[News] Venezuela’s Fragile Revolution: From Chávez to Maduro

Anti-Imperialist News news at freedomarchives.org
Fri Oct 6 12:34:08 EDT 2017


https://venezuelanalysis.com/analysis/13416


  Venezuela’s Fragile Revolution: From Chávez to Maduro

By Steve Ellner - October 5, 2017
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The Venezuelan experience of nearly two decades of radicalization, 
extreme social and political polarization, and right-wing insurgence 
offers valuable lessons for the left. The country’s current crisis 
should be an occasion for constructive debate around the struggles, 
successes, and failures of the Bolivarian Revolution. By pinpointing 
strategic errors–especially in the context of unrelenting hostility by 
powerful forces on the right–Chavismo’s supporters and sympathizers can 
offer a corrective to the sweeping condemnations of the government of 
Nicolás Maduro now coming from both right and left.

This article thus has two aims: to shed light on the major lessons of 
the years of Chavista rule, and to put some of the government’s more 
questionable actions in their proper historical and political context. 
The common perception of the Chavista leadership as incompetent 
administrators who disdain democracy ignores the complexity of achieving 
socialism through democratic means, a process whose dangers and demands 
have shaped the government’s decisions, for better and worse. Only by 
reckoning with that complexity can we understand both Venezuela’s 
current situation and its turbulent recent history.


    Taking Sides

In recent months, as the nation’s political conflict has intensified, 
increasing numbers of both Venezuelan leftists, such as the group Marea 
Socialista, which withdrew from the governing United Socialist Party 
(PSUV), and foreign observers have broken with the Chavista camp. Many 
now defend a “plague on both your houses” attitude toward both the 
Maduro government and the right-wing opposition.^1 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en1> 
  Whatever the merit of some of their objections, by censuring the 
government and opposition in equal terms, the ex-Chavistas obscure the 
vital fact that the latter is the aggressor, while the former has been 
relentlessly attacked, compelling it to take emergency measures, with 
damaging long-term effects.

This phenomenon is of course not new: Chavista governments have been 
under near-continuous assault from the time Hugo Chávez first took 
office in 1999. Few elected governments in recent history have faced 
such sharp confrontation and polarization over such a prolonged period, 
or met with such a multitude of powerful and hostile forces. The 
adversaries include Venezuela’s major corporations and business groups, 
the U.S. government and the Organization of American States (OAS), the 
Catholic Church hierarchy, university authorities, and the news media, 
in addition to the traditional political establishment and labor unions. 
A brief list of hostile actions includes an attempted coup in 2002, 
promoted by business interests and backed by the United States; a 
two-month national lockout in 2002–03; waves of paramilitary urban 
violence from 2002 to the present; and the refusal of the opposition and 
its allies to recognize official electoral results, even those certified 
by international observers.

The belligerence has only become more pronounced under Maduro, who lacks 
Chávez’s charisma, and whose government has been buffeted by ongoing 
crises of debt, inflation, and low oil prices. On the day of Maduro’s 
election in April 2013, losing candidate Henrique Capriles called on his 
followers to express their wrath (/arrechera/), resulting in the killing 
of ten Chavistas, including a policeman. The paramilitary political 
violence known in Venezuela as the /guarimba/ dates to 2003, but has 
escalated under Maduro: the three-month street protests in 2014 included 
armed private brigades, whose tactics have since become still more 
militarized.

Meanwhile, Washington’s aggression against the governments of Chávez and 
Maduro demonstrates that in terms of foreign policy, little 
distinguishes Republicans and Democrats. The Bush administration 
wholeheartedly supported the coup and general strike in 2002–03. Obama 
inspired great expectations early in his presidency with his warm 
encounter with Chávez, who handed him a copy of Eduardo Galeano’s /Open 
Veins of Latin America/, but ended up twice issuing an executive order 
characterizing Venezuela as an “unusual and extraordinary threat” to 
national security. And under President Trump, who has spoken casually of 
employing a “military option” against Maduro, newly appointed CIA 
director Mike Pompeo admitted to having worked with the governments of 
Mexico and Colombia to promote regime change in Venezuela.

