NBC (3/12/18) attributes Venezuela’s crisis to President Hugo Chávez’s “promise to share the country’s oil wealth with the poor.”
The United States has for years undermined the Venezuelan economy with economic sanctions, but US media coverage of Venezuela’s financial crisis has gone out of its way to obscure this.
The intent of the sanctions is clear: to inflict maximum pain on Venezuela so as to encourage the people of the country to overthrow the democratically elected government. SUNY professor Gabriel Hetland (The Nation, 8/17/16) pointed out in 2016 that the Obama government “prevented Venezuela from obtaining much-needed foreign financing and investment.” Such policies, Hetland notes,
have had a considerable and highly detrimental impact at a time when Venezuela is in desperate need of dollars but is prevented from gaining access to them by Washington.
In August 2017, two weeks before the Trump administration intensified the sanctions against Venezuela, UN Special Rapporteur Idriss Jazairy noted that they “would worsen the situation of the people of Venezuela” and that
sanctions are disruptive for any state, and can have a particularly devastating impact on the citizens of developing countries [such as Venezuela] when they impair the economy.
When Venezuelan President Nicolás Maduro in November 2017 proposed a meeting with creditors to discuss a restructuring of the country’s public debt, the Trump administration warned US bondholders that attending this meeting could put them in violation of US economic sanctions against Venezuela, which can be punished with 30 years in jail and as much as $10 million dollars in fines for businesses.
That same month, the US government added further sanctions that prevent Venezuela from doing what governments routinely do with much of their debt, which is “roll it over” by borrowing again when a bond matures. The sanctions also made it difficult if not impossible for Venezuela to undertake debt restructuring, a process wherein interest and principal payments are postponed and creditors receive new bonds, which the sanctions explicitly prohibit.
According to economist Mark Weisbrot (AlterNet, 11/3/17), the sanctions implemented that month appear designed “to prevent an economic recovery and worsen the shortages (which include essential medicines and food).”
The word “sanctions” does not occur in this New York Times feature (12/17/17) on how Venezuela’s economic crisis is leading to child malnutrition.
All of this is rarely mentioned when US media report the hardships facing Venezuelans or describe the causes of Venezuela’s economic and political crisis. A New York Times (12/17/17) story told readers that Venezuelan children are facing hunger, with hundreds dying from malnutrition, because “years of economic mismanagement set the stage for the current disaster”—according to “many economists.”
However, less than two weeks earlier, following a trip to Venezuela, UN Rapporteur Alfred de Zayas (ThinkProgress, 12/8/17) offered his analysis of what “set the stage for the current disaster.” He reportedly said that the conditions in the country did not constitute a full-blown humanitarian crisis, but that there are “shortages, scarcity and distribution delays, etc.,” and listed sanctions among the causes of these problems:
What is important is to get to know the causes and take measures against contraband, monopolies, hoarding, corruption, manipulation of the currency and the distortions in the economy caused by an economic and financial war which includes [the effects of international] sanctions.
The Washington Post’s editorial board (2/23/18), in writing about what it misdescribed as “Latin America’s Worst-Ever Refugee Crisis” (see FAIR.org, 2/18/18), overlooked these dimensions of what has happened in Venezuela, writing:
Though it controls the world’s largest oil reserves, the regime founded by Hugo Chávez has wrecked not just oil production but the economy as a whole.
At no point did the paper mention the US role in wrecking the Venezuelan “economy as a whole.” It’s a striking example of what Venezuelan economist Francisco Rodríguez described in Foreign Policy (1/12/18):
[A] problematic idea driving current US policy is the belief that financial sanctions can hurt the Venezuelan government without causing serious harm to ordinary Venezuelans. That’s impossible when 95 percent of Venezuela’s export revenue comes from oil sold by the state-owned oil company. Cutting off the government’s access to dollars will leave the economy without the hard currency needed to pay for imports of food and medicine. Starving the Venezuelan economy of its foreign currency earnings risks turning the country’s current humanitarian crisis into a full-blown humanitarian catastrophe.
