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Misplaced blame for Venezuela's woes

Commentator David Frum.

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Kai Ryssdal: Hugo Chavez is looking for some help from his friends. The Venezuelan president has invited a team of Cuban energy experts to help Caracas deal with an ongoing power crisis. That's interesting on two counts. First, Cuba's not really known for having sound energy policies of its own. Also, Venezuela is one of the world's leading energy exporters. It ships millions of barrels of crude oil every day.

Commentator David Frum has just come back from a State Department-sponsored trip to Venezuela. And he sent along these observations about the curious state of its economy.


DAVID FRUM: The campus of the Central University of Venezuela is a UNESCO landmark, a perfect example of the tropical modernism of the 1960s. I visited just a few days ago to talk to students and faculty and noticed something strange: Every clock in the building had stopped dead. I asked why. Answer: The 1980s vintage computer that controlled the clocks had failed, and the university could not obtain foreign currency to repair or replace it.

It's not an unusual story in Venezuela. In the five days I spent there, I met middle-class professionals who had given up their cars for lack of imported spare parts. Next-door, Colombia demands dollars for its coffee, so most Venezuelans must make do with brackish Nicaraguan brew.

Those who have maintained illegal bank accounts in the United States smuggle scarce goods from Miami. It took an hour to load my flight, as middle-class Venezuelans struggled to wedge their bags into the overhead bins. They won't check their luggage because, they explain, they fear the Caracas luggage handlers will rob them.

Those who must use local currency lose one-third of their purchasing power to inflation every year and in late January saw their savings cut in half by a devaluation. Electricity disappears for two hours a day outside the capital. Water taps run dry. In the single month of January, the Hugo Chavez government seized ownership of a major shopping mall and a large grocery chain was caught shipping a boatload of missiles to Hezbollah and ordered cable stations to drop the country's most popular TV station because it did not carry a long-winded presidential speech in full.

It takes a certain kind of genius to lay waste to the economy of one of the world's major oil producers. But in his excuses, at least, Chavez is very far from original. He fixes the blame where it always goes: on the Americans and the Jews.

RYSSDAL: David Frum is a fellow at the American Enterprise Institute.

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Miguel Vargas's picture
Miguel Vargas - Feb 4, 2010

This article about Venezuelan’s way of living is so true that makes it worth a while. Never before, not even under previous dictatorial government ship, which Venezuela previously had two of them; people lived on such of poor conditions and fear. The stress level in Venezuela are so high that a lot of it citizens wants to emigrate like never before. Reading all those opinions of people supporting Chaves makes me wonder what are they doing here in the States? Also, If Chavez is such a great governor and doing such of good deed in Venezuela, why they do not go back. Is it for fear or because of their XXI Century Socialism is paying them to live that Vida Loca and live on a relaxed life. I lived once in Venezuela and I remember it was fun. Poor people use to work hard to have decent life. General education was available for all those people who want it to get educated, not the socialist style education Chavez wants to impose on all there. If there was a black-out, people used to go out on the street wondering what had happened. Now days, I wonder if that could be done with out getting hurt.
By the way, that invitation is not a freebee. Chavez must be paying millions of US Dollars to bring those so called experts, which he may be keeping a chunk. Those problems could be solved by Venezuelan engineers without the high cost it will carry and if only the government could let them.

Dwayne Fraser's picture
Dwayne Fraser - Feb 4, 2010

This commentator wrote speeches for George W. Bush.

To date President Bush is the most incompetent and feeble-minded Executive to occupy the White House.

Knowing that David Frum wrote speeches for George W. Bush does not make him credible. The U.S. and the World are still paying for the mistakes of the Bush Administration.

David Frum did not have one single positive thing to say about Venezuela. Are his intentions to inform or simply distort reality??

Lastly, his slanderous remark about Nicaraguan coffee being like 'brackish water' is offensive. Mr. Frum is comparing apples with oranges.

What a pity that Public Radio does not present an opposing view to the cantankerous opinions of David Frum!

poor guy's picture
poor guy - Feb 4, 2010

"Well, I've been to Venezuela and the low income folks I spoke to there were virtually unanimous in saying President Chavez is the only President in the country's history who ever did anything for them."

yes Jonathan but "when" did you go. A few years ago with the price of oil high and a lot of referendums happened. the "financial" love was high and we all received gifts. The president was very popular at that time. Times have changed.