Although the scale and duration of these threats make Venezuela unique 
among contemporary constitutional democracies, their lessons are 
universal. The same challenges facing Venezuelan leftists in power lie 
in store for any democratic government committed to socialism, 
especially one that goes as far as Chávez did. In this sense, the 
Venezuelan experience, with all its disappointments and achievements, is 
more instructive for leftists in liberal-democratic nations than 
twentieth-century revolutions in Russia, China, and Cuba.

Most important, the Venezuelan experience has demonstrated the need for 
socialists who reach power by electoral means to walk a tactical 
tightrope. On one side, in the name of pragmatism and in the face of 
ruthless adversaries, Chavista governments have found it necessary to 
make concessions: tactical alliances with business leaders—whose support 
has often proved self-serving—and populist policies, including generous 
social spending, some of which have fostered corruption and squandered 
vital resources. On the other side, Chavista governments have mobilized 
large numbers of their rank-and-file supporters and allied social 
movements by demonstrating commitment to radical change and socialist 
ideals. As I will argue, the revolution has too often tilted in the 
former direction, at the expense of the latter.

This is not to suggest that Chavista governments have been motivated by 
sheer opportunism or short-term considerations. The key point is rather 
that in conditions as unfavorable as those now prevailing in Venezuela, 
the left’s options are severely limited. Under better circumstances, 
such as have existed at various junctures under both Chávez and Maduro, 
the government must act aggressively to deepen the process of change and 
achieve other objectives. As I discuss below, timing is essential.

The key issues currently being debated within the Chavista movement boil 
down not to differences over long-term goals, but how to ensure the 
viability of specific policies. Any analysis that focuses only on the 
end results of the revolutionary process, such as socialist democracy, 
while ignoring the constraints imposed by social and political 
realities, can only mislead. The disillusionment of many former Chávez 
sympathizers both in Venezuela and abroad likely stems in part from this 
privileging of grand goals over immediate challenges. Too much of the 
Bolivarian Revolution’s energy depended on the vision and charisma of 
Chávez himself, who unfortunately failed to prepare his followers for 
the difficulties, sacrifices, and thorny contradictions that the process 
of radical change entails. The following issues, then, will be analyzed 
from the perspectives of viability, feasibility, and timing.


    Realism and the Bourgeoisie

Chávez and the Chavista movement were always characterized by a mix of 
realism and idealism.^2 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en2> 
  Chávez declared that Venezuelan socialism was based on the principle 
of “to each according to their needs.” Not even Soviet leaders went that 
far: like Marx, they defined socialism as “to each according to their 
contribution.” But Chávez was first and foremost a realist and 
strategist, traits derived from his military background. Just days after 
a two-month business-promoted lockout aimed at toppling his government 
in 2002–03, Chávez announced he would exclude the 
/golpistas/ (putchists) from the system of “preferential dollars” 
(dollars sold at lower exchange rates to pay for imports). In subsequent 
years, Chávez followed a tacit and at times explicit policy of giving 
preferential treatment to those businesspeople who had defied the 
traditional bourgeoisie by refusing to participate in the two-month 
shutdown. In doing so, he weakened the traditional bourgeoisie that had 
played the leading role in ongoing efforts to undermine the government.

The government’s distinction between the hostile traditional bourgeoisie 
and a “friendly” emerging one has remained largely unchanged under 
Maduro. The former, grouped in Fedecámaras, the Venezuelan chamber of 
commerce, has grown savvier politically, maintaining a distance from the 
parties of the opposition and even negotiating with the Maduro 
government at a time when the opposition refused to do so, all to avoid 
the appearance of partisan struggle. Nevertheless, Fedecámaras has been 
anything but impartial. Not only did it join the opposition to denounce 
and boycott the government’s election to select delegates to a 
Constituent Assembly this past July; it also indirectly supported 
opposition-called general strikes during the preceding weeks. As a show 
of solidarity with the opposition, member companies of Fedecámaras 
excused their employees from work during the “strike.”

The Chavista leadership’s reasoning for favoring “friendly” 
businesspeople over those represented by Fedecámaras is compelling: why 
grant credit or contracts for public works projects to those who will 
use public money to finance destabilizing activity? Nevertheless, the 
relationship between the government and friendly businesses who are 
awarded contracts has become too cozy. In 2009, after insiders began to 
manipulate several financial institutions resulting in a banking crisis, 
Chávez ordered the arrest of several dozen of them. Ricardo Fernández 
Barrueco, the richest pro-Chavista business executive, and Arné Chacón, 
brother of Chávez’s right-hand man, and a veteran of the abortive 1992 
coup linked to Chávez, spent three years in jail as a result.

