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Venezuelan Opposition Demands Inflation Numbers as Peace Talks Continue

April 15, 2014

by AQ Online

Peace talks between President Maduro’s government and the Venezuelan opposition are scheduled to continue today, while the Mesa de la Unidad Democrática’s (Democratic Unity Roundtable—MUD) opposition coalition calls for the Central Bank to release March’s official inflation data. The bank generally releases the datain the first 10 days of the month.

The MUD claims that country’s inflation is 60 percent, an increase of 2.7 percent since February. Opposition leader and former presidential candidate Henrique Capriles announced via Twitter that inflation increased  more than 4 percent in March—higher than the annual inflation for several other Latin American countries. While no agenda has been set, financial transparency is expected to be a one of the topics in the peace negotiations that will continue today.

The country’s high inflation was one of the factors that sparked the deadly protests that erupted across the country in February killing at least 41 people. Venezuela’s military strategic command chief, Vladmir Padrino, recently admitted to “excesses” in policing, but maintains that less than one percent of security forces were responsible for the “cruelty and torture.”

Tags: Venezuela, Nicolás Maduro, inflation

Dialogar en Venezuela

April 14, 2014

by Paula Ramón

A finales de 2002, después de meses de conflicto y de un golpe de estado que dejó al entonces presidente Hugo Chávez fuera del poder por dos días, Venezuela decidió apostar por el diálogo. César Gaviria, quien estaba al frente de la Organización de Estados Americanos (OEA), abrió el debate entre gobierno y oposición, representado por la Coordinadora Democrática, una coalición de partidos, ONGs y agremiaciones adversas al "proceso revolucionario."

En medio de las negociaciones se inició un paro nacional que buscaba presionar la renuncia del Presidente. Dos meses de inactividad comercial asestaron duros golpes a la economía nacional, especialmente a la industria petrolera, pero Chávez salió victorioso. Con la derrota de la oposición, el diálogo adquirió mayor fuerza y condujo a un acuerdo que se cristalizó con un referendo revocatorio presidencial que dejo a Chávez en el poder. Una vez más, Chávez ganó la batalla. 

Desde entonces, la oposición y el gobierno han participado en una danza política que ha hecho imposible el consenso nacional. Ambos bandos se han negado a reconocer al otro lado y, ensimismados, parecen ignorar que el país colapsa. Ahora, después de un año de intenso enfrentamiento político, y después de dos meses de protestas con un saldo de 41 muertos y más de 2 mil detenidos, el gobierno, encabezado por Nicolás Maduro, y la Mesa de la Unidad Democrática—coalición opositora que defiende la vía institucional para resolver la crisis—aceptaron exponer sus puntos de vista, frente a frente, en la sede presidencial. La reunión fue obligatoriamente transmitida en cadenas de radio y televisión.

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Tags: Venezuela, Nicolás Maduro, Mesa de la Unidad Democrática

Monday Memo: Valparaíso Fires – Fabius in Cuba – Las Bambas Mine – Venezuela – Drummond Shipwreck

April 14, 2014

by AQ Online

This week's likely top stories: a deadly fire ravages Valparaíso, Chile; French Foreign Minister Laurent Fabius visits Cuba; Glencore sells Las Bambas mine to Chinese consortium; Venezuela investigates abuses during protests; a shipwreck spills fuel off the coast of Colombia.

Fire in Valparaiso, Chile: At least 12 people have died in a disastrous fire in Valparaíso, Chile that has forced some 10,000 people from their homes. The fire started on Saturday and rapidly engulfed the historic seaside city, whose town center is an UNESCO World Heritage Site. Many of Valparaíso’s buildings are perched on hillsides and susceptible to fire, posing a great challenge to the 1,200 firefighters that have been dispatched to the city. High winds fanned the blaze on Saturday night and the fires could still spread.  The Chilean Red Cross has appealed for donations, and President Michelle Bachelet is in Valparaíso to oversee the emergency response. Meanwhile, a forest fire in the Colombian department of Boyaca has consumed at least 250 acres of land in the last three days, also due to high winds.

France’s Fabius Meets with Raúl Castro: French Foreign Minister Laurent Fabius met with Cuban President Raúl Castro on Saturday to discuss politics, human rights and economic reforms in Cuba, just weeks after the European Union agreed to begin negotiations with Cuba. Fabius’ meeting with Castro was the first visit to Cuba by a high-ranking French official in 31 years. Talks between the EU and the Cuban government are expected to begin on April 29 in Havana.

