Development Blog
عربي | Русский | Español | Română | Français

Political and Economic Insecurity: Civil-Military Relations in Venezuela

Get Real Audio Player Free

Download RealAudio's Real Player free here.

Venezuela's political and economic prospects were the topic of a joint meeting held recently by the National Endowment for Democracy and the Center for International Private Enterprise. The nature of the Hugo Chávez regime, its relationship with the military and civil society, and its foreign policy incursions were among the key topics addressed by the Venezuelan panelists who spoke at the meeting.

Hernán Castillo

(Assistant Professor of Social Science, Simón Bolivar University; co-author of "Balance and Perspectives of Civil-Military Relations in Venezuela…" in the book Civil-Military Relations in Latin America: Challenges in the Beginning of the 21st Century, 2000)

Para esuchar la discusin en espaol, haga clic

Since the election of President Hugo Chávez, Venezuela's military has become an active participant in the country's social development and delivery of public services. This trend represents a marked break from the role assigned to the armed forces by the 1961 constitution that limited their role to defense of the country. Today, the military are divided largely between two groups. One comprises the "institutionalists" who are loyal to the traditional, apolitical role of the armed forces; the other, labeled the "revolutionaries," views the military as an institution that has a mandate to promote the country's social development. Through Chávez the latter now have at their disposal millions of dollars to spend in vote-getting public works projects and services.

While military officials occupied a few civilian posts during previous Venezuelan governments, the key issue today comes down to civilian oversight of the military. The new constitution approved in 1999 assigns the armed forces a significant role in the state, with no civilian control over the military's budget, procurement practices, etc. In addition, the country's courts are not authorized to sanction military members, while congress has been stripped of the power to approve military promotions. More recently, the legislature failed to approve a proposal that would have ended the military's control over the national intelligence agencies.

Comparisons of the 1961 and 1999 constitutions–together with the prominent role the military now play in the Chávez government in accordance with its grandiose Plan Bolivar 2000–convincingly indicate that Venezuela's military has lost its traditional institutional focus and is now "wed" to politics. This change is encapsulated in Chávez's frequent rhetorical question: "How is it possible to demarcate what is clearly military and what is clearly political?" This represents a dangerous throwback to Venezuela's independence wars when founding fathers such as General Sucre were in effect armed citizens, and the population at large was made up of "farmers-soldiers," "military managers," and "military politicians."

Laura Rojas de Perez

(Partner, Estrategias para el Desarrollo Integral, and former Vice Minister of the Ministry of Industry and Vice President-Director of the Foreign Trade Institute of Venezuela.)

Para esuchar la discusin en espaol, haga clic

Venezuela is a nation built on profits from petroleum in accordance in line with what is locally known as a "petrolero rentista" economic model. Oil exports generate over 80% of the country's foreign exchange, and the petroleum sector accounts for one-third of the country's GDP and for more than half of government revenues. This situation has not changed in decades, but now there is a major difference. In the 1940s and 1950s, petroleum was a catalyst for social mobility, but now it has become an element of social fragmentation, deeply dividing the haves from the have-nots who are becoming ever more numerous. Recent surveys indicate that 57% of the population categorizes itself as poor, unable to obtain basic goods and services including health and education.

Despite the steep climb in world oil prices, the Chávez government has been incapable of improving the welfare of Venezuela's population. Currently, 60% of the laborforce works in the informal sector and is subject to all the concomitant socioeconomic ills. Even in the formal sector of the economy there are vast inequalities in terms of salaries, productivity and educational levels, etc.

The private sector in general has been incapable of mounting concerted opposition to Chávez's policies. A principal reason for this inaction is the business sector's continued dependence on the state to generate much needed foreign exchange earnings. A large part of Venezuela's business class is not competitive internationally, is inward looking, and relies heavily on the local market. The Chávez administration has rolled back some trade liberalization policies to gain points with the local business community hurt by the appreciation of the bolivar since the uptrend in oil prices.

Contrary to the chavistas' claim, economic inequality is not the result of rampant corruption by the former ruling political elites. Rather, it is a longstanding structural problem for which there are no quick, easy solutions. The state still plays a dominant industrial role through its continued ownership of the country's major industries: petrochemicals and aluminum. (Only the steel sector has been privatized.) There are just a few truly large private enterprises, which account for a mere 7% of industrial sector. However, together with the state-owned companies, these large enterprises generate almost 90% of Venezuela's industrial exports and account for fully 55% of the jobs in the industrial sector. Small- and medium-size industries are plentiful, but their earnings–and the wages they can afford to pay–are low.

With real unemployment rate topping the 20% mark, it will be difficult to organize people to mount effective, sustained opposition to government policies. The primary concern of most Venezuelans today is subsisting and finding a job. The major element of uncertainty hanging over Venezuela today is what will occur when the price of oil goes down. Because of the sharp increase in poverty in recent years, social adjustments to the next petroleum crisis are bound to be more painful than they were in the past.

