Analysis
Opposition infighting marks new election cycle page 7
Friday, August 16, 2013 | Nº 171 | Caracas | www.correodelorinoco.gob.ve
New benefits to aid Students During a celebration of the 13th anniversary of International Youth Day on Monday, Venezuelan President Nicolas Maduro announced an increase in the number and value of publicly-funded university scholarships in the country. He also launched a new bank card, Somos, for students that will provide greater access to financial services. Education has been a major focus for the Chavez and Maduro governments. Page 3
Opinion
Fidel Castro at 87: from President to writer page 8
ENGLISH EDITION/The artillery of ideas
Venezuela launches National System of Social Programs to improve services
Economy
Coffee production increases Venezuela could soon be exporting some of the world’s most delicious coffee. Page 4 Politics
Venezuelan music shines in Salzburg A Venezuelan youth choir celebrating the disabled was a big hit in Austria. Pag. 5 Interview
Inflation to continue falling An interview with outgoing Central Bank President Edmee Betancourt. Page 6
The government of President Nicolas Maduro revealed a far-ranging initiative last week that will consolidate and expand the dozens of social programs created by former Venezuelan head of state Hugo Chavez during his 14 years of governance. The new Na-
tional System of Missions seeks to improve the efficiency of the social welfare policies created by Chavez, as well as find ways to measure the concrete gains in education, healthcare and food security attained in the country as a result of the programs. Page 2
Fighting Corruption Venezuelan President Nicolas Maduro called for support from all Venezuelans to build and he called an ethical and cultural revolution to combat corruption in the country. He wrote via his Twitter account, @NicolasMaduro, “I have the spiritual force to confront the hypocrisy of the old political guard, I ask for the support of all of you to make an ethical-cultural revolution”. He highlighted the need to build a new political ethics to overcome the perversity of power. “I am more and more convinced that we should build a new political ethics to get beyond the perversity of power from capitalism”, he wrote. Maduro announced Tuesday that he expects to declare a national emergency to deepen the fight to end corruption.
“As head of state I am calling a national emergency in the fight against corruption and I am going to request special powers to move toward a process of reforming the laws and institutions to strike at the root [of corruption]”, he said.
INTERNATIONAL
ICS: 65% of Venezuelans approve of Maduro’s job performance According to a new public opinion survey by International Consulting Services (ICS), 65% of Venezuelans believe that in his first 100 days of government, President Nicolas Maduro’s performance has improved, going from good to excellent, particularly regarding his administration’s economic policies. The survey was conducted from May through August with a sample of 1,600 people interviewed directly and indirectly (by phone) and has a margin of error of 5%. ICS Director Lorenzo Martinez said in an interview that “the economic decisions made by President Maduro have made Venezuelans see that he is really able to manage the country’s economy”. He said that three additional areas have influenced people’s perception of the Maduro administration: improving the foreign exchange regime, calling on private industries to work with the government to improve production, and the political willingness to reduce scarcity. But the central reason for rising confidence in the Maduro administration results from his “Street Government Program”, which is tackling corruption and emphasizing government efficiency, Martinez said. Maduro’s proximity to the population and their problems, as well as the policies he has put in place to solve them, have conveyed to the public an image of honesty. According to the ICS survey, 59.8% of Venezuelans believe that President Maduro’s words and actions are honest. “He has undertaken a battle against corruption”, Martinez said. “He has validated the confidence that people put in him as President”.
2 Impact | . s Friday, August 16, 2013
The artillery of ideas
Venezuelan government announces reorganization of social programs T/ COI P/ Presidential Press
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he socialist government of President Nicolas Maduro revealed a far-ranging initiative last week that will consolidate and expand the dozens of social programs created by former Venezuelan head of state Hugo Chavez during his 14 years of governance. The new National System of Missions, named in honor of the recently deceased leader, seeks to improve the efficiency of the social welfare policies created by Chavez as well as find ways to measure the concrete gains in education, health care, and food security attained in the country as a result of the programs. President Nicolas Maduro inaugurated the system last Wednesday during an event held at the Teresa Carreno Theater in downtown Caracas. “We’re heading towards a new phase which means the linking of the different levels [of the missions] nationally, regionally, and locally”, the head of state said. According to Hector Rodriguez, Vice President of Social Affairs, the system will be based on six fundamentals that include integration of the missions with the National Institute of Statistics (INE) and a reorganization of the programs to increase their productivity. “[The missions] that have already met their goals will be given new goals while those that have similar goals will work together”, Rodriguez said. A National Commission of Missions will be created to streamline the operation of the different programs while a new information service has been developed to maintain better records of the assistance being provided. President Maduro informed that the new mechanisms have been devised “so that we know that a person is being assisted by any given mission and that we know what educational background and health status he/she has in order to administer our resources with greater efficiency”. The statistical improvements, to be headed by the INE, will be critical in assessing the planning and growth
to achieve, how we’re going to achieve it, and where we’re going. There are no excuses for failure”, Maduro said. The Venezuelan President also highlighted his government’s goal to use the missions to completely eliminate poverty in the country in the next five years. “We’re going to get motivated, popular power together with the revolutionary government united with the goal of zero poverty by 2019. Let’s advance towards that objective”. Since 1998, the South American country has seen overall poverty cut in half and extreme poverty reduced from 17 percent to 6.9 percent. Venezuela has also received special recognition by the United Nations for its early achievement of the organization’s Millennium Goals, which commit countries to improving vital development indicators. “We’ve achieved almost all of the [UN’s] Millennium Goals, but that’s not enough. Out objective is socialism. True equality”, Maduro asserted last Wednesday.
