March 2009 Archives

From the Editors of VenEconomy:

All, but All Venezuelans are potential targets of Chavista "justice" if they are perceived as being an obstacle to the purposes of the revolution or if they can be used to send a message to a given sector of the population (scapegoats). Examples abound, but here are just two:

The first is the case of Eligio Cedeño, who, at one time, was a businessman close to the President. No one knows when or why he fell from the regime's grace. What is known is that he has been yet another of Chávez's prisoners since January 13, 2007. Cedeño has been in prison for two years accused of alleged irregularities involving official dollars granted to the Microstar consortium. According to his lawyers, Cedeño's personal freedom and his right to effective protection under the law have been violated and, in depriving him of his freedom, injury has been done to his physical safety, psychological wellbeing, and moral integrity. The fact of the matter is that, even if there were valid grounds for charging him, according to the Criminal Code, Cedeño is entitled to his freedom until his case has been tried. Even so, he continues in prison and has not yet been brought to trial.

Secretary of State Hillary Clinton has no interest in responding to insults from Caracas.  From El Universal:

"We will not enter into this debate, this war of insults. This is so childish that we are not going to answer it," said the US Secretary of State in an interview that was recorded in her office in Washington on the eve of her recent trip to Mexico.

Clinton said that the US has obviously many problems with President Hugo Chávez and the way he is abusing Venezuelan people. "The way he treats his neighbor countries; his attitude in domestic and foreign policy that, in our view, is not in the best interest of anybody," she said.

Clinton recalled that "democracy is more than elections," referring to the argument used by the Venezuelan government when critics question its democratic record. Venezuelan authorities usually say that there have been 11 elections and referenda in the South American country in a decade.
venezblast033009.jpgAuto manufacturer Toyota may be the latest foreign corporation to consider completely pulling out of its business operations in Venezuela following a labor dispute, which executives say violated an agreement reached with the syndicalists.  In an advertisement published in El Nacional, the company announced "For the first time in 51 years of uninterrupted work in Venezuela, the presence of Toyota de Venezuela C.A. in the country is seriously threatened."

Mayor of Caracas Antonio Ledezma, who has been under siege from a variety of pressures from the state (including the illegal seizure of his offices), has announced a call to form a common front among the opposition parties to organize against President Hugo Chavez.  The group would take actions to defend democratic principles and form a "constituent assembly" to protect the regional integrity of the nation.  Meanwhile two opposition parties are saying that the ruling party in state is seeking to radicalize the confrontation with sectors of the opposition "cover up" their poor management which has exacerbated the local impact and preparedness for the economic crisis.

Dayana Mendoza, a Venezuelan beauty queen who was recently crowned Miss Universe, made an unusual visit to the U.S. troops stationed at Guantanamo Bay, a move which is unlikely to be viewed positively by President Chavez.
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For as much as his friends and supporters, both college professors and baseball stars, assured us that Venezuelan President Hugo Chávez was a model democrat, his actions in the wake of the recent referendum victory seem to be exceeding even the worst nightmares of his many critics. Rather than being an "I told so" moment, several opposition leaders are facing the imminent prospect of arrest and imprisonment, inaugurating a whole new generation of political prisoners of this seemingly appealing revolution.

The most shocking news came on Thursday, March 19, as Chief Prosecutor Katiuska Plaza announced an arrest warrant for the Mayor of Maracaibo Manuel Rosales under invented corruption charges. Days earlier, Chávez threatened to jail other opposition elected officials in Zulia, such as Pablo Pérez, and in Carabobo, with Governor Henrique Salas Feo. There are serious fears of arrest for the current Mayor of Caracas, Antonio Ledezma, as well as the former Mayor of Chacao, Leopoldo López, both of whom presented motions before the Inter-American Court on Human Rights next week (Lopez himself was present in Washington for an emotional and dramatic hearing).

The message is clear: the Chávez government believes it has won impunity to act above the law, paid for with political capital won by majority vote.

venezblast032709.jpgThe Venezuelan government has begun the process of cutting back the state budget to $72.8 billion, reflecting a revised outlook on oil prices, but some are unconvinced that these anti-crisis measures will be successful:  "A serious economic downturn is unlikely to be staunched by the adjustments announced, and further tightening can be expected in the months ahead. Chavez has flagged to the public the moves to reduce senior salaries and cut superfluous spending. However, these measures seem primarily symbolic--and political."