Even as Venezuela’s export revenues rose last year, as world oil prices increased, Venezuela’s imports fell by 31 percent, Rodríguez pointed out:
The reason is that the country lost access to international financial markets. Unable to roll over its debt, it was forced to build up huge external surpluses to continue servicing that debt in a desperate attempt to avoid a default.
It’s sanctions, not “years of economic mismanagement,” Rodríguez noted, that prevent Venezuela from turning rising oil prices into food for hungry children:
Major financial institutions have delayed the processing of all financial transfers from Venezuelan entities, significantly hampering the ability of Venezuelan companies to do business in the United States. Even Citgo, a Venezuelan-owned subsidiary that owns 4 percent of the United States’ refining capacity, hasn’t been able to get US financial institutions to issue routine trade credit since sanctions were imposed.
The Washington Post (3/8/18) blames “mismanagement and corruption,” not US efforts to destroy the Venezuelan economy, for the failings of the country’s health system.
Another Post article, by Rachelle Krygier (3/8/17), reporting on the serious challenges facing Venezuela’s health system, likewise ignored US sanctions as part of the explanation. Instead, she wrote:
Lower oil prices and populist policies championed by the late Hugo Chávez and continued by his successor, President Nicolás Maduro, have plunged Venezuela into a spiraling economic emergency.
The Post’s Anthony Faiola (3/2/18), writing about the “humanitarian crisis” driving Venezuelans to flee their country, similarly acquitted the empire of any wrongdoing:
Venezuela has reached a breaking point, with lower oil prices and economic mismanagement leading to the world’s highest inflation rate and spiraling indexes of poverty and malnutrition.
CNN (3/2/18) also exclusively blamed the Venezuelan government for the country’s difficulties: “Corruption, mismanagement and price freezes have caused Venezuela’s economy to collapse.”
In an article on NBC’s website (3/12/18) on how “Life Is a Daily Struggle in Venezuela,” Mariana Zuñiga claimed that “Venezuela’s crisis can be traced back to Chávez,” who “relied heavily on oil revenues to fund his ‘21st Century Socialism’ agenda,” leaving Venezuelans with “little savings to fall back on” when oil prices collapsed. The other key reasons she listed for Venezuela’s problems were government currency controls and “years of excessive regulations [that] have discouraged local production.”
She neglected to point out what 150 scholars, writers, artists, activists and workers did in a letter published three days earlier (Alliance for Justice, 3/9/18): that the impact of US sanctions “falls most heavily on the poorest and most marginal sectors of society, to coerce political and economic change in a sister democracy.” They described sanctions as “a cynical use of coercive economic power to attack a nation that is already dealing with hyperinflation and shortages of basic commodities.” The letter also points to polls showing that a large majority of Venezuelans oppose sanctions, and notes:
It is no secret that Venezuela, unlike Mexico, Honduras, Colombia, Egypt or Saudi Arabia, is targeted for regime change by the US precisely because of Venezuela’s leadership in resisting US hegemony and the imposition of the neoliberal model in Latin America. And of course, Venezuela holds the largest oil reserves in the world, attracting more unwanted attention from Washington.
As the situation worsens in Venezuela, the US government has decided to aggravate matters further by repeatedly ramping up sanctions, most recently earlier this month, but media have failed to note the connection between such measures and the multitude of stories about Venezuelans’ struggles that they keep publishing.
These elisions exonerate the empire’s economic warfare against Venezuela and the harm the U.S has intentionally inflicted on the Venezuelan people. As de Zayas (Real News Network, 3/14/18) notes simply, the sanctions “have caused death.”
That these articles opt against informing their readers that American sanctions are contributing to the issues facing Venezuela is all the more egregious considering that the sanctions violate international law, contravening both UN Resolution 2625, which forbids “the use of economic, political or any other type of measures to coerce another state” and the charter of the Organization of American States, which bars the “use of coercive measures of an economic or political character.” As usual (e.g., FAIR.org, 9/19/13, 12/8/17), US media do not deem American violations of international law newsworthy.
