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NEWS & LETTERS, January-February 2003

Venezuelan crisis

The so-called "civic strike" carried out by Venezuela's elite since Dec. 2, which had paralyzed the all-important state oil monopoly PDVSA, has had a devastating impact on the country, without bringing about its intended result of forcing Hugo Chavez from power.

By the end of January both the opposition and Chavez asserted that oil output had risen to about 500,000 barrels a day (bpd), only 20% of normal output, after having fallen to 35,000 bpd the month before.

None of these figures however are certain: PDVSA, which up until two months ago was a world class producer of crude, is in shambles. Two thousand upper and mid-level employees have been fired by Chavez; its main computer system isn't functioning, and it's unknown how long it will take to get many oil fields producing again.

At one point in December, 13 of its 21 tankers were anchored by their captains in support of the strike until they were boarded by the National Guard. Venezuela's finance minister Tobias Nobrega has already changed his forecast for the country's growth in 2003 from 3.7% to 0%. The currency, the bolivar, has supposedly lost a third of its value since the strike began, and shortages of food and basic consumer goods are becoming more serious.

This is occuring despite the fact that the poor, who make up 80% of the population of 24 million, have opposed the strike, marched in support of Chavez, and engaged in pitched battles in the streets with middle and upper class opponents that have left several dead and many dozens wounded.

Despite the suffering the strike has caused, initiated by the elite with the sole aim of forcing out a popularly elected president they despise, the Bush administration is again maneuvering to lend them a hand. Having suffered the embarrassment in April last year of supporting a doomed coup, hardly a peep came from Washington in the first 11 days of the strike.

Then, apparently no longer able to keep quiet, it was declared that the best thing for Venezuela would be early elections, which is exactly what the opposition wants. Two days later they were backpeddling when it was pointed out that not a single country in the hemisphere supports removing Chavez if it means subverting the constitution.

The solution? As of the third week of January, the U.S. began pushing for a constitutional amendment in order to provide for elections. The fact that a tiny minority in Venezuela could care less if they destroy their own country in their mad rush to oust Chavez, coupled with the U.S. trying to find a way to help them, has many leftists calling for his support. Hugo Chavez is supposed to represent, after all, a point man in the "leftist resurgence" taking place in Latin America.

A  key question, however, has been left out of most discussions of the crisis: how could it be that just eight months after hundreds of thousands of the poor came into the streets in April last year to reinstall Chavez two days after the coup, the opposition feels that they can now disregard that power? Do they sense that the support for Chavez is little more than skin deep?

There is indeed a gulf that separates Chavez from the poor. Despite the fact that many demonstrations in support of him have taken place since the strike began, most are organized by the government.

The most radical pro-Chavez organizational form that exists are the so-called "Bolivarian circles," neighborhood groups of 10 to 12 people formed to petition the government for scarce funds. These too are organized by the government. The "general guidelines" that direct their formation even state clearly that "the supreme leader of the circulos bolivarianos will be the President of the Republic." Under these circumstances it's not hard to see where Chavez's opponents get their confidence.

--Mitch Weerth

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