Chavez to US: We Need Dialogue, We Need Each Other

“The U.S. is a great country,” President Chavez said yesterday in a speech in which he emphasized the need for dialogue between nations. Dow Jones reports that Chavez dismissed the idea of U.S. energy independence as a myth and an impossibility. “They want to free themselves of what? What we need to do is talk, we need to reach agreements. We need each other,” Chavez said.

In related news, the AP reports that U.S. presidential hopefuls have vastly overestimated the amount of money the U.S. spends on foreign oil; just $246 billion in 2007, instead of the often cited figure of $700 billion. Meanwhile, Reuters refers to Venezuela’s Chavez as a “price hawk” in OPEC, when in fact he has consistently advocated for fair and stable prices. Chavez has at times deemed the price of oil too low, and at other times said that it has become exaggerated, particularly at the expense of poor nations and communities. Venezuela sends 300,000 barrels per day of subsidized oil to needy countries in the region through programs like Petrocaribe.

The government of Venezuela is negotiating the purchase of tanks from Russia. According to AFP, the equipment is intended “to replace aging ordnance and to improve the country’s security and defense capabilities.” Venezuela’s aging U.S.-made military goods have become difficult to maintain in the years since the U.S. imposed an arms embargo preventing further purchases.

Six suspects have been detained in the October 1st murder of a student in Venezuela’s Western state of Zulia. The investigation is pending and motives remain unknown, but the AP reports that those arrested include three army intelligence agents and a police officer. Zulia, which borders Colombia, is a notoriously violent part of Venezuela. Colombia’s paramilitary violence is the subject of two articles today; the AP and Washington Post report that Human Rights Watch research shows President Uribe has blocked investigations of ties between his government and paramilitary thugs.

Venezuela Budgets for $60 Oil and Maintains Subsidies for Poor Countries

Oil is the theme of much of today’s news on Venezuela. According to the AP, the national budget for 2009 will be based on estimated oil prices of $60 per barrel, far higher than the rate of $35 per barrel used to determine the 2008 budget. This provides greater government accountability by boosting official spending and leaving less “excess cash” at the discretion of the executive.

A Miami Herald opinion piece claims that economists “agree” that Venezuela will be harder hit by the global financial crisis than any other country. This is, however, untrue; analysts quoted recently in the Financial Times, Bloomberg, and Reuters have all said that Venezuela is well insulated. Reuters reported that Venezuela “will likely emerge unscathed from the current global financial contagion even if tumbling crude prices force the oil-dependent OPEC nation to scale back spending.” AFP reports that Venezuela’s stock market has seen a drop in value of less than one percent, while percentage losses are in the teens for Brazil and Argentina, which are among Latin America’s largest economies.

President Chavez addressed concerns about the price of oil in a speech yesterday and said that Venezuela will maintain programs that provide 300,000 barrels of subsidized oil a day to poor countries in the region. He responded to rumors, saying: “Many want the oil price to continue to drop to see us fall, but Venezuela isn’t going to go under… Although no country can say that it won’t be affected by this economic disorder, the threat that some sectors want this to create in this country isn’t going to materialize.” Reuters reports that after the US government’s recent announcement that it will intervene in major private banks, Chavez said, “Bush is to the left of me now.”

A Washington Post article suggests President Chavez is “ratcheting up his quarrel with Washington” ahead of local elections in Venezuela. The Post presents Chavez’s concerns about US interference in Venezuela as fear-mongering and a tactic to garner support. Little mention is made of the US-backed coup against Chavez in 2002. Former Venezuelan Ambassador to the US, Bernardo Alvarez points out that “United States participation in right-wing destabilization efforts are not new. They are historic.”

Venezuela an Oasis of Calm in Troubled Financial Times

Yesterday, tear gas was thrown at the headquarters of Nuevo Pais, a Caracas newspaper whose editor promoted the assassination of President Chavez. The AP reports that a “radical pro-government militia” called La Piedrita took responsibility for the act. Though it is unclear in the article, the group is not affiliated with the government and has been publicly condemned by prominent officials in the Chavez administration. On Monday of this week, the minister of justice and minister of information spoke out against La Piedrita and called their violent tactics “political childishness,” for which they were praised by Reporters Without Borders.

Also in Venezuela, Reuters reports that some 6,500 relatives of incarcerated people held a protest on Tuesday to demand better conditions in jails. Prison violence in Venezuela is widespread, and last year produced 500 deaths. The government promised reforms to the system this year. The challenges are considerable, but some small steps have already been made, such as bringing the famous music education program, “El Sistema” into jails to help rehabilitate the incarcerated.

