Tuesday, May 17, 2011

Amanda Chivil

Ever since the European conquest of the new world, South America has been predominantly Roman Catholic. However, ever since the election of “President” Hugo Chavez, there has been great conflict between religion and government. The battle between fundamentalist Christians and President Hugo Chavez has had an adverse effect on religion in the country of Venezuela by instituting a continuous battle between the government and the church.
The ill effect on religion in Venezuela is seen mostly as a result of the expulsion of the US missionary group in 2005. The New Tribes Mission of the US has converted many members of the native tribes of the country and has “helped indigenous tribes during hard times when aid from government authority was scarce or nonexistent.”(MSNBC).  However, Chavez strongly disliked these actions and thus expelled the missionary group from the country, for he viewed the missionaries as “imperialists” and has suggested, “American evangelists are part of a broader conspiracy in Washington to topple a president whose regional influence is growing thanks to massive oil revenues.”(BBC). Anything that could possibly hinder the political power of Chavez and Venezuela, especially anti-Communist Americans, is ultimately seen as threat. In addition, Chavez felt further resentment regarding religion when Pat Roberson, a televangelist, “suggested on-air that American operatives assassinate Venezuelan President Hugo Chavez to stop his country from becoming ‘a launching pad for communist infiltration and Muslim extremism.’”(USA Today). This outraged Chavez, who saw it as extremely immoral and uncalled for, and thus ousted the New Tribes Mission from the country.
Following the expulsion of the missionary group, Chavez has continued to suppress other religious entities throughout the country. For example, Chavez sees the powerful Church hierarchy as a threat, for “80% of the population is supportive of the Church and regards it as trustworthy.”(Marlin). This does not go in hand with Chavez’s idea of socialism, which “is revolutionary by nature” and has provoked “a growing political polarization, increased violence, insecurity and hatred, and seriously jeopardized a peaceful democratic society.” (CNA). The Catholic Church is an obstacle for Chavez, for he desires to transform the country and put it under his direct power without any other influences, especially one that believes “Chavez’s brand of socialism is not compatible with the teachings of the Church.” (Marlin). Thus, to curb its power, Chavez designed a law that ended traditional government subsidies to Catholic schools and ended the right of children to receive religious education in government-run schools.” (Marlin).
Despite Chavez’s attacks, the Catholic Church has remained in strong opposition to the government. For example, “in 2007, the bishops opposed Chavez’s constitutional reform referendum that would have given him dictatorial powers. The proposals, they said, were undemocratic and a massive attack on civil rights particularly freedom of expression.”(Marlin). In addition, the Catholic Church persists to battle the regime even after a government gang, La Esquina Caliente, physically assaulted [Cardinal Urosa].” (Marlin).  While Chavez denies “he’s steering Venezuela toward a dictatorship,” Cardinal Urosa of Venezuela maintains, “Chavez aims to copy Cuba's communist model and has raised concerns the president is borrowing tactics from his close allies - Raul and Fidel Castro - to sideline adversaries and muffle dissent.” (CBS) The Catholic Church greatly disagrees with the attempts of Chavez to suppress human rights and manipulate the people and government.
Due to the socialist and overpowering views of Hugo Chavez, religion has been continually suppressed in Venezuela. This was first triggered when Pat Robertson ordered for the assassination of Chavez, which triggered Chavez to eliminate the New Tribes missionary group from the country. Since then, there has been on ongoing struggle between the respected Catholic Church and Chavez, who is continuously finding ways to strip the church of its power since it poses a threat to his own authoritative motives.

Works Cited
Agency, Catholic News. "Venezuelan Bishops Warn Chavez Is Jeopardizing Democratic Society :: Catholic News Agency (CNA)." Catholic News Agency. 9 June 2009. Web. 17 May 2011. <http://www.catholicnewsagency.com/news/venezuelan_bishops_warn_chavez_is_jeopardizing_democratic_society/>.
Marlin, George J. "Hugo Chavez: Anti-Catholic, Narcissist, Leninist." Latest Articles. 16 Nov. 2010. Web. 17 May 2011. <http://www.freerepublic.com/focus/f-religion/2716187/posts>.
Size, Font. "Chavez, Venezuelan Church Clash Over Freedoms - CBS News." Breaking News Headlines: Business, Entertainment & World News - CBS News. 12 July 2010. Web. 17 May 2011. <http://www.cbsnews.com/stories/2010/07/11/world/main6668823.shtml>.
"USATODAY.com - Pat Robertson Calls for Assassination of Hugo Chavez." News, Travel, Weather, Entertainment, Sports, Technology, U.S. & World - USATODAY.com. 23 Aug. 2005. Web. 17 May 2011. <http://www.usatoday.com/news/nation/2005-08-22-robertson-_x.htm>.
"Venezuelans Protest Chavez Missionary Threat - World News - Americas - Msnbc.com." Msnbc.com - Breaking News, Science and Tech News, World News, US News, Local News- Msnbc.com. 28 Oct. 2005. Web. 17 May 2011. <http://www.msnbc.msn.com/id/9853894/ns/world_news-americas/>.

