It
is often said that some leaders are made while others are born. For
Hugo Chavez, the departed President of Venezuela, it can be said that he
was made as he rose as a military academy student to become the
President of the oil-rich country.
In 1992, Chávez, along with other
disenchanted members of the military, attempted to overthrow the
government of Carlos Andres Perez. The coup failed, and Chávez
subsequently spent two years in prison before being pardoned having
larnt his lesson. He then started the Movement of the Fifth Republic, a
revolutionary political party. Chávez ran for president in 1998,
campaigning against government corruption and promising economic
reforms.
As president, Chávez encountered
challenges both at home and abroad. His efforts to tighten his hold on
the state-run oil company in 2002 stirred up controversy and led to
numerous protests, and he found himself removed from power briefly in
April 2002 by military leaders. The protests continued after his return
to power, leading to a referendum on whether Chávez should remain
president. The referendum vote was held in August 2004, and a majority
of voters decided to let Chávez complete his term in office.
Since his election in 1998, the
administration of Chávez proposed and enacted democratic socialist
economic policies. Domestic policies included redistribution of wealth,
land reform, and democratisation of economic activity via workplace
self-management and creation of worker-owned cooperatives.
Internationally, the Chávez administration attempted to increase its
autonomy from the United States and European governments by increasing
control over domestic oil production and promoting economic and
political integration with other Latin American nations.
Venezuela is a major producer of oil,
which remains the keystone of its economy. Venezuela’s crude oil
production was 2.949 million barrels a day when Chávez took office in
1999 and in 2007 it rose to 3.12 million barrels a day, while oil prices
increased 660 per cent from 1998 to 2008, leading to a significant
increase in earnings. The state income from oil revenues “increased from
51 per cent of total income in 2000 to 56 per cent 2006″; however, oil
exports “have grown from 77 per cent in 1997 to 89 per cent in 2006″.
Though some economists view “this
dependence on oil as one of the chief problems that faced the Chávez
government”, the people benefited a lot from his government and they
have a lot to show for their oil money unlike Nigeria.
For instance, according to data compiled
by the UK Guardian, Chavez’s first decade in office saw Venezuelan GDP
more than double and both infant mortality and unemployment almost
halved. Then, data from the World Bank noted that under Chavez’s brand
of socialism, poverty in Venezuela plummeted (the Guardian reports that
its “extreme poverty” rate fell from 23.4 per cent in 1999 to 8.5 per
cent just a decade later). In all, that left the country with the third
lowest poverty rate in Latin America. Additionally, as Mark Weisbrot
points out, “College enrollment has more than doubled, millions of
people have access to health care for the first time and the number of
people eligible for public pensions has quadrupled.”
In June 2010, Weisbrot wrote that jobs
were much less scarce then than when Chávez took office, with
unemployment at eight per cent in 2009 compared with 15 per cent in
1999. He also stated that the number of front-line doctors had increased
tenfold in the public sector and that enrolment in higher education had
doubled, noting that these statistics were backed up by the UN and the
World Bank.
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