Now we won’t invite Jimmy Carter and, even though it is completely unprecedented, we will assume there is no corruption. Repeat the following: “I [insert your name] will turn Venezuela’s oil wealth into riches for all Venezuelans, including you [point finger]. I will SOW THE OIL so that you can fly to Miami to shop. The government of [insert existing president’s name] is corrupt. He [it’s always a “he”] is stealing the oil money for himself and his cronies.”
That’s it! Just say it over and over again and spend a little bit more money than your competitor and you’ll win. Decade after decade—for almost a century now—Venezuelans have fallen for this. (And why shouldn’t they? They are sitting atop the biggest fountain of wealth outside of the Middle-East.) Venezuelan culture is driven by this fantasy, by the hope that someday through hydrocarbon magic, and through little toil on their part, everyone will become as rich as Donald Trump and Paris Hilton. (By the way, Chávez and his bolivarianos are in no way immune to the dream. Perhaps the greatest irony is that the president and his quasi-socialist comrades are the nouveau riche, the new oligarchy [four legs good, two legs bad better].(11) Chávez’s mother, Elena, who raised her six boys in a shack with a dirt floor, now appears in papers with Coqui, her poodle, wearing designer clothes and a cumbersome amount of gold jewelry.(12) Oh, yes, now it is the former guerilla fighters who drive SUVs, get boob jobs, and look down their noses at the proletariat in the shantytowns.)
And what of those shantytowns? What of those helpless masses, who have been cheated by the oligarchs and corrupt politicians and must live in so much filth and squalor?
On your next visit to Venezuela stop and take a close look at the shantytowns. Remember this is where an estimated 70 percent of Venezuelans live. You will immediately notice some odd things. Many of these cheap brick homes are two and three stories high, painted and well taken care of. They are also well lit thanks to free (pirated) electricity—paid for by the legit customers. And what’s that? Yes, the rooftops are dotted with DirecTV dishes, about one every sixth house. (Unlike electricity, this cannot be stolen, although one dish can be shared with three of your neighbors.) (13) While there are few phone lines, most people have cell phones and if you walk through the shantytowns you will likely hear as many ring tones as you would on a college campus between classes. Like all Venezuelans, shantytown residents enjoy free education through college. Fifty-six percent of Venezuelans have a bachelor’s degree, which is more than twice the U.S. figure of 27 percent. And even before Chávez’s Cuban-led literacy programs, Venezuela had a 93 percent literacy rate, one of the best in Latin America. Venezuelans also get (albeit quite substandard) free healthcare. So what you have is perhaps the best educated, best connected, best electrified, moderately well medicated poor in the world with attorneys, engineers and nurses living among them.
Why do they live in this squalor? First, I hope I have shown that it is not always squalor. While there certainly is abject poverty in Venezuela and it is getting worse, the 70-80 percent poverty rate often cited in the media is deceptive because within the shantytowns there is a broad social stratification with business professionals on one end and the unemployed and destitute at the other. Second, like their oligarch counterparts, the poor believe in the fantasy of easy oil wealth; they believe—because the oil in the ground legally belongs to all Venezuelans—that they have the right to suckle from the teat of the state. Are they lazy? Yes, in a way, but mostly because the successive governments of Venezuela have created a system where the shantytowns are the best and logical choice for millions. In addition to the aforementioned social programs (that Chávez acts like he invented) the government has also subsidized building materials for the ranchos, encourages squatters, and subsidizes food staples—milk, rice, beans, sugar, meat—which makes it surprisingly easy to live, quite literally, on a couple of dollars a day.
Also, it is important to keep in mind that the shantytowns are not a new phenomena. The Venezuelan government has tried various initiatives over the last forty years to move shantytowners to proper housing, but with no luck. When offered subsidized housing, most Venezuelans will say thanks but no thanks. Living with no rent and no utilities is much better than being on the grid and paying more, even if it means more security. Hence, Venezuelans use their college-level reasoning skills to conclude that free is better than cheap. I know of one business owner in Zulia who already owned a house in town (on the grid), but then invaded some land with a group of squatters, built a new house there (off the grid) and now rents out his old house for extra money. So the “poor” remain in (or move into) the shantytowns and spend their money on DirecTV, cell phones, their pimped out Dodge Darts, and trips to the beach. They are waiting, biding their time until the next oil boom, when the state will have enough money to give them more. Oh, wait, we are in the midst of the biggest oil boom in history and still the country plunges down.