But unethical behavior in Venezuela hardly came to a halt. One of 
Chávez’s most trusted ministers, Jorge Giordani, revealed in 2013 that 
$20 billion had been sold the previous year at the preferential exchange 
rate to finance bogus imports. Maduro failed to act on the allegation, 
despite promises to the contrary. But under his presidency, a Chavista 
governor, a mayor of the city of Valencia, and a president of a major 
state company were arrested on charges of corruption, and in 2017 
several executives from the state oil company, PDVSA, in eastern 
Venezuela faced a similar fate. In early 2017 the ex-governor received 
an eighteen-year jail sentence. These actions, however, have done little 
to contain corruption, which has become routine and highly visible.


    Relations with the Private Sector

Two opposing camps on the left fault the Chavista government for its 
ties to “friendly” businesspeople. Those to the left of the Chavista 
leadership see these relations as naïve or, worse yet, as tantamount to 
a sellout. Argentine writer Luis Bilbao, a supporter of both Chavista 
governments, has expressed skepticism toward what Chávez called a 
“strategic alliance” with the private sector, and his meetings with some 
of its representatives who were, for the most part, outside the 
Fedecámaras fold. Bilbao particularly criticized the “stage-based” 
approach of the Venezuelan Communist Party (PCV). According to Bilbao, 
the PCV sees the government’s alliance with supposedly non-monopolistic 
businesspeople as a necessary stage designed to achieve a “truce” with 
the bourgeoisie prior to moving ahead with socialist construction.^3 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en3>

On the other flank are those leftists who favor closer ties with the 
bourgeoisie. Víctor Alvarez, a former Minister of Basic Industry and 
Mining, is among the most prominent advocates of prioritizing national 
private production by limiting imports and downsizing the state sector. 
Alvarez decried Maduro’s removal in 2016 of Miguel Pérez Abad as 
Industry and Commerce Minister, the only businessman in the cabinet, 
claiming that Pérez Abad irritated Chavista “dogmatists” by calling for 
the privatization of expropriated firms that incur heavy losses.^4 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en4>

Both sides overstate their case. It seems fair to say that ties with the 
private sector are necessary, but that their deleterious long-term 
effects must be anticipated and at some point countered. On the one 
hand, few of the capitalists who have cooperated with the Chavista 
governments fit the old Comintern-promoted bill of a “progressive 
bourgeoisie,” which was said to support the nation’s economic 
independence and even to oppose imperialism. The government’s alliance 
with members of the private sector should not be considered 
strategic—defined as a long-term coordination based on mutual 
confidence—but rather tactical, with the goal of securing enough 
political and economic stability to sustain the process of change. 
Chavista activists have often warned that at the earliest sign of the 
possibility of regime change, pro-government businesspeople would be the 
first to abandon ship, and recent events have proved them right. Pork 
industry magnate Alberto Cudemus, for instance, one of Chávez’s most 
trusted allies, whom Chávez supported in his bid to head Fedecámaras, 
has become a harsh critic of Maduro. The president has responded in kind.

On the other hand, it is clear that objective conditions have not 
allowed for mass expropriations or all-out confrontation with 
capitalists. If capitalism in Chavista Venezuela will remain a reality 
for some time, the government has two options: ignore distinctions among 
the capitalists and treat them as one and the same, or take advantage of 
fissures within the business class. Given Fedecámaras’s sudden 
switch—from decades as a supposedly apolitical body to a staunch enemy 
of Chávez, even before his 1998 election—the government would be foolish 
not to cultivate relations with those businesspeople who reject the 
organization’s hostile line.