American excisionalism
The only reason Venezuela is a failed State, a non-nation, drug dictatorship, kleptocracy is because the elite in power STEALS everything, all the dollars, everything, how else to live so well, buy gold plated Ferraris, etc? That has zero to do with sanctions. Absent same, the elite would just steal more. This is a new sort of dictatorship, as it exists in its own self interest, for crime and profit, and, frankly, it armed its collectivos so as to do its dirty work and for population control. The elite is most secure, as well, when everyone in the nation is a criminal in order to survive. Murder, robbery, extortion, drugs, prostitution, all to live, and no one pays rent or utilities, etc. Everyone is a thief, those who are not, the government is happy they flee. The nation is a sewer, and it will never change, as too many thugs make millions there, thanks to the elite. If you don’t believe it, esp the author, GO, buy a one way ticket, as you will not survive, I say, not for a day. And, I know this failed State very well, with the footnote, its criminality is spreading throughout the region, destroying the whole area, all in the name of drugs, smuggling, murder, and the like. I personally do not agree with sanctions, however no one should enable this continuing criminality, and the destruction of the people of Venezuela, and the USA and the oil trade enable all of it. This must stop. No respectful nation should have anything to do with supporting the elite of Venezuela.
And, I would hang them all.
The only reason Venezuela is a failed State, a non-nation, drug dictatorship, kleptocracy is because the elite in power STEALS everything, all the dollars, everything, how else to live so well, buy gold plated Ferraris, etc? That has zero to do with sanctions. Absent same, the elite would just steal more. This is a new sort of dictatorship, as it exists in its own self interest, for crime and profit, and, frankly, it armed its collectivos so as to do its dirty work and for population control. The elite is most secure, as well, when everyone in the nation is a criminal in order to survive. Murder, robbery, extortion, drugs, prostitution, all to live, and no one pays rent or utilities, etc. Everyone is a thief, those who are not, the government is happy they flee. The nation is a sewer, and it will never change, as too many thugs make millions there, thanks to the elite. If you don’t believe it, esp the author, GO, buy a one way ticket, as you will not survive, I say, not for a day. And, I know this failed State very well, with the footnote, its criminality is spreading throughout the region, destroying the whole area, all in the name of drugs, smuggling, murder, and the like. I personally do not agree with sanctions, however no one should enable this continuing criminality, and the destruction of the people of Venezuela, and the USA and the oil trade enable all of it. This must stop. No respectful nation should have anything to do with supporting the elite of Venezuela.
And, I would hang them all.
Hogwash imperialistic propaganda!
The reason that sanctions aren’t mentioned as the cause of Venezuela’s economic woes in the mainstream press is because they understand what the author of this article doesn’t, that the cause needs to come before the effect. Before August of last year, sanctions against Venezuela were against a few dozen officials which prevented them from visiting the US or keeping their personal funds there, not the kind of thing that brings down economies. The depression in Venezuela started several years before. Venezuela’s economy shrunk about 30% between 2013 and when those sanctions were put in place. These were caused by structural problems such as price controls that don’t reflect the cost to produce goods, a foreign exchange rate that has nothing to do with reality, and inflation driven by government policies. Economists with any knowledge in the matter, which excludes Mr. Weisbrot, have been warning of such consequences for a decade now, long before any US sanctions were in place.
Right on Mike Wilson!
How much are you being paid for these comments? There have been moves to sanction Venezuela by the US since at least 2003, the earliest post-Chavez including sanctions by Bush in 2004 for the Venezuelan government allegedly “not taking enough measures against human trafficking” despite the fact that Venezuela had signed & ratified the UN Convention against Transnational Organized Crime, and the UN Protocol to Prevent, Suppress & Punish Trafficking in Persons, Especially Women and Children.
No-one has ever denied that there are economic issues in regards to poor policy or mismanagement in the country, there are certainly valid critiques against the government, such as thier failure to diversify the economy away from reliance on Oil Exports (interestingly you don’t mention the collapse in Oil prices in 2013, I wonder why that is?) but you’re presenting a nonsense view to justify US Imperialism and your entire narrative about cause & effect is incoherent to anyone who can do a quick engine search. Please fuck off.
