Venezuela’s election offers little hope for the future
True to form, the Venezuelan government and its Cuban minders have spared no effort or expense to ensure the outcome of Sunday’s snap election to elect the late Hugo Chávez’s chosen successor. Challenger Henrique Capriles has been game (and his singular effort to revive the fortunes of the Venezuelan opposition commendable), but in the end his ...
True to form, the Venezuelan government and its Cuban minders have spared no effort or expense to ensure the outcome of Sunday’s snap election to elect the late Hugo Chávez’s chosen successor. Challenger Henrique Capriles has been game (and his singular effort to revive the fortunes of the Venezuelan opposition commendable), but in the end his lot has been to be cast as a mere prop in Venezuela’s version of "casino democracy," where the house always wins.
Ironically, Capriles should privately be relieved that Chávez’s appointed successor, the dour and robotic Nicolas Maduro, and not he, will inherit the ticking economic time bomb that Chávez has bequeathed his country. Most sober observers of the Venezuelan scene give the country’s economy 12 months at most before the wheels start coming off. As I have written before, some may remember Chávez for his embrace of the country’s marginalized, but all Venezuelans are now poised to reap the whirlwind of the balance of his legacy: soaring inflation, a bloated public sector, a crippled private one, electricity blackouts, shortages of basic goods, and one of the highest homicide rates in the world.
Far from demonstrating any appreciation for the gravity of the economic situation, Maduro has indicated he only intends to dole out more of the same. In fact, even as the campaign has been taking place, the government has been pushing a new law in the rubber-stamp National Assembly that further undercuts the private sector and concentrates even more economic power in the state.
The so-called Law against Monopolies and Other Similar Practices is a capricious measure that empowers the government to confiscate any business that it deems not acting in the public interest. Yet the law would discard traditional metrics for the determination of monopolistic practices and instead leave it up to a politically appointed board to decide if a company has a "decisive domain" over the setting of prices or other market conditions. (State-owned enterprises would be exempt under the law, further tilting the playing field against the private sector.)
In other words, any successful company runs the risk of confiscation at any time by crossing the government’s arbitrary line of being "too successful." And with the judicial sector also controlled by the government, private companies are left with no outlet to appeal adverse decisions.
The fall-out if such a law was to be implemented is not difficult to imagine: a further retraction of private sector activity, less production, and less opportunity for working Venezuelans. Just what the Venezuelan economy does not need at this critical juncture.
This is a far cry from the image of Nicolas Maduro that U.S. audiences were presented by the news media after he was named by Chávez as his successor. We were told the former bus driver was "pragmatic" and "likable." (Call it the Yuri Andropov Syndrome, after the soft-pedaling to the American public of the former KGB-head’s supposed fondness for "Western jazz and scotch.")
Well, during this recent campaign, when the likable, moderate Maduro was not expelling additional U.S. personnel from the U.S. embassy in Caracas, accusing the United States of poisoning Hugo Chávez, or implicating former U.S. officials in attempts to assassinate either him or Capriles (depending on the day), he was making homophobic slurs about his opponent and characterizing the opposition as fascist coup-mongerers. And, at the same, planning further actions to destroy what is left of the private sector in Venezuela.
There will be those who will dismiss all this as just so much campaign bluster. They do so at risk to U.S. national interests. There is no evidence that Maduro is anything other than a deadly serious ideologue beholden to Cuba and to further pushing Hugo Chávez’s destructive agenda. Consider him Chávez without the charm — and come hell or high water he is about to be with us for another six years beginning this Sunday.