How Severe
Is Venezuela’s Crisis?
By Gabriel
Hetland
June 24,
2016 "Information
Clearing House"
- "Venezuelanalysis"
- According to The
New York Times, Venezuela is “a country
that is in a state of total collapse,” with shuttered
government offices, widespread
hunger, and failing
hospitals that resemble “hell on earth.” There
is reportedly “often little traffic in Caracas
simply because so few people, either for lack of
money or work, are going out.” The
Washington Post, which has repeatedly called
for foreign intervention against Venezuela,
describes the country using similar, at times
identical, language of “collapse,” “catastrophe,” “complete
disaster,” and “failed
state.” A recent Post article describes
a “McDonald’s, empty of customers because runaway
inflation means a Happy Meal costs nearly a third of
an average monthly wage.” NPRreports
“Venezuela is Running Out of Beer Amid Severe
Economic Crisis”. When Coca-Cola announced plans to
halt production due to a lack of sugar,Forbes dubbed
Venezuela “the Country With No Coke.” The
Wall Street Journal reports on fears that
people will “die of hunger.”
Is
Venezuela descending into a nightmarish scenario, as
these stories suggest? To answer this question I’ve
spent the last three weeks talking to dozens of
people—rich and poor, Chavista and opposition, urban
and rural—across Venezuela. My investigation leaves
little doubt that Venezuela is in the midst of a
severe crisis, characterized by triple-digit
inflation, scarcities of basic goods, widespread
changes in food-consumption patterns, and mounting
social and political discontent. Yet mainstream
media have consistently misrepresented and
significantly exaggerated the severity of
the crisis. It’s real and should by no means be
minimized, but Venezuela is not in a state of
cataclysmic collapse.
Accounts
suggesting otherwise are not only inaccurate but
also dangerous, insofar as they prepare the ground
for foreign intervention. This week the Permanent
Council of the Organization of American States is
holding an emergency meeting to consider OAS
Secretary General Luis Almagro’s invocation of the
Inter-American Democratic Charter against Venezuela.
This action is taken against countries that have
experienced an “unconstitutional
alteration of the constitutional regime that
seriously impairs the democratic order in a member
state,” and can lead to a country’s suspension
from the OAS. The Venezuelan government, which
despite some foot-dragging has allowed steps toward
holding a recall referendum against President
Nicolás Maduro, vigorously rejects this charge, as
do many OAS member states. It is worth noting that
the OAS has not invoked the Democratic Charter
against Brazil, which recently experienced what many
OAS member states and prominent Latin American
observers see as a coup.
In Caracas,
the streets are crowded, the metro is working, and
free public-health clinics are functioning
normally.
APOCALYPSE
NOW?
Within
days of my arrival to Caracas a few weeks ago it
became clear that while life in Venezuela is far
from normal, and many are suffering from the crisis,
mainstream media images of a country in utter
disarray are clearly overstated. Far from being
empty, Caracas’s streets and highways exhibit the
same pattern of heavy car and foot traffic found in
other large Latin American cities. The metro feels
as crowded as ever. Restaurants in the affluent
neighborhood of Las Mercedes are jam-packed and have
been for weeks, according to friends who live in the
neighborhood. The shelves of private supermarkets in
Las Mercedes and other affluent neighborhoods are
full, with plentiful chicken, cheese, and fresh
produce. The Wendy’s down the block from the
apartment I’m staying in has been full most times
I’ve passed it, including on a rainy Sunday night
when a steady stream of customers passed through.
Beer has not disappeared (and will be available for
at least the rest of this year). And I’ve even had
multiple Coca-Cola sightings.
There are
other signs Venezuela is not “in a state of total
collapse.” No one I’ve spoken to has positive things
to say about public hospitals, which are seen as
corrupt, understaffed, and lacking supplies, which
hospital staff allegedly steal and resell. Yet, I’ve
heard abundant praise for, and more measured
critiques of, free public health clinics (Centro
Diagnóstico Integral, or CDIs) and physical therapy
centers (Salas de Rehabilitación Integral, or SRIs),
which are open throughout Caracas and in cities in
the interior. Several opposition supporters from
Petare, one of the largest barrios in Latin America,
told me of a CDI they go to “that provides a really
great service.” I visited a sparkling-clean SRI in
Carora, a city of 100,000 in the central-western
state of Lara. The center (one of four in the city,
all of which are open) treats 80 to 100 patients a
day, and I was told all machines were in working
order. Ramón Suárez, a backup Lara state
assemblyperson for the ruling United Socialist Party
of Venezuela (PSUV), has been receiving near-daily
treatment at this SRI since suffering a hand injury
in December. He told me, “Without the SRI I couldn’t
have recovered,” explaining that treatment in
private clinics costs 3,000-4,000 bolivares a visit.