I don't understand the term "virtually unanimous" but the latest poll last week said the the presidents approval rating dropped below 50% last week

Just because a government "did something for you" Doesn't mean they have the right to deny any citizen the right to work, feed his family or disagree with something. It does not give a the government the right to force a previously independent military to shout "socialism or death" 100 times a day. It does not give them the right to make it mandatory that all children in school must be taught socialist doctrine and any teacher who does not comply will have their teaching credential revoked by the ministry of education for 10 YEARS with huge fines for any school that hires this person once black listed. (because to defy the gov means you have no right to support your family).

"They told me now they have health care, free college, loans from banks, improving housing, better pay,"

"they have health care " GOOD health care would be better. You may have seen a lot of promotion for a new clinic a while back. Now that the money has dried up the clinics don't have medicine. Also nothing has been done to fix preexisting hospitals of the 11 years. They are as they have been and continue to be, delapedated hospitals. My daughter was born in one of them it was a scary experience. The woman next to my wife needed a siscarian but they had no tools, scalpels etc. So they had to force the baby out. Luckily the woman survived and the baby (with only a broken arm)

free college, it takes over 5 year usually 7 if lucky to graduate from public Universities. Classes are always stopping because the professors are never paid on time. Sometimes up to 4 or 5 months late.

loans from banks- now that oil has gone down and power has been consolidated that's stopped.

improving housing, - the housing given only goes to "supporters" and that is only about a small percentage(5%?) of what is need. I mean a 80,000 houses vs 10 million in need can't be call a dent.

better pay, yes every year the minimum wage is raised about 10% then inflation goes up 30%. Do the math. But this is one of the most proud achievements of the admin. of course those living here know it's a total joke that loses it's humor when you arrive at the supermarket to buy food.

" This is the majority of the population."
Jonathan? Based on what. Your favorite quote is "Most of the people I talked to" I doubt that constitutes "most of the population" What's worse is that all of you comments are based on what people "told" you. We are living it man, and I know a way more venezuelan people than you. We KNOW because we LIVE it right now. So please before you feel inspired to talk about how great all OUR lives are, Sell all your stuff, convert all your money to Bolivars and come and live here a few years before you talk about the life of Venezuelans.

"Yes, the so-called "middle class" in Venezuela, has lost some of their privileges, but this is a small class of no more than 25 percent of the population."

My friend 25% of Venezuela is about 7 million people. That a lot of people losing their "privileges" to live a free life. Like I said come fly with us here. A word of warning though the privileged in your context would now be referring to the high level people of the govt. Those who are losing their "privileges" would be basically journalists who complain and anyone who disagrees with the Gov. keep that in mind and you may survive living here.

D Irvin's picture
D Irvin - Feb 4, 2010

Let's see now: the liberals and non residents think Chavez is great: the residents and past residents have a different story----- RESIDENTS WIN!!!

Jose R's picture
Jose R - Feb 4, 2010

Oh, the shipment of weapons to Hezbollah in the German ship "Francop" originated in Venezuela with a prominent stop in Iran. How is Chavez going to defend this atrocity? The jury is still out on where the weapons came from... Venezuela, Iran, or both. We will know in time. When this atrocity was made public, Hugo Chavez retaliated against the Jew Community in Venezuela.

A message to those that defend Hugo Chavez is that you are defending a tyrant; not because Hugo Chavez supports monetarily your non-for-profit means that you have to defend somebody who is obviously abusing power, repressing his own people, and destroying the values of democracy. Do your own diligence, and find out who Hugo Chavez really is.

Jose R's picture
Jose R - Feb 4, 2010

Great article!. The electricity AND water distribution problems in Venezuela are the result of 11 years of corruption, mismanagement of resources and underinvestment in infrastructure in electricity generation. A testament of that corruption is the millions (maybe Billions) of Dollars that Chavez's government allies have funneled to Central America, Switzerland, and Florida.

The lack of rain in Venezuela can NOT be blamed for the electricity production problems, because the water levels of Gury were much lower in 2003 than they are today. The difference is in the consumption of electricity that has increased, but the lack of investment in power generation during Chavez's reign is finally showing its results.

Much of the money is just "lost" in corrupt deals by government officials who are supposed to be "communists" by heart, AND given with the purpose of political indoctrination (casas Alba) and support (just free money) to Fidel Castro, Daniel Ortega, Evo Morales, Cristina Kirchner, and Rafael Correa.