I tend to agree with you in what you are saying.
But the Issue is who is The US, Canada, and or the EU to punish Venezuelan people with a total embargo?
Yes I say the people are the ones which are suffering and not the mafias inside or outside of the Venezuelan Government!
Venezuelan have the right to have or elect there own Government. It is too bad that the US attempts of Coups have failed.
Whether right or wrong the people have the right to their own way of managing their own affairs without outside interference like one today imposed by threaths of invasion!
The Venezuelans have the right to pick their own government and nobody has implemented any kind of total embargo. There are sanctions against individuals and the US, along with Canada, the EU, and many South American countries, have said that the current government doesn’t have the right to issue new debt. The EU has explicitly said that new debt would be allowed if the National Assembly approves it, the US has strongly hinted this would be the case as well.
Nobody is talking about an invasion… except of course the Chavistas who have been talking about the imminent invasion for over a decade now. There is some talk about sanctions against the oil industry in Venezuela, but I don’t see the point of those. They’re already well on the way to putting themselves out of business without any outside help.
Good and dundy!
I guess according to you benevolent Canada and US don’t want a military obtion or embargo .They only want to overthrow (REGIME Change) the Government by economic and other pressures?
The same they tried in Cuba, Nicaragua. Or the Granada and Panama invasions were not real?
Can you imagine because a country does have another economic or social System, they should invade or starve their citizens ?
Then the Cubans, Nicaraguans, Vietnamese, Chinese, Russians, North Koreans etc should force Canada or the USA into and economic depression and or invade both using the excuse that they are Capitalists countries and that they for example slaved their indigenous populations ? or use this excuse to say then that Canada or USA don’t have the right to exist as Nations?
It is very odd and strange that the worst corrupted individuals in the western world always talk about corruption in other countries like North Korea, Russia etc!
Why this double standard?
I believe the Venezuelans did pick their own government in elections that were judged fair by international observers.
I think it’s clear the Chavez government was being punished for expropriating American assets. Simple as that.
I think it’s clear the Chavez government was being punished for expropriating American assets. Simple as that.
Heu idiot, Chavex kicked out US based companies without reason, short paid ir simply didn’t pay others. ONLY AFTER the easily predicted massive drop in bpd production did the Venezuelan govt invite them back.
Zero ‘retaliation’ 100% correct in sanctioning a government that removed an elected (by 72% landslide) Congress.
Sanctions by the USA is an old trick. Remember Cuba, for over 50 years now. I call it war crimes, through the almigthy dollar, endlessly dictating what the rest of the world should think and do.
Sanctions by the USA is an old trick. Remember Cuba, for over 50 years now. I call it war crimes, through the almigthy dollar, endlessly dictating what the rest of the world should think and do.
This is utter nonsense. US has NOT imposed economic sanctions on Venezuela “…for years.” Targeted individual sanctions have been the norm, all the way back to 2007-08 when some Venezuelan nationals were placed on OFAC’s list for their connections to the FARC and drug trafficking. Dozens of individual Venezuelan nationals are now under individual sanctions primarily for human rights abuses, including military and civilian officials, and practically all of these individual sanctions were imposed from about 2014 to present day. Economic sanctions were not imposed until starting in August 2017, approximately. If you’re going to ‘teach’ media studies try at least to teach based on facts, not fake news.
This is utter nonsense. US has NOT imposed economic sanctions on Venezuela “…for years.” Targeted individual sanctions have been the norm, all the way back to 2007-08 when some Venezuelan nationals were placed on OFAC’s list for their connections to the FARC and drug trafficking. Dozens of individual Venezuelan nationals are now under individual sanctions primarily for human rights abuses, including military and civilian officials, and practically all of these individual sanctions were imposed from about 2014 to present day. Economic sanctions were not imposed until starting in August 2017, approximately. If you’re going to ‘teach’ media studies try at least to teach based on facts, not fake news.
