Analysis of What the Chavez Presidency Means for Venezuela

Politically Hugo Chavez is, what he terms, a Bolivarian. The Bolivarian movement, as Chavez envisions it, is social-populism. His nationalization of the oil industry illustrates his mode of operation. He confiscates assets created by other organizations and uses them to further his agenda. This tactic has proved unfortunate for Venezuela in that it has built inefficiencies into the system. The oil industry has seen a drain of experts moving out of the country, putting a crimp on the industry's ability to produce at capacity. This has also occurred within the farming sector where large farms and ranches have been taken by the government and broken up into small plots and given to the nation's poor. The loss of productivity has meant that, in spite of Chavez rhetoric to the contrary, Venezuela has turned from a food exporter, into a food importer¹.

Hugo Chavez has censored the press, shutting down media outlets unfriendly to his vision. He has supported terrorist organizations, including the FARC in a bid to destabilize other countries. He has engaged in a vigorous foreign policy that has consumed vast resources that Venezuela could better have put to use within its own borders. He has also engaged in cronyism and nepotism to an extreme degree which has exacerbated the nation's problems with corruption in the government.²

It is widely believed that Chavez has tampered with the election machinery within his country. Going to the extent of firing or pressuring government workers who signed the petition that brought about the 2004 recall referendum (which failed). New voting machines from a company supported by investments directly from the Chavez government and with a Chavez supporter on the board seemed to have inordinately favor Chavez in every vote where he has an interest (slanting the percentage for Chavez up to 98%). Without free and fair elections, it is difficult to see why the government should be responsive to the needs of the people.

Ultimately, Chavez has not taken into account essential economic and social factors such as individual initiative, honest dealing, and the inherent problems of top-down management. This, coupled with his tendency to authoritarian unilateralism has hurt both the Venezuelan economy and the nation's ability to cope with technological advancement. If President Chavez has helped Venezuela, it is in the realm of prestige. He has managed to garner the support of many ideological leftists by his rhetorical flourishes. At the same time his extravagant application of oil revenues abroad has made many countries seek his nod before acting on the international scene. However, this has been counter-acted by his support for terror organizations, a fact which may come back to haunt him. He is also often viewed as a brash and arrogant figure. At one point at a conference, a normally restrained King of Spain felt compelled to ask him to be quiet³.

The final analysis: Hugo Chavez is an entertaining character to have on the international stage. However, his administration have been a net negative for Venezuela.

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1. Venezuela Imports Food
2. Corruption in Venezuelan Government
3. Shut Up, Spain's King Tells Chavez