http://www.thenation.com/doc.mhtml?i=20050411&s=parenti

Posted March 24, 2005

Hugo Chávez and Petro Populism
by Christian Parenti

Research support was provided by the Investigative Fund of The Nation 
Institute. 

The views from the slopes of Barrio San Agustín del Sur are spectacular. Tight 
passageways frame Caracas and the lush, cloud-draped Avila Mountain beyond. 
Along the neighborhood's rough cement steps, teenagers lounge around, flirting, 
arguing or lost in the cheap text-messaging functions of their cell phones. 
Ascending a nearby cliff is a small garbage dump. From afar its refuse looks 
like the sand in some ominous urban hourglass. 

Illiteracy, violence, disease and the listlessness of endemic unemployment have 
shaped the life of this barrio since landless squatters from the countryside 
first settled it about forty years ago. But much of that could be changing. 
ADVERTISEMENT "Even though we have had problems, we are moving forward," says 
Carmen Guerrero, a woman in her late 40s who is one of San Agustín's most 
dedicated activists. "Here, we are all with President Chávez. Everybody except 
for maybe six families." 

On the yellow walls of her living room are masks in the form of fashionable 
ladies' faces, a clock, a mirror and a small picture of Venezuela's populist 
president, Hugo Chávez Frías. Guerrero explains that she and her neighbors are 
studying in several government-created programs called missions and organizing 
themselves into committees to deal with everything from local and national 
election campaigns to sanitation and legalization of land titles. 

Like most slums in Caracas, this community also has a state-owned, subsidized 
market, a soup kitchen, a number of small-scale cooperative businesses and a 
little two-story, octagonal, red-brick medical center. Upstairs two Cuban 
doctors live in cramped quarters; downstairs is a small waiting room and 
clinic. 

Guerrero's neighbor, a young man named Carlos Martinez, is showing me around; 
he works with the local construction cooperative. They have a contract from the 
mayor's office to lay new drainage pipe in the barrio. Given the recent 
flooding, it is an important task. Later he shows me where a patch of 
ranchos--dirt-floored shacks made of corrugated tin and wood--are being 
replaced at government expense by solid, two-story brick homes. 

For this little barrio and a thousand others like it, such changes mean a lot. 
Like two generations of Venezuelan politicians before him, Chávez has pledged 
sembrar el petróleo--to sow the oil. That is, to invest its profits in a way 
that transforms the very structure of Venezuela's economy. But what would that 
entail? Are social programs enough? 

Lately Chávez has been talking about a "revolution within the revolution," 
about "transcending capitalism" and about "building a socialism for the 
twenty-first century." It is a discourse that frightens his enemies, 
electrifies his base and inspires the left throughout Latin America. After two 
decades of the US-promoted Washington Consensus--a cocktail of radical 
privatization, open markets and severe fiscal austerity--Latin America is an 
economic disaster marked by increasing poverty and inequality. 

Taken as a whole and controlling for inflation, Latin America has grown little 
since the mid-1980s and hardly at all in the past seven years. With the entire 
region primed for social change, a new breed of populists and social democrats 
is coming to power. Brazil, Argentina and Uruguay, in addition to Venezuela, 
have leftist governments of some sort, while Colombia, Ecuador, Mexico, 
Nicaragua and Peru will hold presidential elections in 2006. 

But a closer look at Venezuela reveals just how vexing and complicated a 
political and economic turn to the left can be, even in a country that is rich 
with oil and not deeply indebted.

 Thus far, Venezuela's Bolivarian Revolution, named for South America's 
nineteenth-century liberator, Simón Bolívar, has deepened and politicized a 
pre-existing tradition of Venezuelan populism. Despite Chávez's often radical 
discourse, the government has not engaged in mass expropriations of private 
fortunes, even agricultural ones, nor plowed huge sums into new collectively 
owned forms of production. In fact, private property is protected in the new 
Constitution promulgated after Chávez came to power. What the government has 
done is spend billions on new social programs, $3.7 billion in the past year 
alone. As a result, 1.3 million people have learned to read, millions have 
received medical care and an estimated 35-40 percent of the population now 
shops at subsidized, government-owned supermarkets. Elementary school 
enrollment has increased by more than a million, as schools have started 
offering free food to students. The government has created several banks aimed 
at small businesses and cooperatives, redeployed part of the military to do 
public works and is building several new subway systems around the country. To 
boost agricultural production in a country that imports 80 percent of what it 
consumes, Chávez has created a land-reform program that rewards private farmers 
who increase productivity and punishes those who do not with the threat of 
confiscation. 

The government has also structured many of its social programs in ways that 
force communities to organize. To gain title to barrio homes built on squatted 
land, people must band together as neighbors and form land committees. 
Likewise, many public works jobs require that people form cooperatives and then 
apply for a group contract. Cynics see these expanding networks of community 
organizations as nothing more than a clientelist electoral machine. 
Rank-and-file Chavistas call their movement "participatory democracy," and the 
revolution's intellectuals describe it as a long-term struggle against the 
cultural pathologies bred by all resource-rich economies--the famous "Dutch 
disease," in which the oil-rich state is expected to dole out services to a 
disorganized and unproductive population. 

But for the moment, the Venezuelan battle against poverty is possible only 
because oil prices have been at record highs for several years, and the state 
owns most of the petroleum industry. All of Venezuela's oil and mining and most 
of its basic industry were nationalized in the mid-1970s. On average, oil sales 
make up 30 percent of Venezuelan GDP, provide half of state income and make up 
80 percent of all Venezuelan exports. 

Internal and often sympathetic critics of the reform process in Venezuela say 
it is one thing to "spend the oil" on social welfare; it is another altogether 
to "sow the oil" and create new collectively owned, productive, nonsubsidized 
industries that will generate wealth in an egalitarian and sustainable fashion. 

"When the coup happened we realized we had to get involved or we would lose 
everything," explains Carmen Guerrero. She says she was always a Chávez 
supporter but was not very active until the April 2002 coup d'état against 
Chávez launched by Venezuela's main business council, its notoriously corrupt 
labor federation, dissident military officers and masses of middle- and 
upper-class Caraqueños. Declassified documents have since revealed that the CIA 
knew at least a week beforehand that a coup was planned, while other US 
government agencies, such as the National Endowment for Democracy, were 
channeling aid to the opposition. 

"There is no going back now," says Guerrero. Then, very seriously, she adds: "I 
hugged Chávez at a rally. I don't know how I got through security. I guess 
because I am short. I can't explain the feeling, the emotion was so strong." 
She clutches her fists to her breast and looks away. 

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