THANKS TO CUBA
of the nation’s welfare policies, Rodriguez reported. It will “allow for the revision and measurement, with greater precision, the progress, errors, delays, and timely corrections that we need to make in each one of our social policies”, he explained. Greater record keeping will also help to deter fraud, such as the selling of free goods and services by corrupt officials and ordinary citizens. Maduro made this point on Wednesday, citing the example of housing and the fact that in some states, illicit fees are being demanded in order to access government-subsidized homes. “We have to put an end to this”, he insisted.
VENEZUELA’S MISSIONS Upon being elected to the presidency in 1998, former lieutenant colonel Hugo Chavez promised to bring revolutionary change to Venezuela by reversing the neoliberal policies of his predecessors Carlos Andres Perez and Rafael Caldera. This translated, among other policies, into the creation of more than thirty social programs, or missions, that have provided free essential ser-
vices to the Venezuelan people and have drastically raised human development indices in the country. Millions have benefited from free medical attention and educational access while new government initiatives have strengthened the nation’s social security safety net and have provided subsidized food staples around the nation via thousands of state-run distribution points. The programs are almost entirely funded with the income generated by Venezuela’s
massive oil industry, which accounts for some 30 percent of the nation’s GDP and 94 percent of its export earnings. Last Wednesday, President Maduro assured that the OPEC member state has the capacity to continue funding the missions with the same vigor that marked the 14 years of Chavez’s presidency. “The homeland has the resources to make economic and social development happen through the missions. We have the resources to invest in all areas. We know what we want
During last week’s ceremony, Venezuela’s Vice President for Social Affairs made mention of the importance of Cuban solidarity in the creation and successful implementation of the social mission. Rodriguez commented that the programs created by the Chavez government have been able to transform the country “thanks to the efforts of the Bolivarian Revolution and those of the Cuban people”. At least six of Venezuela’s most successful missions have received heavy technical and professional assistance from the citizens of the Caribbean island. This includes the incorporation of over 30,000 doctors and medical workers who provide free services through various public health initiatives as well as educational and literacy materials developed by the Cuban people. Through bilateral accords that send much needed to oil to the island nation, Venezuela has benefited from Cuba’s human capital in an arrangement that has broken with traditional paradigms of commercial trade. The goal of this arrangement and of the missions in general, Rodriguez said last week, “is to advance towards a just, dignified and egalitarian society where all women and men can develop their potential”.
. s Friday, August 16, 2013
The artillery of ideas
Venezuelan government ups student scholarships, economic financing
“We have a lot of needs, but we also have a lot of projects that need financing and that need banking support”, said Venezuelan Youth Minister Hector Rodriguez during Monday’s inauguration. The cards are being accompanied by proposals for a new employment plan for younger members of society to assist those who wish to contribute to the economic
growth of the nation, President Maduro asserted. “We’re going to devise a plan to promote employment and productive work for the youth. I believe that this year, with a special plan, we can propose a goal of lowering youth unemployment to as little as 10 percent”, he said. The former union leader commented that this goal should match the overall re-
which we are going to govern. It’s by governing with the people and for the people that we are going to transform Caracas for good”, said Ernesto Villegas, candidate for Mayor of Metropolitan Caracas, during a rally in the capital. More than 45,000 candidates have officially inscribed in the December 8th contest, which will see the election of 335 mayors and 2,455 municipal councilmen around the country. The United Socialist Party of Venezuela (PSUV), the largest player in the GPP coalition, is hoping to continue its string of local electoral victories following the winning of 20 out of 23 gubernatorial races last December. “The challenge is to build the Caracas of the future. The challenge is the inclusion of everyone. The challenge is that not a single child will be without a school. The challenge is that there are no mothers worried because it’s raining over a roof made of tin. The challenge is to continue with inclusion”, said Jorge Rodriguez,
socialist candidate running for re-election as Mayor of the Libertador Municipality in the Capital District. Outside of the capital, candidates in the states of Zulia, Miranda, Vargas and Anzoategui are organizing to take control of the few urban areas controlled by the Venezuelan right-wing. “We all live in the same city that is falling apart. We all have to spend hours and hours in traffic, we all have to look at the garbage. We are all afraid to go out after 6pm at night”, asserted Miguel Angel Perez Pirela, candidate for the Mayor of Maracaibo, Venezuela’s second largest city, currently governed by the opposition. While the socialists have been politically dominant in recent years, the death of former President Hugo Chavez in March and the narrow victory of current head of state Nicolas Maduro over conservative challenger Henrique Capriles in April have presented new challenges to the ruling party. In admonishment of those who believe that election cycle will be closer than those
of the past, members of the PSUV are predicting a avalanche of support and the taking of up to 80 percent of the municipalities in play. “Prepare yourselves for the results in Libertador Municipality and in 80 percent of the mayoral races. We’re going to demolish you”, said Jorge Rodriguez, directing his comments to the Venezuelan opposition. For his part, President Nicolas Maduro has called the unity between grassroots activists, the PSUV, and the other parties that belong to the GPP as “the perfect alliance” to ensure victory in December. “We have achieved the perfect alliance, now we have to carry out the perfect campaign by multiplying our social organization in order to guarantee the perfect victory”, the Venezuelan President wrote via his Twitter account on Saturday. “Without a doubt, the Revolution is putting forth leaders of a generation of patriots who are trained to govern and build Socialism of the 21st Century”, he added.
