Once the richest country in Latin America with the largest oil reserves in the world, Venezuela was an aspiring nation rivaling the European nation's standard of living. Populist leaders' callous disregard for citizens and economic policy triggered the never-ending waves of protest which have become normalized in everyday life.
During the late 20th century, Venezuela boasted an envious democratic government during an era marked by violent military dictatorships all over South America. Real wages were improving, unemployment was down to historic lows and GDP had increased substantially due to the nationalisation of oil firms. Fast forward a few decades and reality has swept away the memory of these distant glory days. Democracy is now but a dream under the current authoritarian regime, and its economy lies in shambles with the highest inflation rate in the world, estimated to be 946% in 2018 alone. At such high inflation rates basic consumer needs become significantly harder to be met and at the same time as civil liberties and human rights are curtailed on a regular basis. This, combined with the government’s relentlessness to alter its socio-economic policies and distribute power equitably, leads to mass dissatisfaction amongst citizens. with the chaotic situation of their country. This sustained tension boils over into daily violent clashes with the military, where protesters demand the basic rights to freedom which they once took for granted.
Protesters turn their rage at the man at large responsible for this nationwide political turmoil: “President” Nicolas Maduro and his party, the PSUV (United Socialist Party of Venezuela). Early signs of graft began in 2015 when a decision was made to hinder the impartiality of the three main pillars of the governmental institution, as Maduro’s executive branch directly ousted and intervened at the very top of the judiciary system: the Supreme Court. When the opposition party PV (Popular Will) gained a majority in the National Assembly (unicameral legislature), the Maduro loyalist cronies of the Supreme Court voted to strip the house of its powers and create a new national constituent assembly, enabling them to rewrite the very founding constitution of the nation. Ultimately leading to no opposition to Maduro’s authoritarian rule.
Maduro’s predecessor, Hugo Chavez, employed a similar tactic under his socialist presidency in the early 2000s. Due to his charismatic appeal to the general populous, and the luck of increased brent oil prices worldwide, he was able to harness the support around him where he called for new legislative elections. After the PSUV was able to win a majority in new votes, Chavez used the profits of the heavily oil-dependent economy as proceeds to fund his welfare campaign. He implemented food subsidies, improved education, and created an enviable healthcare system even by western standards. However, this increased spending was masked under a growing budget deficit, meaning these populist measures could not be sustained if oil prices fell. After Chavez's death in 2013, Maduro, his handpicked successor, witnessed precisely that as oil prices lost 40% of their value in a span of 6 months.
Moreover, the hectic condition is exacerbated by the bolivar to the dollar exchange rate being exploited by Maduro, and his military and political allies. Whilst the official government rate is 1 dollar to 10 bolivars, in reality, only Maduro’s co-conspirators have access to this special rate. The unofficial rate in the black market, where most Venezuelans go too, is actually closer to 1 dollar to 12,500 bolivars. Essential supplies are imported at the official exchange rate by these select individuals, which are then sold for a ridiculous profit. For these handpicked military generals and colluding politicians, the crisis has become a lucrative operation that pries upon the desperation of ordinary citizens.
More recently, President Maduro was re-elected to a second six-year term in May 2018 in highly controversial polls, which most opposition parties boycotted due to lack of transparency, arguing that the election was neither free nor fair. Subsequently, Mr. Maduro's re-election was not recognised by the opposition party, which cited that the presidency was vacant, stating that Maduro was an “illegitimate usurper”. Hence, the leader of the opposition, Juan Guaido, stepped in declaring himself interim president in 2019, receiving international recognition by over 50 nations including the US and other Latin American countries. However, the limited success of this dispute was exemplified when military forces chose to side with Maduro despite Guaido’s appeal.
The pandemic justification for the prohibition of large gatherings enabled Maduro’s regime to further consolidate his dictatorial authority, exerting his will upon people under the facade of Covid protective measures. This, coupled with loyalist's unwavering support for Maduro’s leadership, means that he has, at least temporarily, unprecedented power over a country that continues to spiral out of control. How (and if) Venezuela will manage to step out of this crisis is still uncertain, but without a doubt, everyday working-class citizens will continue to be the ones who suffer the most in this never-ending political war.
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