In addition to ex-minister Pérez Abad, now president of a major state 
bank, Oscar Schemel can be considered a reliable business ally. Schemel, 
the owner of a prominent public polling firm whose surveys are 
frequently cited by Chavistas, was elected as a business-sector delegate 
to the National Constituent Assembly (ANC) in the elections held on July 
30, 2017. To mitigate the country’s economic crisis, Schemel has urged 
the government to sell off highly subsidized state companies. The 
proposal (also supported by veteran leftist Eleazar Díaz Rangel, the 
Chavista editor of a major newspaper, /Ultimas Noticias/) touches a raw 
nerve among Chavista stalwarts, who see it as a betrayal of Chávez’s 
legacy. In a speech at the ANC on August 9, 2017, Schemel called for 
recognition of the importance of the market and the lifting of price 
controls. The latter proposal, however, would be untenable for the 
popular classes, whose purchasing power has declined precipitously in 
recent years. Nevertheless, Schemel is right to point out that given the 
fundamentally capitalist structure of the Venezuelan economy, the 
government cannot ignore the reality of the market.

Close relations with “friendly” businesspeople may be a necessary part 
of a democratic and peaceful socialist strategy, but their damaging 
effects, most visibly corruption and cronyism, must be expected and 
combated. If the Venezuelan experience is any indication, such scourges 
are inevitable: for example, efforts to enforce transparent bidding 
procedures for public works contracts, meant to safeguard against 
overpriced projects, have often been sidetracked. Chavistas argue 
privately that the traditional bourgeoisie, while no ally of the 
government, wins the lion’s share of such contracts by virtue of its 
greater capital and experience compared to those of “emerging,” 
“friendly” businesspeople. Evidently for that reason, the government 
granted lucrative contracts to the Brazilian conglomerate Odebrecht, 
with close ties to Lula da Silva’s Workers Party, for megaprojects such 
as bridge and rail construction, while pointing out that smaller 
“emerging” Venezuelan businesses were unequipped for such large 
undertakings. The infamous scandal that has since enveloped Odebrecht 
and other firms, as well as the Workers Party, implicates leading 
political figures throughout the continent, including Venezuelan 
politicians of many political stripes. All of this underscores the 
urgent need for effective popular and institutional controls, as I 
discuss below.


    Party and State

In early 2007, Chávez created the PSUV, which soon signed up 7 million 
members throughout the nation. As a mass-based party committed to 
bottom-up participation and building links to social movements, the PSUV 
held great promise as the foundation for Venezuela’s new political model 
of participatory democracy, embodied in the constitution of 1999. The 
PSUV was designed to allow revolutionaries to navigate the old state, 
which was penetrated by forces of reaction, and at the same time to 
build a new state through gradual, non-violent means.

Throughout his presidency, Chávez lashed out at bureaucrats, including 
those in his own party, who held back popular participation and 
efficient execution of policies and programs. Toward the end of his 
life, he told his inner circle that the scourge of bureaucratism had to 
be aggressively confronted: “Prepare yourselves. I am directing this 
initiative at my own ranks, my own government.” To Maduro, he demanded 
“a hundred inspection teams or more if necessary. If I have to remove 
someone, bring them to trial, or order a probe, then that’s what I’ll 
do.”^5 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en5>

Chávez himself, however, shared responsibility for the bureaucratic 
morass. Given the inability of the existing state to establish effective 
checks and balances, the PSUV was in an ideal position to independently 
monitor and combat inefficiency, obstruction, and corruption. But from 
the outset, Chávez in effect made the party an appendage of the state, 
with most of its leaders at all levels also serving in the government. 
Now, ten years later, the party’s president, vice president and 
twenty-two national committee members are nearly all ministers, 
governors, legislators, and others connected to the state.

While long on rhetoric about “participatory democracy,” the PSUV 
leadership nevertheless discourages criticism from the rank and file. As 
in past party primaries, the campaign for the National Constituent 
Assembly elections on July 30, 2017, saw the PSUV leadership use its 
influence and resources to favor certain candidates and trusted 
supporters. Critical Chavista candidates should have been given greater 
opportunities, such as increased airtime on the TV channel Venezolana de 
Televisión and other state media outlets, or public forums open to all 
candidates.