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Monday’s event also saw the launching of a new bank card, Somos (We are), that will provide greater access to financial services for young men and women in the country. The cards are being distributed by the state-run Bank of Venezuela, the nation’s largest financial institution, and will provide low-interest loans to students and youth engaged in productive enterprises.
Socialist candidates gear up for regional elections
T/ COI P/ Presidential Press
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upporters of the leftist Grand Patriotic Pole (GPP) coalition of political parties took to the streets of cities and towns around Venezuela last weekend
to show their support for the socialist aspirants running in the nation’s upcoming mayoral and municipal council elections. “We are going to be in the streets with you, the streets we come from, the streets we have never left and the streets from
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duction in unemployment that the country has seen since the socialists came to power in 1998. “Unemployment in the country has been lowered to 7 percent, and at times has reached six percent. Our goal is to lower it to 4 percent next year... which is a good level for a society that is building a system of equality”, the Venezuelan President highlighted. During his address, Maduro took the opportunity to urge Venezuela’s “Golden Generation” to follow the example set by former President Hugo Chavez as well as independence hero Simon Bolivar in building a more just homeland. According to the socialist leader, both Chavez and Bolivar represent “values of patriotism, independence, honesty, courage, critical and autonomous thought”. The President also called upon youth to join his administration’s growing crackdown on corruption across Venezuelan society. “I want to ask for your active support. This [anti-corruption] struggle can only happen and be victorious if youth, with your rebellious nature and criticisms, accompany me”, he declared. “I am asking that this support is transformed into action in the streets”, Maduro added.
T/ COI P/ Presidential Press eaffirming his administration’s commitment to providing Venezuelan youth with greater opportunities, President Nicolas Maduro announced an increase in the number and value of publiclyfunded university scholarships last Monday during an act held in Ali Primera Park in the capital Caracas. The revelation was made in celebration of the 13th anniversary of International Youth Day. The head of state informed that monthly stipends for students would rise from 600 bolivars ($95) monthly to 1,000 bolivars ($158) and in some cases up to 1,500 bolivars ($238). An additional ten thousand grants will be added to the total allotment disbursed by the socialist government bringing the total number of scholarships to 164,000 across the country. “We are training the generation that will lead this country into its great future”, President Maduro said of the initiative.
| Politics
4 Economy | . s Friday, August 16, 2013
The artillery of ideas
Venezuela “committed” to exporting locally made coffee globally
Until the 1920’s, Venezuela was one of the world’s largest producers of coffee. The first coffee plantations appeared around Caracas in the late 18th Century, after Spanish missionaries had first introduced the crop to the region in
the 1730’s. Venezuelan coffee became known for its sweet flavors, and relatively balanced acidity compared to other South American beans. At its peak in 1919, the Venezuelan coffee industry produced over 82,000 tons of beans. The rise of the oil industry, along with poor agricultural practices causing environmental degradation are widely blamed for the collapse of the sector in the last century. Today, Venezuela produces around 1% of the world’s coffee supply, and exports little of its own beans. However, in recent years the government has undertaken a series of initiatives aimed at boosting production. In late 2009, under former President Hugo Chavez the government nationalized one of the country’s largest producers, Fama de America, and gained partial ownership of another major coffee maker, Cafe Madrid. At the time, then National Superintendent of Silos head Carlos Osorio stated that the two companies held 70% of the domestic coffee market, but were hoarding stock and engaging in price speculation. Osorio hoped to reduce their market share to 50% to make room for smaller producers. Another initiative undertaken by the government is the recent expansion of the national brand of ground coffee, Cafe Venezuela. Between 2010 and 2012, Cafe Venezuela’s productivity jumped by 145%.
new administration in these key strategic sectors which control the natural resources of the Venezuelan people. Both firms work out of the resource- rich Guyana sector of Venezuela, in southeastern Bolivar State, and were previously owned by International Briquettes Holding, a subsidiary of Sivensa, a private Venezuelan iron and steel firm. It is estimated that Orinoco iron produces 2.2 megatons or briquettes per year, and Venprecar 815,000 tons, of which 80% was previously exported to the North American and European markets. It is estimated that the firms have a rough value of $600-$800 million. Menendez explained that both firms will come under the administration of the State, and that there will be one unique supra-administration for both, which forms part of a move to incorporate the entire public briquette industry under a single col-
lective administration, ensuring production levels, prices, labor rights and equality, and enabling a strategic planning of the sector. “Little by little we are constructing one single administration for the briquette sector, which will be formed by distinct factories, advancing in the development of the firm… as well as in the vindications of their workers”, he went on to explain. Both firms will undergo changes in names, with Orinoco Iron to be re-branded Briquetera del Orinoco, and Venprecar to be rebranded Briquetera de Caroní. This announcement is the first of its type under the government of former trade unionist and organizer, Nicolas Maduro. Many organized working class sectors hope to see significant gains in worker controlled industries and nationalizations in the upcoming years from the President.