The arrest warrant for opposition leader Manuel Rosales, which was seen by many as a smokescreen to distract attention from the economic crisis package, is continuing to stir debate as the lawyers have still not been given a date for the first hearing, while other sources reveal that the government planned the attack on Rosales as part of a strategy to split the opposition.

Moises Naim has an interesting piece in Foreign Policy about the competing alliances being built by Brazil and Venezuela, and considers which axis the new government of El Salvador will lean toward.  Many of these points echo what Robert Amsterdam argued in his recent Huffington Post piece.

While the axis countries build their anti-Yankee alliance and try to implement what the Venezuelan president calls "21st-century socialism," the Brazilian government is successfully developing a very different geopolitical project: ensuring Brazil's presence at the table when the world's most important decisions are negotiated. Brazil has thus become an indispensable voice in the debates concerning the rules governing international trade, energy, the environment, and the redesign of the international financial system.

So, while Hugo Chávez spends his time and oil revenues trying to influence countries such as Bolivia, Nicaragua, and Paraguay, da Silva hangs out with leaders in India, South Africa, and Europe.

[My apologies for the interruption in these postings of the daily news briefings ... all of our hours over here have been dedicated to a special project this week, so we hope to get back on track very soon with a regular flow of updates from Venezuela.  Thanks for reading - James, Editor]

venezblast032609.jpgFollowing months of non-payments of debts to critical oil service contractors in Venezuela, PDVSA, by order of President Hugo Chavez, is preparing to stop working with both foreign and domestic companies to provide services such as maintenance and operations at oil production sites, urging the creation of "joint" companies to substitute their role.  Meanwhile U.S. oil driller Helmerich & Payne has announced it is halting drilling at two of the 11 sites it works on in protest of the non-payments from the Venezuelan government.

Over the weekend the president announced a cryptic series of anti-crisis measures (though at other times denying the existence of the crisis), mainly consisting of spending cuts of 6.7% while raising value-added tax from 9% to 12%.  Oscar Schemel, head of the polling group Hinterlaces, says that the anti-crisis measures "will definitively affect the popularity of the government."

Venezuela's black market for currency trading was frozen today after the U.S. intervened in a bank account, sending the unofficial rates spiralling.  Story still developing.
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The surprising news that the opposition Mayor of Maracaibo Manuel Rosales, a former presidential contender against Hugo Chávez, might be arrested and thrown in jail by the authorities on a raft of amusingly baseless corruption accusations, shouldn't really come as a surprise at all.  The chavista drumbeat to throw more political prisoners into the clink has been growing over the past month since the referendum election, and especially in response to the government's efforts to wipe out the Law on Decentralization, which would allow the regime seize control of several major export ports in Zulia and Carabobo, depriving the opposition of any ability to govern over their local economy.

As it is often said, you can tell a lot about a government not by the public policies they seek to put in place, or the decisions they make in the administration of public affairs, but rather how they handle those citizens within their own society who disagree with them.  In Venezuela, we have numerous examples of open criminal conduct to attack dissidents.

A great reaction to the Manuel Rosales arrest warrant over on Devil's Excrement:

Today the Prosecutor asked that former Presidential candidate, Governor of Zulia State and current Mayor of the city of Maracaibo Manuel Rosales be jailed for corruption.  Whether Rosales is guilty or not of corruption, I have no idea. However, the case is laughable as Chavez' hatchet Comptroller Russian "The Ruffian" determined in his characteristic partial way that Rosales could not justify the origin of the funds of all of the assets that he swore he had in his obligatory yearly declaration of assets to Ruffian's office.

Yeah, Rosales was not only corrupt but also so stupid, so as to add assets over the years in his yearly declaration that he obtained via graft.


This bit comes from Fausta Wertz over at the RealClearWorld Blog with regard to the controversial issue of $62 million in frozen aid to Nicaragua following irregularities during the last election (many European governments have cancelled their aid as a response):

The Ortega government says the subject is not open to discussion, "not even with historians," insisting that Nicaraguans and the world "forget about the elections," and accuses the US of "taking bread from the poor."

The third item was clearly meant for domestic consumption but made it to the international news, via Venezuela's Noticias 24 (my translation): Ortega calls the US "cheapskate" over aid to fight drug trafficking: During a speech for 254 officers of the National Police, Ortega stated that last year the National Police had seized $370 millions' worth of drugs originating from Colombia and destined to the US, plus 12,000 weapons. Remarking that the US only provides Nicaragua with $1.4 million to fight drug traffic, Ortega requested that the US send Nicaragua half of the $370 million.