While we are talking about stereotypes, the most important stereotype of all is that Venezuela is a nation of adolescents. For boys, the stereotype holds that they are worshipped by their parents as incarnations of Jesus (the popular joke begins, how do you know that Jesus was Latino?). For girls the stereotype is that, because of the beauty queen culture, they are raised to be objects of idolatry and little else. As a result, neither sex ever truly grows up. In a way, I must admit that the stereotype has its kernel of truth but for a different reason: the bad parenting is not the fault of the biological parents, but rather the state, which has over many decades, given the poor (and continues to give them) just enough to keep them believing in the fantasy of easy wealth with little toil and—in the name of short-term political gain—has kept them from feeling any impetus to change and given them little opportunity to do so when they do.
Which leads us now to the hardest truth: that the fantasy of oil wealth, of the great oil-state that the politicians have foretold where everyone is fabulously rich, will never happen. That door has closed. Venezuela’s population is now too big and is growing too fast for this one commodity, as precious as it is, to support it. Without diversification of the economy, job creation, and a lot of hard work, Venezuela will continue to sink lower each year.
The real tragedy, however, is that the fantasy is too deep to exorcise. Venezuelans are still, to this day, so desperate to believe this Arthurian Legend, to believe that they will someday enjoy fabulous oil wealth, that they have finally surrendered their democracy in pursuit of the delusion, allowing Chávez to change and rechange the constitution, pack the Supreme Court and Election Council with his cronies, make laws by decree, place gag rules on the media, and otherwise systematically undermine Venezuela’s democratic institutions. All in the name of a fantasy that can never come true.
I admit that I had high hopes for Chávez at first. I’m a liberal democrat after all, and when he campaigned on the promise of revolutionizing Venezuela, I though, it’s about time. Unfortunately, Chávez is far worse than his predecessors and exponentially more corrupt because now graft is done in the name of the revolution—stealing land and oil company profits is done under the guise of redistributing wealth. Twenty-first century Robin Hoodism (emphasis on hood). All the money that Chávez injects into the streets—fish instead of fishing poles—cannot disguise the problems or build lasting change. While his government produces bogus statistics that laud his cultural transformation, the hard facts remain. Venezuela is a nation dependent on one very volatile commodity and the engine for reaping that harvest, the national oil company, is in trouble. In 2003 Chávez (illegally) fired half of the company’s employees—17,000 people—because they went on strike to oppose him. Concerned more with his political survival than long-term sustainability, Chávez has been churning and burning the company ever since to keep himself afloat. The result is that now, four years after the strike, ten thousand oil wells are shut down because of mismanagement, forcing Chávez to buy oil from Russia to meet contractual obligations.(14) What’s more, the country is still so burdened with debt, and the quality of Venezuelan oil so poor that oil has to remain above fifty dollars a barrel for there to be any net gain for the treasury. In short, the wide-held belief that Venezuela is once again awash in oil wealth is a myth. Economists warn that the Central Bank’s foreign reserves have already been spent—converted to local currency and earmarked for short-term spending.(15) Inflation is running at 18 percent and Chávez’s baffling price control system has run thousands of Venezuelan farmers out of business because they can’t make a profit: Supermarkets are full of imported liquor and cheese, but the only meat available is pork neck bones and rabbit.(16) Chávez’s recent move to nationalize other private companies like the phone company, CANTV, is not motivated by socialism, but by capitalism: he is running out of money.
As a student of Latin American history I have, for many years, excused this country’s fate as something beyond the control of most, if not all, Venezuelans; that the continuing social decay was the work of macroeconomic forces, oil prices, Structural Adjustment Programs, even meddling from the CIA and the State Department. Yet, the more I learn, the more I see that the history of Venezuela is not the history of its neighbors, not the history of coups and puppet governments, of flagrant economic imperialism and exploitation. There was no Pinochet here, no Batista, no Trujillo. The history of Venezuela is the history of Venezuelans cheating, defrauding, and robbing other Venezuelans and then trying to blame someone else for their crimes.