Developments came yesterday in the “suitcasegate” trial in which Florida-based Venezuelan businessmen are accused by the US government of acting as unregistered foreign agents. The Miami Herald reports that the lawyer for the sole defendant in the case, Franklin Durán, was finally allowed to introduce evidence that “he says could create reasonable doubt about the government’s case.” The lawyer contends that the charges were “calculated to smear both Mr. Durán and the Venezuelan government.” So far, judges have refused to consider the political context of the allegations.

Finally, The Financial Times calls the Caracas stock market an “oasis of calm” amid the global financial crisis. As in most countries, Venezuela’s banks have felt the effects of the crisis, but “the system as a whole is reckoned to be solvent.”

Venezuela Nabs Drug Kinpin, Gets Praise from Reporters Without Borders

Eight suspects were arrested yesterday in the recent murder of a student in the western state of Zulia. The Attorney General said those arrested include police officers and businessmen, according to the AP. Zulia borders Colombia and is known to be quite violent. Bloomberg reports that President Chavez recently claimed that the CIA has offices there. Buried in that article is the news that Venezuelan officials made their fifth major drug arrest this year. Eber Antonio Pulgar Chacon, a drug trafficker wanted in the U.S., was captured Saturday. No other sources report on the arrest, although the White House’s recent claim that Venezuela is failing in the fight against drugs earned intense media attention.

Similarly, Venezuela has come under fire from the White House and human rights groups for allegedly having poor press freedoms, however, no U.S. newspapers report on recent praise from Reporters Without Borders. The organization hailed the government’s vocal rejection of violence against reporters during a demonstration. Venezuela’s Justice Minister and Information Minister both strongly condemned attacks by citizens on journalists from the anti-Chavez broadcaster Globovision in the Caracas neighborhood “23 de Enero.” Reporters Without Borders also welcomed the announcement by Information Minister Andres Izarra that opposition candidates in the upcoming elections will be given air time on the main public TV channel, Venezolana de Television (VTV).

The Washington Post reports on the disqualification of some candidates from upcoming state and municipal elections. The claim is made that only those politicians that “posed a challenge” to the political party of President Chavez were disqualified. However, the hundreds barred from running for office due to corruption probes do include pro-Chavez candidates. According to the Post, a government official says that “the decisions to disqualify were made on legal grounds after long probes in which investigators did not even know the political affiliation of those they were investigating.” Of Leopoldo Lopez, the opposition mayor of Chacao accused of misuse of public funds, the official said: “He has planted the idea that it is political persecution. That is false, it is completely false.”

The AP and AFP report on the declining influence of the U.S. in global politics. AFP quotes a British philosopher who calls it “a historic geopolitical shift in which the balance of power in the world is being altered irrevocably.” This has been the theme of much of the press coverage of joint military exercises by Venezuela and Russia. A Washington Times article claims that the political career of President Chavez is based on anti-Americanism, when in fact the Venezuelan leader has good business relations with the U.S. and has only responded to attacks by the Bush administration. Chavez has also said that he looks forward to working with the next U.S. president.

Indian Country Today reports that U.S. Indigenous communities continue to rely on reduced-cost heating oil from the Venezuelan-owned company CITGO. CITGO’s donations last year alone totaled $100 million. The aid goes to low-income families in 24 U.S. states, including 223 tribal communities. Meanwhile, USA Today anticipates the end of Venezuela’s oil-funded social programs due to lowered oil prices. While some social spending has been cut back recently, this is fairly unlikely; oil prices were still several times lower when the anti-poverty programs began, and Venezuela’s economy remains in good shape.

Venezuela Will Go Without McDonalds for 2 Days

Honduran lawmakers voted yesterday to join the regional alliance known as ALBA, the Boliviarian Alternative for the Americas. AFP reports that an opposition member in Congress commented that he “cannot oppose any measure meant to benefit the poor.” ALBA is a regional integration program that involves trade as well as a social agenda to tackle poverty, hunger, disease and social exclusion. Honduras becomes the 6th member of ALBA. Venezuela proposed ALBA as an alternative to the US-backed FTAA, plans for which appear now to have stalled indefinitely.

Sources report today that all 115 McDonald’s restaurants in Venezuela will be closed for 48 hours as a punishment for tax irregularities. According to the BBC, President Chavez has “taken on” US firms in the past in nationalizations. However, Venezuela’s purchase of oil projects in the Orinoco never saw that country “pursuing a legal battle” with ExxonMobil. On the contrary, Exxon bucked the terms of compensation talks and went around the process to freeze the assets of Venezuela’s state oil company.

El Nuevo Herald reports on the recent news that Venezuela’s government will tighten spending by officials. The president warned of a new “zero waste” policy in the state budget. The measures will “first reduce costs, do away with wasteful spending, end corruption and unnecessary expenses, put an end to mega-salaries,” Chavez said.

