Archive for the 'Venezuela' Category

WSJ article on the Hausmann, Rigobon study

September 7, 2004

Wall street Journal pays attention and quotes the academic that the Carter Center quoted when Taylor said he was in error.


Academics’ Study
Backs Fraud Claim
In Chavez Election


By DAVID LUHNOW in Mexico City and JOSE DE CORDOBA in Miami
Staff Reporters of THE WALL STREET JOURNAL
September 7, 2004; Page A18


Two Venezuelan academics claim to have found statistical evidence of fraud in last month’s referendum on President Hugo Chavez, fueling the opposition’s claims of a rigged vote and raising the possibility that despite Mr. Chavez’s victory, the country’s tense standoff will continue.


The claims were made Sunday by Ricardo Hausmann, a professor at Harvard University‘s John F. Kennedy School of Government and former chief economist at the Inter-American Development Bank, and Roberto Rigobon, a professor of applied economics at the Massachusetts Institute of Technology’s Sloan School of Management.


The pair issued a report that tried to measure the possibility that the vote was clean using two separate analyses of the official results. In both cases, they said, the chances of a clean vote were less than one in 100.


Members of a civic group called Sumate that organized the referendum, which Mr. Chavez won by a 59% to 41% margin, seized on the study to suggest Mr. Chavez had won by tampering with the electronic-voting machines used in the contest. “We don’t think the truth about the referendum has been revealed yet,” Alejandro Plaz, a spokesman for Sumate, told reporters in presenting Mr. Hausmann’s study Sunday. Sumate requested help from the academics in analyzing the referendum data but didn’t pay for the study.


Mr. Chavez’s government reacted with disbelief to the claims, saying the opposition’s previous claims of fraud had so far proved incorrect. Vice President Jose Vicente Rangel said members of the Atlanta-based Carter Center and the Organization of American States had already validated the result. “No one believes in their theories anymore because three weeks have gone by and they haven’t been able to prove anything,” Mr. Rangel said.


Members of the Carter Center and the OAS were unreachable for comment yesterday. But both organizations have consistently stood by their findings in the past weeks and watched as other theories of fraud fell short under scrutiny.


The results of the study, however, prompted some independent experts on computer voting to call on the Venezuelan government to open up all aspects of the election — including electronic codes from voting machines — to public scrutiny.


“The Hausmann/Rigobon study is more credible than many of the other allegations being thrown around,” said Aviel Rubin, a computer-science professor at Johns Hopkins University who has warned about security flaws with electronic voting. Mr. Rubin recently conducted a study of opposition claims that machines were rigged to limit the number of votes against Mr. Chavez and concluded the claims were highly unlikely.


“I would encourage the Venezuelan government to open up all aspects of the election to public inspection, not just to selected observers. That includes all of the paper ballots, the source code in the voting machines, the random generators … that were used to pick the sites to audit,” he said in an e-mail interview.


The study by Messrs. Hausmann and Rigobon suggested the government may have tampered with only some of the machines, leaving others clean for observers to audit. They said the sample used for the audit, which was carried out days after the election, wasn’t randomly chosen and limited to the “clean” machines.


The study says the computer that determined which ballot boxes were to be subjected to a recount belonged to Venezuelan election officials. However, the Carter Center‘s Jennifer McCoy has said the group tested and verified the computer program used to select the sample.


The study compared the votes obtained by the opposition during the recall vote with the signatures gathered in November 2003 requesting the referendum. For the recounted votes, the correlation between the number of “yes” votes matched the 2003 petition numbers at a rate that was 10% higher than in the ballot boxes that weren’t recounted. They calculate the probability of this taking place by chance at less than 1%.


The government’s sample recount “was not a random sample, and I can say that with 99% confidence,” Mr. Hausmann said in a telephone interview.


The academics used another technique to look for suspicious patterns in the results, using the 2003 petition and an exit poll on the day of the vote as a vague measure of a voter’s intention. Because both measures are imperfect for different reasons, the academics argued, the measures should make different mistakes in predicting the final result.


But the academics found that each method had similar margins of error when compared with the official results, something that would happen only one in 100 times without fraud, they argued.