Glencore Sells Las Bambas Mine to Chinese Consortium: A consortium of Chinese companies announced Monday that it will purchase Peru’s Las Bambas copper mine from Glencore Xstrata for approximately $6 billion. The deal is expected to be complete by the end of September, but the consortium has agreed to cover costs of developing the mine from the beginning of 2014 until the transaction closes. The open-pit mine is currently being constructed and is expected to initially produce two million tons of copper a year.

Venezuela Investigates Abuses During Protests: Venezuela’s strategic command chief, Vladimir Padrino, said that 97 members of the country’s security forces are being investigated for abuses committed during the country’s two months of protest. So far, at least 41 people have been killed since the protests began on February 12, and some 2,000 people have been detained. Padrino said that the Venezuelan military has committed “some excesses,” but added that the officers being investigated represent less than 1 percent of the force.

Drummond Says Diesel Spilled in Shipwreck:  A barge carrying construction materials off the Northern coast of Colombia for Drummond Co. Inc—a U.S. based mining company and Colombia’s second biggest coal minerwas shipwrecked on Friday, causing diesel fuel to leak into the sea. Drummond said that the cause of the accident is being investigated, but did not provide an estimate of the amount of fuel that was spilled. The company was fined nearly $3.6 million in December for spilling tons of coal into the ocean in a prior accident off the coast of Santa Marta, and its port was shut down between January and April. The company is still working to comply with new infrastructure requirements designed to lessen spillage.

Tags: Valparaíso, Cuba, mining, Venezuela

Maduro Faces Conundrum as UNASUR Starts Peace Talks

April 11, 2014

by Thomas O'Donnell

A delegation of foreign ministers from the Union of South American Nations (UNASUR) returned to Caracas on April 7 and 8, securing an agreement to hold peace talks to calm political polarization and protests in Venezuela.  The talks are being mediated by the foreign ministers of Colombia, Brazil and Ecuador, plus a Vatican representative. 

The UNASUR delegation first visited in late March, recommending that Venezuelan President Nicolás Maduro and leaders of the opposition’s Mesa de Unidad Democrática (MUD) enter into a dialogue.  The U.S. State Department had expressed support , as had Organization of American States (OAS) General Secretary José Miguel Insulza

However, UNASUR’s plan will be complicated by Maduro’s reliance on paramilitaries within his Partido Socialista Unido de Venezuela (United Socialist Party of Venezuela—PSUV), whose loyalty requires his polarizing words and deeds. This conundrum already wrecked a previous dialogue.

In early February, before protests broke out, a highly placed government official explained to me, on the condition of anonymity, that Maduro was pursuing dialogue and cooperation with the opposition. This was because Maduro had realized that citizen insecurity could sink his administration—and that chavismo could not solve this problem alone.  “The opposition controls many of the largest states and municipalities," the official said, and "without the help of these governors and mayors, we cannot solve this problem. […] They are the ones that control the police and bureaucracy in these areas; we don’t.”  

Maduro’s decision to approach Henry Falcón, a former chavista and governor of Lara state, as well as elected opposition officials in Caracas, appeared to be paying off.  Successful meetings had also begun with Henrique Capriles, leader of the MUD and governor of Miranda state, Antonio Ledezma, the metropolitan mayor of Caracas, and opposition mayors of Caracas’ local municipalities.  

Demonstrating Maduro’s seriousness, I was told that PSUV Federal District Mayor Jorge Rodríguez was "fully onboard” with the meetings, despite his reputation as a strident chavista. The “big problem,” according to the Maduro administration official, was Leopoldo López, the leader of the Voluntad Popular (Popular Will) party, who did not have any interest in talks.

Indeed, a section of the opposition was strenuously arguing that it was political suicide to cooperate with Maduro if his polarizing rhetoric and restriction of democratic opposition activity continued unabated.

This sparked "#LaSalida"—a call for protests against the Maduro administration.  A bitter confrontation ensued between the pro-dialogue opposition and #LaSalida’s authors—López and María Corina Machado, a national assembly member.  When #LaSalida led to protests on February 12, Maduro had Lopez thrown in prison, only reinforcing López’ warnings.

Why couldn’t Maduro restrain his seemingly counterproductive words and deeds?  A major reason is that some members of the PSUV feel such antagonism to the opposition that Maduro dared not enter into a dialogue without continuing to vilify and restrict the opposition.  Although he had good reasons to seek cooperation, Maduro’s base has been nurtured on highly polarized, class-antagonistic, black-and-white, good-and-evil rhetoric. 