T/ Ryan Mallett-Outtrim P/ Agencies
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enezuela’s coffee industry could soon make a comeback on international markets, amid “good news” in the sector, according to the agricultural and land minister Ivan Gil. Speaking from Portuguesa state over the weekend, Gil stated that due to increased domestic coffee production, Venezuela has the “inventory and capacity” to expand its export market. “We commit Venezuela to exporting coffee to the world”, Gil stated. According to the minister, increased investment along with greater technical support and access to credit for small growers has led to an increase in productivity. Before this season’s coffee harvest has even started, according to Gil Venezuela already has a surplus, indicating that there is “good news” ahead for growers. “We have five months of coffee supplies and harvest begins in a few days”, he stated. Generally, most of Venezuela’s coffee harvest takes place between September and March. The statements came following a meeting between the minister and the Association of Bolivarian Coffee Industries (Abicaf) on Saturday. The meeting reportedly focused on discussing ways to boost local production of green coffee beans. Last month, the Coffee Manufacturers Association (Asicaf) head Nelson Moreno told media that many small and medium size roasting companies have faced delays in shipments of raw beans, hampering output of roasted coffee. Moreno publicly advocated for a streamlining of the Venezuelan Coffee Corporation’s (CVA) distribution network. The state run CVA is Venezuela’s largest distributor of coffee nation-wide. Moreno warned that if the domestic supply chain isn’t improved, Venezuela could face a production deficit. Then last week, the Confederation of Agricultural Producers (Fedeagro) argued that the government should more
than double the regulated price of coffee. However, Gil’s announcement follows on from comments by the minister last month that Venezuela has a surplus of coffee available for export. According to Portuguesa state governor Wilmar Castro Soteldo, coffee grown in his state is of “high quality”, and suitable for export. The governor stated this week that Por-
tuguesa grown coffee could soon be heading to the Caribbean island nation of Saint Lucia, and new European markets. He explained that the increase in productivity in the state has been partially due to renewed investment from the national government. Portuguesa already produces just over 30% of coffee consumed in Venezuela. The rest of Venezuela’s coffee is mostly
Government Completes nationalization of Iron firms T/ Paul Dobson
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nder orders of Venezuelan President Nicolas Maduro, Minister for Industry, Ricardo Menendez, announced the completion of the process of nationalization of two key industrial firms this week, Venprecar and Orinoco Iron, putting an end to the administrative limbo which both of these hot briquette iron producing firms have been in since 2009. “The President has approved the nationalization and consequent affectation of goods, installations, property, and benefactors of the mercantile societies Venprecar and Orinoco Iron, which shows the firmness which characterizes the National Government in the fulfill-
ment of the Constitution and laws”, stated Menendez. The process of their nationalization was instigated by President Chavez following numerous problems in the administration of the firms, not least the thousands of labor complaints. Following discussions with the organized labor forces in the factories, Chavez announced their nationalization in May 2009. The process of nationalization however came to a standstill, with the assessment and reimbursement never being completed despite the change coming into law. As a response to this situation and the clamoring of the working classes in the sector, President Maduro ordered the termination of the process, and announced the
produced in neighboring Lara, and the Andean states of Trujillo, Tachira and Merida.
A HISTORIC COMEBACK?
. s Friday, August 16, 2013
The artillery of ideas
| Politics
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Music as social inclusion shines in Salzburg T/ Humberto Marquez P/ Agencies
mance that “there are now exactly 2,004 children and young people with disabilities participating in El Sistema choirs, the result of educational work begun 20 years ago to educate and integrate people with and without disabilities. “It is not about integrating with normalcy, but about making integration normal. We have people with disabilities who can teach us about music and life, and offer food for reflection to those of us who do not have those disabilities”, said García. John Jairto Rojas, who has limited motor and language skills, said “I enjoy it all, but if we had not worked hard we
would not have been able to come here, and show that a wheelchair is not a barrier”. Alfredo Briceño, a young man who does not share the disabilities of some of his fellow choir members, joined the program because of his musical interests and also out of friendship: as a child he studied with Gustavo Flores, a blind engineer who is married and has two children, who fills multiple roles in the group as a tenor, keyboard player and enthusiastic supporter. Salzburg has brought El Sistema new recognition: the Simon Bolivar Symphony Orchestra, the organization’s flagship band, conducted by vibrant young music director Gustavo Dudamel, who also conducts the Los Angeles Philarmonic in the United States, opened the festival on July 24th. The Venezuelan National Youth Choir, String Quartet, Brass Ensemble, Teresa Carreño Youth Orchestra, Caracas Youth Orchestra and National Children’s Orchestra also performed in Salzburg, which is festooned with posters of the Simon Bolivar Orchestra and even some Venezuelan flags. Experiences like this week’s, which brought 1,400 musicians on tour from Venezuela, are an ideal opportunity for Venezuelans to showcase the orchestras of El Sistema as a means of perfecting and renewing music, but also of seeking new pathways for social integration.
long as we have a society rooted in values, principles, ethics with family cohesion, in that way we will have a healthier society”, she said. Meanwhile, the Attorney General reiterated the im-
portance of filing complaints regarding corruption, saying “the inhabitants of our country should and raise their consciousness and make denouncements, not be accomplices”.
