening of the Latin American people.  The Persian character came from La Paz, whereat he arrived in the Venezuelan Presidential plane for interviews and to sign cooperation treaties with Evo Morales.  In Bolivia, upon the criticism for the display of Venezuelan military and air equipment, a pro government Parliamentary leader stated that the president of Iran, had requested that the Venezuelan government be the one to take care of his security.  At Caracas, the rulers signed new cooperation agreements for petrochemistry, agriculture and industries, and surely, Chavez explained his absence at the United Nations General Assembly, a fact that has called attention, since this is the first time that he does not attend a major international forum.  The suspension of the trip to New York was untimely, since the Venezuelan Embassy at the UN had requested visas to a great number of companions and had already reserved hotel rooms.  In the New York Times, a whole colored page was published regarding Chavez generosity with the U.S. poorest sectors.

The dangerous relationship of Chavez with Iran anguishes the Jewish community, an important factor of the national economy.  The Israeli Associations Confederation published a statement, denouncing “continuous and incessant threats to erase the state of Israel from the map”, as expressed by Ahmadinejad, as well as his declarations denying the holocaust perpetrated by the Nazis during the Second World War.  An Israeli newspaper, quoting an official source, informs that Tel Aviv “is considering its relations with Venezuela upon light of the extremist anti Jewish line adopted by Chavez and his growing alliance with Ahmadinejad”.  The newspaper Haaretz informs that there is concern in the Jewish community by the government’s announcements to control the education system, including the obligation to teach in private Jewish schools, the international policy of the revolution.

Upon explaining the flight of capital, the analysts point out as an influential factor, the intromission in the Middle East conflicts on the part of Chavez and the economic model of the XXI Century Socialism.  The Head of the European Union delegation declared that the European investment declined US$ 7,000 Million in 2004 to US$ 17 Million this year.  In a study from the World Bank, disclosed last week, Venezuela appears as the worst scenario of the region to effect economic activities, and as published by International Transparency, also last week, Venezuela’s  image “as one of the most corrupt countries of the world, has worsened during the last twelve months”.  According to experts, it is a factor that explains the deteriorated economy that is ever more dependant on oil.

OIL IN RED ALERT

What would amount to the Bolivarian Revolution without PDVSA, was questioned by its president.  The Venezuelan oil reached US$ 74, its top price in the last years.  Simultaneously, the OPEC registered, in a September report, a production of 2,350 Million, a figure that coincides with International Energy Agency and the US Energy Department.  When Chavez arrived to power, Venezuela was the fifth world producer, today, it occupies the eleventh place.   Upon the recent adjustments announced in Vienna, according to which the roof for production was established in 2,470,000 daily barrels, the Ministry of Energy affirmed that this figure was not mandatory and that it proposed to elevate production to 3,150,000.  The mysterious production difference between government and international figures has been, more or less, of 800,000 barrels in the last three years.  The College of Engineers, in open forum to PDVSA officers, experts demonstrated that the crude sales, in accordance with income, are approximately of 1,500,000 barrels, once national consumption is deducted, as well as the supply and donation to Cuba, the Caribbean, Nicaragua, Bolivia, etc.  Secretary of Finances have not hidden the budgetary implications due to the production problems.  In an optimistic perspective that the average prices of 2007 conclude in US$ 80, the oil dollars (90% of income by exportations) will be insufficient for the programs being executed, and the investment requirements in the industry.  Finances declared that the quota assigned by OPEC affects planning of the budget for 2008.  For obvious reasons, it hid the more affected items, such as the Missions and the expenditures for international cooperation, almost always very considerable, which are announced every Sunday at Hello, President. 

The migration of operative agreements and mixed companies controlled by PDVSA and the associations of the Orinoco Basin ended in conflict with Exxon Mobil, which announced its disposition for international arbitration.  If this happens, PDVSA and eventually its partners in the mixed companies, run the risk of supervision of bank accounts and handling of dollars, unveiling the thick veil with which Chavez´ regime handles oil. 

