Archive for December, 2006

Rosales’ press conference

December 6, 2006

Yesterday opposition candidate Manuel Rosales gave a press conference. It may have been his best presentation ever. He was serious, he was humorous, he was realistic and he tried to preempt Chavez by saying he was going to make his own proposals for the new Constitution. Rosales invited most of the important leaders that supported him and they seemed to be enjoying their conversation with their new found leader. I liked how he brought up some of the cases that irked me the most, like the burning of his headquarters in Valencia on Sunday, or the mistreatment of the lady who was the image of “Mi Negra” by the Chavista hordes.

But it is hard to be optimistic. While Chavez has appeared ready to talk to the opposition, I have no hopes that it will do much. Chavez will now proceed with Constitutional reform to be performed by his 100% controlled National Assembly. He will not propose anything that brings Venezuela into his ill-defined XXIst. Century Socialism. What he is likely to do is to introduce more control over the economy, which in no way implies that the poor will do better or there will be any form of fairer society in Venezuela. In fact, my prediction is that Chavez will, once again, become the absentee President, letting his boli-bourgeois oligarchy take over running the country.

In fact, after a month of not giving away anything to any other country as he was running for President, Chavez approved today US$ 80 million for on Argentinian cooperative of milk and powdered milk, an area in which our country is not self-sufficient. He also offered Nicaragua some electric power plants, a clear indication that he will begin again his international campaign to gain favors and become the leader of at least the two and a half if not the third world. He will leave his flunkies in charge, who will look into how to share the bounty while the autocrat is absent.

A picture is worth 10,000 words, #1: Food Inflation

December 6, 2006

I like charts and graphs. I will start an erratic (in time!) series of charts which tell a self-explanatory story about what is going on in Venezuela under the revolution. I start with this fairly simple one: Twelve month Food and Beverage inflation for each of the last twenty four months. Simply note that 56% of the items in this category fall under the regulated category and that the lowest srata of the population spend 80%-plus of their income on food.


Source: Venezuelan Central Bank

Tough EU report

December 5, 2006

European Union observers issued their preliminary  report on the election, which was quite tough on the disequilibrium in the use of Government funds and resources to favor Chavez’ campaign.

The EU noted that there were “persistent problems during the campaign” with a “strong institutional campaign at the service of the President-Candidate Hugo Chavez, disequilibrium in the media and the participation of civil servants in pro-Chavez rallies”

The Head of the EU delegation noted that this disequilibirum in information in both public and private media took place without the Electoral Board taking any measure to correct it. She added that the institutional campaign in favor of Chavez overran that of Rosales.

She also noted that they received multiple complaints of civil servants being pressured to participate in rallies or express their support for Chavez. Shes said that while they did not have the instruments to validate and evaluate each case, they had sensed, noted and evaluated the intervention by the Minister of Energy and Oil Rafael Ramirez. She said that what Ramirez did is in violation of an Act, subscribed by Venezuela that establishes that “States should take up the necessary measures to insure the principle that the vote is secret and must be respected and voters should be able to exercise their right to vte freely and without fear”

She noted that national and international legislation limits the participation of public servants during campaigns and that Art. 25 of Venezuela’s Suffrage Law mandates that civil servants have to maintain their impartiality in their exercise of their positions. Despite this, she said the EU delegation witnesses the extensive participation of public servants identified as such during the campaign.

They did note that the process went well and people participated extensively. 

Curious how tough this one was, compared with the on in the RR, where there were irregularities galore.

A final bit of love from Chavistas in Valencia

December 5, 2006

And how about the “love” expressed by the Chavistas in Valencia, Carabobo, for the opposition when they proceeded to loot, ransack and burn the headquarters of Rosales’ campaign in that city?

In his press conference today, former candidate Manuel Rosales charged that this was done right under the nose of both the local police and the National Guard, who said they had “orders” not to intervene. Rosales said that one of the vehicles used in the looting was a PDVSA truck and gave the plate numbers of that vehcle and another one that participated in the affectionate looting of his headquarters. He asked Chavez to determine who these people were and order an investigation.

Will political prisoner be pardoned?