As if.

But that's not what has Nicaragua's neighbors worried: Ortega announced that the country is open to all and any tourist visitors from any country, without requiring visas. Costa Rica is concerned that international trafficking groups can now move people to other countries like Costa Rica and the US. Inside Costa Rica mentions Chinese and Russians, but readers of this blog know that Iranians are already heading to Nicaragua.
delahunt032009.jpgOn Thursday night, Rep. William Delahunt (D - Mass.) spent about two hours speaking with the President of Venezuela Hugo Chavez and Minister of Foreign Affairs Nicolas Maduro during an official visit to the Miraflores Palace in Caracas - the first visit to Venezuela of a U.S. elected official since the election of President Barack Obama.  Delahunt said that the talks were "constructive," and said that the new U.S. president hopes to improve relations between the two countries.

Supporters of opposition politician Manuel Rosales have poured into the streets to express outrage over an arrest warrant requested by the attorney general, which seeks to place him in jail over an alleged corruption investigation from his previous term as governor.  The supporters speculate that the issue is Rosales's opposition to the reform bill of the Decentralization Law, which involves the takeover of the country's air and seaports.
rosales031909.jpgAt the World Baseball Classic game last night, an impressive outing from the Venezuelan national selection defeated the United States 10-6, but both teams had already advanced to the semi-final.  Venezuelan player and MLB star Magglio Ordonez was still razzed by fans in Miami for his support for President Hugo Chavez, but during last night's game more government supporters showed up with tickets, sporting t-shirts and paraphenalia linking the player to the Bolivarian Revolution.

The political fallout following revisions to the decentralization law (giving the state the authority to seize air and sea ports) continues this week, as Prosecutor Katiuska Plaza has announced that an arrest warrant will be issued within 20 days for the opposition Mayor of Maracaibo Manuel Rosales, who ran against Chavez during the last election.  Plaza says that Rosales is being charged with "illegal enrichment" from his past term in office in Zulia, and said that the order to arrest him comes directly from the president.


magglio031809.jpgOn Tuesday the National Assembly approved the first reading of a reform bill to the decentralization law which will empower the state to take over air and sea ports - within hours it was passed on to the executive where the president order its enactment.  In his announcement, President Hugo Chavez announced that "The regional, municipal public power can never be above that of the national public office, and this cannot be above the international."

Facing this increased pressure from the government to erode their authority, four of the five governors of the opposition elected last Nov. 23 have promised to "exercise all legal actions which are provided for under law and the constitution in order to ensure that it continues to be what it is: the mother of all laws."  These governors consider that the decentralization reform bill should be rejected, and they have not ruled out the possibility of convoking a referendum to measure the popular support of this new bill which will concentrate power in Miraflores.  Mayor of Caracas Antonio Ledezma has announced that he will file a complaint before the OAS about the decentralization reform bill, and has secured the support of the Parliamentary Assembly of the Council of Europe (PACE).
It seems like every couple of months we hear about some sort of major announcement, signed deal, or other agreement between the governments of Russia and Venezuela for everything from PCAs, development banks, and energy ventures.  But where's the beef?  Show me a major transaction, or something else to care about ... but until then, this is all just talk.  With the latest promise of this Russian-Venezuelan oil joint venture, perhaps Moscow is trying to apologize to Caracas for totally screwing up their chance of getting on better terms with Lula by announcing bomber bases on the same day as the Obama meeting.

From the IHT:

Venezuelan President Hugo Chavez says his country and Russia have formed a joint company to work together on oil projects.

Chavez called the formation of a Russian-Venezuelan energy company an important step. He said it will "open operations not only in Venezuela, but also throughout the world."

Chavez said during a televised Cabinet meeting on Tuesday that officials had signed a document in Vienna, Austria, two days earlier agreeing to set up the mixed company.

It will be made up of a consortium of Russian companies and Venezuela's state-run oil company, Petroleos de Venezuela SA. The new company will be involved in extracting heavy crude in Venezuela's largely untapped Orinoco River basin.

Since winning the referendum, President Hugo Chavez has been working hard to push through a variety of measures to diminish regional authority, specifically targeting departments and positions held by the opposition.  Talk about killing democracy with democracy.