One such reliable but critical candidate, elected to the ANC, was Julio 
Escalona, an iconic guerrilla of the 1960s, who raised the key issue of 
corruption and called for the seizure of all assets obtained by illicit 
means. Escalona also warned against PSUV control of the ANC: “The 
government will be well represented in the ANC and that is logical.… But 
the government and the parties have a tendency to control everything. 
For the sake of the people and including the government and the PSUV, 
the ANC should not be dominated by a sectarian current.”^6 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en6>

Providing opportunities and opening space for Chavista activists and 
grassroots leaders who are committed but not beholden to the party 
machine would be an intelligent strategy, both to restore some of the 
popular energy of the Chávez years and to counter the right’s recent 
offensive. Such an approach would stop short of a “revolution in the 
revolution,” involving a thorough shake-up of the bureaucracy—an 
unfeasible approach in the current moment of acute political 
confrontation. In this sense, the reinvigoration of Chavismo through 
relaxed controls on bottom-up participation represents the same 
tightrope-walking strategy, based on a realistic assessment of objective 
conditions and of the relative strength of hostile forces, that has 
informed the movement from the beginning.


    Democracy and Government

Chavista rhetoric envisions a new type of democracy, based on direct 
popular participation in decision-making, that supersedes old models of 
representative government. Chavista leaders invoked this model to 
encourage participation in the ANC elections. In a May Day speech, 
Maduro justified his decision to convene the ANC as an effort to 
strengthen and deepen the participatory provisions of the constitution 
of 1999. As proof of the feasibility of these “new forms of direct 
democracy,” Maduro pointed to such initiatives as the system of 
community distribution of basic food items (known as the Local 
Distribution and Production Committees, or CLAPs) and the communes, 
which organize and direct economic activity within cities and neighborhoods.

Although the CLAPs and communes suggest the great potential of direct 
participation, both are in an incipient stage. Similarly, the system of 
“social controllership,” another example of direct participation, has 
not come to full fruition. Under this arrangement, the community, 
through the communal councils first created in 2006, monitors public 
works projects to ensure that public money is properly allocated and 
spent. Social controllership, and the communal councils in general, have 
encouraged the participation of large numbers of formerly marginalized 
Venezuelans and engendered a sense of empowerment, but their performance 
at the national level has been uneven.^7 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en7>

Given this reality, the system of institutional checks and balances 
conventionally associated with liberal or constitutional democracy 
cannot be readily discarded. Accountability is particularly important 
because Venezuela’s political system has always been skewed in favor of 
executive power, and even more so under the Chavistas. In addition, with 
the loosening of rules for bidding on public contracts, discussed above, 
other types of institutional checks and guarantees need to be developed. 
In one example of a failed effort to tighten controls, legislation in 
2009 allowed the National Controllership to review the finances of the 
communal councils, but the provision has been a dead letter.

As long as direct democracy remains a work in progress, old 
institutional controls should be retained and, where necessary, 
modified, but not abandoned. The central challenge remains “to walk a 
fine line between grassroots movements and state institutions,” which, 
in the words of George Ciccariello-Maher, Chávez was uniquely able to 
do.^8 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en8> 
  Inside the PSUV itself, direct democracy is not just a guiding vision 
but an immediate imperative. Even improved institutional controls within 
the state would not guarantee transparency and accountability. The 
effort to combat corruption requires that the governing party become 
internally democratic, participatory, and semi-autonomous in its 
relations with the government.


    Loyalty and Sectarianism

The experience of the general strike of 2002–03 taught the Chavista 
leadership the importance of loyalty, but the incident may have been a 
case of “overlearning.” After the strike, Chávez fired 17,000 technical 
and professional oil company employees who had paralyzed production in 
the industry to spur regime change. Their replacements, most of whom 
lacked their predecessors’ expertise, succeeded in restarting 
production. To many of the president’s supporters, the episode suggested 
that skill was dispensable, but loyalty, which became a Chavista 
catchword, was not. Chávez’s and Maduro’s frequent rotation of cabinet 
ministers, who often lacked any background in the ministries they were 
appointed to serve, appeared to affirm this disregard for technical ability.

