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Feature


Venezuelan consumers gobble up U.S. goods despite political tension
-
Focus Venezuela: Part 1 of a 3-part series

By David J. Lynch

He roams Latin America, hurling insults at President Bush, sneering at the United States as the enemy "empire" and spending billions in oil money to undermine Washington wherever he can.

To many Americans, Venezuelan President Hugo Chávez seems a Latin wild man. But to the millions of Venezuelans who adore him, he is the first leader who genuinely cares for the nation's poor majority, a welcome departure from politicians who traditionally catered to the elite.

"I think God sent him. I think he's the reincarnation of Simón Bolívar. He's with the poor," says Omaira Perez, 60, referring to the 19th century general who liberated Venezuela from Spanish rule.

This larger-than-life figure may, however, be more vulnerable than he appears. There are early signs that Chávez, even as he dominates regional politics, is losing ground at home and elsewhere in Latin America.

The past two years, Chávez has lavished aid in the form of cheap oil and bond purchases on countries including Cuba, Bolivia and Argentina. But for all his largesse, Chávez is no more popular in the region than Bush.

A recent poll by the Chilean firm Latinobarómetro placed both near the bottom of a ranking of 10 regional leaders, with identical 39% positive ratings. Chávez's effort to secure a rotating seat on the United Nations security council last fall collapsed after he blasted the U.S. in a speech to the world body and called the U.N. "worthless."

At home, even as some critics worry that Chávez's iron grip on all government institutions and his "socialism for the 21st century" signals a creeping dictatorship, the president's political standing may be eroding. "This is not Cuba. … Chávez is not Castro," says Teodoro Petkoff, a former opposition presidential candidate and now the editor of the newspaper Tal Cual.

The Venezuelan leader's insistence on uniting numerous leftist parties into a single socialist bloc and eliminating the constitution's presidential term limits has opened the first fissures in his coalition. Annual inflation of more than 20% — Latin America's highest — is undermining the economic gains of recent years and igniting doubts about Chávez's free spending. Recent nationalizations of two companies owned by U.S. firms further sours the business climate.

A divisive figure

Even some sympathizers are beginning to look beyond the former Army paratrooper who confronts the United States with its most charismatic Latin American opponent since Castro. "He divides the country. He polarizes the country. As long as he's there, I don't think the country will be able to stabilize," says Margarita Lopez Maya, a historian at the Central University of Venezuela.

Caracas pollster Oscar Schemel says Chávez, 52, is losing support because of his post-election focus on ideological issues that lack popular appeal. In Schemel's most recent poll, 41% said Chávez was doing a good or excellent job, while 38% labeled his performance subpar. In November, Chávez enjoyed a much wider 49%-to-31% margin.

Despite Chávez's enormous personal popularity, 71% of respondents said they want a different type of president. "People describe the new leader as neither Chavista nor opposition, neither rich nor poor, neither one nor the other," Schemel said. "Someone that can unite us."

Chávez's "Bolivarian revolution" ministers to the impoverished with free medical clinics, reading programs and subsidized supermarkets. In his weekly television shows, he speaks in the straightforward, often earthy language of the street. Blood-red murals bearing his image are everywhere in this gritty capital.

But on the world stage, where he embraces Fidel Castro and Iran's Mahmoud Ahmadinejad, even supporters sometimes cringe at his antics. He's lambasted Bush as "the devil" and a "political corpse" and suggested that Secretary of State Condoleezza Rice is a sexually frustrated "illiterate." During Bush's recent six-nation Latin tour, Chávez gleefully shadowed the president, drawing large crowds to anti-American rallies in Argentina and Nicaragua where he led chants of "gringo, go home!"

Through his control of the U.S. petroleum company Citgo, a subsidiary of Venezuela's state oil company, Chávez this winter doled out more than 100 million gallons of discounted home heating oil in 16 U.S. states. The program, featured in Citgo television ads, benefited more than 400,000 households.

While tweaking the world's richest nation for its inability to take care of its own, the giveaway hasn't done much for Chávez's image in the United States. In a USA TODAY/Gallup Poll this month, only 9% approved of the Venezuelan leader.

Still, Chávez — who said earlier this month that the U.S. has dispatched "special CIA units, real killers" to murder him — faces no imminent political threat. His term runs until 2012, and the opposition that he has vanquished in three presidential elections and seven referendums remains moribund.

He has a firm hold on the military, so the prospect of a coup, such as the one that briefly toppled him from power five years ago, is remote. Bolstered by an estimated $49 billion in annual oil revenue, up from $8.6 billion in 2001, he has plenty of cash.