Anasha Green

Venezuela and the United States have been in connection for many years through the exporting of oil to the US from Venezuela. However, relations have not always been peaceful between the two countries. Venezuelan president Hugo Chavez has repeatedly shown his dislike for the United States through threatening to stop exportation of oil to the United States, and by calling our leaders “devils”. This rocky relationship between President Hugo Chavez and American evangelical groups stationed in Venezuela stems from the disdain Hugo Chavez has for the United States’ continuous intervention in the affairs of the country.
For many years, the United States has exercised its ability to enter foreign countries and try to solve its problems. One of the most common examples of this intervention is the numerous evangelical groups that originate in the United States that go to other countries to do work. Normally, intrusion such as this into another country would be deemed as unacceptable, yet because these groups come in the name of religion, it becomes acceptable. Even when a country speaks against evangelical groups intruding on their privacy, supporters of these groups use doctrines instituted by the United States to justify their entrance into foreign countries. In 2005, evangelic preacher Pat Robertson made several claims regarding Venezuela, one of which pertained to the right of the United States to enter foreign lands, not simply to evangelize, but to also interfere with politics. He stated that “[Venezuela] is in our sphere of influence… we have the Monroe Doctrine, we have other doctrines that we have announced. And without question, [Hugo Chavez is a dangerous enemy to our south… we have the ability to take him out, and I think the time has come that we exercise that ability” (Robertson Called for the Assassination of Venezuela's President). This is an example of evangelistic leaders interfering with not only the social life of a foreign country, but the political life as well.
While most leaders accept the intervention of evangelical groups into their countries, others view these missionary groups as enemies. Hugo Chavez, the president of Venezuela is an adamant believer that evangelical groups will bring his terms as president to an end. This is not because of the religion of these groups, but because of their constant intrusions. In October of 2005, a mere two months after the statements were made by Pat Robertson, Chavez issued a statement that “The New Tribes [missionary group] are leaving Venezuela” (BBC NEWS | Americas | Chavez Moves against US Preachers). This decision, according to Chavez was because the New Tribes constantly “…flew in and out of the country without proper permission from the authorities” (BBC NEWS | Americas | Chavez Moves against US Preachers). This was a concern to Chavez because he believes that “…American evangelicals are part of a broader conspiracy in Washington to topple [him because his] regional influence is growing thanks to massive oil revenues…” (BBC NEWS | Americas | Chavez Moves against US Preachers). Chavez believes that the American government is using innocent means such as evangelical groups who benefit Venezuela to try and decrease his influence on the people of the area. There is no doubt that statements such as the ones made by evangelical Pat Robertson have influenced Chavez’ view of both American evangelicals and American politics.
As a result of the conflict between Chavez and evangelical groups, one of the major evangelical groups was expelled from the country. The New Tribes Mission is an evangelical group that visits the indigenous people of various countries who would otherwise not receive the message of the Christian gospel. In these communities, the New Tribes Mission members establish churches and build homes to help the people in that community. As a result of the expulsion of the New Tribes from Venezuela, the Christian message can no longer reach people in such isolated areas. Although this will not affect the majority of the Venezuelan population, there is definitely a group of Venezuelans who will lose the Christian influence.
For many years, the United States and private organizations within its country have practiced their ability to enter foreign countries and intervene in their affairs. People like evangelical preacher Pat Robertson believe they have the right not only to intervene in foreign social affairs, but political affairs as well. Venezuelan president Hugo Chavez has a long-time bitter relationship with America because of the mindset that many Americans such as Pat Robertson possess. Because of this mindset, Chavez drove out an evangelical Christian group, the New Tribes Mission on accusations that they had joined with the CIA to gather information in order to take Chavez out of power. Because this group is no longer in the country spreading the gospel, the influence of Christianity has decreased in the country.
Works Cited
"About Us." New Tribes Mission. Web. 17 May 2011. <http://usa.ntm.org/about/>.
"BBC NEWS | Americas | Chavez Moves against US Preachers." BBC News - Home. Web. 18 May 2011. <http://news.bbc.co.uk/2/hi/americas/4336660.stm>.
"Robertson Called for the Assassination of Venezuela's President." Media Matters for America. Web. 17 May 2011. <http://mediamatters.org/mmtv/200508220006>.
"Venezuela to Expel New Tribes Mission | Christianity Today | A Magazine of Evangelical Conviction." ChristianityToday.com | Magazines, News, Church Leadership & Bible Study. Web. 17 May 2011. <http://www.christianitytoday.com/ct/2005/octoberweb-only/53.0a.html>.


Shereen Noormohamed: The Effects on Religion

Religious freedom exists within Venezuela and, more importantly, is guaranteed by the country’s constitution. Despite this freedom, however, Venezuela is largely a Roman Catholic nation. In a government survey conducted in the year 2001, it was revealed that the Roman Catholic population constituted roughly 70% of Venezuela’s total population. (“Venezuela Religions”) However, in recent years, the ongoing battle between fundamentalist evangelical groups in Venezuela and Venezuelan President Hugo Chavez has stagnated the spread of Christianity within the region and has caused a religious divide between Venezuelans.

