Wednesday, September 21, 2011

Pdvsa Pres. offers USD 1 billion to nationalize Exxon.

The nationalization of Exxon mobil will be good for Venezuela insofar as the oil profits would remain domestically, albeit possibly lost via corruption; however, nationalization or the threat thereof is a scary concept for foreign investment.

If Exxon accepts the 1 billion to nationalize its assets, the foreign investors will likely direct their funds to countries with more stable and secure business sectors. In the short term, a drop in foreign investment into Venezuela will be particularly damaging as the country's resources are spent on social programs and yet these programs have yet to aid the many very poor Venezuelans. With less foreign investment, venezuela will need to allocate more funds to maintaining and expanding its primary business sector; this reallocation will take away from the already unsatisfactory social programs.

Friday, April 30, 2010

Chavez Joins Twitter--I thought is was a "terror tool" ?

Only two months ago the socialist president said that twitter was a tool for terror. Now, he sees its potential and is using it to his advantage-- to further the Bolivarian revolution. He is also urging Castro and Morales to join twitter with along with him. You can follow him on twitter @http://twitter.com/chavezcandanga . This new venture into the realm of the internet is likely an attempt to advertise his propaganda to the youth of Venezuela and the socialists of the world. It will be interesting to see if Castro and Morales follow suit.

What good can come of this? Those who are used to having to pick through and listen to his extremely protracted speeches can now get his main point or idea in less than 140 characters!

Saturday, April 17, 2010

Great Sources for info on Venezuela and Caracas

Blogs:

EVERYONE: This blog will be updated in a few weeks.

Hello Everyone: Most of the things in here are in the recent past, mostly because this blog started as a project for my History class. In a few more days exams will be over and I will begin to make it current by discussing current headlines and breaking news! Meanwhile, have a read and please comment.

The Caracas Discourse


Caracas has an extremely polarized political environment, which breeds tension. The city is fragmented into various poor/rich/middle-class zones called socioterritories. Tensions between these classes arise with each class wanting something different. In the city there are the tensions between the Chavistas and the opposition; however, it looks like the opposition just gets arrested these days, so this tension will die out if things are allowed to continue this way... There is a tension in the city itself, there are those who have become embedded in the oil city’s globalized economy, and then there are those who are marginalized and forced into poverty. There is tension between the government and all people, no matter their political orientation, in regard to shortages of food, water, electricity, and an abundance of crime—all citizens of Caracas are fervently pushing for an end to the aforementioned topics. The severe polarization in Venezuelan politics makes for no middle ground; there never seems to be any reasoning between the parties, each merely holds its position. In essence, there are those who want a drastic Bolivarian revolution, and there are the others who most definitely do not, yet nothing is fairly decided, Chavez dictates nearly all decisions. In relation to this there is the oil politics which always makes things difficult for Venezuela. For example, its primary export is oil and the US is one of its chief buyers. However, Chavez hates the “Imperialist US” and its capitalism, yet he is bound to it because of the oil revenues Venezuela would lose were it to stop exporting its resources to the US... Venezuela is in a mess right now…Check my other posts for details.

Image source: Leonardo Ramirez, Unnamed, day in photos, January 25, 2010, The Washington Post, Caracas, Venezuela. http://www.washingtonpost.com/wp-dyn/content/gallery/ (accessed April 1, 2010).

Thursday, April 15, 2010

Caracas: an insiders perspective.


This is a fellow blogger: Julia_1984

During the last few weeks, I have been in contact via email with Julia_1984, a middle-class former student, fellow blogger and Caracas resident, here is her blog: Julia_1984. After explaining what I was doing and that this was a university project, she allowed me to ask her various questions. The answers she provided gave an up to date and real world perspective on current issues and what life is really like in Caracas today. The following has been created with information provided by her, but I have also elaborated throughout with further facts and opinion.