In reports from Venezuelan newspapers, it is affirmed that the Russian Lukoy and the Chinese CNPC are only eager to invest in the Basin, if allowed to process heavy crude outside of Venezuela, wherein they can have control of the operations, without being exposed to the effects of international arbitrations and to any unpredictable from Chavez.

The regime has achieved to silence the scandal of the suitcase with US$ 800,000 ceased in Buenos Aires, the tip of the iceberg, in what has been qualified as “giant corruption” of PDVSA.  The Courts remain inactive, unlike the Argentineans, who are requesting that Antonini, the holder of the suitcase, be extradited, and who is now under the custody of the FBI.  What is evident is that the money came from PDVSA and it constitutes barely a chapter of unclear oil negotiations between Venezuela and Argentina.  To the corruption, there is the adding that PDVSA stopped being specifically an oil company to start handling any and all activities ordered by Chavez.  In its payroll there appear 90,000 people, double the amount of people it employed when the 20,000 were fired because of their participation in the 2002 strike.  To the mass of new employees, only political loyalty is demanded.  But nowadays, it is them who are threatening with a strike if they do not obtain a collective contract.  They argue that they are “red, very red” and that they are entitled to salaries fit for the high cost of life and an insurance policy that guarantees them medical treatment in private clinics.

REBELLION IN THE FARM (Animal Farm)

“Private medicine is a perversion.  I will not continue to tolerate it”, affirmed Chavez in Hello, President.  He gave instructions to the Military that runs the Ministry of Health to prepare a file for every private clinic.  “I swear to God that I will nationalize them”.  He affirmed that he will also nationalize private schools that do not comply with the design of the curricula or do not use as school texts the ones ordered by the Government.  He diminished the consequences that such actions would derive internationally.  “You already saw what happened with RCTV, I was condemned around the world and I did not care”.  He assured that he would not evade conflicts with Clinics and private schools because “in a Revolution, conflict never ends”.

The current sign of conflict is notorious within the pro Chavez movement.  The nationalization of all hospital services is rejected by the Military and the mail civil Officers, who own medical insurances that grant them, access to private clinics.  Venezuelan medical doctors who have offered they to work in Barrio Adentro demand similar salaries to those of Cuban doctors.  According to the bi national agreements, Venezuela pays Cuba one thousand dollars for each professional of medicine assigned to the Missions.  The salary of the natives is equivalent to US$ 400, at the official exchange rate.  The debate between students regarding the Constitutional reform has evidenced that the government employees and the sons of the higher officers and high government have studied in private schools and currently study in private universities.

A similar claim as the one by Barrio Adentro Venezuelan doctors is being made by the groups of teachers in Bolivarian magisterial unions.    They request that their assignments be the same as those of the Cuban sports trainers.  Apart from the labor claims, the leading role of pro Chavez followers is manifest in strong street protests against insecurity and violent claims for housing and public services.  In the political scenery, Governors and Majors who maintain they to be “Revolutionary” and “Bolivarian” are strongly opposed to several of the proposals for the Constitutional Reform.  Within the active pro Chavez movement, the infallibility of the leader is questioned.  “Chavez is not God, Chavez makes mistakes”, declared university Professor Javier Biardeau, who requested to be active in the government’s sole political party (PSUV). 

“If we go through the path of plebiscite democracy, Socialism will be a Stalinist one”.   He stated to disagree with the personal strategy of the President to impose a new Constitution.  “I regret that the criteria of a Jacobin minority are being imposed, who thinks that they know how and in how long a Revolution takes place, it is the same mistake as that of Robespierre”.  Professor Biardeau spoke in unusual terms for pro Chavez followers.  “One thing is the popular hope that we activate around Chavez, as a catalyst of a process of changes, and another is to idolatrize Chavez.  I do not believe in unquestionable leaders.  Chavez is drunk by the Palace group that stimulates a narcissist myth.  The sympathy towards him is based on a popular hope, a hope of the people, but also democratic.  The majority is emotionally committed with democracy and does not agree with the authoritarian tone.  There is unpleasantness with the style of direction followed by the Revolution”.