Sustaining polarizing rhetoric especially caters to the PSUV paramilitaries Maduro needs to stay in power. Chavismo was never very effective organizing on its own in barrios, and Chávez didn’t even launch the PSUV until 2008, so he turned to groups that already had control in the barrios before chavismo arrived. Today, chavismo’s very effective get-out-the-vote and loyalty-enforcement machine in Venezuela’s barrios relies on allied “ultra-Left” groups, local criminal groupings and motorcycle gangs that have become armed paramilitary groups, euphemistically called “colectivos”—a slander against most colectivos, which are non-violent barrio community groups.

But these paramilitary gangs could turn against Maduro without receiving the clientalist largesse and rhetoric that reifies their sense of solidarity with his administration.  Chávez—who began enlisting them following the failed 2002 anti-Chávez coup as future street fighters to protect his government— occasionally spoke sharply to regulate these groups’ excesses, something Maduro lacks a similar authority to do. And, their effectiveness as extra-legal enforcers has been recently demonstrated as they’ve marauded in opposition middle-class neighborhoods, attacked demonstrations and barricades, invaded universities to beat students, and—most importantly for Maduro—prevented open protests in their home-turf barrios.

Maduro’s contradictory dependence on—and fear of—paramilitaries explains why he has called opposition protesters “fascists” and “coup plotters.”  This deliberately evokes the romantic logic for paramilitaries, whom Chávez declared would “descend from the barrios” to defend the presidential palace against any future coup.

These PSUV dynamics clearly threaten UNASUR’s new peace dialogue.  Especially if the government’s recent economic response to protests fails to produce timely reductions in food shortages and inflation, protests could spread into barrios—the Maduro administration’s worst nightmare—and further cement Maduro’s reliance on paramilitaries there.

Even though Maduro’s allies in UNASUR publically advised him in March to abandon inflammatory rhetoric, and former Brazilian President Luiz Inácio Lula da Silva himself earlier advised Maduro to “… dialogue with all the democrats,” such steps could directly undermine the loyalty of the PSUV’s core get-out-the-vote, barrio-pacification and street-fighting apparatus.  A difficult conundrum, indeed.

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Tags: Venezuela, Nicolás Maduro, colectivos

Venezuelan Government, Opposition Agree to Talks

April 9, 2014

by AQ Online

After weeks of unrest, the Venezuelan government and the Mesa de la Unidad Democrática (Democratic Unity Roundtable—MUD) opposition coalition agreed on Tuesday to “formal talks”  to end the anti-government protests.

The two sides have tentatively planned to meet on Thursday for a discussion mediated by the Vatican and the Unión de Naciones Suramericanas (Union of South American Nations—UNASUR). The foreign ministers of Brazil, Colombia and Ecuador are also expected to attend Thursday’s meeting.

Venezuelan President Nicolás Maduro praised the preliminary talk on Tuesday, but said his government is not willing veer away from the Bolivarian Revolution. “Neither will we try and convert them [the opposition] to Bolivarian socialism, nor will they convert us to capitalism,” Maduro said.

Leopoldo López, the recently-imprisoned leader of the Voluntad Popular (Popular Will) party and member of the MUD, expressed skepticism about the talks, saying in a message published by his wife on Twitter, “I believe deeply in dialogue, but in a dialogue of equals, not [with one side] on its knees.” A new round of protests erupted on Friday after Venezuela’s attorney general charged López with inciting violence, arson, damage to property and conspiracy.

The announcement of formal talks comes two weeks after Venezuelan government troops cleared the western city of San Cristobál, where the countrywide protests began in February. Since then, 39 people have died and over 600 have been injured in the unrest.

Tags: Venezuela, Nicolás Maduro, protests

Monday Memo: Costa Rican Elections – U.S. Deportations – Venezuela-Spain Spat – FIFA Delays

April 7, 2014

by AQ Online

Unchallenged Costa Rican Candidate Wins Presidency: Luis Guillermo Solís of the Partido Acción Ciudadana (Citizen Action Party—PAC) won Sunday’s presidential election in Costa Rica, claiming 78 percent of the vote. The challenging candidate, Johnny Araya of the Partido Liberación Nacional (National Liberation Party—PLN), dropped out of the running after a March 5 opinion poll ranked his support at 22 percent, compared to Solís’s 64 percent, but remained on the ballot due to constitutional law. The monumental vote marks the first time in 44 years that a third-party candidate has been elected. Solís has vowed to strengthen small businesses and social and environmental programs through an activist government, however passing new legislation may prove difficult as PAC holds just 13 of the 57 seats in the National Assembly. Solís will be sworn into office on May 8.