From the Miami Herald:

The governors have said they will resist the takeover of ports and airports, but it is not clear what they can do. Salas Feo has appealed to the supreme court, which has a record of siding with the national government.

Pablo Pérez, the governor of the western border state of Zulia, called a news conference in which he declared himself ready to go to jail if necessary, to defend the rights of the state's inhabitants.

''If they want to jail me for defending Zulia, let them come and get me,'' Pérez said.

However, pro-Chávez legislator Carlos Escarrá, a constitutional lawyer, said the legal reform that restored federal control over ports and airports was irreversible.

''We can't have ports and airports in the hands of governors who have given concessions to the private sector,'' he told viewers of the government TV channel, VTV. Moreover, ``from the geopolitical point of view, these are the points of entry and exit between Venezuela and the [outside world].''

Today the Inter-American Press Association (IAPA) has issued a warning that freedom of press and attacks against journalists are worsening in Venezuela.  The organization warned that the "incendiary" rhetoric of President Hugo Chavez and his efforts to "humiliate" the press have real consequences.  Ever since the referendum victory of Feb. 15, the majority of public pronouncements by the president have been related to the expropriation of various properties and threats to jail opponents.  A new decentralization law being pushed by the ruling party through the national assembly, placing control over seaports, airports, highways, and other transportation infrastructure into the hands of the state.  Caracas Mayor Antonio Ledezma is warning if that the government places certain politicians under arrest for resisting the seizure of the ports, such as Salas Feo, it would mark the beginning of a series of arrests of all elected opposition politicians.

Major League Baseball star and celebrity athlete Magglio Ordonez is attracting crowds of hostile fans who incessantly boo when he steps to the plate during the World Baseball Classic, after the player was featured in advertisements supporting the Chavez enmienda and receiving direct support from the president in several televised addresses.

Franklain Duran, the 41-year-old Venezuelan who acting on behalf of the government was arrested in Miami in 2007 attempting to cover up the source of a briefcase containing $800,000 for the presidential campaign of Cristina Kirchener, is now up for sentencing by the court, and court face 15 years in prison.

Over the weekend (and right during the meeting of the Brazilian president with Obama), Venezuela dithered back and forth over whether or not Russia would be given an airspace in Venezuelan territory to host their bombers close to the U.S. border.  By the end of the questions, Chavez clarified that Russian planes are welcomed, but the airbases would remain Venezuelan.
Interesting results from this survey on free trade in Newsweek - not what you might expect.

Just three years ago the smart money was on a sea change in Latin American politics. A dozen countries had held presidential elections, and in contest after contest, politicians and parties on the left came out on top, with Venezuelan strongman Hugo Chávez beating the drum of Bolivarian revolution. The results seemed to signal the end of the Washington Consensus and a decade's worth of gringo-sponsored free-market reforms in the hemisphere. Now, in the face of an economic downturn one might expect a further turn to leftist populism. But an exclusive Poder/NEWSWEEK/ Zogby survey suggests that at least among Latin Americans between the ages of 18 and 29, the opposite is true. For all the lather over capitalism run amok, 63 percent of young Latin Americans surveyed believe that free trade is not just good but "benefits all people." What's more, the young Latin Americans say the leaders best-suited to guide their countries into the future are people like Barack Obama, who achieved a 91 percent favorability rating among those surveyed, and Brazil's Luiz Inácio Lula da Silva, a onetime leftist who has generally toed the free-market line since taking office in 2003. By contrast, they said those worst-suited to guide their country were people like Chávez acolyte Evo Morales of Bolivia and Chávez himself, who was considered by three-quarters of those polled to be "a dictator" or "a dictator in the making."
obamalula.jpgThe following article by Robert Amsterdam was published today on The Huffington Post:

Despite the well worn campaign slogan, so far Washington's new foreign policy under President Barack Obama and Secretary of State Hillary Clinton seems to embody a blend of both continuity and change, depending on the situation. By and large we have seen a reactionary series of policies, as the new president has been thrust into a game with the cards already dealt. However, with the visit to Washington on Saturday March 14 of Brazilian President Luiz Inácio Lula da Silva -- the first Latin American head of state to be received by Obama at the White House -- a fresh hand is being dealt, giving the president a chance to define his administration and mark a clear departure from the policies of the past.