The overemphasis on loyalty has also fomented sectarianism and 
intolerance, and political fealty can serve as a cover for corruption. A 
favorite slogan of both Chávez and Maduro, “Unity, Unity and More 
Unity,” is often used to exhort followers to close ranks and set aside 
internal criticism to focus on facing down a ruthless enemy. This call 
for unity above all else appears especially relevant after the recent 
defection of several leading Chavistas from the PSUV. One such figure is 
Giordani, who since Chávez’s death has been sharply critical of Maduro’s 
government. But a distinction should be drawn between leftist 
adversaries of the government, such as Giordani and the group Marea 
Socialista, and leftists who give it critical support, such as former 
commerce minister Eduardo Samán. The latter, who was removed from office 
by Chávez and later again by Maduro, has made clear that revolutionaries 
cannot always air their criticisms publicly, and that party discipline 
must take precedence. However, the PSUV’s failure to recognize Samán’s 
leadership prompted him to leave the party in June to join an allied 
group, Patria Para Todos, and then run as a candidate for the ANC. At 
the same time, Samán chided Giordani for his excessive condemnations of 
the party, adding: “I also have my criticisms but I am not going public. 
At this moment we have to prioritize unity because the whole 
[revolutionary] process is on the line.” Samán’s exit from the PSUV 
confirms that Maduro, much more than Chávez, has been overly hostile to 
critics on the left, both within and beyond the movement. One Chavista 
activist I interviewed faulted Maduro for being at times “sectarian,” 
and pointed to Mao’s “On the Correct Handling of Contradictions among 
the People” as a guide for resolving the movement’s internal 
differences.^9 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en9>


    Social Justice and Productivity

There were sound political reasons for Chávez to prioritize social 
programs over economic objectives during his first years in office. Had 
he not, the country’s poor and working-class populations might not have 
rallied so actively to his cause during the two attempts to topple his 
government in 2002. Not surprisingly, the government’s flagship social 
programs date back to the aftermath of the 2002–03 general strike. In 
his later years, Chávez gave greater weight to policies to promote 
economic development, as has Maduro, who responded to the economic 
downturn in 2014 by prioritizing efforts to transform the nation’s 
rentier, oil-based economy. If Venezuela is typical of what can be 
expected when leftist governments in the global South take power by 
electoral means, the sequence will be first the prioritization of social 
objectives in response to political perils, and then a shift to a 
strategy designed to face economic challenges. Thus consolidation of 
power and stability is the initial task, requiring an emphasis on social 
provision in order to buttress the left’s mass base of support.

But in certain respects, Chávez went overboard in his focus on social 
goals at the expense of economic ones in the early years of his 
presidency. His constitutional reform proposal of 2007, for example, 
included a reduction of the legal work week from forty-four to 
thirty-six hours. Such a drastic cut threatened to stunt Venezuela’s 
economic growth, as it would that of any industrializing country. 
Likewise, at the level of discourse, Chávez’s liberal use of slogans 
such as “the sea of happiness” and “humanistic socialism” failed to 
prepare Venezuelans for the toil and struggle that lay ahead, 
particularly when international oil prices declined. Indeed, the 
overriding need to overcome the nation’s dependence on oil may not have 
been an immediate priority in Chávez’s early years, but from the outset 
the challenge had to be faced, albeit not privileged. There is a lesson 
to be learned: stages whereby certain objectives are prioritized over 
others have to be defined for each period, but at the same time, future 
stages need to be anticipated, both at the level of policy and discourse.

A particularly thorny problem of strategy and timing arises from the 
drive for social justice and equality. Both are guiding ideals of the 
Chavista movement, and account for much of the support it enjoys among 
the country’s non-privileged and marginalized populations, such as 
members of the informal economy. In itself, this “humanistic” aspect of 
socialism is not a point of contention within the Chavista movement. 
Internal debate, however, has centered on the need for collective 
discipline and sacrifice, and on the poor administrative and economic 
performance of the state sector. Within any socialist government, 
tension sometimes arises between efforts to achieve equality and social 
justice on the one hand, and efficiency, productivity, and labor 
discipline on the other, even as the two sets of goals are reconcilable 
and in some ways interrelated.^10 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en10>

A case in point is the practice of outsourcing, which Chávez decried. 
His opposition to outsourcing in part prompted him to nationalize the 
foreign-owned steel company SIDOR in 2008, and to expropriate contractor 
companies in the oil industry, and eventually to outlaw the practice 
altogether in the Organic Labor Law of 2012. The issue in Venezuela, 
however, is not always cut and dried. On the one hand, the incorporation 
of tens of thousands of outsourced workers by state companies is an 
inspiration for labor movements around the world. On the other, some 
workers who have raised the banners of social justice associated with 
Chávez and demanded to be added to the payroll of the state oil company, 
PDVSA, are not permanently employed in the oil industry. Since 1998, 
PDVSA’s workforce has more than tripled, from 40,000 to over 150,000.