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sea of white-gloved hands swaying gracefully to the rhythm of tropical music shows the audience in the hallowed Mozarteum concert hall in this Austrian city how Venezuela is combining musical education and social inclusion. The White Hands Choir made its international debut last Thursday as one of dozens of ensembles, eight of them from Venezuela, at the Salzburg Festival, the music and theatre fest held every summer in this city in honour of its most famous son, composer Wolfgang Amadeus Mozart (1756-1791). It is made up of 120 children and young people, some of whom raise their voices in song while others execute an imaginative choreography of flowing hand movements, accentuated by their white gloves. The distinctive feature of this choir is that dozens of its members are youngsters with visual, auditory, motor or cognitive disabilities, and it has been organised by the Venezuelan National System of Youth and Children’s Orchestras, widely known as “El Sistema”, to include them in its project to combat poverty and exclusion. “For us, participating in the festival marks a before and after”, Jessica Montes de Oca, in the front row of the white-gloved section of the choir, said in sign language. “It’s exciting to perform in the city where Mozart was born and to show that deaf people can make music. We are breaking down barriers”. With their dark uniforms providing contrast for their gloved hands, the choir was loudly applauded from the start of their programme, which began with sacred music like British composer John Rutter’s “Ave Maria” and Argentine musician Athos Palma’s “Gloria”. The ovations were louder still when they presented Venezuelan pieces like “Canto a Caracas” (Song for Caracas) composed by Billo Frometa, “Los dos gavilanes” (The Two Sparrowhawks) and “Las cosas bellas de Lara” (The Beauties of Lara) by Adelis Freites, and “Alma Llanera” (Soul of the Plains) by Pedro Elias Gutierrez, usually their final number. Members of the audience, who paid up to 65 euros (86 dollars) for tickets, cheered, clapped,
called for encores and were visibly moved to tears. In the orchestra section, giving a rapturous standing ovation and waving his hands in imitation of the children in the choir, was Spanish tenor Placido Domingo, seated beside the creator and conductor of El Sistema, the musician and economist Jose Antonio Abreu. “Congratulations. I am astonished by what began with nothing but a teacher’s great love and lifelong dedication”, Domingo told the press. El Sistema got its start in Caracas in 1975, in a basement parking garage where Abreu began to rehearse with a dozen teenagers. He described the
social goals of his movement, which now involves some 400,000 children and young people in nearly 400 orchestras and choirs in 280 free music schools throughout Venezuela. “This is not just an artistic endeavour, but basically a social program aimed at fighting poverty and marginalization. A total of 400,000 families are involved in this program to combat poverty, because poverty is not only material but spiritual, and the most terrible poverty is the lack of an identity”, Abreu said in a recent interview with IPS. Naybeth Garcia, the White Hands Choir director, said on the eve of its Salzburg perfor-
Anti-corruption effort leads to 50 arrests in two weeks T/ AVN
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n attack on corruption by state institutions in Venezuela has led to 50 arrests in the last two weeks. The arrests were made by the Office of the Public Prosecutor, which is under the direction of Attorney General Luisa Ortega Diaz, who said in an interview Sunday that, in addition to the arrests, from July 26 through August 7, a total of 53 charges have been filed, 39 accusations processed, 14 sentences handed out based on admissions of guilt and five sentences handed out based on guilty verdicts in court. The fight against government corruption undertaken by Presi-
dent Nicolas Maduro is being supported by the Office of the Public Prosecutor, Ortega said: “The events of recent days is an example of the bravery of this full-on battle”. Ortega said that it also shows the political will to root out the problem of corruption “wherever it may be”. However, she said that detentions and legal proceedings are not yet sufficient. She called for continuity in the implementation of rights instated by President Hugo Chavez beginning in 1999 such as the right to recreation, to culture, health, and education. “These rights allow us to strengthen our values. As
6 Interview | . s Friday, August 16, 2013
The artillery of ideas
Inflation will Continue falling: An Interview with outgoing Central Bank President Edmee Betancourt Translation by Ewan Robertson P/ Agencies
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orreo del Orinoco International brings readers an abridged translation of a recent interview with Edmee Betancourt, the former president of Venezuela’s Central Bank (BCV), in which she explains to newspaper Ultimas Notícias the measures the government is taking against inflation. The recent BCV president also predicts that the “economic war” being waged against the government of Nicolas Maduro will be defeated, and that the Venezuelan economy will continue growing throughout 2013. UN: Before, the opposition said that the Maduro government was weak. Now that it appears to have consolidated itself, they say that the economy is weak. Betancourt: Let’s review some important figures to do with inflation. We’ll analyze fiscal performance in 2012: January, 1.5% inflation; February, 1.1%; March, 1.9%. We were able to anticipate an annual inflation [for 2012] of close to 16 percentage points, less than estimated. However, in November and December of that year an economic attack was launched which caused an increase in inflation to 2.5% in November and 3.5% in December. With this, inflation for the year 2012 ended on 20%, which despite everything, was the estimate. “From there the economic war of 2013 began, which, taking advantage of the painful circumstances of the first quarter [when President Hugo Chavez passed away], managed to upset the economy. Inflation in January reached 3.3%, in February 2.6%, in March 2.8%, in April 4.3%, and in May 6.1%. However already in June inflation dropped to 4.7%, and we know that in the month of July it’s going to continue falling [inflation for July was 3.2%]. The same is happening with Gross Domestic Product (GDP), which has experienced growth for ten consecutive quarters. In the first quarter of this year GDP growth was 0.7%, and this is also going to continue increasing”. “Despite an event as terrible as the death of the supreme commander [Hugo Chavez], our President Nicolas Maduro was