For years Latin America has been waiting for its day in the sun as a privileged partner of the United States; to be treated fairly, with respect, and joined in action toward the fulfillment of mutual goals for the Western Hemisphere. With the visit of Brazil, now graduated to the status of a true regional and global power, the administration should seek to support and enhance its role of responsibility, proving to the skeptics that we don't need or want a unipolar hemisphere, but rather a multi-lateral and institutional framework for stable and prosperous relations.

There are many compelling reasons for Obama to seek a close relationship with Brazil and establish a new partnership, one that would bring immediate benefits to both parties (while carrying very low risk and political costs). Despite being diplomatically stretched thin by Mideast conflicts, Brazil is a sure bet that Obama should not pass up.

Click here to continue reading.


Writing at the Guardian's Comment Is Free, Stephen Kinzer argues for the appointment of a Latin American envoy for the Obama Administration.  We think this is a great idea.

Part of the US problem in Latin America has always been its refusal to listen seriously to Latin leaders. Obama should of course be open to all who want his ear, but it is not realistic to imagine that he can develop close ties with them all. Instead, he should informally pick one whom he likes and trusts, and use that person as an unofficial tutor and senior advisor on all matters Latin American.

Who would this be? The obvious choice is Lula da Silva of Brazil, who comes closest to being a continental leader. But Brazil is a major emerging power with its own strategic interests, so he might not be Obama's best choice. Michelle Bachelet of Chile or Oscar Arias of Costa Rica would be better. Both are skilled politicians who also have great moral authority. They are independent-minded enough to have won wide respect across Latin America, but also believe that the US can play a highly constructive role there if it changes its approach.

venez111031209.jpgVenezuela is once again leading the charge at the oil cartel OPEC, calling for the promotion of non-member production cuts to drive prices back up.  The focus of the initiative will seek to "intensify efforts" to convince Russia to produce in accordance with the OPEC quotas. Analyst Dennis Gartman has written that "Supporting Mr. Ramirez was the equally "hawkish" Angel Rodriguez, the Venezuelan parliament's energy chief who said yesterday that Venezuela has been saying it agrees with a new output cut because oil reserves in consumer countries are high and need to be lowered so we don't repeat a delicate situation with regards to sagging prices. With Iran, Venezuela, and the Saudis already on board for a cut, a cut is a foregone conclusion. Now we await proof that OPEC's notorious cheating members actually abide by what they say they shall do. We'll not hold our breath."

An American pilot has been arrested in Venezuela accused of smuggling drugs, while others are raising alarms about the country becoming a "creeping narco-state."  Maria Conchita Alonso, a Venezuelan actress, has appeared on Fox News this week to denounce Hollywood's support of President Hugo Chavez:  "They create little places like, you know, maybe a little hospital where they send doctors. What they do is maybe, let's say, five percent of the population is being helped, so they -- to believe that Hugo Chavez is the greatest man that is helping them. But the reason why he does that is the way that they do their propaganda. When someone like, you know, an Oliver Stone or Danny Glover or Sean Penn or Naomi Campbell or whatever, when they go there, they have something to show them that, you know, "This is how we take care of our people."
simonbolivar031209.jpgHere's an interesting one from Associated Press about the launch of a Francisco de Miranda action figure ... manufactured at bargain basement rates in China.  Was it too expensive given the inflation of the local currency to manufacture these locally?

Inspired by socialist President Hugo Chavez, a father and daughter are hoping to launch a line of action figures from Venezuela's history to counter the popularity of "imperialist" American superheroes like Superman, Batman and Wonder Woman.

Joyce Parra and her father, Angel, have drafted drawings for action figures they call "Venezuela's Heroes," including independence icons Simon Bolivar and Francisco de Miranda, as well as Antonio Jose de Sucre, a general who helped Bolivar free Venezuela from Spanish rule.

"The idea isn't to get rich," Joyce Parra, 26, told The Associated Press on Wednesday. "What we want to do is make them available for the children whose parents cannot afford to purchase such toys."