Life in Caracas can be difficult. Julia_1984 mentioned that it can be depressing for anti-Chavez Venezuelans to stay informed of current events by watching the only remaining opposition TV channel. She says, “[a]fter 15 minutes watching that channel you will end up with the idea that Chavez might take away the kids and put the rest of us in labor camps. And you will have strong basis to support that idea.”[1] The sensationalist demeanor of the sole remaining opposition channel has the ability to make unimaginable circumstances seem possible, but at the same time takes away from its credibility. Instead, Julia_1894 suggests that to get a real understanding of what is going on in Caracas, one must turn to the internet.[2] The internet, with its hundreds of varied sources and biases, provides a medium which one can more thoroughly explore the entire picture for a better understanding of an event. Mass media tends to take a side and be sensationalist all over the world, but the extreme polarization of its mass media makes Venezuela a special case; both sides act over the top in vehement opposition and there are rarely reasonably expressed points of view. However, as of late January this year, there is only one point of view on TV. Chavez took RCTV—an opposition TV channel—off the air because it said it would not comply with the governments new law to host Chavez’s Alo Presidante TV program. The representatives for RCTV stated that “[t]he government is inappropriately pressuring [RCTV] to make decisions beyond their responsibilities.”[3] To show Chavez’s programming was probably not part of the initial contract, more likely, it was one of Chavez’s whims—like when, in the middle of one of his shows, he decided right then to send the military to the Columbian border, purely out out anger. Whatever it was, Chavez has silenced the opposition's one medium that can reach the illiterate--TV. Limiting the television to only pro-revolution media was a smart move and probably Chavez's intent because the poor and illiterate are where he finds most of his support.

In March this year, Chavez arrested the owner of Venezuela’s only remaining opposition TV channel. “Attorney General Luisa Ortega said a warrant was issued for the arrest of Guillermo Zuloaga, owner of the TV channel Globovision, for remarks that were deemed 'offensive' to the president.”[4] The remarks that were made on the program were simply “Venezuela has turned into a haven for drug traffickers” and “Venezuela's government has cooperated with the Basque separatist group ETA and Colombian rebels.”[5] First, surely Chavez does not want to hear these remarks, but he has no right to restrict them from the public debate. If he does, then the popular democracy cannot properly function because the peoples vote needs to be informed by all perspectives, not just by Chavez’s. This is a very serious move one step closer to an authoritarian dictatorship.

Julia_1984 says that the middle class families in Caracas are afraid of the loss of democracy and that Chavez strains them to the point that even though an entire family has agreed to oppose Chavez, they still get in fights over when their troubles will be over and what are they going to do until then.[6] At the micro level, the political policies and decisions greatly affect the family and individual lives of the residents of Caracas. This is a good reminder for us Canadians; although we may think we do not feel the effects of politics in our everyday lives, the effects are there. In Canada the effects just go unnoticed for the most part because Canada has a plentitude of resources and wealth. In Caracas, the allocation of wealth and resources is very poorly handled and the resources to be allocated are less abundant than here in Canada. Moreover, Canadian leaders run a style of democracy where minorities have rights. In contrast, Chavez’s policies disregard minority rights, in this case, the minority is the middle and upper-classes. The enemy in Caracas today is not the criminal, but the wealthy capitalist. Yet it is such a paradox because it is capitalism that fills Venezuela's coffers. The many decisions made by the government over the past ten years has led to a culmination of electricity shortages, massive inflation, crime and violence, and these factors all have direct and indirect effects on the lives of the people living in Caracas. Now their democracy and ability to decide for themselves how to solve these issues or to freedom elect someone who will is being taken away.

Although, Julia_1984 was able to deal with the constant onslaught of Chavez speeches, new policy announcements and bad news coming from the television (most of Chavez’s ideas and policies would be bad from her perspective because she is middle class), she said her “limit” or breaking point, was when the announcement was made that all shopping malls can only use electricity from 11:00am to 9:00pm.[7] To a foreign reader, this seems like a snobby middle-class kid from Caracas getting upset because she can no longer spend all hours of the day shopping at the mall. But Julia_1984 substantiates her reason for why the short hours of mall operation is her “limit”.

For Venezuelans (her peers at least) “the mall is the center of the social life”.[8] In Canada, we have public spaces such as boardwalks, squares, parks, and the streets to hang out at, even with all of these spaces, one can still find groups of youth “hanging around” the our malls. In Caracas, it is too dangerous to be in many of the traditional public spaces like squares or parks plus a mall is air conditioned and shelters one from the rain or sun. Thus, at the basic level, the security and shelter offered by a shopping mall has made it a place of social interaction for many middle-class residents of Caracas.[9] From a deeper perspective, the malls become little cultural centers, offering art exhibits, movie theatres, discos and restaurants; almost like a city within a city. In Julia_1984’s own words:

The mall is the place where we make a business deal in the middle of an informal lunch, then meet our soul mate after work and walk hand in hand throughout the halls till we find a cozy bench to sit, a nice table to have dinner, a good movie to watch, a play we shouldn’t miss; and then meet our friends for a few drinks or a dance.[10]