December 5, 2006

President Chavez suggested today that the Government may pardon general Francisco Uson. Chavez said “I am willing to review that case and some others, but it all will depend on their cnduct in prison, taht they have not continued promoting terrorist conspiracies”. Uson was Vice-Minister and Minister of Finance in the Chavez administration until April 2002, when he was the first Minister to resign when he saw the shootings from the very special vantage point of his office. He was imprisoned in 2004 for suggesting on a TV program that the soldiers that died at a military prison in Fort Mara may have been killed with a flamethrower.

Hopefully Chavez will pardon Uson and the many other political prisoners, few of which have ever participated in terrorist conspiracies.

Thanks to almost all

December 5, 2006

I usually don’t like to leave personal messages in this blog, but I certainly wanted to thank all those that wrote to me in the last few days, thanking me for the work I do with the blog. Many have become friends, some virtual, many even beyond the virtual world. This is perhaps the highlight of my effort, to find so many friends around the world who care and share so many ideals with me, even if we may have disagreements. The insults came from the usual suspects, all of whom live abroad and I would like to invite to come down, drop their lives, and come and enjoy what they think is XXst. Century Socialism with the Venezuelans.

Today, Yesterday and Tomorrow

December 4, 2006

Today:

It was certainly an eerie day, empty streets, everyone around me moody, down, and everyone wondering what is in store for the future. Lots of phone calls asking about fraud, results and what do you know about such and such a rumor. No new celebrations by the pro-Chavez people until late in the afternoon, when they moved an inflatable Chavez figure to Plaza Altamira, blocking traffic and irking everyone, both for the symbolism as well as for the traffic on a day of no traffic, a true rarity in Caracas these days.

I still find it surprising that so many people did not go to work and please don’t think it was the opposition, a friend who works at a Ministry was the only want in her section to show up, today, prompting her boss to wonder how you could stage a revolution when only one person and from the opposition would show up because an election was won.

I got lots of phone calls by people wanting wisdom about the results, our future and the like, but I was not much in the mood for talking and I did have lots of work today. Some things just never change. And I take my job very seriously.

I did make some phone calls to people I know were part of the process or participated in it, to get their impressions. The ones involved in the technical parts could certainly not tell me anything was fishy. The voting machines in particular were fairly open this time and people looked through them up and down. Yes, there were blank ballots and the like, but nothing on the scale that would turn the results around.

There were certainly some puzzles, like the real time data that came out of the fingerprint machines and was giving high abstention numbers at noon and never showed anything close to the final results. I also looked at certain locations to understand some numbers and I can’t tell anything is fishy. For example, I was surprised by Rosales’ loss, but a quick check of Zulia state and the municipalities I know are pro-Rosales there confirmed my impressions, Rosales did indeed win there, it is precisely in the ones I have little knowledge about that Chavez won, and big. (You can check the results, without audits here, where you can go to the detail of your table. In mine, Rosales got 85% of the vote)

I am also puzzled by the fact that the opposition barely got over the number of votes of the recall referendum. Amazing how increased crime, 25% of inflation in food since May and the inefficiency of the Government does not seem to hurt Chavez. Technical teams will be reassembling tomorrow and I hope to have more information as it comes out. What is clear from all of the data I gathered is that Chavez won, won big, but the margin is surprisingly large.

Pollsters did not get the numbers right in terms of abstention, but their “error” was lower. Of what I consider “reputable” pollsters, none survived, maybe next time I will start m own company. Pollsters were playing a strange game. Publicly, some of them did not publish any polls after November 15th. but were giving different numbers in private from their earlier ones, as if hedging their bets. However, they would give different numbers depending on their audience. Under the Devils’ rule of one miss and you are out for a pollster, in the next election I will have to start my own polling company.

I heard Minister of Defense Baduell gloating about the results. That’s ok, but I could not help be disturbed by his discussion at the end of the feasibility study of a helicopter factory in Venezuela. Not even his mother will believe him when he says it will be built if the feasibility study is positive, if Chavez wants it ,will be built, but it certainly seemed out of place to talk about building military plants today. I guess this is what this toy-soldiers think and care about, what their new toys are going to be and we have gone from machines guns, planes and helicopters to whole factories.