Angel Parra, a 58-year-old painter and self-described socialist, and his daughter traveled to China and struck a deal with a manufacturer for the prototype of the Miranda action figure. But the Parras say they need financing for the full line of at least 20 figures they envision, and they're hoping for help from Chavez.

venezblast031209.jpgVenezuela is making waves at OPEC today, as representatives from National Assembly's Energy and Mines Committee went on state television to announce that OPEC's supply-cut strategy already has produced some results but that the price is still too low:  "It's important for the price to rise slowly and steadily" because the current range of $40-$50 a barrel is causing investment in oil prospecting to slow, Angel Rodriguez said.  More memories are being dredged up this week of the failed April 2002 coup against President Hugo Chavez, however this time it is happening on Capitol Hill:  Otto Reich, the former Assistant Secretary of State for Western Hemisphere Affairs, appeared before a Congressional Committee today where he denied any role in the April events while being grilled by Bill Delahunt (D-Mass.).  Reich said"I have full confidence in President Obama.  And I dare say in the case of Venezuela, he would not have made an effort to support tacitly the coup. He would not have attempted to influence ambassadors in other nations in Latin America to confer legitimacy to the Carmona government. When Pedro Carmona swore himself in, his first act was to abolish the National Assembly, to abolish the judiciary."
venez031109.jpgWashington D.C.-based think tank The Inter-American Dialogue has released a new report of policy recommendations for the Americas for the Barack Obama Administration.  The report states:  "The most brazen challenge to the United States comes from Venezuela's president Hugo Chávez, who has insistently sought to curtail Washington's influence in Latin America. The current low price of oil and Chávez's diminished regional leverage has reduced the urgency for action by Washington. It may be possible to ease bilateral tensions by offering to reinstate ambassadors (withdrawn last September) and to renew formal diplomatic ties. But Washington should keep its expectations modest--and recognize that the best way to offset Venezuela's activities in the hemisphere is to enhance U.S. cooperation with other Latin American countries."

An effort is underway to remove any power from the Metropolitan Mayor of Caracas, Antonio Ledezma, through the passage of a new law by the National Assembly proposing the creation of just one, unitary authority position for the governance of the Capital District - hand-selected by the president himself.  Meanwhile the Venezuelan military has dismantled seven large drug labs near the Colombian border just days after being accused of participating in narco-trafficking by a U.S. official.
chavez031009.jpgThe following is a translation of an article by Castro Ocando published in El Nuevo Herald, summarizing the recent attacks against the private sector by the government of Hugo Chavez, including the case of the political prisoner Eligio Cedeño, who has been held in violation of the law for more than two years without any conviction.


Chavez attacks important businessmen
By Castro Ocando, El Nuevo Herald

As though following a cookbook of recipes to establish and consolidate a communist system, the interventions in private properties by Venezuelan government are worsening, imposing the creation of production quotas, and sharpening the class wars by attacking the most important businessmen and bankers of Venezuela with unusual force.

The expropriation and intervention this week of a dozen farms and agricultural production centers, many of them property of two of the most powerful business families of this petro nation, marks the beginning of a new phase of state intervention just when the government is about to face the worst economic crisis in a decade.

The following editorial was published in El Universal two days ago:

The Extreme Prescription

The "star" of the texts considered to be anti-Jewish, titled "How to support Palestine against the artificial state of israel [sic]" appeared on the website Aporrea.org this past 20th of January. Its author is Emilio Silva, a frequent contributor to the website who identifies himself as an "academic worker of the UBV (Universidad Bolivariana de Venezuela) and a member of the faculty of the UBV."

What Silva proposes in that piece is a sort of handbook to "arouse and mobilize the Venezuelan people" starting with a "Leninist question: What to do? "


venez031009.jpgA commission at the National Assembly has submitted a reform proposal to the bill on Social Responsibility in the Media, the same legislation which was used to shut down on of the last remaining independent television channels, RCTV, in 2006.  Labor leaders in the aluminum sector have reiterated the need for the authorities to make public their plans to rescue the sector, which was announced two weeks ago, estimating that at least a $6 billion injection from the state will be necessary to keep CVG Venalum, CVG Bauxilum, CVG Alcasa and CVG Carbonorca afloat.

PDVSA has announced a deal for $200 million to be invested in two LNG plants - including minority participation from international oil companies:  PDVSA will control both of the new companies with a 60% stake in each. One company is comprised of Galp Energia 15%, Chevron 10%, Qatar Petroleum 10%, and Mitsubishi and Mitsui jointly sharing 5%. The second company includes Galp Energia 15%, Energia Argentina 10%, Itochu 10%, and Mitsubishi and Mitsui 5%.  Coca-Cola has announced its willingness to negotiate with the government of President Hugo Chavez, following announced threats to expropriate their properties.


baseball030909.jpgIn an unexpected upset, the United States national selection for the World Baseball Classic stunned the favored Venezuela with a 15-6 victory last night.  According to one newspaper, the fans attending the game in Toronto were relentlessly positive:  "They made a bold political statement by embarrassing a member of Hugo Chavez's cabinet on foreign soil and even while their teams pitchers cowered, they still kept whistling and waving flags and dancing and posing for pictures."