This sounds like a wonderful place to be, maybe a little romanticized, but with all of those amenities and safety from the 130 murders per 100,000[11] people crime rate, this is where I would socialize too. The shopping mall in Caracas is something like a utopian space built inside of a dystopian city. When the government ordered the shortened operating hours of the mall, it was not just conserving electricity. From an monetary oriented point of view, the shorter operating hours decreased opportunity for businesses to sell their goods and services, hurting the economy. From the point of view of the thousands that use the mall for more than just shopping, the government was chipping away at their quality of life, their social life—a most important topic for youth. It is understandable why from Julia_1984’s perspective, this was her limit. She mentions: why wasn’t food or water shortages her limit? Because she could always go and forget about all the problems and shortages when she was at the mall socializing; it was her refuge. [12] With all of the the shortages of food, water, electricity and the murders and protests the mall is a release for people like Julia_1984. To take away their pleasure is not a stabilizing factor and does not help gain their support, instead it invokes protest and discontent within the already unstable city. However, Chavez does not care. The people who enjoy their time at shopping centers are likely middle-class and probably do not vote for Chavez anyway so to take away from them only gains him support from the lower classes. In the same way Robin Hood was loved by the poor for what he did, Chavez does the same, in addition to violating human rights and banning free speech.

A LETTER FROM Julia_1984

One of the questions I asked Julia_1984 was what she and her peer group thinks about the fact the Chavez intends to arm any Caracas civilians that are willing to defend the Bolivarian revolution. This was her this was her longest answer to any of my questions; she feels passionate about the subject and rightly so. To give arms to a population that already has a very high violence and murder rate is wrong. Here are her thoughts on the subject and they reveal just how unstable Caracas really is:

"Well about Chavez' arming community groups, I'm preparing an entry on the subject actually but let me tell you a few things in advance. I'm not scared, and I have no objective reason to tell you why. When this government was just starting in 2000, it formed the Bolivarian Circles which were communitary asociations and some of them were armed. No one speaks of those circles now, it seem like in a great extent they do not exist anymore. So maybe this milicias will have the same destiny. But, of course I'm concerned. I'm convinced that military are military and civilians are civilians. It might sound obvious for many, it should be obvious for all. It is not so for Chavez, since he thinks that civilians should be military. But soldiers and civilians are different kind of people, with different ways of thoughts. Were a civilian sees a neighbor and maybe an opponent, that he is forced to negociate with; a soldiers simply sees an enemy that it must be eliminated. So thats why people, civilians, shouldn't be armed, shouldn't have tasks such as "the defense of the territory". Chavez wants a civil war, no other reason you would arm civilians. And that desire alone is a true tragedy. I don't think it will ever come true. We are not that kind of people, we are a highly polarized society but from there to really establishing a civil war, I see that way too far and I hope I'm right. On other hand, if you have read the blog you know it, we have a very complicated situation in terms of security, loads of murders and kidnappings. Logics tell me that governments should solve those troubles by disarming people, not by giving them arms; right? So as usual with this one and many other radical moves I'm not scared, I just have many contradictory feelings and thoughts.

You asked not only about my thoughts but also my friend's. Well, they think the same. One commented that Chavez' new armed group looked like one of those World War II movies, one you wouldn't like to experience in real life. Everyone I know its pretty exhausted of all the crazyness around here. And the war against the empire? I mean what empire and what war? Since when we are enemies of the US? It just riddiculous. Chavez lives in his own world. A world that doesn't fit with the real country he should rule but he doesn't.

And yes, Chavez it's out of control. But you know why? According to some pools he's just holding a narrow 40%, even 30% in some others... so he's desperate. Wathever that means, it must be something good in the long term."


[1] Julia_1984, "My limit (a very angry post in 5 parts), Part #1." The end of Venezuela as I know it, Blogger, January 3, 2010. http://antipatrioticvenezuelan.blogspot.com/ (accessed April 10, 2010).

[2] Ibid.

[3] Associated Press, "Cable TV Station Critical of Chávez Is Shut Down." New York Times, January 24, 2010, http://www.nytimes.com/2010/01/25/world/americas/25venez.html?scp=5&sq=Cable%20TV%20Station%20Critical%20of%20Ch%E1vez%20Is%20Shut%20Down%20&st=cse (accessed April 12, 2010).

[4] Ibid.

[5] Ibid.

[6] Julia_1984, "My limit part #1."

[7] Julia_1984, "My limit part #2."

[8] Julia_1984, "My limit part #3."

[9] Ibid.

[10] Ibid.

[11] Arthur Brice, "No surprise Caracas named 'murder capital of world'." CNN.com, December 31, 2008. http://edition.cnn.com/2008/WORLD/americas/12/31/Venezuela.murder.capital/(accessed March 28, 2010).

[12] Julia_1984, "My limit part #3."