In August of the year 2005, Reverend Pat Robertson, a U.S. televangelist who hosts Christian Broadcasting Network‘s The 700 Club, made a controversial statement against President Hugo Chavez. This statement, which called for the assassination of Chavez, has had a lasting impact on religion in Venezuela. On the August 22nd broadcast of The 700 Club, Robertson stated:
"You know, I don't know about this doctrine of assassination, but if he thinks we're trying to assassinate him, I think that we really ought to go ahead and do it. It's a whole lot cheaper  than starting a  war. And I don't think any oil shipments will stop. But this man is a terrific danger…This is in our sphere of influence, so we can't let this happen. We have the Monroe Doctrine, we have other doctrines that we have announced. And without question, this is a dangerous enemy to our south, controlling a huge pool of oil, that could hurt us very badly. We have the ability to take him out, and I think the time has come that we exercise that ability. We don't need another $200 billion war to get rid of one, you know, strong-arm dictator. It's a whole lot easier to have some of the covert operatives do the job and then get it over with." (“Robertson Called for the Assassination of Venezuela's President”)
Basically, Robertson views Chavez as a potential global threat and, therefore, feels that he must be taken out of power by the United States. He feels that this is the only way to prevent his oil-rich country from becoming "a launching pad for communist infiltration and Muslim extremism." ("Robertson Calls for Chavez's Assassination”) Although Robertson apologized for his statement a few hours after it was broadcasted, it still had profound effects on the relationship between Venezuela and the U.S, and in turn on religion.

In reaction to the statement, “Chavez blasted Robertson as “a terrorist,” and said his government was interested in pursuing extradition of the U.S. minister.” (Kozloff) Not long after this controversy, in October of 2005, Chavez made the decision to expel the New Tribes Mission, an American missionary group, from his country. He said “the missionaries were "imperialists" and he felt "ashamed" at their presence in indigenous areas of Venezuela.” ("Chavez Moves Against US Preachers”) He believed they were linked to the CIA and were spying on Venezuela in order to exploit the indigenous population. In addition, he also accused them of violating Venezuela’s national sovereignty because of their traveling in and out of the country without appropriate permission from the Venezuelan government. According to Vice President Jose Vicente Rangel, the Roman Catholic Church was in favor of Chavez’s decision to expel them. He stated, “We have the cardinal's blessing in this decision.” (Alford) This serves to show that the Church is being tied into the political affairs of the country, cutting down the barrier between Church and state.

The expulsion of these missionaries has impacted religion inside of Venezuela, especially with regard to the spiritual lives of the indigenous people. New Tribes Mission “is one of Latin America's biggest missionary organizations and has 3,200 workers and operates in 17 countries, with operations in West Africa and South-East Asia too.” (“Chavez Moves Against US Preachers”) These missionaries served to preach Christianity to the non-Christian indigenous population of Venezuela. They planted churches and translated the text of the Bible. Therefore, their expulsion has stagnated the spread of the faith to the tribal regions of the nation. Furthermore, many tribal people were angered by this decision. “Thousands of tribal people in Venezuela had rallied early November in support of the NTS, saying the government's decision was made on false pretenses.” (Weinberg) Without the missionaries, the tribal people are not going to be able to get accustomed to and come to a full understanding of Christianity. As a result, there will be an inevitable divide between the religious beliefs of the majority of the Venezuelan population and the indigenous groups within the country.

Pat Robertson’s statement calling for the assassination of Chavez not only stirred controversy during that time, but also has impacted religion in Venezuela for the long run. The major direct outcome of this controversy was the expulsion of the New Tribes missionaries from Venezuela. This expulsion had two significant effects. First, it showed that the Church was becoming more and more involved in the political affairs of Venezuela. But, more importantly, it effected the lives of the indigenous people because there were no longer individuals to preach the predominant faith to them. This could eventually lead to major religious rifts between the mainstream population and the indigenous population of Venezuela. This divide is not necessarily going to help out the country which is already economically unstable because of its dependence on oil.

 
Works Cited

Alford, Deann. "Venezuela to Expel New Tribes Mission | Christianity Today | A Magazine of Evangelical Conviction." ChristianityToday.com | Magazines, News, Church Leadership & Bible Study. 14 Oct. 2005. Web. 17 May 2011.http://www.christianitytoday.com/ct/2005/octoberweb-only/53.0a.html.http://venezuelanalysis.com/analysis/1430.http://mediamatters.org/mmtv/200508220006.  

"Chavez Moves Against US Preachers." BBC News - Home. 12 Oct. 2005. Web. 17 May 2011. <http://news.bbc.co.uk/2/hi/americas/4336660.stm>."Venezuela Religions." World Map, Map of the World. Web. 17 May 2011. http://www.mapsofworld.com/venezuela/religions.html.

Kozloff, Nikolas. "Venezuela’s War of Religion | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. 24 Oct. 2005. Web. 17 May 2011.

"Robertson Called for the Assassination of Venezuela's President." Media Matters for America. 22 Aug. 2005. Web. 17 May 2011.

"Robertson Calls for Chavez's Assassination - U.S. & World - FOXNews.com." FoxNews.com - Breaking News | Latest News | Current News. 23 Aug. 2005. Web. 17 May 2011. http://www.foxnews.com/story/0,2933,166478,00.html.