South America begins the week with some high profile military developments - President Hugo Chavez has given a clear warning that if Colombia pursues its hunt of rebels across borders, it can expect retaliation, while Brazilian President Lula da Silva inaugurated the first summit of Unasur in Chile, the first time in history that the armies of South American nations have collaborated in such a broad alliance.
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The following is an exclusive English translation of a column published recently in El Universal:

Endogenous Judeophobia

It is not only a matter of acts of vandalism: the Jewish community denounces that the content of official media is creating a climate of antisemitism never before seen in the country.

By Oscar Medina

The profanation of the Mariperez synagogue was declared to be a burglary committed by agents and ex-officers of the police, but the motivation for the messages left is still unknown.

First, as always occurs, is the Word. To assert, for example, things like: "The world has enough for everyone, but some minorities, the descendants of those that crucified Christ, took the world's riches for themselves." There is something evil in these words. More so if it is said at a Christmas celebration, even more if it is said at a public ceremony, and much more so if it comes from the mouth of the President of a nation. The quotation is from Hugo Chavez, the year 2005.

arepas030609.jpgI love arepas.  Definitely one of my favorite foods, and always a highlight of visiting Caracas (though they give it a pretty good try in New York City).  That's why I am feeling pretty upset after reading this blog post over at Devil's Excrement - apparently the chavistas are gunning for the areperas as the next victim of the revolution, which could decidedly put an end to this diet stable.  Sure, you can mess around without multi-billion dollar oil companies, and go ahead and steal some some cement, steel, rice, and financial groups, but as soon as you go for my arepas - man, that just sucks.  Who would've ever guessed that a global financial crisis would actually make it even easier for the kleptocrats to get rich?
venez030609.jpgHollywood celeb Benicio del Toro dropped in on the Miraflores presidential palace in Caracas yesterday for meetings and photo ops with President Hugo Chavez before the opening of his latest film, Steven Soderbergh's two-part, 4 1/2-hour film biography "Che."  Asked about meeting the president, del Toro told reporters, "He's nice."

Having taken down many of Venezuela's most successful businessmen (including Eligio Cedeño), Chavez has most recently set his sights upon Lorenzo Mendoza, the multi-billionaire owner of Empresas Polar SA.  After seizing one of the company's plants, Chavez singled out Mendoza by name during his television program:  "You can't work beyond the law, Mendoza," he said. "We could expropriate all of Polar's plants." Another one of the most recent victims of the expropriation revolution is the Irish company Smurfit Kappa, who had 3,700 acres (1,500 hectares) of forestry land with a value of about 500,000 euros seized by the government without any guarantee of compensation.
Fausta Wertz at Real Clear World is blogging about some of the interesting changes happening over in Cuba.

While Raúl Castro had announced when he came to power almost exactly a year ago that he planned to restructure the government, this is the first time so many government officials had been replaced at once.

Recent Cuban news point to stresses between the Fidel and Raúl factions. According to Chilean newspaper La Tercera's editor Cristián Bofill, the brothers don't agree on Cuba's foreign policy. During Michelle Bachelet's visit to Havana last month, Granma, the official organ of the Cuban Communist party, published an article by Fidel stating that Chile should grant Bolivia access to the Pacific. Bachelet was displeased, but Pérez Roque insisted that there would be no retraction over Fidel's article, even when Fidel is a retired head of state.


From Carnegie Endowment:

Venezuela and Uruguay are also interested in nuclear power but have a long way to go. Venezuelan President Hugo Chávez has sought nuclear cooperation from Brazil, France, Iran, and Russia, but few suppliers appear to be biting, perhaps because Venezuela's plans are not well defined. Meanwhile, Uruguay, which gets virtually all its electricity from hydropower, has mentioned nuclear power as a future option, but national laws banning nuclear energy would need to be overturned. Moreover, its withdrawal of plans for a natural gas plant in 2005 because of the cost ($200 million) and time of construction (26 months) suggests that a nuclear power reactor, which costs upward of $6 billion and takes at least four to five years to construct, may not be in the cards.