Diebold’s growing pains in electronic voting

September 7, 2004

Article in bloomberg.com about the rough time Diebold has had in the field of Electronic voting

Capriles to be tried in freedom

September 7, 2004

I have not posted anything about Henrique Capriles Radonsky, the Mayor of the Baruta municipality of Caracas,  being freed because I was looking for something wise to say. He should have never been jailed because according to Venezuela’s laws, he should have been tried while in freedom, but justicewas manipulated sufficiently to keep him jailed for quite a while. My only educated guess at this point is that after his case was handled by nine different judges and the last one, Leon Villanueva, being detained for extortion, they could not find any more judges that could be manipulated easily.

A summary of problems with recall vote

September 5, 2004

A very brief summary of what we know:


-Exit polls: Very low probability of sample being taken from those final results according to Sanso and Prado, using three different exit polls.


-Hot Audit: Incomplete, opposition present in only 27, in those Si won handily. Most never completed.


-Cold Audit: Random Sample being questioned, may not have been that random. CD not allowed to choose boxes.


-Coincidences: Very low probability of happening, 1 to 3 in 1000 according to Prof. Taylor.


–Quick Poll: Only thing that there is agreement it was OK by all parties.


What do you think? Paranoia? Just coincidences? De que vuelan, vuelan?


(In Spanish there is a saying: I don’t believe in witches, but that they fly, they fly)

A summary of problems with recall vote

September 5, 2004

A very brief summary of what we know:


-Exit polls: Very low probability of sample being taken from those final results according to Sanso and Prado, using three different exit polls.


-Hot Audit: Incomplete, opposition present in only 27, in those Si won handily. Most never completed.


-Cold Audit: Random Sample being questioned, may not have been that random. CD not allowed to choose boxes.


-Coincidences: Very low probability of happening, 1 to 3 in 1000 according to Prof. Taylor.


–Quick Poll: Only thing that there is agreement it was OK by all parties.


What do you think? Paranoia? Just coincidences? De que vuelan, vuelan?


(In Spanish there is a saying: I don’t believe in witches, but that they fly, they fly)

Letter to Prof. Johnathan Taylor

September 5, 2004

I just sent this letter to Prof. Johnathan Taylor of Stanford University


(Use links in text, line links don’t work)


Dear Prof. Taylor:

On Aug. 16th. Venezuelan opposition analysts began charging that there
were some surprising numerical coincidences in the number of SI votes
within voting centers in Venezuela. The Carter Center and the
Electoral Board said on the 18th. that there were only 402 and this
was reasonable.

But this was not what the opposition was charging, the 402 repetitions
were across the “mesas” (tables) and not across the machines. Thus,
apparently the Carter Center had consulted on the  wrong problem.

In my blog, I explained the difference on Aug. 18th.:

http://blogs.salon.com/0001330/2004/08/18.html#a1702

pointing out that a center may have a number of mesas, but that each
mesa may have a variable number of “cuadernos”. In centers with
electronic voting, each cuaderno is equals to one machine. Thus, the
lowest equivalent unit is the cuaderno (machine) not the mesa.

On the 22nd. I reiterated the issue:

http://blogs.salon.com/0001330/2004/08/22.html

pointing out that the 402  SI coincidences at the mesa level, became
805 coincidences at the center level with 1879 machines involved in
these coincidences.

Elio Valladares took a first stab at the mesa problem:

http://blogs.salon.com/0001330/2004/09/01.html#a1732

reaching conclusions that you now agree with.

However, it was not until yesterday that Elio solved the problem in
what I believe is the correct way, he did his simulations at the
cuaderno (machine) level and from there calculated the coincidences
for the SI vote at the mesa level. His results (attached) indicate