elected, and we found ourselves facing a very strong economic war. However, with collaboration between the economic cabinet and the Central Bank, we began to hold meetings with the productive sector, because one of the actions directed at lowering inflation is to increase production. We immediately began working with different economic sectors to find out what their needs were. They focused on the shortage of foreign currency, shortages of primary materials, and problems with the new labor law; so we began to seek the solution for them”. What is that solution? It is the one that we are achieving with our present course of action: satisfying the needs of production. If indeed it is true
that the first need has been for foreign currency, which hasn’t been 100% satisfied, this has been met to a high degree and waiting times for the granting of currency have been cut [note: the Venezuelan government maintains currency controls to prevent capital flight, with the official exchange commission Cadivi administering the allocation of dollars to businesses and individuals]. We’re going to increase production, it doesn’t matter if it’s public or private, but we’re going to work on that, as we have been, and we’ve consulted the population too. How were they consulted? An instrument was designed to find out how the population saw the solution to their [economic] problems,
and we now have the results, which tell us very important things. We asked people what inflation meant to them, and it would appear a lie, but in exact figures the population doesn’t know what the level of inflation is. For last year, when it was 20%, they gave other numbers. People know there is inflation when there is an increase in prices. Exactly. But they also know that although the price increases, they can acquire the product, which is very good. It shouldn’t be forgotten that our supreme commander made a social investment of $550 billion dollars. This isn’t money that went abroad, but remained here for our population. The people know that when prices increase it’s because there are problems in the economy, and they say that the solution to that problem is production. It’s important to see how our people have learned, the responses to the survey that we did were marvelous, so much so that one is surprised and says “wow, the people really know!” Are the people participating? Yes, our people know that the economic problem [of inf lation] is solved with production, but also by fighting against the economic war of hoarding and speculation, and they say that in three months this will be over-
come. With that response it seems to us that the famous honeymoon that is going to be given to our President Nicolas Maduro is coming. People have the expectation, the hope, that in three months these problems of the economy and production, speculation and hoarding, are going to end. Any governor, when they win an election, is given a kind of honeymoon, but one has not been given to our first chavista president, Nicolas Maduro, who began with an economic war. How did you measure that? The people say it. Over 70% of our population has that expectation [of the government overcoming high inflation and economic sabotage], and of course, with the joint work of the Central Bank and the National Executive, we have to achieve that goal. I think that we really are heading in a good direction. Now, why did the private media want you to go? I think that it’s a product of wanting to maintain the economic war. First, in the media they say that I am an orthodox chavista, and I was born like that, and to change I should be born again. There are people who do not have an interest in the existence of controls for the rational use of foreign currency; it’s not in their interest, and because of that we have to insist upon preventative and solid controls. The media also seek to break the bank’s collaboration with the National Executive, as it maintains now, in abidance with our legal norms. Collaboration also exists with the Minister of Finance, Nelson Merentes. In the struggle against corruption that President Maduro has begun, how does the Central Bank support him? The bank also supports that struggle. The BCV insists on preventative and solid controls because it isn’t going to allow that mechanisms to do with the allocation of foreign currency perturb it, and in such a way damage the growth of our economy. The media don’t like this, and seeing that the people are giving political stability to our president, [the opposition] now try to wage economic war to prevent economic stability.
. s Friday, August 16, 2013
The artillery of ideas
Opposition infighting marks new election cycle
| Analysis
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n the context of nationwide municipal elections scheduled for later this year, the Venezuelan opposition is showing growing signs of internal division and frustration over their outspoken and self-proclaimed “leader” Henrique Capriles. Said to be united under the auspices of the right-wing Democratic Unity Roundtable (MUD) coalition, numerous opposition figureheads have begun questioning Capriles’ role in the national debate.
in Libertador, Caracas’ most densely-populated municipality. Currently governed by socialist mayor Jorge Rodriguez (2008-present), the mayoralty is to be fought over by two opposition candidates and an incumbent Rodriguez. According to official results from the 2012 opposition primary, Ismael Garcia beat Antonio Ecarri by some 300 (0.2%) votes. Ecarri insists that he actually won the contest by some 900 votes. Though Capriles demands that Ecarri step aside and allow Garcia to serve as the only opposition candidate in the municipality, Ecarri has already registered his candidacy. Capriles, who lost the 2013 presidential election by over 200,000 votes and refuses to accept the results, insists that Ecarri “must recognize that he lost and decide what to do with himself”.