Who says that Venezuela has no plan to handle the economic crisis?  Can't they see that confrontation is the best way to achieve stability?  From Reuters:

"His name is confrontation, and there are not many tricks left in that bag," said Riordan Roett of the Latin America program at Johns Hopkins School of Advanced International Studies in Washington.

"We will likely see more aggressive behavior as we head into mid-year with no bounce in oil prices."

Chavez said on Thursday night his government took over a timber farm run by Irish paper company Smurfit Kappa (SKG.I) and earlier this week he also threatened to take over Venezuela's top food producer, Empresas Polar.


torrijoschavez030409.jpgThe ongoing crisis in the global economy is beginning to show its impact on Venezuela, as the state oil PDVSA is currently seeking to renegotiate contracts with oil services providers and obligate food producers to contribute more products to the price control categories set forward by the state, reports the Wall Street Journal.  The government is also adjusting its price staples on food - which can be disastrous for the economy - to control a much larger percentage of the basic diet.  According to local media, oil, sugar, ground and roasted coffee, cheese, and tomator sauce will be 95% regulated and 5% freely traded, while 90% of precooked cornmeal, powdered and pasteurized milk, margarine, and mayonaise will be price regulated.  As for the production of rice, most of which was nationalized this weekend, 80% will be frozen in price despite 30% inflation.

The crisis has not cooled the tensions between Venezuela and Colombia, however, as a senior official has declared that Colombian Defense Minister Juan Manuel Santos represents "a threat to the stability and sovereignty of the countries of the region" and that the "arrogant attitude of Minister Santos is abominable."  Meanwhile Sen. Piedad Cordoba has sent a letter to the leaders of FARC asking them to set out the terms for hostage release talks: "It is urgent to define the framework within which an agreement can be reached, setting the time, method and place, so we can contribute to it taking place."

Eligio Cedeño has now spent more than two years in prison without a conviction, in violation of local and international law, defense lawyers say

CARACAS, March 3, 2009 - In a human rights case that has received increasing international attention and condemnation, defense lawyers for Eligio Cedeño have accused the Venezuelan government of violating the law by keeping the defendant imprisoned beyond the established two-year limit on preventative detention, abandoning any plausible pretext of due process or fair treatment.

"We are witnessing an indefensible and egregious violation of Cedeño's rights by the authorities," said Robert Amsterdam, one of the international defense lawyers on the case. "The law is unambiguous with regard to imprisonment without conviction, and the state's refusal to comply with the law reveals two facts: that the prosecutors haven't been able to prove an innocent man guilty, and that Eligio Cedeño is now considered a political prisoner, given this exceptional treatment."

This weekend the Miami Herald published an abridged translation of an article about Eligio Cedeño from their sister Spanish language publication, El Nuevo Herald.  Below is the full translation of the extensive story and interview, which includes much information left out of the Herald.

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Venezuelan Businessman Prisoner of Chavez

Eligio Cedeño, the banker who has been detained in a cell in Venezuela for two years on charges of tax fraud, has launched an international campaign to be recognized as a political prisoner of the regime of president Hugo Chavez.

The campaign is under the leadership of attorney Robert Amsterdam, famous for his defense of Mikhail Khodorkovsky, ex president of the Russian petroleum firm YUKOS-Group, who is currently serving a sentence in Siberia and is considered to be the most prominent political prisoner of Prime Minister Vladimir Putin.


Eligio Cedeño has now spent more than two years in prison without a conviction, in violation of local and international law, defense lawyers say

CARACAS, March 1, 2009 - In a human rights case that has received increasing international attention and condemnation, defense lawyers for Eligio Cedeño have accused the Venezuelan government of violating the law by keeping the defendant imprisoned beyond the established two-year limit on preventative detention, abandoning any plausible pretext of due process or fair treatment.

"We are witnessing an indefensible and egregious violation of Cedeño's rights by the authorities," said Robert Amsterdam, one of the international defense lawyers on the case. "The law is unambiguous with regard to imprisonment without conviction, and the state's refusal to comply with the law reveals two facts: that the prosecutors haven't been able to prove an innocent man guilty, and that Eligio Cedeño is now considered a political prisoner, given this exceptional treatment."

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The objective of Venezuela Report is to provide quality information, reports, news, translations, and original opinion and analysis articles in both English and Spanish, with the goal of bridging the significant gap between the political dialogue in Venezuela and the rest of the world, and raising awareness of the problems and challenges we see in both the legal system and governing model. ...

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