Globalization: The Inequality Maker and People Displacer, Caracas





Why a section on globalization? This blog has attempted to address topics and information in regard to Caracas, within the last ten years or so. However, because history is so relevant to the state of contemporary times, there has been some overlap. Globalization has definitely been happening for more than the last ten years, but other than the advent of the computer and the internet, globalization has never taken place at a more furious rate than it is today. 7 years ago, it would have been difficult to connect to a wireless connection in nearly every residential and commercial building—today, wireless is ubiquitous. Moreover, 7 years ago I would have had to call it a “wireless internet” connection for many people to understand what exactly was meant. Not until the Apple Iphone (unveiled 4 years ago) were we able to do so much from anywhere with such ease. At any rate, I am explaining globalization from a technology savvy consumers perspective, but in the case of Caracas, today I can read the Caracas local newspapers, buy shares of a company operating in Caracas, read translated twitter updates (Chavez hates twitter)from Caracas residents, and read and comment of the blogs of Venezuelans, from my computer at home in Canada. This is how I know we are extremely connected and that we are sharing culture, ideas, and status updates.

A note in regard to globalization and Twitter: the impact of technology and social media has recently made the president very angry. Students have been using Twitter to coordinate their protests much more effectively and opposition groups have used Twitter to denounce Chavez and get away with it. Unlike traditional mass media, which is merely banned or cut off, Chavez has fought back by declaring that “’using Twitter, the Internet (and) text messaging’ to criticize or oppose his increasingly authoritarian regime ‘is terrorism.’”[1] He says this when there is a facebook group with approximately 80,000 members (and growing) titled "Chavez esta PONCHAO!" ("Chavez, you struck out!").[2] By this saying, the members mean that he is finished, he has not done a good job and that he should step down from the presidency. I am curious if Chavez actually thinks that those 80,000 members and all the people using Twitter are terrorists…I doubt that. Chavez is just angry that--thanks to globalization and innovation--people in Caracas and Venezuela are able to freely express their opinions to each other and the world, and denounce the government anonymously.

There are a number of characteristics that make Caracas a unique city within Venezuela. It is the capital, the center of government, has many national and international business connections. It has technologically advanced economic activities and has the role of a nationwide service node.[3] Yet, even as a city that is part of the hierarchy of global cities and is taking part in globalization, Caracas is still characterized by marginalization and exclusion of portions of society.

Due to globalization the formal economy in Caracas has expanded and become increasingly interconnected. Today there are luxury hotels, massive shopping centers, a headquarters for the Stock Exchange, buildings for banks and corporations have been built, and the telecommunications system is highly advanced.[4] As an effect of the globalization process, transnational corporations located in Caracas cultivate the localized development of legal and accounting services.[5] Thus, globalization in Caracas has fostered burgeoning high technology, professional and financial sectors, leading to a sizeable amount of high paying jobs for skilled workers; however, the number of jobs in this highly formal sector of the economy is very small relative to the number of citizens in Caracas (3.15 million)[6]. The small number of high paying jobs only adds to the atrocious distribution of income:


Source:[7]

The above graph shows that the wealthiest 10 percent of the population thrive with 48 percent of the wealth, while the poorest scrape by with 10 percent. This graph is a generalization of all Latin American countries, but because Caracas is a capital city--highly susceptible to, and affected by globalization--and is known for its small middle class, one can deduct that the wealthiest 10 percent in Caracas control a certain degree more than 48 percent of the wealth. For a clarity’s sake, a study by Briceño-León (2005) revealed that the income disparity between the classes in 1970 was: the top 1 percent of the population’s income was 363 times that of the poorest 1 percent and by 1995 the ratio had risen to 417.[8] For the poorest of the poor to become poorer than they already are is not usually possible because these are the people with extremely little, to no income at all. Therefore, the only way for the income gap to increase is for the wealthy to become wealthier. In this case it is not poverty that grew, rather, inequality between the classes increased.

The influence of globalization in Caracas has lead to a restructuring of production and consumption[9]; those who are forced to deal with the concomitant consequences of globalization are the poor. While some of the fragments of the population are able to fully integrate into the global economy, others are excluded and become connected to the economy of poverty. Just as growth in the formal economy occurred because of globalization, employment in the low-productivity, low-income informal sector has also increased[10], but social mobility is reduced:

“Different forms of self-employment substitute for the contraction of jobs in the formal sector, the traditional channels of social mobility through education and employment lose their effectiveness, and the formerly adequate incomes from a number of occupations and professions are eroded.”[11]

As the relative income of society increases from the effects of global integration, the real wage of workers—that is, the worth of their money--decreases because when parts of the population have more money to spend, prices rise. In this type of social environment, education for the lower classes of society becomes difficult. Education becomes more expensive and they must work more hours to afford the same living standards they were used to before real wage decreased. The time spent working takes away from their time to spend on education therefore this traditional route of social mobility becomes much more difficult and their poverty is reinforced in this way.

