Tuesday, May 1, 2007

View of Venezuela

VENEZUELA: A FIRSTHAND LOOK

Thanks to a Global Exchange Tour, my wife Kathleen, and I had a firsthand look at the changes taking place in Venezuela; an eye-opening experience.

We hear much criticism of Venezuela and the changes being put in place, and some leaders have called President Chavez a dictator, a threat to democracy, as damaging Venezuela's economy, being a threat to the region, and other not so agreeable things. The media also has mostly negative things to say about Chavez and the Venezuelan Government. I heard similar things from some local friends so I went to see for myself.

What did I see when I arrived? I saw a country in transition where the poor majority for the first time has the opportunity to choose what kind of country they want. I found that the average person is well versed in what is happening in their country and about what the Government is doing. The Constitution put in place a year after Hugo Chavez was elected is the best in the World when it comes to guaranteeing human rights. It guarantees health care for everyone and free education through college and, of course, all of those things contained in our
Bill of Rights. Pocket sized copies are sold on practically every streetcorner. People carry a copy with them, use them as reference, and have frequent discussions about the contents.

Elections are transparent and fair--verified by unimpeachable election monitoring organizations from the Organization of American States, the European Union, and the Carter Center. Electronic Voting Machines have paper receipts and paper records unlike those in the U.S. which do not. Yes, the elections were fair and transparent and it is clear that Hugo Chavez is President because he was chosen by the people of Venezuela. The people knew who they were choosing and what his programs are. Chavez won with a 63% majority in the Dec. 3, 2006 election; a larger majority than any U.S. President has ever received and yet he is called a dictator.

I saw job development programs which were amazingly well planned. Much of this activity is through cooperative development. People are given extensive training in cooperative management, accounting, and a variety of other skills as part of the establishment of the Co-op. The Co-op is given a loan with fair repayment provisions. It is operated by the members (workers) and decisions are made by majority vote.

We visited several Co-ops and heard comments like "now, I work for my own success and enrichment, before I worked for the success and enrichment of the boss", and "I never thought I would have a chance to do something like this". Their enthusiasm was visible, and sometimes contagious.

The program which inspired me the most was Ban Mujer (Women's Bank). This bank resulted from the Government getting ownership of the bank through their deposit guarantee program after the bank president went to Miami. Oh yes, and he took all the money with him! A new bank was then established to make loans to Venezuelan women wishing to start businesses.

Loans are made based on startup needs. Training and technical assistance is given to the borrower--including family counseling and help with domestic issues if needed. Management says they are not primarily out to make money; they want the borrower to succeed in becoming a contributing part of the community. Their priority is the people, not profit, a concept that I wish our banks could or would grasp.

I want to point out two things here: First, Government Assistance is accompanied by training and other assistance to assure the recipient is given the best opportunity for success (yet I have heard these programs described as "throwing money away on the poor").

Second, you will notice that this "Socialist" Country is helping people start businesses and Cooperatives and not establishing State-owned enterprises as you might expect when you hear the word "socialism". Venezuela's "21st Century Socialism seems to be a blend of capitalism and socialism, whatever has the greatest prospect of success. Remember the Ban Mujer statement: the priority is to assure the success of the people and to stimulate the development and success of the community. Money is secondary and only important insofar as it is necessary to allow people to meet their needs.

The people of Venezuela have a long way to go with great challenges ahead. These include internally overcoming the huge amount of poverty, crime, and corruption left by a long history of Despotism and oligarchic rule, and externally dealing with countries like ours seeking to assure that Venezuelans do not use a different economic system to determine their future, and refusing to support their working democracy.

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