Finally, Venezuela may propose that OPEC adopt a system of “price bands” to help stabilize oil prices. Platts news service reports that former Ambassador to Washington Bernardo Alvarez described the plan to the National Assembly yesterday. Alvarez pointed out that Venezuela still sends “over 1.2 million b/d, every day,” to the US.

Venezuelan Economy Strong Amid Global Financial Crisis

Venezuela’s economy will remain strong despite the global financial crisis, according to analysts. Industries that were nationalized — such as oil, steel, and telecommunications — are insulated from market volatility, and Venezuela counts with $40 billion in foreign currency reserves and huge government discretionary funds. Experts are quoted as saying “it’s obviously not an emergency situation,” and, “Chavez has ample financial public assets to draw from even in the event of a sustained oil price fall.” Bloomberg reports that Central Bank Director Armando Leon also pointed to the strength of Venezuela’s financial system. Still, state spending on social programs has been curtailed slightly and government officials have a new policy of “zero waste.”

After the announcement in recent weeks that Venezuela may work with France and Russia to develop a peaceful nuclear energy program, Reuters reports that such a program is still years off. US Assistant Secretary of State Thomas Shannon reacted by saying, “We’re not opposed to the peaceful use of nuclear energy.” Nonetheless, Reuters plays up the false notion that Venezuela is a “foe” of the US and claims that President Chavez “spends oil wealth to counter U.S. influence.” Chavez has said that a possible nuclear program in Venezuela would be used for electricity and medicine.

A letter in response to a Washington Post editorial on Monday argues that the US should not ignore the region, nor should it punish countries with sanctions. Bolivia has been threatened with the removal of trade privileges after a White House drug report slammed that country — along with Venezuela — as “failing” to fight trafficking despite significant progress made under President Morales. The letter also states that elected governments in Latin America that have good relations with Venezuela are not merely “satellites” of the Chavez government.

Finally, oil prices are around $89 per barrel, a 40 percent decline since early July. The AP reports that President Chavez said some OPEC member countries are calling for an extraordinary meeting. Lowered demand has been a source of concern for traders, also. The value of crude is still more than three times higher than a decade ago, when President Chavez was first elected.

Venezuelan Oil Company Helps Cars Run on Natural Gas

The Venezuelan state oil company PDVSA is preparing for a greener future by converting cars to run on natural gas. A new conversion center should produce nearly a thousand cars by the end of this year, according to Bloomberg. A government resolution requires automakers in Venezuela to convert 30 percent of cars to natural gas by next April.

On the economy, the Chicago Tribune reports that the US financial crisis will “test” the Latin American region’s resilience after years of steady growth. Local stock markets and currencies appear to be feeling the effects of the crisis. Meanwhile, the price of oil has dropped to $90 per barrel, but still remains far higher than a decade ago when President Chavez was first elected. An expert at the Inter-American Dialogue said: “whatever credibility the U.S. had in the region, on economic management, that’s clearly gone.”

According to the Miami Herald, Latin American leaders have also noted the irony and hypocrisy of the Wall Street bailouts in the US, saying that they amount to “communism for the wealthy” and calling Bush “comrade.” President Chavez said: “How many times have they criticized me for nationalizing the phone company? They say, ‘The state shouldn’t get involved in that.’ But now they don’t criticize Bush for having nationalize . . . the biggest banks in the world.”

Finally, a Delaware newspaper reports that the local Venezuelan expat community is nostalgic for the “petrol-dollar days” when oil wealth benefited only a small elite. They are critical of the pro-poor policies of President Chavez — such as discounted heating oil in the US — which which are seen as, at best, “not good but OK.”

The Uninformed Opine, Unhindered by Fact Checks

Venezuelan police detained three suspects yesterday in the recent murder of a student in Zulia state. The investigation “has advanced significantly,” according to Justice Minister El Aissami, the AP reports.

In economic news, the AP reports that Venezuela forecasts 6 percent economic growth in 2008. Growth is still “very robust,” according to the planning minister, even after a slight decline from last year’s rate of 8.8 percent. The Miami Herald reports that the balance sheets of Latin American states remain solid, but that the US credit crunch may affect them. In the context of the current US financial crisis, President Chavez suggested that it will be important for a new president to hold dialogue with other countries throughout the world. According to El Universal, Chavez said: “The next president of the United States must sit down and talk to the world. He has to do it.”

A Washington Times article makes the absurd assertion that Venezuelan troops were in Bolivia during a recent outbreak of opposition violence in which peasants were massacred. This assertion is based solely on rumors, and has been reported in no other respected news sources. Author Martin Arostegui has consistently written pieces about Venezuela that lack factual evidence.