The spatial arrangement of Caracas coincides with the class stratifications, but one of the indirect effects of globalization, is that the expansions of the city are physically shifting the classes around, and out. The center of Caracas has seen land values increase drastically as space becomes increasingly saturated and transnational corporations and businesses that pay top dollar for the central real-estate.[12] The core has become an alcove for the elite. This has forced many of the cities inhabitants to leave the expensive Caracas Metropolitan Area (CMA) and move to one of the four peri-urban areas located in the Caracas Metropolitan Region (CMR).[13] Thus, population growth in Caracas has been decreasing, while surrounding areas are expanding at a quickening rate because of more affordable housing and highways and public transportation systems. Within the CMA there are with the best public utilities and services, the most extensive infrastructure and/or the most comfortable climate.[14] Although the population that moves to the CMR periphery can afford a better standard of living than they could in the CMA, they lose the benefits of the city, not to mention the advantages of not having to commute long distances. In the following picture, the dark areas are the four peri-urban areas of the CMR; for many, the commute to Caracas for work or medical reasons etc. would be quite long and would cost them time and money.


Source:[15]

The changes brought about by globalization such as, the informalization of labor and falling real wages have increased social inequality in Caracas. This inequality is reinforced as the city fragments into multiple unequal territories; the fragmentation “is reinforced by each urban segment’s functional specialization depending on its greater of lesser articulation to the global network of economic relations.”[16] These spatial segments embody the social differences and increasing intricacies within society. The closer economic relationship a segment has in the game of globalization, the better off it is financially, and if a segment of the city is not functionally useful to the economic developments it becomes the underdeveloped and unkempt segment of the city. The wide range of differences that develop between these separate segments is why some have called them “multiple cities”.[17] They become so easily contrastable that these segments can be considered different cities. For example, think of a large metropolis, there are always areas that are more beautiful and safer than other areas in the same city. In Caracas, the contrast between city segments is extreme, some are beautiful, others are ugly. In essence globalization has gentrified Caracas; the core has become the residence of the wealthy and the peri-urban areas (black areas in above picture) become the residence of the vulnerable groups and the “new poor”, who have recently been displaced from the city. Once the “new poor” are displaced, they become worse off than they were before because their distance from the center of Caracas makes it more difficult to be part of the globalization and thus, they become systematically poor. Not only does the social order, which they likely already deal with, hold them back, but also the socioterritorial order and segmentation becomes a barrier and weakens their relationship to the globalized economy, with its epicenter based in the core of Caracas.







[1] Amar Toor, "Twitter Undermines Hugo Chavez's Media Takeover." AOL SWITCHED, February 4, 2010. http://www.switched.com/2010/02/04/twitter-undermines-hugo-chavezs-media-takeover/ (acessed April 19, 2010).

[2] Ibid.

[3] M. Lacabana and C. Cariola, "Globalization and metropolitan expansion: residential strategies and livelihoods in caracas and its periphery." Environment and Urbanization 15, no.1 (April, 2003), 66, http://www.eau.sagepub.com/cgi/reprint/15/1/65.pdf (accessed March 28, 2010).

[4] Ibid.

[5] Ibid., 68.

[6] "Cities Of The World: Caracas, Venezuela, South America." City-data.com, http://www.city-data.com/world-cities/Caracas.html (accessed April 20, 2010)

[7] Roberto, Briceño-León, "Urban violence and public health in latin america: A sociological explanatory framework." Cadernos De Saúde Pública 21, no. 6 (2005), 48, http://www.scielo.br/scielo.php?pid=S0102-311X2005000600002&script=sci_arttext&tlng=en (accessed April 15, 2010).

[8] Ibid., 50

[9] M. Lacabana and C. Cariola, 65.

[10] Ibid., 66.

[11] Ibid.

[12] Ibid., 67.

[13] Ibid.

[14] Ibid.,68.

[15] Ibid., 67.

[16] Mark Amen, et all., Relocating Global Cities: From the Center to the Margins (Rowman & Littlefield, 2006), 181, http://books.google.ca/ (accessed April 15, 2010).

[17] Ibid., 182.

Top image Source: Unnamed Author, The Consequences of Globalization, Katrina Hindman, December 18, 2008 http://khindman.wordpress.com/ (accessed April 20, 2010).