This would have consumed almost all of Suárez’s
salary of 80,000 bolivares/month, which is almost
triple the minimum wage (approximately 15,000
bolivares/month plus 18,000 bolivares in food
tickets).
The Times’s
assertion that “huge areas of the country have
spent months with little” electricity is belied by
the facts. In April the government took a series of
measures to combat an electricity crisis, caused by
Venezuela’sworst
drought in 47 years, and extremely low
electricity rates, which led Venezuela to have the
region’s highest per capita electricity consumption.
To restore water levels in the Guri dam, which
supplies roughly 70 percent of Venezuela’s power,
the Maduro administration closed select government
offices for one, and then three, days a week; closed
schools on Fridays; and rationed electricity in most
the country outside Caracas. As of last week,
government offices are again open five days a week,
albeit on a reduced schedule (8 am-1 pm). Schools
are again open on Fridays. Electricity rationing,
which occurs for three hours a day on a rotating
schedule in interior states (meaning electricity is
and has been available for twenty-one hours a day in
these areas), remains in effect during the week but
no longer on weekends, and may soon end altogether.
The government says these recent changes (which
bring Venezuela back to a state of semi-normalcy
when it comes to electricity) are possible because
of the success of rationing, which, alongside recent
rains, has allowed water levels in the Guri dam to
return to near-normal levels.
“THE
SITUATION IS HARD”
Venezuela
is not “hell on earth,” but there is no denying that
many Venezuelans are suffering right now,
something top government officials have been far too
reticent and slow in acknowledging. “The situation
is hard, and it’s gotten worse over the last two
years,” says Jesus Rojas, a teacher and father of
two from the small town of Río Tocuyo (population
7,000) in Lara state. “It’s hitting families
especially hard. It’s not easy to get food, and what
you can get is at very high prices. You’ve seen the
long lines [at stores selling price-controlled
goods]. People do have purchasing power; they have
money. The problem is that people are selling things
at six or seven times the [regulated] price, and
there’s no control from the state. That’s the thing
that’s bothering people the most.”
Food and
basic-good scarcities have grown significantly worse
over the last year, in part due to inflation.
Food and
basic-good scarcities have been a problem for some
time, but have grown significantly worse over the
last year, in part due to inflation, which sources
close to the government say official figures put at
roughly 370 percent over the last twelve months.
Everyone I spoke to said it is extremely difficult,
and often impossible, to obtain staples such as
flour, milk, sugar, oil, and black beans. “The basic
diet is not available,” says Atenea Jimenez, a
co-founder of the national Red de Comuneros, a
grassroots network linking communes throughout the
country. Beef and chicken are available but at such
high prices many people cannot afford them. “Beef
costs 5,000 a kilo,” says Jimenez. “That’s 10,000
for two kilos. If your monthly salary is 20,000,
that’s half your salary.” Jimenez and others say the
food crisis “has changed what we talk about. Three
years ago everyone was talking about this or that
decision made by Chávez. Now people are talking
about food. Our life is filled with this [search for
food].” This makes organizing more difficult.
Jimenez says there have been times “we couldn’t have
meetings because everyone was busy trying to obtain
food.”
The food
crisis affects all sectors of the population, but
not in the same way. If the packed restaurants and
cafes of Las Mercedes are any indication, the very
rich are eating better than they ever have. This is
likely because of their access to US dollars, which
trade for roughly 1,000 bolivares/dollar at the
black or “parallel” rate—a hundred times more than
the lower of two official exchange rates (10
Bs/dollar), and roughly double a higher exchange
rate, which the government has allowed to rise since
February, from 200 to 600 Bs/dollar. For
middle-class Venezuelans, the food crisis has
limited their ability to choose what they eat.
