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May 15th., 2009

Cause For Concern


Chávez’s trip to Argentina has led to much speculation. Apparently, the presidential agenda is limited to forging cooperation agreements, but the reappearance of the suitcase case has been unavoidable. An Argentinean judge validated the evidence of the USA trial, conclusions which led to the thesis that the US $800,000 found with Antonini Wilson were destined to finance Mrs. Kirchner’s campaign. Argentina is living intensely with the June elections and some Buenos Aires journalists allow themselves the question of whether or not this time Chávez will bear another suitcase.

 

In his farewell message, Chávez, in addition to severely attacking the media, complained about the little importance given to his efforts of achieving South American integration. The matter is that the economic situation occupies center stage in the nation’s worries, now fed by daily nationwide broadcasts including both TV and radio, mainly dedicated to lessons regarding the blessings of Marxism in its new version of “Socialism of the XXI Century”. “The Bolivarian revolution is an important contribution to the salvation of humanity, to the salvation of the world.” This is not just drama or rhetoric. According to the Social Property Law project, there will be no difference based on hierarchies in labor relationships, but rather based on the proportion of work conducted. Chávez expropriates agricultural lands, alleging that the lands belong to the nation and that there is no such thing as private land.

 

The Manifest has had great impact with the national crisis, backed by the most renown economists of the country belonging to diverse tendencies. According to them,  the deterioration of agricultural production, scarce industrial investment, generalized corruption, the standstill of oil production, the collapse of basic Guayana companies and the lack of solvency of public financial entities, are symptoms of extremely serious economic problems. They point out that this crisis has been faced by a Venezuela which depends almost entirely on oil income and with a private productive apparatus which has been purposefully asphyxiated. “To this one must add institutional deterioration, since public powers are every day more partial and dependent of the President.” They also emphasize on the importance of warning the country about the grave economic, social and institutional situation present in the country, not with the purpose of deepening the sense of anxiety among the Venezuelans, but rather with the intention of informing that the current unbalances and distortions will have an important negative impact on the citizens’ lives, due to serious interpretation mistakes regarding the reality of the nation and mistakes in design and execution of the current government’s policies.

 

SERIOUS PROBLEMS IN PDVSA

 

The difficulties faced by the nation’s oil company are daily headlines among means of communication and analysts. Chávez decreed the expropriation of companies which render goods and services to the oil industry and which remained within the private sector. They were in charge of the water, vapor or gas injection processes which allow the increase of energy within the fields and improve their recovery factor, handle perforation drills, motorboats, tow trucks, barges and services for plumbing replacements. After the nationalization of oil, in the last century, and during Chávez’s ten years, the activity of those companies which are now affected was maintained, some from the US and some from the UK, due to expense economy and because several count with their own technologies, which PDVSA does not have, as well as their long experience in key processes for oil production.

 

Authorized commentators have questioned the convenience of the measure, and think the reasons for it are the financial troubles of PDVSA in paying pending bills with suppliers and debts with their workers. They are correct. Chávez had to go himself to Zulia in order to personally promise the payment of debts being violently demanded by the mass of workers. The companies Helmerich Payne and Williams let it be known publicly that PDVSA owes them $116 million  and $241 million respectively. The companies Halliburton and Schlumberg announced that the amount owed to them reaches the thousand million dollars and that the payments received barely cover 10% of the bill. The British company Good Group, with 49% participation in SINCO (Engineering, Maintenance, Construction and Operations Services) asked for indemnification for the taking over of their equipments. Good Group and the US company Williams announced that they are studying the possibility of suing in International Arbitration centers.

 

The country is worried about PDVSA’s finances. Its liabilities, when the exportation prices reached their highest historical levels, were above $69 thousand millions. Its accounts receivable, of doubtful recovery, since they correspond to energy gifts to many countries, increase $24,2 thousand millions. During the period of greatest prosperity the financial sinking occurred, and now, PDVSA, in addition to being threatened with suits before International Arbitration centers, faces several operational restrictions which basically boil down to less production and distribution capacity. The average price per barrel was of $86 last year, reason for which an estimated reduction of up to $40 for this year, within the context of serious accumulated problems, represents an impact in the social and economic order. A respected analyst believes that Chávez gamble on the sustained recovery of oil is risky business for governing the country.

 

The situation could have been different, had there prevailed a minimum amount of sense and order in the leading of public affairs. If the government, with elevated prices since 2004, had destined part of those resources to a stabilization fund, instead of wasting them in the way that they did, the effects of the downfall of the oil income could have been lessened. A rational policy for production and commercialization was necessary, one in which the nation’s interest should have prevailed over a circumstantial geopolitical interest.

       

OBSESSION AGAINST FREEDOM OF EXPRESSION

 

Chávez’s struggle against private television would seem strange if it weren’t for his obvious opposition with freedom of expression, which was clearly manifested when he announced: “The owners of 4 national TV channels, RCTV, Venevisión, Televen and Globovisión, none will be saved, you should all be in prison, because you are terrorists, coup leaders.” He ordered them to change their attitudes or face sanctions, including the revoking of their concessions. Globovisión, the news channel and its director Alberto Federico Ravell, are special targets for the Presidential rage. The accusation is “media terrorism” because they informed this past May 4th regarding an earth tremor, given the absence of official information. CONATEL opened the process for closing down Globovisión. Ravell proved that his information had been objective and truthful, telling the population to keep calm. Nonetheless, the leaders of the PSUV support the closing, arguing that “the enemy must be annihilated”. Chávez’s obsession against the media is so aggressive, that in Argentina he declared: “No one should be surprised when the State takes decisions regarding means of communication which practice terrorism.” In a joint press conference with President Kirchner he declared that in Venezuela, “some means of communication still practice terrorism, not criticism.” This threat has been cause for national and international rejection. The IAPA protested due to the threat against Globovisión. Enrique Santos, President of the IAPA and director of El Tiempo of Bogota, recalled the closing of RCTV in May 2007, and that their equipment was taken with no indemnification given. In its last semester meeting, the IAPA recorded that Chávez’s verbal violence increases actions of his followers against means of communication and independent journalists. “The exercise of freedom of expression is not a concession given by the authorities, it is an inalienable right of society. Globovisión should not be held as an enemy of the state because it holds critical and independent views.”

 

Other institutions have reacted before Chávez’s attack against freedom of expression. The Inter-American Commission on Human Rights (IACHR) called attention to the restrictions for accessing public information, and the fact that protection measures in favor of journalists and means of communication (among others Globovisión) have not been upheld. Chávez responded in such vulgar terms that we will not repeat, out of respect towards our readers. He held that the IACHR belongs to the OAS, and Venezuela can “leave” this organization. It would be the first and only country to ever voluntarily leave the OAS. The European Parliament (EP) expressed enormous concern for the deterioration of Venezuelan democracy, “which is in grave danger of collapsing due to concentration of power and the growing authoritarianism of president Chávez.” The EP expressed that “legitimacy of origin” does not avail the democratic nature of a government. This legitimacy must be supported with a respectful compliance of the Constitution and the Rule of Law. It is evident that each day the international file which characterizes Chávez as a neo-totalitarian model continues to grow. (Venezuela Today, April 30, 2009).

DEMOCRACIA Y DESARROLLO
Presidente: Pedro Pablo Aguilar
P.O. Box International 02-5225
Miami, FL 33102-522
Fax: (52-212)267-2420