Weinberg, Bill. "Venezuela: Chavez Expels New Tribes Mission | World War 4 Report." World War 4 Report | Deconstructing the War on Terrorism. Web. 17 May 2011. <http://www.ww4report.com/node/1579>.

Friday, May 13, 2011

Amanda Sambucini

  
The religion of Venezuela has been predominately Roman Catholic ("CATHOLIC ENCYCLOPEDIA: Venezuela.").  However, evangelical missionaries have been entering Venezuela for years, working with the indigenous peoples with little issues (Kozloff).  Problems erupted in 2005 when Christian fundamentalist Pat Robertson “suggested on-air that American operatives assassinate Venezuelan President Hugo Chavez to stop his country from becoming ‘a launching pad for communist infiltration and Muslim extremism’” ("USATODAY.com - Pat Robertson Calls for Assassination of Hugo Chavez.").  Chavez took action against the evangelical missionaries and expelled Protestant missionaries from the country, causing religious divides among people.  Robertson’s criticism of Chavez’s government prompted the expulsion of Christian evangelical missionaries, an increasing division among the religious beliefs of the people in Venezuela, and the cultural fusion of politics and religion by Chavez.

            A direct effect of Pat Robertson’s criticism was the removal of missionary groups, such as the New Tribe Mission “Chavez proclaimed that New Tribes constituted a ‘true imperialist invasion’ and was working with the CIA” (Kozloff).  This came a couple months after heated criticisms made by Pat Robertson and Chavez.  The government was alarmed by the Robertson’s comments and generalized all evangelical groups by expelling them even though they were not affiliated with Robertson.  New Tribes has helped the indigenous people of Venezuela “through translation, church planting, literacy, humanitarian aid, and community development projects” (Alford).  Unfortunately, the indigenous people are affected the most by Robertson and Chavez’s retaliation.  This tension in Venezuela has even caused Mormon missionary groups to withdraw from the country (Forero).  They are not able to reap the benefits of the missionaries due to Chavez’s strict control. 

            Chavez and Robertson’s battle caused long term effects on religion, resulting in conflict between evangelicals and supporters of Chavez.   “Church members say they are caught between admiration for a president who flaunts biblical references and a growing concern that he will muzzle those who don’t preach his brand of politics” (Kapralos).  Venezuelans are not content with Chavez’s decisions concerning religion, making them have to choose religion or their government. Protesters, many of whom indigenous, showed their support for the New Tribes Mission after Chavez expelled them, demonstrating their disagreements with their government’s decision ("Venezuelans Protest Chavez Missionary Threat - World News - Americas - Msnbc.com.").  Venezuelan people don’t know who or what to turn to when the government and religion begin to clash.  “The question has become not whether to follow Christ, but whether to also follow Chávez” (Kapralos).  People having to choose should not be an option; they should be able to peacefully support both their religion and government.  This option affects both religion and politics, and both are losing supporters.

            Robertson’s remarks strengthened the alliance of Chavez and the Catholic Church and resulted in a synthesis of religion and politics by Chavez.  “The Catholic Church has long viewed the growing Protestant presence in Latin America with concern” (Kozloff).  After Robertson’s comments and the expulsion of Protestant missionaries, the Catholic Church felt the security of being the dominant religion without the missionaries around.  The Church approved of Chavez’s political move.  However, Chavez mixed his Catholic beliefs with his political and socialist views.  In his 2007 inaugural address, he calls Jesus “the greatest socialist in history” (BBC News).  In 2010 Chavez used his political control to influence religion again in another address urging “the Vatican to replace [Cardinal Jorge] Urosa, while heaping praise on a government-friendly priest [Chavez] thinks should be appointed cardinal” ("Venezuela's Hugo Chávez Clashes with Church - Americas -MiamiHerald.com.").  Chavez manipulates both religion and politics until he obtains what he wants.  Although Robertson’s comments are not the direct reason as to why this occurs, it does play a major part.  The criticism fueled the fire and strengthened the ties between the Catholic Church and Chavez.  With little evangelicals left in the country, the Protestant religion was unable to infiltrate into the masses of people who follow the Catholic Church.  Chavez was able to maintain the Catholic identity of the people and use it in political addresses to justify his socialist reforms in Venezuela.
           
            Pat Robertson’s surprising criticism, calling for the assassination of President Hugo Chavez, had profound effects on religion in the Roman Catholic dominant country Venezuela.  It caused the removal of evangelical groups, who had greatly impacted the lives of indigenous peoples.  It also caused tension among Chavez supporters and evangelical supporters.  People were conflicted as to whom to follow.  It also strengthened the role of Catholicism in the Venezuelan government, in which Chavez used in politics to rationalize socialist ideology.  While Robertson’s comments were not the only reason for religious tension to build up, it did impact religion not necessarily for the better. 


Forero, Juan. "Mormon Church Withdraws Its Missionaries in Venezuela - New York Times." The New York Times - Breaking News, World News & Multimedia. 26 Oct. 2005. Web. 10 May 2011. <http://www.nytimes.com/2005/10/26/international/americas/26venez.html>.

