Even critics of Hugo Chávez tend to concede that he has made helping the poor his top priority. But in fact, Chávez's government has not done any more to fight poverty than past Venezuelan governments, and his much-heralded social programs have had little effect. A close look at the evidence reveals just how much Chávez's "revolution" has hurt Venezuela's economy -- and that the poor are hurting most of all.
FRANCISCO RODRÍGUEZ, Assistant Professor of Economics and Latin American Studies at Wesleyan University, was Chief Economist of the Venezuelan National Assembly from 2000 to 2004.
Some observers believed that opposition gains in last September's elections would weaken the Venezuelan president. Instead, he has consolidated control.
On December 2, when Venezuelans delivered President Hugo Chávez his first electoral defeat in nine years, most analysts were taken by surprise. According to official results, 50.7 percent of voters rejected Chávez's proposed constitutional reform, which would have expanded executive power, gotten rid of presidential term limits, and paved the way for the construction of a "socialist" economy. It was a major reversal for a president who just a year earlier had won a second six-year term with 62.8 percent of the vote, and commentators scrambled to piece together an explanation. They pointed to idiosyncratic factors, such as the birth of a new student movement and the defection of powerful groups from Chávez's coalition. But few went so far as to challenge the conventional wisdom about how Chávez has managed to stay in power for so long.
Although opinions differ on whether Chávez's rule should be characterized as authoritarian or democratic, just about everyone appears to agree that, in contrast to his predecessors, Chávez has made the welfare of the Venezuelan poor his top priority. His government, the thinking goes, has provided subsidized food to low-income families, redistributed land and wealth, and poured money from Venezuela's booming oil industry into health and education programs. It should not be surprising, then, that in a country where politics was long dominated by rich elites, he has earned the lasting support of the Venezuelan poor.
That story line may be compelling to many who are rightly outraged by Latin America's deep social and economic inequalities. Unfortunately, it is wrong. Neither official statistics nor independent estimates show any evidence that Chávez has reoriented state priorities to benefit the poor. Most health and human development indicators have shown no significant improvement beyond that which is normal in the midst of an oil boom. Indeed, some have deteriorated worryingly, and official estimates indicate that income inequality has increased. The "Chávez is good for the poor" hypothesis is inconsistent with the facts...
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HOW CHAVEZ HAS HELPED THE POOR
Bernardo Alvarez Herrera
Hugo Chavez has led a political revolution in Venezuela, purging the state of its entrenched, corrupt political class, but he has done nothing to solve the old regime's problems: crime, unemployment, and economic stagnation. Chavez's social policies have been ineffective, and his economic rhetoric has scared away investors. Venezuelans' patience may not last much longer; Chavez's political clock is ticking.
Venezuela's United Socialist Party is already facing a succession battle between two prospective successors to Hugo Chávez: Nicolás Maduro, an avowed communist and close friend of Cuba, and Diosdado Cabello, a former military official with ties to the country's business community. Whichever man wins, he will have to remember that Chávez has skillfully relied on a mix of both strategies to win the love of his people -- strident anti-americanism and largess for the poor on the one hand, and kickbacks to big business and billions of dollars in oil sales to the United States on the other.