<!– D(["mb","that the probability of the number of coincidences reported is about 1\
in 10,000 when the problem is considered at the machine (cuaderno)\
level. Certainly a worrisome result given what is at stake.\
\
While no mathematical study will prove that there was fraud, it\
certainly seems suspicious that these coincidences apparently have\
such low probability, that a statistical study of exit polls by Prof.\
Sanso and Prof. Prado of the University of California at Santa Cruz:\
\
\http://blogs.salon.com/0001330\/2004/08/26.html#a1720\\
\
also finds very little probability of those exit polls matching the\
vote at each voting center and that the live audit of comparing 199\
ballot boxes the night of the vote was never completed.\
\
The Carter Center, based on your earlier conclusion disregarded the\
problem of coincidences. I believe it is only fair that you calculate\
the same problem Elio Valladares calculated at the machine level and\
using your conclusions help decide whether the Carter Center and the\
OAS should or should not reopen the case for fraud in the Venezuelan\
recall vote.\
\
Respectfully.\
“,1] ); //–>
that the probability of the number of coincidences reported is about 1
in 10,000 when the problem is considered at the machine (cuaderno)
level. Certainly a worrisome result given what is at stake.

While no mathematical study will prove that there was fraud, it
certainly seems suspicious that these coincidences apparently have
such low probability, that a statistical study of exit polls by Prof.
Sanso and Prof. Prado of the University of California at Santa Cruz:

http://blogs.salon.com/0001330/2004/08/26.html#a1720

also finds very little probability of those exit polls matching the
vote at each voting center and that the live audit of comparing 199
ballot boxes the night of the vote was never completed.

The Carter Center, based on your earlier conclusion disregarded the
problem of coincidences. I believe it is only fair that you calculate
the same problem Elio Valladares calculated at the machine level and
using your conclusions help decide whether the Carter Center and the
OAS should or should not reopen the case for fraud in the Venezuelan
recall vote.

Respectfully.

Carter Center trying to look good, defends results from Rubin now

September 5, 2004

I guess I was not the only one paying attention, here JorgeRodriguez says they talked to Prof. Taylor and he saw the same text I posted, but now Taylor is being pressured. Meanwhile Jennifer MCoy continues skirting the issue and now talks about other experts, without realizing that they have not even solved the correct problem. They even issue a new report and now side with Rubin’s data. This is now getting interesting as I added in the note below, Elio Valldares has solved a more complete problem and he gets a probability of one in 10,000 for the coincidences observed. Tulio Alvarez, the lawyer preparing the case, now says the Carter Center played the role of useful idiots. The attempts today by the Carter Center to me are more irresponsible than idiotic.


I think both Taylor and Rubin, should work on the real problem at the machine level to calculate what Elio Valladares did and shut up the Carter Center for once and for all. Enough!

Carter Center trying to look good, defends results from Rubin now

September 5, 2004

I guess I was not the only one paying attention, here JorgeRodriguez says they talked to Prof. Taylor and he saw the same text I posted, but now Taylor is being pressured. Meanwhile Jennifer MCoy continues skirting the issue and now talks about other experts, without realizing that they have not even solved the correct problem. They even issue a new report and now side with Rubin’s data. This is now getting interesting as I added in the note below, Elio Valldares has solved a more complete problem and he gets a probability of one in 10,000 for the coincidences observed. Tulio Alvarez, the lawyer preparing the case, now says the Carter Center played the role of useful idiots. The attempts today by the Carter Center to me are more irresponsible than idiotic.


I think both Taylor and Rubin, should work on the real problem at the machine level to calculate what Elio Valladares did and shut up the Carter Center for once and for all. Enough!

The untouchable pensions

September 4, 2004

This week two things happened that reminded me of one of the most perverse things that goes on in this country and nothing ever gets done about it: Government pensions. The two things that happened were the resignation of Minister Hector Navarro from the Ministry of Higher Education and the issuing of new pension rules at the Venezuelan Central Bank.


Navarro, who has been a Minister from day one of the Chavez administration, quit his position in order to go back to his duties at Universidad Central de Venezuela and retire in one and a half years. Navarro is in his late forties or early fifties and will take advantage of the generous pensions in Venezuelan Universities which allow you to retire after 25 (twenty five) years at full salary and benefits, without ever contributing to a pension fund. Moreover, the system is such that when the salary of Professors is increased, retired Professors get the increase too. Additionally, if you die, the same benefits are transferred over to your widow until her death.