"Venezuelans Protest Chavez Missionary Threat - World News - Americas - Msnbc.com."Msnbc.com - Breaking News, Science and Tech News, World News, US News, Local News- Msnbc.com. MSNBC, 28 Oct. 2005. Web. 11 May 2011. <http://www.msnbc.msn.com/id/9853894/ns/world_news-americas/>

"Venezuela's Hugo Chávez Clashes with Church - Americas -MiamiHerald.com."MiamiHerald.com - Miami & Ft. Lauderdale News, Weather, Miami Dolphins & More. 13 July 2010. Web. 12 May 2011. <http://www.miamiherald.com/2010/07/12/1726127/chavez-clashes-with-church.html>.

"BBC NEWS | Americas | Venezuela's Hugo Chavez Sworn in." BBC News - Home. 10 Jan. 2007. Web. 12 May 2011. <http://news.bbc.co.uk/2/hi/americas/6248787.stm>.

Alford, Deann. "Venezuela to Expel New Tribes Mission | Christianity Today | A Magazine of Evangelical Conviction." ChristianityToday.com | Magazines, News, Church Leadership & Bible Study. 14 Oct. 2005. Web. 10 May 2011. <http://www.christianitytoday.com/ct/2005/octoberweb-only/53.0a.html?start=2>.

Kapralos, Krista. "Chavez Creates Divide among Evangelicals - Krista Kapralos." Krista Kapralos - Reporting – Writing – Multimedia. 18 Nov. 2007. Web. 11 May 2011. <http://www.kristakapralos.com/2010/07/chavez-creates-divide-among-evangelicals/>.

Kozloff, Nikolas. "Venezuela’s War of Religion | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. 24 Oct. 2005. Web. 10 May 2011. <http://venezuelanalysis.com/analysis/1430>.

"USATODAY.com - Pat Robertson Calls for Assassination of Hugo Chavez." News, Travel, Weather, Entertainment, Sports, Technology, U.S. & World - USATODAY.com. 23 Aug. 2005. Web. 10 May 2011. <http://www.usatoday.com/news/nation/2005-08-22-robertson-_x.htm>.

"CATHOLIC ENCYCLOPEDIA: Venezuela." NEW ADVENT: Home. Web. 12 May 2011. <http://www.newadvent.org/cathen/15327a.htm>.


Monday, May 9, 2011

Amanda Chivil


             Since 1912, oil has played a significant role in the country of Venezuela. As a highly valued resource of the global population, oil has become Venezuela’s prized and most key export. However, the dependence on oil in Venezuela has limited the opportunities for the nation’s population, hindered business development and industry, and, most importantly, created an unstable and vulnerable economy.
Venezuela’s possession of large oil reserves has certainly shaped its cultural and social atmosphere. Since 1976, oil has been government-controlled in Venezuela. Accordingly, as stated by Wilpert, “it is estimated that of the people employed in the formal economy (about 50% of the working population), approximately 45% are employed through the government.” While it is beneficial that through the nationalization of oil that people have obtained jobs, this figure shows that the expansion of other occupational opportunities has been stifled. By being dependent on the success of oil, Venezuelans lack an “entrepreneurial” mindset that would stimulate them to develop businesses and take part in global trade that would diversify the nation’s economy.
            Similarly, Venezuela’s dependence on oil has largely affected its political climate. Chavez, the president of Venezuela, has sought to maintain oil under government control, thereby eliminating any competition that would be a threat to the bureaucracy’s power. For example, when Chavez saw “that PDSVA had become a state within a state – or even a state above a state,” he desired to bring it under his direct control. (Phillip). Although the PDSVA “managers lined up in opposition…and went on strike with the avowed aim of weakening the economy” it had no positive effect, for Chavez simply “dismissed the strikers.” (Phillip). Thus, since the PDSVA is “more cheaply and austerely run, [and] less efficient and less proud, [it has become] a much weaker organization.” (Phillip). More importantly, “it seems to have lost some of its ability to develop new and more difficult aspects of the industry.” (Phillip). Clearly, it is further demonstrated that with government-controlled oil, there is a lack of opportunity for the development of new ideas, ideas that would foster economic growth and industrialization. 
            Moreover, Venezuela’s undiversified and unbalanced economy is the most detrimental effect of the country’s dependence on oil. According to Wilpert’s article, Venezuela has been affected by “the Dutch disease,” in which “a commodity, [oil], brings a sudden increase of income in one sector of the economy, which is not matched by increased income in other sectors of the economy.”  Thus, with Venezuela as “an oil exporting country, the fifth largest in the world” (Wilpert), it receives a lot of foreign money, causing inflation, and thereby making its manufacturing sector less competitive and therefore weak and undeveloped due to its lack of monetary significance in the eyes of the government. Accordingly, in Venezuela, “Currently agriculture makes up about 6% of GDP. Also industrial production declined between 1990 and 1999 from 50% of GDP to 24%.” (Wilpert).  With complete focus on one sector of the economy, the nation can easily rise and fall along with the price of oil. In addition, with Chavez and the government’s manipulation the oil industry, it has threatened the United States in the past with withdrawing its supplying of oil. However, according to an article by Mufson in the Washington Post, “oil analysts believe it is unlikely that Chavez would carry out his threat,” for “Venezuela, beleaguered by food shortages, depends heavily on oil exports for about 90% of its export earnings and about half of government revenue.” Evidently, the Venezuelan economy is so reliant on oil that the country, which “sells about 1.3 million barrels a day of oil to the United States,” would be negatively affecting the wellbeing of its people just by withholding exportation for only about a day.
            Venezuela’s reliance on the exportation of oil has had several effects on its society, politics, and economy. The social and political problems all contribute to the underlying most significant economic issues in the country. Without a diverse economy, there is a lack of development and industrialization, which ultimately hinders the country’s wealth. Furthermore, with the government having direct power over oil, there is a lack of competition, and therefore no motivation for innovation or stimulation for modernization. Throughout the years, it is seen that the countries that are well developed and diversified are those that are most successful, which is not the case in Venezuela.

