Accomodating Reality

A couple more notes on that CITIC-Petropiar privatization deal I wrote about in Foreign Policy.

1. I find it jaw-droppingly bizarre that at this point the only two Spanish language publications to have picked up the story are…PanfletoNegro and El Chigüire Bipolar. Seriously, how easy is it to pull the wool over Venezuelan journalists eyes? Just by burying the deal in a pile of other sino-venezuelan deals, the government managed to get the entire journalistic profession to simply miss it. Really.

2. It’s still hard to say what pushed PDVSA to make such a strange decision. The most encouraging interpretation is that they got mugged by reality. After years of pushing for investment deals with foreign majors on terms that no sane counterpart could accept, PDVSA is finally waking up to the simple mathematical fact that nobody is going to lend them the 240 billion bucks they need to develop the Faja del Orinoco. They need private capital in the mix if they’re ever going to come close to the massive figures needed in the Faja.

What’s remarkable about that is precisely that PDVSA is allowing itself to be mugged by reality rather than going for the tried-and-true ostrich-strategy.

Because the Venezuelan government’s usual reaction to overwhelming evidence that its preferred approach to a given problem is not working is simple stonewalling and denial. They approve a new apartment rental law that sees literally the entire legal rental market disappear overnight? Hell if they’re going to acknowledge it! They adopt an “inflation anchor” that leaves them with the world’s higher inflation? Psssssh, not if they know it. Their attempts at battling “hoarding” leads to deepening shortages? Maybe, but they’ll never admit it.

The really remarkable thing about Petropiar is that they seem to be siding with an actual solution over simple mindless denial. That never happens…

Posted in Oil | Tagged , | 1 Comment

Scorched schools

Let's hope it lasts

Henrique Capriles Radonski has made education a key element of both his work as Governor of Miranda and his upcoming campaign for President. During an opening of a new school in the town of Cupira, he said:

“Every new school that we build or recover, multiply the chances of progress for our children and grand-children… …education is a passport to the future and a shield aganist poverty.”

Education in Venezuela faces huge problems: students dropping out, teachers protesting over salaries, lack of infrastructure, and the push for ideology, among others. But for some time now, the school system is now facing bigger threats: crime and violence.

In the state of Carabobo, at least 15 schools are vandalized monthly. One school in the town of Yagua has been robbed four times in a single month. Vandals take advantage of relaxed security. Violence in classrooms and playgrounds is the new normal.

It can be said that is just a symptom of the crisis we’re suffering. But the fact is the worsening of this problem along with the lack of actions by the authorities, represent a scorched earth policy against current and future generations of Venezuelans.

Posted in Education, Society, Violence | 1 Comment

Two anecdotes from our journey

Photoshopped to within an inch of its life

Our sojourn in Venezuela has ended, por ahora. Both Quico and I are back in our home bases, plotting our next trip back, hoping to bring you more on-site, in-the-flesh blogging. We learned a lot on our trip, but I wanted to tell you a couple of anecdotes that Quico didn’t find worthy of a post, but I thought were kind of amusing.

When we were in Maracaibo, I decided to show Quico around, so I took him to La Vereda del Lago, the lakeside park that is the pride and joy of maracuchos.

When we got there, we saw a big hubbub – music, people, buses. As we got closer, we bumped into the city’s mayor, Eveling de Rosales, the former First Lady of the state, talking to the press, surrounded by an entourage of dozens. We realized she was there because she was “inaugurating” a fleet of about a dozen new dump trucks for the city’s garbage collection, all duly covered in political propaganda.

Continue reading

Posted in Venezuelan Culture | 54 Comments

Gladiators

Quico, over on the International Herald Tribune’s Latitude blog, does his best to promote the image of the country.

Posted in Prisons, Society | 24 Comments

To drink or not to drink the water?

The February 4th oil spill in the Guarapiche river in Monagas State is an enviromental disaster that has put the water supply of Maturín at risk. While PDVSA keeps saying the situation is under control, the real extent of the damage has started to show.

The main issue is whether the river water is apt for consumption. A Vice-President of PDVSA, Eulogio Del Pino, drank a glass of water from the river to prove its safety.

The National Academy of Natural Sciences said: not so fast.

“There could be three elements in the water: oils, heavy metals and aromatic hydrocarbons… prolonged contact with heavy metals is toxic… Some of the aromatics are class 1 carcinogens, according to the World Health Organization…”

Del Pino’s stunt brings to mind the case of Otsuka Norikazu, a japanese TV host who ate vegetables from Fukushima live on air to support local farmers who sufferred after the nuclear disaster. Later, he was diagnosed with Leukemia.

While Maturín copes with the contingency, the independent pro-Chávez Governor of Monagas is angry. Seems like a whole bunch of other people are about to get angry as well. The pipeline explosion which started it all is here. Now, there’s another spill in Anzoátegui.

Posted in Environment, Oil, Society | Tagged , , | 14 Comments

As the Vinotinto rises, our football still struggles

Even after their recent defeat by the world champions, it is undeniable that “La Vinotinto” has become one of the most positive stories to come out of Venezuela in years. Once the laughing stock of South American football, the national team has improved to the point of getting into the top four at last year’s Copa America, and defeating Argentina for the first time ever.

Going to the World Cup for the first time is no longer a pipe dream.

However, our football league has yet to see the profit of the Vinotinto’s success. Several teams are in deep financial trouble. Clubs usually change names and cities or even dissapear after a few years. Even reality can get in the way, like Real Esppor found out a short time ago.

Violence is also meddling, as proved by recent events. After several stadiums were built or renovated for the 2007 Copa America competition, some of them are already in deplorable conditions.

The future of the league and of Venezuelan sports in general is in limbo, thanks to the new legislation on the matter. The rules the Sport Ministry will apply for this law were passed without consulting the sport federations and leagues.

Not a hopeful sign.

As a football fan, I have been thrilled by the growth in popularity of football in our country. My local team, C.D. Lara, just won their first championship. Juan Arango, the Vinotinto’s captain is but an example of a new legion of players leaving their mark in Europe.

Even if there are challenges to overcome, the future of our football is bright. A decade ago, wearing the vinotinto jersey was seen as weird. Today, it is almost mandatory to have one in the closet.

Posted in Society, Venezuelan Culture | 19 Comments

Parrilla de Vaca Sagrada

Were you deeply, deeply confused by news that PDVSA has agreed to be privatized…by the Chinese? Me too, my friend, me too.

Posted in Oil | 45 Comments