To: FaultLine who wrote (25718 ) 4/16/2002 10:54:26 PM From: LindyBill Read Replies (1) | Respond to of 281500 Please subscribe to Foreign Affairs And speaking of them, here is a "TWT" on Venezuela from them.(Whatever happens next, the world will be closely watching!) Venezuela: After the Coup That Wasn't Anyone looking for signs that Latin America is entering a new era of history need only look at the recent, turbulent three days in Venezuela. First, a group of top army officers ousted President Hugo Chávez, a former paratrooper and coup-maker himself, from the presidential palace and apparently from power. Next, a new military-civilian government under the leadership of a top business leader, Pedro Carmona, was announced, with Carmona promising to restore democracy to the country. Finally, just 24 hours later, a day of outrage and protests from Chávez loyalists on the streets and in the military ranks ended with Carmona resigning and being taken into custody, and Chávez making a triumphant return from military custody to his palace. Was this a "coup," as Argentinean President Eduard Duhalde labeled it? His view was certainly shared by many Latin American leaders, who feared that Chávez's ouster in the name of "democracy" would set a dangerous precedent for a continent struggling to move away from its history of coups and military dictatorships. Thus, while Carmona was still in power, the Organization of American States passed a resolution condemning the "alteration of constitutional order" in Venezuela. By contrast, the United States--which played an unfortunate role in many of those Latin American coups during the Cold War--preferred to call the fall of the democratically elected Chávez a "crisis" that the president had brought on himself through his authoritarian rule. The great irony of this whole story may be the democratic odyssey of Chávez himself. The populist leader was first elected in 1998, having won massive popular support with his promises to purge the corrupt political and business elite and return some of this oil-rich country's wealth to the power. His so-called "Bolivarian revolution" delivered on this promise: armed with a new constitution that greatly enhanced presidential powers, Chávez marginalized the two parties that had run Venezuela for decades, the social democratic Acción Democrática and the Christian democratic COPEI, who were blamed for the country's economic woes. Yet over time, it became increasingly apparent that Chávez did not know how to revitalize the moribund Venezuelan economy. It seemed that he could not deliver on his promises to the poor and needy. In recent months, popular resentment began to rise and Chávez appeared increasingly isolated as the anti-government forces coalesced. The economic situation had deteriorated under Chávez's leadership, exacerbating public frustration. The business community, already alienated by the president's increasingly radical populist rhetoric, was outraged when Chávez replaced the board of directors of the state oil company PDVSA with a new group, with seemingly less regard for their credentials than for their loyalty to him. PDVSA, which produces 80 percent of Venezuela's foreign earnings and about half the government's revenue, had already been struggling under Chávez's policies. The company announced early this year a 20 percent decline in its dollar earnings compared to the previous year. And the economic woes have multiplied across the entire country; the bolivar was devalued in February, and inflation is now forecast to jump to 40 percent this year. When business and labor leaders called for a general strike in early April, the chaos allowed the military to step in and reclaim power from the president. Is the return of Hugo Chávez, labeled an "autocrat in both style and substance" by one Venezuelan paper, a victory for Latin American democracy? And can he deliver on his promises to the common people while reinvigorating the oil sector and winning back confidence among Venezuelan businesses? Venezuela is the world's fourth-largest oil producer and provides about 15 percent of U.S. oil imports-an especially important factor at a time when instability in the Middle East is roiling the international oil market. Whatever happens next, the world will be closely watching Hugo Chávez.foreignaffairs.org