Yesterday:

It is clear to me that the current voting system is simply wrong. The country has spent hundreds of millions of dollars on fingerprint machines and voting machines and the process is as confusing and slow as ever.

The voting machines have been improved. The piece of paper you get is no longer a puzzling script that can barely be read, but the candidates name could be clearly read in big letters. There were too many parties backing the candidates which made the oval you had to press to vote too difficult to find or could be confused with a different party, particularly for old people or those with less technical ability, which applies to the average Venezuelan. The paper ballot coming out of the machines that were “new”, as in those being used for the first time, did not flow easily out of the machine. Mine was like that, and I must say at some point I was ready to pull it out which would rip it. Too many machines failed, over 1,000 of them according to press reports. This is simply unacceptable.

The fingerprint machines are a different story. Technical people involved in studying the process confirm what has been said here before: They can’t do their job, they intimidate people, they are not everywhere and they are complicated to use. Most delays were caused by these machines. If they had not been present, the whole process would have ended earlier, which would have been much better for transparency.

The audits were largely completed, however, it was extremely unfair for the CNE to make their first announcement while some people were still doing the audits. The Rosales team was reportedly gathering data on the audits to check their two exit polls and quick count when the CNE made the first announcement. I know people who were still doing their audit job at that time. I still have not been able to see audit numbers.

The ink was the pits, mine came off easily, while others did not. It is very screwy when you can’t even get a simple chemical mix right.

A lot of people did not like Rosales’ concession speech. I guess they were not listening during the campaign. Rosales was an effective campaigner, but he is not a great speaker. If he believed that he had lost, I think he waited long enough, he did need people to get the audits done. His campaign headquarters was somewhat disorganized, I got the feeling that anyone that wanted to get up and say something could. A few people did, but fortunately the press ignored them, it would have made Rosales look very bad. This was the reason why Rosales sent Petkoff to address the crowd. In the end Rosales was the best campaigner available, the only grassroots politician. Better than Petkoff and way better than Borges, and anyone that believes that Er Conde was a well intentioned candidate s is simply a fool. Venezuela has always had too many “living room” politicians that get us nowhere, Rosales was not one. He did a great job given the time limitation. I still think he should have started earlier

I can’t help but be critical of Reuters and Telesur. Reuters published an exit poll at 5 PM and inserted a message that this was not to be disseminated in Venezuela where it was illegal to do so. I bet they would not even dare say the same in the US during the night of a presidential election before polls close. Shame of them.

The second one was Telesur that claiming it is a foreign TV station released a projection that Chavez had obtained 67% or 68% of the vote. Telesur is operated form Venezuela and 80% of its funding is Venezuelan so this was truly absurd.

Even more absurd was the Minister of Information William Lara at the CNE. Lara hold the Government job I mentioned, while simultaneously being the official spokesman for Chavez’ MVR party. That’s what I call a “small” conflict of interest. But yesterday when asked about Telesur’ violation of the law, he actually managed to introduce a third position, that of a citizen. He said he was at the CNE, not acting as Minister of Information and/or spokesman for Chavez’ MVR, but as a “concerned citizen” and thus he col
d not comment on Telesur’s actions. That is certainly skirting the issue and not assuming his responsibility, after all two days ago Chavez had threatened to cancel the concessions of any TV station that would give results before the first CNE report. I guess it did not apply to pro-Government stations.

Finally the Government abused its power and resources without any control in a manner that proves that there are no checks and balances in Venezuela and there is no rule of law, another achievement of the Chavez revolution.

Tomorrow:

Yesterday’s results bode badly for my country. With this election Chavez will be in power fat least or fourteen years, which I believe is too long for any country more so in these ones. I used to think our five years without immediate reelection was healthy, maybe I would have extended it to six. But no political alternability can’t be healthy for any political or economic system.

I think that the problems our country has are the same ones that existed eight years ago and most have gotten worse. Blaming our problems on foreign powers is just a political game. Venezuela is a poor country that needs education, hard work, long term planning, investment and democracy. None of those values have been promoted by Chavez during the last eight years. There is no reason to start now.