 Mufson, Steven. "Chavez Threatens to Halt Venezuela's Oil Sales to U.S. - Washingtonpost.com." The Washington Post: National, World & D.C. Area News and Headlines - The Washington Post. 8 Feb. 2008. Web. 08 May 2011. <http://www.washingtonpost.com/wp-dyn/content/article/2008/02/10/AR2008021001381.html>.

 Phillip, George. "The Politics of Oil in Venezuela." OpenDemocracy. 23 May 2006. Web. 08 May 2011. <http://www.opendemocracy.net/democracy-protest/venezuela_oil_3580.jsp>.

 Wilpert, Gregory. "The Economics, Culture, and Politics of Oil in Venezuela | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. Web. 08 May 2011. <http://venezuelanalysis.com/analysis/74>.

Sunday, May 8, 2011

Anasha Green

The Venezuelan people, economy, and government are all connected by a common thread: oil. Venezuelan oil is the most influential variable in Venezuela today. Having depended on oil since the early 1930s, a hit on the oil industry would result on drastic changes in society, the economy, and in the government. While the failure of the oil industry in Venezuela would have a great social and economic effect on the country, the political outcome of this failure would overwhelm every aspect of Venezuelan life.
The people of Venezuela have a very important role in the success or failure of the oil industry. The people who are the workers are the ones who help the oil business stay afloat. An industry as vast as the Venezuelan oil industry is dependent on the cooperation of the people. When the people do not work with the oil industry, all aspects Venezuelan life are affected, including the economic and political aspects. This was seen in 2002 when Venezuelan workers “reduced oil production to protest [Hugo] Chavez's policies” (Web). The political realm was disturbed when Chavez was taken out of power, but things went back to normal only two days later. However, the economic realm remained disturbed and “the Venezuelan economy experienced a significant downturn” (Lapper). The actions of the people, although suppressed, were able to affect the government and the economy, simply because of their influence on the oil industry.
The economic outcome of a failed oil industry would be destruction of the Venezuelan economy. A large majority of Venezuela’s income is from the exportation of oil. This oil money is used to pay for the government as well as the needs of the people. If the oil industry were to fail, the country would spiral into extreme poverty. In many cases, the hard work of small businesses can keep an economy from becoming stagnant, but that would not be the case in Venezuela. This is because small businesses have been eliminated by Chavez and most of the businesses today in Venezuela are owned by the government. A loss of money by the government results in the loss of money of businesses, and the eventual death of Venezuelan economy.
While society and the economy would be greatly affected by the failure of the Venezuelan oil industry, the Venezuelan government would take a harder hit if the oil industry is not profitable. The toll on the government would be harder because the government is literally run by oil sales. Taxes on oil help allow the government to be financially stable. The loss of such funds for the government would mean the shutdown of many government institutions. This is especially dangerous for Venezuela because under Hugo Chavez, many of the private institutions were turned over to the government. Should the government shut down, many businesses would not be able to function. The loss of these businesses would result in the instability of the economy and in turn the instability of the people. This is because Venezuela does not produce a majority of its goods, but instead they import many goods using the revenue from oil sales. Loss of this revenue results in loss of money and goods for people and a crumbling of society.
A country with a high dependence on one export must ensure the success of that export as to make sure the country remains stable. Venezuela’s dependence on oil makes it imperative that the oil industry stays afloat. The failure of oil in Venezuela would result in revolts by the people. This would affect the economy, because the people would not work. Loss of workers would result in the Venezuelan economy spiraling downward even faster. The hurting economy and revolting people would not compare to the political turmoil that would result from the failure of the industry, as the government would shut down and the country thrown into chaos. Of all the aspects of Venezuelan life that would have a lasting impact, the political aspect is by far the most extensive.
"FACTBOX - Some Key Facts about Venezuela's Oil Economy| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 22 Mar. 2009. Web. 08 May 2011. <http://www.reuters.com/article/2009/03/22/us-venezuela-economy-fb-idUSTRE52L06W20090322>.
Lapper, Richard. "Venezuela's Oil-Based Economy." Council on Foreign Relations. Web. 08 May 2011. <http://www.cfr.org/economics/venezuelas-oil-based-economy/p12089>.
"Oil Prices and Venezuela's Economy | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. Web. 08 May 2011. <http://venezuelanalysis.com/analysis/3968>.
"Venezuela Politics, Government, and Taxation, Information about Politics, Government, and Taxation in Venezuela." Encyclopedia of the Nations - Information about Countries of the World, United Nations, and World Leaders. Web. 08 May 2011. <http://www.nationsencyclopedia.com/economies/Americas/Venezuela-POLITICS-GOVERNMENT-AND-TAXATION.html>.
Web. 08 May 2011. <http://www.infoplease.com/ipa/A0108140.html?pageno=2>.
Wilpert, Gregory. "The Economics, Culture, and Politics of Oil in Venezuela | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. Web. 08 May 2011. <http://venezuelanalysis.com/analysis/74>.