According to Ramón Suárez, “People are eating but
they’re not eating what they want.” Carlos Gonzalo
González, a middle-class radio host from Carora,
says, “We can’t find the variety of salads we used
to get. We’re eating less meat, because it’s
expensive. And we’re eating more carbohydrates,
which isn’t healthy.”
The full
shelves of a private grocery store in Las Mercedes,
a middle-upper class neighborhood of Caracas, June
3.(Gabriel Hetland)
Workers and
the poor are the hardest hit. Jesus Rojas says,
“There are lines [to buy price-controlled goods] up
to a kilometer long, and you don’t know if you’ll
get anything if you’re at the end of the line. Some
people are eating only once a day or not at all.
It’s happened to me,” says Rojas, who estimates that
this has affected “twenty or thirty percent” of Río
Tocuyo’s residents. In the last year, Rojas has lost
7 kilos. Many others say they and their loved ones
have also lost weight recently. Atenea Jimenez says,
“A majority of people in the barrios and [her rural
hometown in Aragua] are eating just twice a day.”
Residents of Petare say the same thing. In addition
to an overall reduction in caloric intake,
less-affluent sectors of the populationare suffering
from marked reductions in protein consumption.
Jimenez says, “The situation with meat is dramatic.”
Venezuelans
are not experiencing mass starvation, though a small
but growing number of families are in critical
situations of chronic hunger. Lalo Paez, the
director of the Office of Citizenship Participation
in Torres municipality, where Carora is based, says
five of the 503 families living in his hometown of
Los Arangues (20 minutes outside Carora), “are in a
critical situation.” Paez recounts seeing “people
gnawing on sugar cane” because they have nothing
else to eat. He estimates that half the town’s
population eats just twice a day. A teenager from
Los Arangues told me five of the roughly 50 students
in his high school class regularly complain to the
teacher about being hungry. Paez links residents’
suffering to scarce employment and little water,
which inhibits gardening.
Sicarigua,
a town just down the road from Los Arangues, is
faring much better. Workers from Hacienda Sicarigua,
one of Torres municipality’s largest haciendas,
which produces sugarcane and cattle, say, “We’re
eating well.” This is due to three factors not
present in Los Arangues: regular income for most
town residents; a daily allocation of two glasses of
milk “for everyone who works on the hacienda”; and
access to water from a nearby river, which has
allowed local families to cultivate vegetable
gardens.
As with
food, there are scarcities of many medicines,
particularly for more specialized conditions.
Besides
food, a key source of anxiety for many Venezuelans
is access to medicine. As with food, there are
scarcities of many medicines, particularly for more
specialized conditions, such as cancer, diabetes,
and high blood pressure. These scarcities are due to
the country’s lack of sufficient dollars to purchase
imports (a problem related to the government’s
inability to effectively tackle the currency
exchange issue, as well as the plunge in the price
of oil over the last two years), and to bachaquerismo,
the practice of buying price-controlled food,
medicine, and basic goods and reselling on the black
market at rates ten to fifty times higher than
official prices.
Most people
I spoke with were worried about obtaining medicine,
but said that they are their families had been able
to get access to the medicines they need. Often this
takes place through extended family networks
spanning the country, and sometimes the globe.
Families who can afford to do so rely on bachaqueros as
well. Not everyone, however, can find what they
need. Rojas says, “It’s very difficult to get
medicine for specialized conditions like high blood
pressure and diabetes.” For months, Rojas has vainly
searched for medicine for his sister’s epilepsy:
“I’ve gone everywhere—here [Carora], Barquisimeto,
Caracas, Maturín—and I can’t get the medicine.” He
added, “My mother is 83 and has high blood pressure,
and I can’t get the medicine she needs.”
People
waiting in line outside government-run Bicentenario
supermarket in Carora, June 4. (Gabriel
Hetland)
Over the
last few weeks the discontent generated by chronic
scarcities has boiled over into acts of looting. On
several occasions, people I was speaking to received
texts during the conversation alerting them to
nearby instances of looting. The first time this
occurred was on June 7 in Carora, while I was
talking to Myriam Gimenez, a grassroots activist who
continues to support Chavismo. Gimenez blamed the
looting on the opposition, showing me texts
purportedly providing evidence that this was part of
a destabilization plot. Gimenez also said, “This is
the first time this has occurred here.” On another
occasion, several Petare residents I was meeting
with received texts suggesting there were
“disturbances” occurring at the Palo Verde metro
station in Petare. Within a few minutes, one of the
women managed to speak to someone in the Palo Verde
metro station who said the rumors were false and all
was calm there.