Sunday, on his weekly Aló Presidente television program — where he typically holds forth for hours while fielding citizen questions "Larry King" style — Chávez, garbed in an open-necked, deep red short-sleeve shirt, welcomed visiting Cuban architects, criticized U.S. policy toward Iran and outlined plans to establish new satellite cities outside Caracas. While leaving vague the precise contours of his socialist game plan, he pledged to safeguard private property.

"Here we are creating our own model," he said.

Popular among the poor

The Venezuelan leader clearly retains the fierce affection of the poor. His vote total in December's re-election, 7.3 million votes, was more than twice his winning tally in 1998. "He's done a great job," says Henri Ibanez, 49, a resident of the Catia barrio. "The corrupt people who used to run this country — they're out!"

Catia is a rough slum of working poor and inebriated idlers, where homes of cinder block walls and corrugated metal roofs cling to a steep hillside directly beneath a series of high-tension wires. Residents climb narrow concrete staircases and tread paths littered with empty soft drink bottles, rotting fruit and dog waste to reach their front doors. Inside, many of the small homes are clean and decorated with a few modest ornaments.

For decades before Chávez took office, politicians ignored people like these. Now, they are at the center of the country's politics. Evidence of the impact his policies are having on individual lives can be found at an abandoned fuel distribution center where the government has installed a workers' cooperative called Fabricio Ojeda.

A slogan at the entrance reads: "The change in thought in favor of the collective is the beginning of the revolution."

Inside, 154 local people — all but two are women — make uniforms for the army, schools and businesses. The co-op is part of the government's strategy to boost self-reliance by constructing what it calls "endogenous development" centers around the country. Standing in the textile factory beneath Chávez's portrait, Mirta Molina says many of the workers had been unemployed long term.

"The state gives us the tools to construct our own destiny," she says. "We're trying to generate the collective good, not just for us, but for the community and the nation."

High above the clean, well-lighted factory floor, ceiling fans move the air. On one wall, pictures of Jesus Christ, Che Guevara and Chávez compete for space with a "prohibido fumar" (no smoking) sign.

Until three years ago, Nancy Muentes, 28, stayed home with her young son and daughter. Now, her monthly salary of 465,000 bolivars — about $217 at the official exchange rate — makes it easier to afford necessities for the children. Her husband doesn't have a full-time job. Asked to recall her first payday, she says: "It felt good because I'd never had any money. Any money I'd had was my husband's."

A short walk across the open courtyard, Carmen Poleo has brought her 13-year-old grandson to the medical clinic to have his swollen neck examined. Up to 400 people each day come here to see a dentist or doctor, have X-rays or lab work done and even get specialized obstetrics or gynecological services.

These benefits, the glue that binds Chávez to his people, are part of an estimated $7 billion in annual social spending on new health and education programs, says the Council on Foreign Relations.

"We've come here many times. It's good care," Poleo says. "The public hospitals near here — sometimes they wouldn't even attend to you."

Wealthy not on his side

But Chávez's hopes of remaking Venezuelan society with a home-grown socialism are bitterly opposed by the affluent.

At the seven-story El Tolon mall, the multiscreen cinema is showing Borat. Shoppers can dine at Il Grillo, an Italian eatery, where a lunch for two of carpaccio, plump tortellini draped with gorgonzola cheese, and zesty Mediterranean salad costs $65.

Standing outside the Nine West store, industrial designer Alessandra Polga's smile fades when talk turns to "that crazy guy Chávez." She's worried about inflation, the government's collectivist tendencies and the Venezuelan president's affinity for Castro.

"The main problem is people don't remember. They don't realize what happened elsewhere can happen here," she says, alluding to Cuba.

Polga's already applied for a visa to join her brother in Canada. Asked why, she gestures toward her 8-month-old son, Diego, and says, "A future for my child."

For now, Chávez is unbowed by criticism or complaint. The effort to meld a single governing party continues, despite the objections of three of his coalition allies. And constitutional reform, including the elimination of presidential term limits, could come to a vote later this year. Some analysts suggest it might be the first contest Chávez loses.

"The country's resisting," says Petkoff. "This is not an open highway for his plans."


By David J. Lynch is a writer with USA TODAY. Petroleumworld not necessarily share these views.

Editor's Note: This article was published by USA TODAY, March 2007 . Petroleumworld reprint this article in the interest of our readers.

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Petroleumworld News 04/06/07

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