The Effects of Oil Dependence on the Venezuelan Economy- Shereen Noormohamed

         Venezuela, located on the northern coast of South America, is the fifth-largest oil exporting country in the world. Possessing the largest reserves of conventional oil in the western hemisphere and the largest reserves of non-conventional oil in the world, Venezuela has an enormous dependence on the oil industry. As a result of its continued dependency on the oil industry, Venezuela faces economic instability because of the fluctuation of the price of oil, which in turn has led to political change and the institution of several major social reforms.       
        The social effects of the reliance on oil can be viewed as relatively positive. “The oil wealth has promoted the idea that one can do well in Venezuela, as long as one has access to the country’s oil wealth. The consequence was that rather than engaging in creative entrepreneurial activity, Venezuelans were encouraged to ally themselves with the state, seeking either employment or contracts from the state.”(Lapper) On the positive side, however, Chavez is instituting several beneficial social reforms to better the country and the Venezuelan people. “Chávez's reform program promises to use the country's oil revenue to reduce spiraling rates of poverty, making him a hero for anti-globalization activists and prompting a burgeoning interest in Venezuela.”(Ellsworth) He is striving to provide impoverished people with healthcare, a decent education, and decent employment opportunities.
       As a single crop-farmer who is dependent upon a single crop to make a living, Venezuela is dependent upon oil for the survival of its economy. This type of a dependency could sometimes be beneficial, but in many instances could also be detrimental. Ever since 1999, when Hugo Chavez took power, there has been a 28 percent decline in oil production, putting the Venezuelan oil company into a state of debt and causing many foreign oil partners to pull out from the company.(“Future of Venezuelan Oil Company…“) “In 2002, the Venezuelan economy experienced a significant downturn following a failed military coup to overthrow Chavez and a two-month strike by the state-run oil company PDVSA.” (“Lapper”) However, in later years, the rise in international oil prices has helped the economy to recover. This serves to show that since there is no variety in the Venezuelan market, the stability of the oil industry is extremely crucial to the survival of the country. Therefore, a fluctuation in oil prices drastically impacts their economy, either making it very strong or very weak, just as the failure or success of a crop impacts the farmer.
       When looking into the political sphere, the oil wealth has turned Venezuela into what Terry Lynn Karl, a political scientist, refers to as a “pacted democracy.” “The term “pacted democracy” describes a democracy which is held together via an agreement among different elite groups. It is a kind of truce among opposing powerful interest groups in the society, so as to maintain their privileges.”(Wilpert) Chavez has been increasingly focused on maintaining control over the production of oil. Because of its possession of this valuable resource, many other countries, including the U.S., have been exploiting Venezuelan oil.
       Although there are social, economic and political effects of Venezuela’s reliance on oil, the most devastating of the three seems to be the economic effects. Solely relying on oil puts the economy of Venezuela in a risky situation. If the oil fails them, the Venezuelan people do not have any other major product to turn to in order to safeguard and recover their economy. Therefore, as in any case, when the economy of a country fails, the power of the political leader and the lifestyle of the people are also negatively impacted. So, if the economic status of Venezuela declines, Chavez’s power will in turn decline. In addition, living conditions will worsen for the people because a lack of money leads to increased unemployment and poverty. Therefore, since the economic status of Venezuela, as in any other country, directly impacts the political and social sphere, the economic effects are the most devastating of the three.


Sources:

"Future of Venezuelan Oil Company Will Have Ripple Effects Far and Wide." Peakoil.com. 27 Jan. 2008. Web. http://peakoil.com/alternative-energy/future-of-venezuelan-oil-company-will-have-ripple-effects-far-and-wide/.
Lapper, Richard. "Venezuela's Oil-Based Economy." Council on Foreign Relations. 9 Feb. 2009. Web. 08 May 2011.

Wilpert, Gregory. "The Economics, Culture, and Politics of Oil in Venezuela | Venezuelanalysis.com." Venezuelanalysis.com | Venezuela News, Views, and Analysis. 30 Aug. 2003. Web. 08 May 2011.

Ellsworth, Brian. "Chávez's Social Reforms Impress American Liberals." Home | Common Dreams. Web. 08 May 2011. <http://www.commondreams.org/headlines04/1007-09.htm>.
http://www.cfr.org/economics/venezuelas-oil-based-economy/p12089.http://venezuelanalysis.com/analysis/74.