IN DISAGREEMENT
OUTLANDISH STRATEGY
While many in Venezuela are looking forward to the December 8th municipal elections, the opposition’s failed presidential candidate Henrique Capriles continues to focus his discourse on claims he won the April 2013 presidential election. After the country’s highest judicial and electoral bodies confirmed that Nicolas Maduro won the April election, Capriles went as far as to propose the country hold a national constituent assembly. Understood by most as just another unrealistic attempt to mobilize anti-government sentiment, his proposal has even been rejected by top-ranking figures within the opposition coalition. With respect to Capriles’ ongoing assertion that he is the “legitimate” president of Venezuelan, former opposition governor Pablo Perez recently told reporters that he has “different criteria”. “Maduro has been recognized by the Pope, the National Electoral Council (CNE), and the Supreme Tribunal of Justice (TSJ)”, Perez explained. “He (Maduro) is the President”, Perez affirmed, “and there he is, governing”. “I, for one, need to maintain a serious and responsible stance when addressing the nation”, said the former governor. An active member of the Venezuelan opposition, Pablo Perez came in second behind Capriles in the 2012 opposition primary. Perez actually had a strong chance of winning the internal vote until a last-minute withdrawal by Leopoldo Lopez. Barred from holding elected
Apart from his haphazard calls for a constituent assembly, Capriles also recently threatened to take his fraudulent claims to “the international community”. Speaking to CNN last week, Capriles promised to take his claims that he won the 2013 election to “the InterAmerican Commission on Human Rights and the United Nations”. Earlier this month, Capriles promised a group of supporters that he would soon force President Nicolas Maduro to “step down immediately”. Referring to the social, political, and economic transformations brought about under the leadership of Venezuelan President Hugo Chavez, Capriles claimed “the Revolution is over!” “This can’t continue any longer”, he said. “This is done. This Revolution is over! I’m not here to tell the government to rectify. No. I am here to tell them (the Maduro Administration) that they must leave office, that this won’t change while they’re there, that this gets worse every day”. In contrast to his outlandish affirmations, a recent study by independent polling firm Hinterlaces found that 58% of Venezuelans classify the Maduro presidency “positive”. According to Hinterlaces Director Oscar Schemel, the opposition’s standing “has suffered a steady decline” since April. Asked why this is the case, Schemel affirmed that the opposition “is largely disconnected from the issues and expectations of most Venezuelans”.
T/ COI P/ Agencies
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office for acts of corruption, Lopez went on to become Capriles’ 2012 campaign coordinator. With respect to the opposition coalition, Democratic Unity Roundtable (MUD), Perez stated that, “what exists is a consensus, not unity”. In another telling example of opposition discord with Capriles, Secretary General of anti-government party Democratic Action (AD) Henry Ramos Allup told Noticias24 this week that “momentary political problems, no matter how grave they may be, can not be solved using extreme measures such as a constitutional assembly”. Speaking on behalf of Democratic Action –one of the two power-sharing parties that dominated Venezuelan politics throughout the Fourth Republic (1958-1998)– Allup stated firmly, “you don’t just convene a constituent assembly because you want to oust the Supreme Tribunal of Justice (TSJ) or the General Prosecutor”. Capriles accuses the TSJ of “pro-government bias” and insists that he is the victim of judicial “persecution”. “Perhaps it’s because of my historical knowledge of Venezuela’s constituent bodies, constitutions, and constitutional acts”, Allup affirmed, “I do not share that (Capriles’) opinion”. “We can’t just go about throwing dice to see if we roll a double-six. These things are very delicate”, he concluded. Article 348 of the Constitution of the Bolivarian Republic
of Venezuela, approved by an overwhelming majority in a national referendum in 1999, stipulates that “the initiative for calling a National Constituent Assembly may emanate from the President of the Republic sitting with the Cabinet of Ministers; from the National Assembly, by a two-thirds vote of its members; from the Municipal Councils in open session, by a two-thirds vote of their members; and from 15% of the voters registered with the Civil and Electoral Registry”.
DELICATE SITUATION In an opinion piece published this week by right-wing analyst Rafael Poleo, the opposition supporter affirmed Capriles is “largely responsible for what is now a delicate (political) situation” as the country prepares for the December elections. As
the founder, editor, and owner of Venezuelan daily El Nuevo Pais as well as the conservative magazine Zeta, Poleo has a significant readership among the Venezuelan opposition. In a piece he titled “Alone”, Poleo wrote on Monday that “Capriles has not understood that he is only strong when he is able to bring forces together. To do so, he must provide guarantees to those he wishes to unite”. “Capriles has not dedicated sufficient attention to political parties other than his own”, wrote Poleo, “nor has he reached out to other leaders within his own party”. The “difficult situation” Poleo referred to includes opposition candidates who are now breaking ranks with Capriles and the MUD. The most blatant example of this is found
Friday, August 16, 2013 | Nº 171 | Caracas | www.correodelorinoco.gob.ve
INTERNATIONAL
! PUBLICATION OF THE &UNDACION #ORREO DEL /RINOCO s Editor-in-Chief %VA 'OLINGER s Graphic Design Pablo Valduciel L. - Aimara Aguilera - Audra Ramones
Opinion From Chief of State to writer, a transition without trauma
Fidel at 87
Fidel Castro has managed to represent as well as integrate the ideas of Jose Marti and Simon Bolivar – 19th century revolutionary leaders. The Cuban revolutionary, with the aid of many, shaped a foreign policy and national movement around the fundamental concept of national sovereignty, yet devoid of any selfcentered nationalism.