The
government has lost significant support, but this
has not translated into greater support for the
opposition.
These
examples highlight the growing, generalized sense of
anxiety felt by Venezuelans throughout the country.
But my firsthand experiences, and daily perusal of
Venezuelan newspapers, provide no support for the
idea that Venezuela has descended into chaos.
Looting is happening, but in a sporadic rather than
generalized manner. Yet people are certainly ready
to believe looting is occurring, and are not shocked
by news of it.
NI
UNO, NI OTRO
Everyone I
spoke to, regardless of their political beliefs,
agrees that the government has lost significant
support since the December 6, 2015, legislative
elections, which the opposition
won handily. There is also widespread agreement
that this has not translated into greater support
for the opposition. Four opposition activists (two
ex-Chavistas) from Maca, a community in Petare, told
me “Chavismo has declined 100 percent” in Petare. I
asked if this had led to greater support for the
opposition. They vehemently shook their heads and
replied, “People have not been joining the
opposition.” One commented, “People don’t want to
hear anything about politics.” Another added,
“They’re tired of all the politicking. They just
want to eat.” I asked them about criticisms that the
opposition has not offered any concrete solutions to
the problems facing Venezuela, instead focusing
solely on the recall referendum. They nodded
vigorously saying, “It’s true. No one is offering
any solutions.”
I heard
similar sentiments elsewhere. For example, a taxi
driver in Carora said he used to support the
government but could no longer do so because it has
not been able to provide solutions to the crisis.
Yet he also criticized the opposition, saying, “We
know what they brought [in the past] and it wasn’t
good.” I asked him whom he supports. He replied, “Ni
uno, ni otro,” neither of the two options.
None of the
Chavista activists I spoke to, most of whom I’ve
known for years, expressed any support for the
opposition. All, however, expressed significant
criticisms of Maduro and the government. Jesus
Rojas, who has supported the government since
Chávez’s 1998 election, said, “Many people don’t
believe in Maduro anymore. While we still have hope
in the process, we don’t see a short-, medium-, or
long-term solution. There’s uncertainty.” Switching
to English he added, “There’s no light at the end of
the tunnel. We’re fucked.” Despite this, Rojas says
he continues to the support Chavismo and the PSUV
and will never vote for the opposition. “If I voted
for Chávez and against the fourth republic
governments [preceding Chávez] that brought us
neoliberalism and bad times, it doesn’t make sense
to go back to the bad government of the fourth
republic.”
“The
leadership doesn’t know the anguish and anxiety that
people are living with now.”
Atenea
Jimenez, the commune leader, is terrified of the
opposition, whom she says “will bring fascism and
neoliberalism.” She recalls the 2002 coup against
Chávez, when she says lists of Chavista activists,
allegedly targeted for assassination, circulated.
Other Chavistas told me they saw their own names on
such lists. (As Gregory Wilpert has reported,
there was “a witch hunt for pro-Chávez officials”
and community media leaders during the April 2002
coup.) Jimenez continues to support the government
but is extremely critical, saying, “The leadership
doesn’t know the anguish and anxiety that people are
living with now. The leadership acts like we’re
still in the same situation we were in three years
ago. The majority of people are questioning [the
government] and the management of the economy. But
when [Chavistas] critique [the government], they are
called counter-revolutionaries and pushed aside. The
government and the party should allow for a critical
current to develop internally [within the PSUV]. If
not, the situation will bring the right [to power].”
She adds, “The guarimbas [the violent
opposition protests of February 2014] didn’t bring
down the government, but hunger could.”