Mercedes Gomez's picture
Mercedes Gomez - Feb 4, 2010

Caveat emptor: David Frum is employed as a Resident Fellow with the American Enterprise for Public Research Policy.

David Frum's employer promotes the interest of BIG corporate entities. (bankers insurance, oil industry executives, etc.)

Can you now understand why David Frum is so obssessed criticizing Venezuela?

It would be useful if David Frum would also tell listeners about the $1.6 million his employer received in funding from ExxonMobil to discredit global warming studies.

AEI sent letters to scientists offering $10,000 plus travel expenses and additional payments, asking for critiques to global warming studies.

I also recall reading that every summer David Frum's employer sponsors the AEI World Forum in Beaver Creek, CO. This Conference is private and off the record. *** Why do the Big Wigs have to hide away from public scrutiny? ***

Conclusion:
I think this type of biased reporting from Republican Conservatives like David Frum does not present Marketplace listeners with a differing opinions.

Phil Hughes's picture
Phil Hughes - Feb 4, 2010

This is a rather amateur article. For example, his dig "Venezuela is one of the world's leading energy exporters. It ships millions of barrels of crude oil every day." is downright childish when five minutes of research would show one that about 3/4 of Venezuela's electricity comes from hydropower, most of that is from the Guri Dam and a bit more dot connecting (try http://www.pmi.org/PDF/Guri%20Dam%20ESB.pdf) would show that the project involved North American engineering and World Bank Funding.

Thus, Venezuela has an energy crisis right now thanks to Economic Hit Men and lack of river flow which just might be a result of First-world induced climate change.

If I can connect that many dots in five minutes, I expect Marketplace could do a lot better with a real investigative journalist.

Luigi Rouge's picture
Luigi Rouge - Feb 4, 2010

I don't know Mr Frum or his background, but he seems to be reporting the truth. I do live in Venezuela! An indipendently of the political system, right or left, the quality of life in Venezuelan has sank 30 years since we have a Dictator as President. Plus we have lost jobs, production, and opportunities for the future of Venezuela's growing population. The main achievement of the country in 10 years is the revival of a one man system that forces the people to beg for crums of the oil wealth in terms of goverment jobs (the only that have grown in 10 years). Sure, the man has done something for the poor, but not impove their quality of life but rather subduing them to a govt. check and suppplying over 30.000 crime related deaths.
Its very easy to have a view about Venezuela from the comfort of the US, but what do you really know about Venezuela, I challenge you all to visit and live reality.....

Albert Reyes's picture
Albert Reyes - Feb 4, 2010

Former G.W. Bush speechwriter David Frum (credited with the Axis of EVIL infamous phrase) is again spewing venom...this time against Venezuela where the poor for the first time receive free health care, housing and education. Marketplace listeners should consider contacting their Senators and Representatives in Washington: Were federal tax dollars poorly used in this State Department-sponsored trip to Venezuela??? I feel Neocons like David Frum should not benefit at the expense of us taxpayers. Are State-Department sponsored trips aimed to promote friendship between the United States and other countries? If Mr. Frum had some decency, he would not take advantage of the public dime. Last two questions: (1) Why doesn't David Frum refund the government for the money spent in this State Department trip? After all, his books and speaking engagements make money for him but not the American Taxpayer.(2) Why not allow the well-heeled corporate patrons of the conservative American Enterprise Institute refund his trip expenses? It is apparent that the AEI does not care for Venezuela's populist policies to succeed: About 15 Board of Directors Members of are directly/indirectly connected to global financial power brokers as Presidents & CEOs. (Carlyle Group, State Farm, CIGNA, American Express Co. & others) See: http://www.aei.org/aei-website/managed-content/site-pages/about/board-of...

Incidentally, American Public Media is not doing a good job. Why doesn't Kai Ryssdal present a contrasting POV to David Frum?
It's time for Mr. Ryssdal to stop shortchanging the listeners of Marketplace.
P.S.- Calling Nicaraguan coffee a "brackish brew" was uncalled for. Comparing the growing capacity of Colombia with 44 m. people and smaller than Alaska in size with Nicaragua makes no sense to me. (6 m. people and similar to Iowa in land area) Let's remember that Colombia has received over $5 billion in U.S. aid. Take a look at this report: http://www.witnessforpeace.org/article.php?id=643

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