Chavez said in his speech last night that he would convene another Constituent Assembly and create a single party, which will simply give him more power than ever. The type of educational programs he is talking about have more to with politics than anything else, there is no long term planning but only short term improvisation and investment in Venezuela is very low, whether coming from abroad or by the Government. All of this is bad for democracy and bad for the people. He spoke of stopping corruption and crime after allowing both to get out of hand in the last eight years by simply not paying attention.

Economically Venezuela is very far away from where I would like it to be. The state is getting stronger, the private sector will be threatened even more now (Chavez dixit), land expropriations will be intensified and controls will be added to the economy. Military projects will grow in sze, no matter how inappropriate.Meanwhile, monetary policy is simply whacky, the financial system is screwy and the tools available to the Government to correct distortions, such as lower interest rates and issuing new debt, may be reaching their limits. Any changes in oil prices, inflation, economic policy or interest rates, could easily lead to severe problems.

Much like the Chavez model for PDVSA, Venezuela has become a transactional country. Those involved in finance and commerce are becoming very rich. Those that have local production plants or facilities are simply losing ground to increasing inflation and regulations and controls. All of this in the midst of the highest levels of corruption and inefficiency the country ahs ever seen. Despite the huge oil windfall, the strains in the system are beginning to show. The CPI is being predicted to hit 25% next year, the parallel rate is likely to hit Bs. 4,000 in 2007 unless oil price skyrocket.

Meanwhile, the Government has added 1.5 million new workers to the payroll in the last eight years. Add the creation of a parallel Government with no controls, Mercal, misiones and the people depend more and more on the Government’s largesse. They have become dependent on that same Government structure.

But a majority of Venezuelans seems to favor that model of Government, the same model that has not created many jobs outside Government in the last eight years. Add Chavez’ charisma, the new boli-bourgeois and the uncontrolled spending and maybe you can begin to understand yesterday’s results.

But what nobody can possibly convince me that this is solid structural footing for the future of any country. A revolution would have been to change what was wrong with our economic and social system for the first forty years of our modern democracy. All Chavez has done is to intensify all of the errors of the past, adding some of his naive economic and social theories. Structurally things are worse, so much worse, that after a five fold increase in oil prices in the eight Chavez years, people’s standard of living is simply back to where they started in 1998, except for a small group way at the bottom and another one way at the top.

Unless oil goes up, way up, things will not get any better in the next six years, least of all with yesterday’s implied mandate, which Chavez will interpret as the need to intensify what he calls his revolution.

Back tomorrow, after a good night’s sleep

December 4, 2006

The Devil’s Excrement will come back sometime tomorrow after a good night’s sleep. Ideas, ideals and principles can never be compromised. It has been a long and confusing day. If Rosales says he lost, he has seen the numbers, I believe it and accept it. I still wonder about the abstention levels I was called about at 1 PM this afternoon by his projections team and how they were reduced so fast.

I think that Venezuelans made the wrong choice today and that they will unfortunately see the results of that bad choice sometime very soon. However democracy is indeed the rule of the majority, and I am definitely in the minority.

I still say I would prefer a Government without uniforms, without guns, with lots of compassion, with belief in the power of knowledge, education, a free mind, investment, with respect for everyone not for just some, a Government for all 26 million Venezuelans, an honest Government, a Government that cares when people are killed or robbed, a Government that would call on the best and not only the trusted to solve problems.

I don’t believe Hugo Chavez represents any of this and tomorrow I will begin chronicling his next six years, for as long as I can.

Rosales concedes, but says difference not that large

December 3, 2006

(Elecciones3D) Rosales on TV. He is conceding his defeat saying he is a democrat, thanks the voters for what they did. He says teh Government took advantage of the state’s resources, but he occupied the required spaces. He says he will continue to carry the flag of this fight.

He says he has reviewed the exit polls, quick counts and revision of the tallies and that he will continue, but that the difference announced by the CNE is smaller than what was announced and he will show it. He recognizes the loss, but will continue the fight until he wins and implements the true redistribution of wealth and the defense of his ideas.

He reminds the Government that there are 26 million Venezuelans and will start the new fight tomorrow.

CNE announces Chavez victory

December 3, 2006

(Elecciones3D) CNE announces that with 78.31% of the tally sheets counted Chavez has 5.936.141 votes (61.35%), while Rosales obtained 3.715.292 votes (38.39%).