Several opinion pieces today deserve notice. A Washington Post editorial wrongly characterizes Ecuador and several other Latin American governments as “satellites” of the Chavez administration. These governments, however, have all been democratically elected, have different policies, and are held accountable by citizens. By overlooking this fact, the Post does a disservice to readers. Secondly, a New York Times editorial on Bolivia advocates trade sanctions against that country that were rejected by the US Congress. Those sanctions, advocated by the Bush White House but rejected by lawmakers, were based on a politicized and inaccurate understanding of Bolivia’s role in fighting drug cultivation and trafficking. Contrary to the White House accusations, Bolivia is becoming increasingly successful in fighting drugs.

Finally, an opinion piece in the Christian Science Monitor accuses Bolivia’s Morales of destabilizing the country, when in fact the government has held talks with the opposition in a search to reach a settlement and end opposition violence. Bolivian citizens confirmed the legitimacy of the Morales administration by voting overwhelmingly in favor of his government in a recent referendum.

Venezuelans Offered Free Energy-Efficient Cars to Reduce Fuel Consumption

Venezuelans were asked to lower their consumption of gasoline last week by President Chavez, who told citizens that a new program will replace gas-guzzling cars with fuel efficient cars at no cost. The AP reports that the program will even provide those who opt for the switch-over with a year of free fuel. Venezuela is hoping to reduce pollution by making the switch to natural gas.

In economic news, Venezuelan officials said Sunday that national financial institutions will not be adversely affected by the US financial crisis. According to the AP, though, some local banks had done business with Lehman Brothers, Treasury President Cesar Giral (pictured at right) said: “We don’t have any damaging external relationships.” Meanwhile, though, some significant state budget cuts planned for 2009 are making news. Spending cuts will be imposed on state officials themselves, who are being warned that there will be “significant restrictions” on “certain types of vehicles, cellphones and parties.” President Chavez has criticized what he sees as over-spending by state bureaucrats and urged “zero waste” for government agencies.

The New York Times reports that some Latin American leaders are “bitter” over the US economic slide; Argentina’s President Fernandez said “We are witnessing the First World, which at one point had been painted as a mecca we should strive to reach, popping like a bubble.” Also, in regional news, Bolivian President Morales rejected a request from the US DEA to use that country’s airspace. AFP reports that Morales said, “Under the pretext of fighting drug trafficking, under the pretext of monitoring coca leaf crops they want to overfly, and we are going to make it clear that we monitor domestically.” Meanwhile, Reuters reports that pro-government peasants supportive of the elected government of President Morales detained 4 right-wing unionists in recent violent clashes, but does not mention that dozens of those peasants were massacred.

The AP and The New York Times report that former Venezuelan Defense Minister Rafael Baduel was briefly detained Friday on allegations of corruption. In question are $14.5 million in public funds. Baduel broke with the Chavez administration in recent years to become a prominent opposition spokesperson.

Finally, a new World Bank report called the “Human Opportunity Index” puts Venezuela among the top 6 most likely to escape poverty of 19 Latin American nations studied. According to The Financial Times, citizens in Venezuela — like Chile, Costa Rica, Mexico, Argentina, and Uruguay — “have the chance to break the cycle of poverty.”

Venezuela May Develop Energy Project with France

Yesterday, France announced its willingness to help Venezuela build civilian nuclear energy facilities, the AP reports. Venezuelan Foreign Minister Nicolas Maduro (pictured here with his French counterpart) said that his country is interested in developing peaceful nuclear energy projects. The offer by France follows comes a week after Russian officials said they would help Venezuela build its nuclear energy industry.

On Thursday, just a day after Julio Soto, a leader of a Copei-aligned student group was murdered, investigators had already carried out raids and questioned several people. It remains unclear what the killers’ motives were.  AP coverage provides little context around the murder.

A Miami Herald article discusses the banning of Chacao Mayor Leopoldo López from running in the upcoming elections, but fails to report that he was banned due to criminal charges. The article alludes that criminal charges against opposition candidates are political, but in fact, many of the 250 candidates affected by these charges are Chavez supporters. The article also portrays López as a martyr, mentioning the death of his bodyguard, but no evidence to has suggested that his bodyguard’s murder was political in nature.

The Washington Times reports on an ‘angry’ letter sent by a group of U.S. Congressmen to President Chavez, which states their outrage over the expulsion of two high-level Human Rights Watch personnel. The letter and the article do not recognize that the Human Rights Watch report on Venezuela had serious methodological flaws which led to its gross omissions and biased conclusions.

A Sun-Sentinel op-ed on Venezuela falsely states that Venezuela purchased $4 billion in Russian military equipment over the past few weeks. Meanwhile, Bloomberg correctly reports that Venezuela purchased $4.4 billion worth of arms from Russia from 2005-2007. Venezuela’s military purchases from Russia have indeed increased since a U.S. imposed military embargo on the country.