 


Similarly, the Central Bank issued new ¨tougher¨ rules on pensions from that institution. by which men wanting to retire will now need 20 years of service if they are 60 years old, 20 if you are 55 years old or 35 years of service. For women, they can retire after 20 years of service if they are 55 years old. All of these pensions are automatically adjusted if the person holding your last position receives a salary increase. Thus, all former Presidents of the Central Bank who have retired, and there are a few around receive the same pension, all without ever having contributed to a pension fund.


 


This extremely absurd system has been in place for a long time. No country, however rich can sustain a pension system like this one. There have been two attempts to change it; one was changed at the last minute. The second one took place during Caldera’s last year, led by Tal Cual Editor´s Teodoro Petkoff and was supposed to take effect on the year 2000. That bill established both Government and private pension funds which would be by contribution only. Additionally, it established uniform criteria for retirement, either 65 years of age or 35 years of service. In addition to providing a healthy pension system, it wouldprovide a pool of savings that could invest in Government bonds, solving two problems at once. The perversity had been supposedly eliminated from the system; much like Lula did in Brazil in his first year in power.


 


When Chavez got to power he named a commission to study the new law and gave it six months to make changes. Then he extended it six months. He gave them an additional six months and, unfortunately, that was the last we heard of the issue.


 


The commission made a big deal out of the fact that the laws allowed the banks to get into the pension fund business. The way I understand it however, was that most of the members of the Commission were either revolutionary academics that felt their future pensions were threatened by the Bill, or MVR or PPT politicians who saw their extremely generous Assembly pensions in danger.


 


The result was typical Venezuelan: do nothing. Unfortunately, only a few will continue to benefit from this indecision, in a manner which I find both obscene and perverse. But this is not a political issue, for either side.

The untouchable pensions

September 4, 2004

This week two things happened that reminded me of one of the most perverse things that goes on in this country and nothing ever gets done about it: Government pensions. The two things that happened were the resignation of Minister Hector Navarro from the Ministry of Higher Education and the issuing of new pension rules at the Venezuelan Central Bank.


Navarro, who has been a Minister from day one of the Chavez administration, quit his position in order to go back to his duties at Universidad Central de Venezuela and retire in one and a half years. Navarro is in his late forties or early fifties and will take advantage of the generous pensions in Venezuelan Universities which allow you to retire after 25 (twenty five) years at full salary and benefits, without ever contributing to a pension fund. Moreover, the system is such that when the salary of Professors is increased, retired Professors get the increase too. Additionally, if you die, the same benefits are transferred over to your widow until her death.


 


Similarly, the Central Bank issued new ¨tougher¨ rules on pensions from that institution. by which men wanting to retire will now need 20 years of service if they are 60 years old, 20 if you are 55 years old or 35 years of service. For women, they can retire after 20 years of service if they are 55 years old. All of these pensions are automatically adjusted if the person holding your last position receives a salary increase. Thus, all former Presidents of the Central Bank who have retired, and there are a few around receive the same pension, all without ever having contributed to a pension fund.


 


This extremely absurd system has been in place for a long time. No country, however rich can sustain a pension system like this one. There have been two attempts to change it; one was changed at the last minute. The second one took place during Caldera’s last year, led by Tal Cual Editor´s Teodoro Petkoff and was supposed to take effect on the year 2000. That bill established both Government and private pension funds which would be by contribution only. Additionally, it established uniform criteria for retirement, either 65 years of age or 35 years of service. In addition to providing a healthy pension system, it wouldprovide a pool of savings that could invest in Government bonds, solving two problems at once. The perversity had been supposedly eliminated from the system; much like Lula did in Brazil in his first year in power.


 


When Chavez got to power he named a commission to study the new law and gave it six months to make changes. Then he extended it six months. He gave them an additional six months and, unfortunately, that was the last we heard of the issue.


 


The commission made a big deal out of the fact that the laws allowed the banks to get into the pension fund business. The way I understand it however, was that most of the members of the Commission were either revolutionary academics that felt their future pensions were threatened by the Bill, or MVR or PPT politicians who saw their extremely generous Assembly pensions in danger.


 


The result was typical Venezuelan: do nothing. Unfortunately, only a few will continue to benefit from this indecision, in a manner which I find both obscene and perverse. But this is not a political issue, for either side.