Pressure Increases on Obama Administration over Deportations: A New York Times report has shown that two-thirds of the nearly two million undocumented immigrants deported under the Obama Administration—a record number of deportations—had either committed minor infractions or had no criminal record at the time of their removal. Only 20 percent of those deported had been convicted of serious offenses, the demographic the Obama Administration has purported to target for removal. The President has typically side-stepped executive authority to act on this issue—with the exception of the 2012 passage of Deferred Action for Childhood Arrivals (DACA), which temporarily suspends deportation and authorizes approved applicants to work in the U.S. legally—in order to allow Congress time to move forward with comprehensive immigration reform. Yet pressure is mounting on his administration to halt deportations and fix the country’s broken immigration system.

Venezuela Slams Spain for Halting Export of Riot Gear: The administration of Venezuelan President Nicolás Maduro questioned the “moral authority” of the Spanish government after it halted the export of anti-riot and police equipment to Venezuela. Spanish Foreign Minister José Manuel Garcia Margallo said on Saturday that his government suspended sales in order to stop adding “fuel to the fire when there is a conflict.” The decision comes after weeks of violence between protesters, police and armed militia that have killed 39 people and injured over 600.  A new round of protests erupted on Friday after Venezuela’s attorney general charged opposition leader Leopoldo Lopez with inciting violence, arson, damage to property and conspiracy.

FIFA Admits Brazil Is Still Behind Schedule: With less than 70 days before the 2014 World Cup kicks off in Brazil, FIFA’s Secretary General Jerome Valcke said that preparations are still behind schedule. During a press conference in South Africa on Wednesday, Valcke said, "If you want me to summarize... we are not ready.” Two stadiums, the Itaquerão in São Paulo and the Estadio Beira Rio in Porto Alegre, remain unfinished. Construction at Itaquerão, the venue for the opening match on June 12, has been delayed due to the death of a worker  two weeks ago—the third to die while working on that stadium and the seventh preparing for the tournament countrywide. Still, Valcke guaranteed that Brazil would be ready for the start of the tournament, insisting that “there is no Plan B.”

Tags: Costa Rica Elections, Venezuela, FIFA World Cup, Cuba, Deportation

Uruguayan Lawmakers Defend Ousted Venezuelan Congresswoman

April 1, 2014

by AQ Online

Uruguayan opposition lawmakers denounced what they called threats to ousted Venezuelan Congresswoman María Corina Machado’s “liberty and security” on Monday. Machado, an opposition lawmaker representing Miranda, Venezuela was stripped of her seat in the National Assembly as well as her parliamentary immunity for testifying before the Organization of American States (OAS) about the unrest in Venezuela as a guest of Panama.

In a letter released yesterday, Uruguayan senators and congressmen called Machado’s expulsion a violation of “fundamental legal guarantees” accusing Venezuelan authorities of ignoring “basic democratic and republican rules.” The Uruguayan lawmakers pledged to support Machado and ensure her safety and freedom. Influential signers included former president and current Senator Luis Alberto Lacalle.

Machado has been accused of violating the Venezuelan constitution by addressing the OAS as well as “acting as a Panamanian ambassador” and inciting violence by National Assembly President Diosdado Cabello. The majority Socialist Party legislators have requested that the state prosecutor investigate Machado for treason and inciting a civil war for her role in the nearly two-month-long street protests.

Tags: Venezuela, Uruguay

Venezuela Devalues Bolivar amid Crisis

March 25, 2014

by AQ Online

The Venezuelan bolivar was devalued on Monday to be sold for 55 bolivars per U.S. dollar after currency controls were loosened, representing a weakening of 89 percent for the Venezuelan currency. The move was billed as a tactic to alleviate the shortage of staple goods including medicine and toilet paper, countering the black market rate of 58.6 bolivars to the dollar.

For the first time in over 10 years, Venezuela decreased regulations by creating a new currency exchange called Sicad II. Despite the positive step, only 20 percent of the oil-rich nation’s dollars will be offered at the new exchange rate, with the remaining currency traded at the official exchange rate of 6.3 bolivars per dollar.