Thursday, May 5, 2011

Amanda Sambucini

Ever since the finding of oil in the early 19th century, Venezuela has been primarily reliant on the production and export of oil to the rest of the world.  This last decade, during the reign of President Hugo Chavez, has seen Venezuela’s economy, politics, and social reforms as outcomes of oil production.  Hugo Chavez’s involvement with government regulated oil production leaves Venezuela with an unstable economy centered on the ever-fluctuating oil prices and social reforms due to Venezuela’s dependence on oil. 
            Since the beginning of his election, Hugo Chavez has increased government control and power over oil production.  Because of Venezuela’s rich resources of oil, many political leaders have exploited these regions for the benefit of the government.  However, since Chavez has been in office, the Venezuelan economy has been centered predominately on oil production.  “In 2006, Chavez announced a nationalization of oil fields managed by foreign companies, which resulted in an increase of the government’s shares in these projects from 40 percent to 60 percent” (Alvarez).  The PDVSA (Petróleos de Venezuela, S.A.) has become Venezuela’s state owned company which has been manipulated under Chavez.  Rafael Ramirez, head of the PDVSA, has said that, “Chavez plans to use the oil company to transform Venezuela from an oil sultanate to a productive society within a socialist framework” (Alvarez).  Chavez perceives the reliance on oil as a way to control the country as for governmental propaganda.  Daniel Kerner of the Eurasia Group reiterates this by saying, "Chavez's main motivation is likely to have more direct and arbitrary control over oil revenue ahead of the 2012 presidential elections" (Parraga and Wallis).   By controlling most aspects of the dominating oil production in Venezuela, he has eliminated any competing and opposing private sectors of oil manufacturing.
            By just having oil production as the predominate source of economic growth, Venezuelan economy can easily fluctuate from stable to unstable.  “Oil generates about 80 percent of the country’s total export revenue, contributes about half of the central government’s income, and is responsible for about one-third of the country’s gross domestic product” (Alvarez).  These statistics show how much Venezuela heavily relies on oil production for the well being of its people.  Venezuela virtually has no diversification in its economy, which can be advantageous and disadvantageous as well.  Currently, the turmoil in the Arab countries, the economic recovery, and the international need, especially the United States, for oil can be advantageous for the exclusive oil economy, creating stability.  As of April 2011, Venezuela’s inflation was 22.9 percent, 4 percent lower than March, which is  an encouraging sign for the country (Associated Press).  However, no diversification means solely depending on oil production and an international interest in it.  This is most damaging to Venezuelan economy, society, and politics. The country is always contingent on oil prices and the market for them.  Diversity would bring more exported products “which would permit lower dependence on price fluctuations" (Venezuela: BOP Continues Showing Dependence on Oil in 2010").  The economy is unstable when prices fluctuates, inflation rises, and other countries can get resources elsewhere.
            Hugo Chavez’s dominant role of oil production in Venezuela has led to seemingly positive social reforms.  Under the control of Chavez, the PDVSA spends at least “10 percent of its annual investment budget on social programs” (Alvarez).  Free health care clinics and subsidized food are part of the many social reforms that Chavez has implemented from the funds of oil production.  These reforms have even “reduced the poverty rate from 70 to 23 percent over the past 14 years” (Erlich).  Thanks to the large oil production, the society of Venezuela is able to advance. 
            Oil dependence has caused many economic, political, and social effects on Venezuela.  Political leaders, such as Chavez, have seen oil production as a way to exert power and control by increasing government ownership of oil companies.  The large scale production of oil prohibits Venezuela from having a diversified economy, resulting in a fluctuating economy solely dependent on oil prices.  However, a constructive effect of oil was the implementation of social reforms.  These effects from oil will continue in Venezuela unless a transformation  is made politically and economically. 


 Alvarez, Cesar J. "Venezuela's Oil-Based Economy." Council on Foreign Relations. 9 Feb. 2009. Web. 05 May 2011. <http://www.cfr.org/economics/venezuelas-oil-based-economy/p12089>


"Venezuela: BOP Continues Showing Dependence on Oil in 2010." ISI Emerging Markets Blog. Latin America CEIC Database Team, 14 Mar. 2011. Web. 05 May 2011. <http://blog.securities.com/2011/03/venezuela-bop-continues-showing-dependence-oil-2010/>

The Associated Press. "Venezuela's Inflation Slips to 22.9 Percent - BusinessWeek." Businessweek - Business News, Stock Market & Financial Advice. 3 May 2011. Web. 05 May 2011. <http://www.businessweek.com/ap/financialnews/D9N07ROG2.htm>

Parraga, Marianna, and Daniel Wallis. "Venezuela Oil Tax to Net Billions before Chavez Vote | Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 26 Apr. 2011. Web. 05 May 2011. <http://www.reuters.com/article/2011/04/26/us-venezuela-oil-idUSTRE73P6Z920110426>

Erlich, Reese. "Venezuela's Social Reforms Help Poor, but Contribute to Inflation, Critics Say."Home | Deutsche Welle. 24 June 2010. Web. 05 May 2011. <http://www.dw-world.de/dw/article/0,,5724103,00.html>.