And so to conclude we return to Maracaibo, to Lake Maracaibo, to that 5,099 square miles of environmental disaster (about half the size Lake Erie), where oil contamination, careless dredging, and a Duck Weed infestation have killed most of its wildlife. In the ‘60s you could see dolphins playing in the lake, now it is not even safe for swimming and you take your life in your hands if you eat the fish. Chávez is quick to point his finger at the U.S. and Big Oil for the catastrophe, but the fact of the matter is that while there was certainly some pollution by the oil companies, it was not until after the industry was nationalized in 1975 and Big Oil was completely out of Venezuela that the preponderance of the damage was done. (It is also interesting to note that when the first oilmen arrived here in the 1910s, they commented on how polluted the lake was, before oil was even discovered.) Venezuelans, in the final analysis, have not taken care of their own house. Examples of this carelessness abound: Malaria was eradicated in this region in the 1930s by a massive humanitarian campaign led by, believe it or not, the company that is now Exxon Mobil; but now, because of lackadaisical prevention programs and mismanagement, malaria is back in pandemic proportions. As for Venezuela’s debt, while I understand the hardship a country faces when strapped with huge external debt, I experience compassion fatigue when I remind myself of the foolish way that Venezuela accumulated this debt, mostly in the early ‘70s, based on the asinine assumption that oil prices would stay at their all-time-high. So is the World Bank to blame? I know that their programs have proved disastrous in most of the developing world, but the only time Venezuela has experienced sustained economic growth since the ‘70s (that wasn’t just because of a spike in the price of oil) was during the early ‘90s under Carlos Andrés Pérez. While I am no fan of Pérez (he was impeached on corruption charges) the difficult economic package he implemented under World Bank guidelines showed more promise than any alternative before or since.
Sigh. Venezuela has some hard lessons to learn. In my darker moments, when I am frustrated, I want to throw up my hands and renounce my adopted citizenship. I tell myself that they are getting what they deserved; they have asked for this. But not the Maracuchos. To their credit, they were the first to see through Chávez’s ruse, to see that his is just a new twist on the same old corruption. They know the truth because, as they are quick to tell you, they are a cock-load smarter than everybody else.
Endnotes:
- Dydynski, Krzysztof, Lonely Planet, Third edition, Melbourne, 2001. P. 233.
- Venezuela and the Oil Pioneers, (Caracas: Lagoven S.A, 1993), 28.
- “Biggest Oil Well Yet,” The New York Times, 18 March 1923, 13.
4.U.S. Department of Energy, International Energy Annual 2003, (Washington, DC: DOE, 2004) <http://www.eia.doe.gov/iea/pet.html> (4 March 2006). I have removed Canada from the list of producers (sometimes listed second) because most of its proven reserves are made up of oil sands.
- Gonzalez, David, “Maracaibo Oil Region a Critical Battleground for Chávez as Venezuelan Conflict Rages,” The New York Times, March 4, 2003, P. A9
- The 2000 Venezuelan census put the population at 24.2 million. I am rounding up to 25 million which is conservative estimate given that between 1990 and 2000 the population grew 34 pecent.
7.…two-thirds of all of it comes from Maracaibo. Dydynski, Krzysztof, Lonely Planet, Third edition, Melbourne, 2001. P. 233.
- Romero, Simon “Chavez keeps lid on boom in murders,” Chicago Tribune, 3 December 2006.
9.Author’s interview, Dr. Ricardo Serbenescu, Caracas, 18 July 2003.
- Robinson, Linda, “Terror Close to Home,” U.S. News and World Report, 6 October 2003, 20.
- From George Orwell’s Animal Farm. Don’t ask me to slow the bus down again.
12.Romero, Simon, “Expanding Power Puts Family of Venezuelan President Under Increasing Scrutiny,” The New York Times, 18 February, 2007.
- Author’s interview, Alfonso Rubio, Atlanta, GA, 18 January 2007.
- Duarte, Joe, “Venezuela Buys Oil to Meet Contracts,” Rig Zone. 02 May 2006. <www.rigzone.com>> Accessed on 6 December 2006.
15.Lakshmanan, Indira A.R. “Critics slam Venezuelan oil windfall spending.” The Boston Globe. 13 August 2006.
- Romero, Simon. “Chávez Threatens to Jail Violators of Price Controls.” The New York Times. 17 February 2007.