Venezuela’s shortages and severe inflation have led to a month-long protest from students and opposition parties. In a broadcast on Monday, Luisa Ortega, the country’s state prosecutor, admitted to wide-spread abuse on the part of security forces sent in to control the demonstrations. At least 34 people have been killed since the protests began in February.

Tags: Venezuela, Venezuela protests, Bolivar

Monday Memo: Chilean Protests – Rio Violence – Guantánamo – Venezuela Protests – Buenaventura, Colombia

March 24, 2014

by AQ Online

Likely top stories this week: Chileans protest in Santiago; Brazil sends the military into Rio’s favelas; Uruguay will receive five Guantánamo prisoners; Venezuela will investigate abuses during protests; Colombia sends troops to Buenaventura.

Chilean Protests: Newly-elected Chilean President Michelle Bachelet faced the first major protest of her new administration on Saturday, which was organized to remind the president of her commitment to constitutional reforms and to protecting Indigenous and LGBT rights and the environment. The demonstration, which convened anywhere between 25,000 to 150,000 people, depending on the source, was dubbed “the march of all marches” and was largely peaceful, though isolated clashes led police to deploy tear gas and water cannons. At least 50 people were arrested and three policemen injured, according to authorities.

Brazil to Deploy Military in Rio de Janeiro Favelas: Rio de Janeiro’s state governor, Sérgio Cabral, has requested military reinforcements to contain the recent upswing in violence in sections of Rio de Janeiro, six years after the city launched a campaign to reduce crime in the city ahead of the World Cup and Olympic Games. On Thursday, three police pacification units (Unidade de Polícia Pacificadora—UPP) were set on fire in apparently coordinated attacks. Human rights abuses by police have also added to the recent tension and eroded public trust in the police forces.

Uruguay Will Take in Guantánamo Prisoners: Uruguayan President José Mujica said that there are various job leads for the five Guantánamo prisoners from Syria that Uruguay said it would take in last week. Mujica, a former political prisoner, last week accepted a request from U.S. President Barack Obama to allow the five prisoners to live in Uruguay, since they cannot return to their country of origin. Currently, there are 154 detainees still in Guantánamo. Mujica also said he would likely cancel a May 12 meeting he had scheduled with Obama, in order to focus on Uruguay’s October elections.

Venezuela to Investigate Abuses: a 28 year-old pregnant Venezuelan woman was shot and killed this Sunday in Miranda state, adding to the list of casualties in the country’s recent protests. The woman, Adriana Urquiola, was not actually protesting, but was reportedly near a protest barricade when she was shot by gunmen in a dark car. Venezuelan Attorney General Luisa Ortega Díaz said that Venezuela will investigate 60 cases of human rights abuses. According to Díaz, 31 people have died since the protests began, and at least 15 officials have been imprisoned for links to the violence.

Gang Violence in Buenaventura, Colombia: Colombian Defense Minister Juan Carlos Pinzón deployed an additional 700 troops to the port city of Buenaventura on Friday, a day after Human Rights Watch issued a report condemning the death and disappearance of hundreds of residents in the last three years. The crimes are attributed to powerful criminal groups with paramilitary backgrounds, such as the Urabeños and La Empresa. More than 19,000 people fled Buenaventura in 2013, according to official numbers.

Tags: Guantanamo, Venezuela, Buenaventura

Cuba to Debut New Foreign Investment Law

March 20, 2014

by AQ Online

The Cuban Council of State called an extraordinary session of the National Assembly in order to debate and approve a new foreign investment law on Saturday, March 29, the state-run Granma newspaper announced Wednesday.

The new law is meant to replace that current cumbersome 1995 law that requires foreign companies to pay both a profit tax and a labor tax and is seen as a part of massive reforms taken under President Raúl Castro to aid the ailing Cuban economy. Along with the upgrading of the Mariel Port and the creation of the Special Development Zone that will exempt businesses from the 12 percent profit  tax for 10 years, the  Communist Party Congress approved over 300 economic reforms in 2011, including moving 20 percent of state workers into the non-state sector and authorizing the sale of homes and cars.

While details of the law remained unclear, it is expected to make Cuba more attractive to investors who have pulled out of the island over the past 12 years due in part to Cuba’s burdensome tax system.  Cuba’s economy only grew 2.7 percent in 2013, and with its commercial relationship with Venezuela at risk due to ongoing protests in the South American country, the Cuban economy could contract 4 to 7.7 percent this year.

Tags: Cuba, Foreign Investment, Venezuela

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