Vilma Petrásh

(Professor and researcher, Department of Social Sciences, Simón Bolívar University; Professor, International and Global Relations, Central University of Venezuela; and author of Venezuela y los Estados Unidos: orígenes y evolución de una "relación especial", 2000.)

Para esuchar la discusin en espaol, haga clic

Venezuela is characterized by petroleum to the point that its state, society and even the so-called Bolivarian "revolution" launched by President Chávez are all connected to the nation’s petroleum production and exports. The classic model of oil as the catalyst for modernizing the country and improving the quality of life for Venezuela’s citizens is no longer valid because sound, consistent government policies are now lacking. The defining characteristic of the Chávez regime is "super personalismo."

Venezuela’s foreign policy has changed dramatically under Hugo Chávez. While he has embraced a policy of confrontation with the United States, he has openly been cultivating closer relations with Russia and China in an effort to be a big player in efforts to reduce US dominance in world affairs and to create a multi-power world order.

Simultaneously, Chávez has been pursuing secret dealings with subversive, destabilizing groups in several Latin America countries. Some examples are his contacts with the Colombian guerrillas; with Col. Lucio Gutiérrez, leader of the coup in Ecuador in January 2000; and with opposition groups in El Salvador, using as a vehicle the humanitarian relief team Venezuela sent there in the wake of the most recent earthquake. The Chávez government also is alleged to have provided financing to indigenous Bolivian farmers during their anti-government protests last year.

These parallel overt and covert actions could seriously jeopardize Venezuela's international standing. They are also making neighboring countries uneasy about the true nature of Chávez's foreign policy objectives. Not surprisingly, Brazil, Colombia and Mexico have been trying to "neutralize" Chávez's revolutionary zeal. In many ways, the overarching objective of his foreign policy appears to be how much he can "tweak" the Unites States short of unleashing an outright confrontation.

Q&A Discussion: Key Discussion Points.

Para esuchar la discusin en espaol, haga clic

Venezuela's subversive initiatives in Latin America merit careful, constant monitoring. However, in the panelists' view, the US government's response to President Chávez has thus far been right on target. Because Venezuela is too important geopolitically to isolate it, the US should continue to use the good offices of regional leaders, such as President Vicente Fox of Mexico and President Fernando Henrique Cardoso of Brazil, to keep the lines of communication open with the Chávez administration. This approach is much more effective than directly pressuring Chávez to desist from his current incursions into the affairs of other Latin American countries. The panelists also favor the recent decision of the Bush administration to "regionalize" Plan Colombia.

It is erroneous to assume the military are united in support of Chávez given traditional service rivalries and the different ideological orientation of the four military branches. Having foiled his earlier coup attempts, much of the National Guard remains opposed to him. The navy would like to continue joint exercises with its US counterparts. Finally, important high-ranking officers of the different services oppose the growing politicization of the armed forces and question the new constitutional role assigned to them. They are also critical of Chávez's dealings with the Colombian guerrillas, fearing they could lead to war.

Chávez is also trying to marginalize some former comrades in arms who supported him during his coup attempts. Certainly this is the case of Col. Arias Cárdenas, who now has openly broken with Chávez. Indeed, the once united and seemingly monolithic chavismo front has begun to crumble. It is in this context that one must understand Chávez's recent efforts to revive his original Movimiento Venezolano Revolucionario.

Contrary to foreign press reports, political opposition to Chávez is growing, and he no longer enjoys a majority in the unicameral legislature. Opposition to the government comes from many quarters. Civil society groups are coalescing around several unpopular government moves such as the proposed educational reform that would add a revolutionary component to student instruction and Chávez's recent gratuitous attacks against the church. (The Latin Americans bishops' decision to hold their most recent meeting in Caracas was intentionally meant to give Chávez a clear signal of the church's opposition to many of his policies.) Labor disaffection with the regime is growing for economic reasons, as well as a result of the failed referendum last December to change the leadership of the unions. The largest one by far, the Confederación de Trabajadores Venezolanos (CTV), will remain a strong force against the regime even when new union elections are held in September.

Meanwhile, business groups are becoming more vocal about the government's failure to enact growth-generating policies. The two major agricultural associations have loudly criticized growing land invasions, and they have threatened to mobilize their membership against further attacks on property rights. CEDICE (and more recently Consecomercio) continues to espouse strong liberal, pro free market policies. There is a good chance that the next president of the powerful Fedecámaras industry association also will be willing to speak out against ill-advised government policies.

The once seemingly moribund traditional political parties are regrouping. Acción Democrática is again more active, and its fortunes will probably improve with the decision of Claudio Fermín to rejoin its ranks. The Movimiento al Socialismo (MAS) has withdrawn its parliamentary support for Chávez's initiatives, thereby ending his majority control of the legislature. There is clear evidence as well of serious fissures within both the left and right wings of his own party. As a result, the next elections in 2004 for governors and mayors will be crucial. They will be a good bellwether of whether or not a new political balance of power is emerging in Venezuela.

 
Center for International Private Enterprise -1155 15th Street NW - Suite 700 - Washington, D.C. 20005
Telephone: (202) 721-9200 - Fax: (202) 721-9250 - © 2007