Myriam
Gimenez is also critical of the government and the
PSUV. She says, “My critique is that the party is
trying to substitute itself for popular power. The
communal councils cannot be an appendix of the
party, they have to be the community.” Despite this
critique, Gimenez says that charges the government
and PSUV always act in a politically discriminatory
manner are exaggerated. This allegation has
frequently been made regarding a recent government
initiative to distribute price-controlled food
through Local Provision and Production Committees,
or CLAPs. Gimenez has participated in distributing
CLAP food bags in Carora and says, “I can say with
full security that there is not political
discrimination here.” I ask how she can be so
certain. She replies, “I’ve participated in this,
and the last food distribution I was part of gave
bags to the communal council in La Greda, which is
run by Adecos [supporters of the opposition Acción
Democrática]. And I saw that they gave the correct
number of bags of food to the communal council.”
When I
asked Gimenez why she continues to support the
government, she replied, “Because it’s not a lie
that 3 million senior-age Venezuelans are receiving
a pension that’s worth minimum wage. When Chávez got
to power, not even 300,000 seniors received a
pension, and the pension wasn’t even a fifth of the
minimum wage. It’s not a lie that schools opened to
all children with a meal every day.… It’s not a lie
that they opened more opportunities for studying at
the university level. And it’s not a lie that
education at all levels is free, totally free. Oh,
but this education has errors, we don’t doubt it.
It’s part of a [process in] construction.… It’s not
a lie that healthcare, with all the problems we have
right now with the dollar, and the import of
medicines…that they’ve provided a space for
healthcare in all of our communities. It’s not a lie
that our citizens with disabilities, who were
rendered totally invisible before, they didn’t have
machines to treat their disabilities, now we have
physical therapy centers, and today [people with
disabilities] are prioritized in terms of jobs, and
for many things. It’s not a lie, and I’ve lived it,
that people in our rural zones lived in straw houses
with mud roofs…and now there are real houses in our
rural zones, and not just in our rural zones, but in
the urban zones, the million and some houses that
have been constructed are a reality.… There’s still
much to do, but this is a reality…. And it’s not a
lie that in any street corner you go to, people will
talk to you about politics, about what’s happening,
about the international situation, if they
participated or not, if the communal council stole
the money or didn’t steal the money. There’s a
political participation that can’t be hidden.”
GLIMMERS
OF HOPE
Like rice,
shampoo, black beans, and many other products, it is
not easy to find hope in Venezuela these days. Yet
there are sparks throughout the country. Confronted
with the increasing challenges of obtaining food,
many Venezuelans are taking matters into their own
hands, and backyards. When I arrived at her house in
Carora, Myriam Gimenez asked, “Has Victor [her
husband] shown you the garden?” When I said no, she
led me to her backyard and proudly showed me various
crops, including black beans, peppermint, and
medicinal oregano, which she and Victor planted
since my last visit in December. Pointing to
cornstalks in her next-door neighbor’s yard, Gimenez
said, “Everyone on the block is planting now.”
Gimenez also says that bartering has become
increasingly common as a way for people to get what
they need.
Myriam
Gimenez in her backyard garden in Carora.(Gabriel
Hetland)
Atenea
Jimenez is involved with “a network of communal
production and consumption” of food and basic goods.
Sub-networks link 100 communes in states throughout
the country, including Yaracuy, Trujillo, Mérida,
Lara, and multiple states in the greater Caracas
area. Jimenez belongs to a network connecting seven
communes, comprising 2,100 families. “We have our
own trucks and we bring fresh produce to the city.
We sell everything at low prices to consumers. For
instance, we sell tomatoes for 400 bolivares/kg, a
third the price elsewhere. And we bring certain
products that we produce in the city, such as
shampoo and disinfectant, to the countrywide, where
they’re hard to find.” Jimenez says, “There’s a
permanent distribution of food. It’s all planned. We
use a community census to distribute foods that
people ask for.” The system is not perfect. “We’ve
lost some food” due to inaccurate estimates of how
much demand there would be in certain areas, says
Jimenez. She adds, “There’s minimal corruption
because it’s all done collectively. We write
everything down, and then report what’s being done.”
In addition
to grassroots efforts to build a new, communal
system of production and distribution of food and
basic goods, there are also grassroots efforts to
“rescue Chávez’s legacy” and forge an alternative
way of doing politics that stands in contrast to the
corruption and bureaucracy of the government. This
movement, referred to by some as “critical
Chavismo,” has taken on several expressions.