T/ Nelson P. Valdes
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n August 13th, Fidel Castro became 87 years old. He has been out of power since he got very ill in 2006 and retired in 2008. Seven years have gone by. We were told by the world mass media that Raul Castro did not have the wherewithal to rule. And yet, there has been no political or social challenge to the successful transition. Indeed, Cuba has been more stable than many countries in Europe. Moreover, the influence and expansion of ties with the world have increased. And Raul Castro might even have more legitimacy than expected. Contrary to the pressumed, Fidel is doing fairly well too – considering his age and medical problems. What is remarkable is that a charismatic leader lived long enough and managed to transfer his power/ authority to institutions. This is unheard of, sociologically speaking. Typically, charismatic rulers died and then others had to figure out the new regime. The imagined scenario promoted by the world mass media, US and European think tanks and foreign governments was: quick death, power struggle at the commanding heights of power, civil war, possible US intervention and a
return to the prior regime. None of these happened. How come talking heads, editorial writers and wishful thinkers were so wrong about a post Fidel or a post Castro’s Cuba? One basic reason is that attention has not been paid to the real developments in the island. Wishful thinking and lies dominated the debate. Second, nor has there been any reference, then or now, to the fact that Cuba has institutions, a history and a political culture. Thirdly, the critical framework that the average Cuban has exhibited was interpreted by outsiders to mean that the “totalitarian system” was in decline and crumbling. It was assumed that open criticisms, by itself, was not allowed and subversive. Yet, Raul Castro often calls upon the people to openly criticize what needs to be changed. Although it has been acknowledged that the Cuban Americans are one of the mainstays of the Cuban economy through remittances; the implications have not been fully understood or appreciated. Thus, the very people who were assumed to be the opponents had been a major factor in stabilizing the island’s society. Indeed, the Cuban government is so confident that now
Cubans are allowed to freely travel abroad – something that the US citizen is not afforded in return. Moreover, the social characteristics of the past economic political refugee has morphed into the economic migrant who refuses to break ties with the country of origin. What does it all tell us? We were wrong about assuming that the Cuban political system was simply depending on one man’s personality while the millions of Cubans were sheepish. We assumed that we understood the reality and dynamics of the social, economic and political system – yet, not a single daydreamed prediction by specialists and journalists have stood the test of time. The institution of the Cuban family does not seem to recognize the political and ideological boundaries that were assumed to constrain it. Moreover, many assumed in the US that the world shared the views and expectations of US politicians and policy makers on what to do about the Cuban government. Today not even the conservative government of the popular Party in Spain sides with the US, nor the European Union. The yearly votes at the United Nations demonstrates this error.
In fact, Cuba has further advanced in its ties with left, center and conservative governments in Latin America and elsewhere. Cuban medical and educational assistance programs have gone as far as Vanuatu and East Timor. Cuba is a leading member as a partner promoter of economic and social development in the region. Cubans, in fact, are invited to aid the Pakistanis, the Saudis, the Hondurans and even European nations that want to deal with issue of illiteracy. But, what about Fidel? Fidel continues to have a dual influence – among the general public and within the institutions that hold power. Does he favor one group against another? Doubtful. From 1959 into the 21st century the Cuban revolution went through many and different phases. But Fidel led all the twists and turns. Consequently, if necessary, one can always find a comment or statement in favor or against: centralization, material rewards, opening or closing something, for or against egalitarianism. Whichever faction, his name will be used to legitimate it. For Fidel has been a man of principle as well as a realist that understood when to advance and when to change. The United States government, however, has one policy on
Cuba, regardless of the context and circumstances. Are there differences between the two brothers? Even before 1959 there has been a division of labor between Fidel and Raul. One relied on mass mobilization, charismatic speeches and agitation. The younger brother, on the other hand, had the responsibility of organization, the day to day education of revolutionists and cadres – and later bureaucrats. One dealt with the general public and mass organizations; the other was concerned with organizations, division of labor, command and control, efficiency. Each one needed the other. Charisma and routinization, in the Cuban case, have worked together. The new Cuba that is emerging seeks efficiency, productivity and the preservation of social and national gains. Fidel Castro has managed to represent as well as integrate the ideas of Jose Marti and Simon Bolivar – 19th century revolutionary leaders. The Cuban revolutionary, with the aid of many, shaped a foreign policy and national movement around the fundamental concept of national sovereignty, yet devoid of any self-centered nationalism. This unique form of national self-determination incorporated other countries on an equal footing. In fact, national sovereignty and solidarity had precedence over ideology. Cuba has aided countries, despite the economic and political differences they may have. Today, Fidel might comment on contemporary matters but he does not enunciate or make policy – foreign or domestic. Surprisingly, he maneuvered well into a transition without trauma. When he dies it is highly doubtful that there will be any major upheaval; except a large funeral with Cubans sharing their feeling with representatives from every country and corner of the world. Neither the German sociologist Max Weber who wrote on charisma nor the CIA which tried to assassinate him, ever envisioned such an outcome. In 2007 Saul Landau wrote, “Fidel exudes the same sense of astute practicality– a devastatingly cold grip on reality–combined with a seemingly inexhaustible optimism”. More recently Landau added that Fidel’s “courage, and his determination to change vocations – from chief of state to wise writer” is unique and inspirational.