Spot on; you’re referring to members of El Cartel del Sol when you mention the members of Venezuelas govt.
Silence is equal to complicity
You quoted De Zayas
This individual was hired By Maduro and Company to defend Venezuela from the embargo by US Imperialism and today is even promoted by them, some communists and some in the holy alliance of the Left.
The morality of the story is that in the 21 century even Fascists are promoted under the excuse of being anti US imperialistm?
Therefore, who or whom are responsible for promoting De Zayas?
I’m willing to share the facts about de Zayas or you can do it your-self in the Web
I suggest people write denouncing de Zayas in their web pages or anywhere they could
http://www.ihr.org/jhr/v10/v10p237_Clive.html
Above One example from writtings by Alfred De zayas.
Note: When people write they should should ask for the credentials of the writers!
This is how the CIA and police services penetrates anti-fascist or anti-imperialists or honest people!
In this case De Zayas posed himself as anti-Venezuelan embargo. Who could even suspected of him when his credentials were approved by the UN and the Government of Venezuela?
Who was responsible of inviting him as a special guess of the Government of Venezuela and for us for the first time hear about Him in the pages of Venezuelan analysis
Justice would be to keep every US Sanction after Venezuela and other Victims achieve economic stability. Since Russia sent back 2 ship loads of Canadian pork, that price is yet to recover. Pork in Canada is less than Half of what it was before snactions.
DELUSIONALLY FALSE INFORMATION !
US Sanctions were against a select few members of El Cartel del Sol drug trafficing cartel who are also high ranking Vebezuelan ifficials. Sancations were nit allowing them entry into the US or using US Banks to launder money. EXAMPLE: Tarek A had 300 MILLION in Venezuelan State funds frozen FROM HIS PERSONAL BANK ACCOUNT in Miami (public knowledge & widely reported).
– Only until recently did the US sanction the Vebezuelan government. Tge did so ONLY AFTER the elected (ELECTED BY 73% LANDSLIDE) Congress was enuled and replaced with Maduros political party reps. The US & CANADA, as well as the EU & others denounced tge illegal act.
– The US did not force tge Venezuelan government to increase the money supply by well over 300%
– Canada did nor force Chavez to put price controls on practically everything; which resulted in a massive drop in domestic production.
The US did NOT wreck the Venezuelan economy. What did…?…?
– Increasing pdvsas workforce by almost 300% while bpd production decreased.
– Ending ALL r&d at pdvsa & putting those valuable funds towards extremely horrible projects (train line, military training center…)
– Printing so much money, the bills wouldnt fit into three (3) jumbo jets. 300% increase in money supply.
– Then, the next year, printing so much money, the company doing the printing ran out of paper. (Estimated at 55-60% additional money supply)
– Putting price controls on practically everything; which DIRECTLY resulted in domestic production plummeting.
– Naming a Maxist is Treasury Secretary. This ‘Genius’ actually said “tgere is no such thing as inflation’
– CORRUPTION: A well documented case is Tareks bank accoubt in Miami being frozen by the Gringos. The $300,000,000 was Venezuelan State funds…IN HIS PERSONAL ACCOUNT
– The richest woman in Venezuela has proven funds of well over 4.1 BILLION. She had a net wortg of less than 100.000 dollars ehen she statted her 11 year, mid level government post. How did she accumulate 4.1 Billion in a total of 15 years. Shes Hugo Chavez’ daughter and was able to buy US dollars cheap (at the government rate) then sell to companies in Venezuela at a higher price.
The only scary thing about this article Im commenting on isnt the false information it has; its that the mal-informed author is a teacher at a University…. WOW
Then according to your logic The Canadian government should be overthrown because all the corruption and money laundering by mining companies that the hidden bank accounts in banks in the Islands in the Caribean?
Also do not forget that Canada is one of the countries where illegal drug money is laundering in trucks loads!
Then we should declare economic sanctions against Canada and threat it with military force or are you aloso advocating that Canadian ruling classes show be overthrow by Force?
Why of this paternalistic view that the Western world should do what ever they want to do regarding other nations under one million justifications?