According to Jimenez, there are two networks of
critical Chavismo, made up of leftist parties and
social-movement organizations that support the
government in a critical way, and are careful to
maintain their autonomy. One network, known as the
Frente Patriótico Hugo Chávez (Hugo Chávez Patriotic
Front), brings together “the PPT [Fatherland for
All, a left party], the Corriente Revolucionaria
Bolívar y Zamora, a radical current within the PSUV,
and a number of smaller movements.” The Red de
Comuneros is part of a second network, “which
doesn’t have a name yet, and includes the PCV
[Communist Party], workers movements, some unions,
including Polar, a fraction of the CANTV union, and
the Alexis Vive collective [a grassroots movement
based in 23 de Enero parish in Caracas and active in
other states, including Lara].” Jimenez says, “Our
slogan is: Neither Bureaucracy, nor a Pact with the
Bourgeoisie.” This movement is trying to push the
government “to really go with the people, and not
just say that they are.”
There are
grassroots efforts to “rescue Chávez’s legacy” and
forge an alternative way of doing politics.
The most
high-profile recent action of the “critical Chavismo”
movement—which Jimenez tells me “is very diverse”
and represents many distinct lines of thought—was a
march against bureaucracy and corruption in April in
Caracas, which attracted 1,500 people. Johnny
Murphy, who is active with the Alexis Vive
collective in Carora and Barquisimeto, attended the
march and says the organizers were pleased by the
turnout. “We only expected 1,000,” he said. I asked
Atenea Jimenez if the march elicited a response from
the government. She said, “The response of the
government was total silence, as though it hadn’t
happened. No one called us afterward.” This is in
contrast to the government’s aggressive actions
against Marea Socialista, a Trotskyist formation
that split with the PSUV in the December 2015
elections and unsuccessfully sought to run its own
candidates in the election, but was blocked by the
National Electoral Council. Marea Socialista has
been fiercely criticized by the government, which
recently raided the group’s headquarters. Jimenez
says that while she has not worked closely with the
group, “I don’t view Marea Socialista as the enemy.
They’re part of critical Chavismo.”
Grassroots
struggles are necessary but will not be enough to
end Venezuela’s deep crisis. Economic policy changes
are sorely needed. In the long term, Venezuela must
make a serious effort to address its chronic
dependence on oil, which makes the country so
vulnerable to fluctuations in the global economy. In
the short term, the government must address the
currency crisis. In contrast to The New
York Times’s recent
assertion that “the Maduro regime has been
unwilling to even contemplate” needed economic
reforms, the government has been engaged
in recent discussionswith a team of economists
from UNASUR, the Union of South American Nations,
about a macroeconomic plan to help stabilize the
economy and trigger economic growth while protecting
vulnerable low-income sectors,” according to an
adviser involved in the talks. The core of the plan
would be a free float of the bolivar, which would
eliminate the current system of three separate
currency exchange rates, the two official rates and
the parallel rate. Advocates of the plan believe
that this will provide greater economic stability
and, crucially, eliminate one of the main sources of
corruption, the syphoning off of preferential
dollars by corrupt businesses, often in cahoots with
state officials. The UNASUR plan also calls for
creating a universal “socialist card” that would
allow citizens to buy goods, the prices of which
would no longer be directly regulated, at reduced
rates. The hope is that this would protect the poor
while minimizing opportunities for corruption.
Maduro has not yet agreed to this plan, but those
with inside knowledge say they are “cautiously
optimistic” about the government’s commitment.
Whether it will be enough to get Venezuela out of
its severe crisis is an open question.
To have any
shot of doing so, the government will need to calm
citizens’ nerves, and assure them that it has the
ability to provide for their needs. The current
domestic and international climate of
fear-mongering, with escalating calls for foreign
intervention and exaggerated predictions of
Venezuela’s imminent demise, is far from propitious.
Instead of encouraging imperial interventions that
will only make change more difficult, the
international community, including foreign
journalists, should be working hard to provide
accurate information about the dire, but not
apocalyptic, situation confronting Venezuela.
GABRIEL
HETLAND is
assistant professor of Latin American, Caribbean,
and US Latino Studies at University at Albany, SUNY.
His writings on Venezuelan politics, participatory
democracy, capitalism, labor, and social movements
have appeared in Qualitative Sociology, Work, Employment
and Society, Latin American
Perspectives, Jacobin, The
Nation, NACLA, and
elsewhere. |