The tension between social justice and socialist efficiency plays out on 
other fronts. One issue is the widespread practice of granting free or 
excessively low-priced goods and services to poor and working-class 
communities. The case for the policy is compelling, namely that the 
government has a responsibility to pay what Chavistas call the “social 
debt” owed to the most exploited sectors. Yet such artificially low 
prices on goods produced by state companies undermine their ability to 
achieve self-sufficiency, and are partly responsible for the chronic 
scarcity of many products and the emergence of an exploitative black 
market. This dilemma partly explains why companies that Chávez 
expropriated after 2007 to achieve “food sovereignty” have been unable 
to fill the gap left by politically motivated disinvestment by the 
private sector in recent years.


    When to Act

If the aggression and intransigence of Venezuela’s opposition has 
limited the government’s options and forced it to make concessions, then 
those moments when the Chavistas have the upper hand represent special 
opportunities for progress and reform. In such situations, four 
objectives—all of which come at a price, but only in the short run—stand 
out as achievable: economic transformation; combating corruption and 
inefficient bureaucracies; internal democratization; and the weakening 
of adversaries. Chávez took advantage of the favorable juncture after 
his triumph in the 2006 presidential elections, when he won 63 percent 
of the vote, the largest in modern Venezuelan history. Not only did he 
nationalize strategic industries, but he created the PSUV and delivered 
a heavy blow to his adversaries on the right.

In contrast, Maduro missed a valuable opportunity in mid-2014, when the 
Chavistas were in an ideal position after defeating the opposition’s 
three-month /guarimba/ protests and winning municipal elections by an 
impressive margin. At the time, Maduro vowed to undertake a 
“revolutionary shakeup” of his cabinet, prompting expectations that 
fresh faces would be brought in and new policies initiated. The 
announcement of these changes, however, was postponed several times, and 
when, on September 2, the appointments were finally made official, they 
amounted to merely a musical-chairs reshuffling of cabinet ministers. 
Concurrently, oil prices began to plunge, and a golden opportunity was lost.

The convening of the ANC may provide another favorable juncture for the 
Chavistas. At the time of this writing, in August 2017, the opposition 
has been worn down after three months of /guarimba/ protests even more 
violent than those of 2014. In addition, opposition leaders are divided 
over whether to participate in upcoming gubernatorial and municipal 
elections. Finally, given their sheer number, the 550 delegates to the 
ANC may be less subject to party control than are National Assembly 
deputies. Consequently, they may be more inclined to speak out against 
corruption and bureaucracy and in favor of initiatives to revive the 
economy.


    Summing Up

The failure of the numerous attempts to topple the Maduro government is 
due largely to the support the Chavistas still enjoy among the country’s 
popular sectors and the armed forces. The campaigns of violence in 2014 
and 2017 have been predicated on the assumption that disruptions in 
wealthy municipalities run by opposition mayors would spread to the 
barrios, or trigger a military coup. Neither has happened. With a few 
exceptions, the working classes and the poor have refrained from joining 
the /guarimba/, despite considerable discontent at the country’s 
economic crisis and the long tradition of barrio political 
resistance.^11 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en11>

In formulating a strategy toward the armed forces, Chávez assimilated 
the century-long experience of earlier Latin American progressive 
governments, whose lack of an organized following in the military left 
them without a counterweight to right-wing officers.^12 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en12> 
  Recognizing this reality, Chávez promoted “Bolivarian” officers, who 
identified with the movement, to commanding positions, with the result 
that the military now defines itself as anti-imperialist, socialist, and 
Chavista.

Maduro has played hardball in the face of the latest campaign to unseat 
his government. Not only has he jailed opposition leaders for inciting 
violence, but he has mobilized his own supporters to counter 
opposition-led street protests. In doing so, Maduro breaks with a 
tradition of sorts among Latin American progressive governments, which 
historically have put up little resistance to right-wing insurgencies: 
notable examples include Rómulo Gallegos in Venezuela in 1948, Jacobo 
Arbenz in Guatemala in 1954, Juan Domingo Perón in Argentina in 1955, 
João Goulart in Brazil in 1964, and Salvador Allende in Chile in 1973.

Maduro’s perseverance is inherited from Chávez, who realized long before 
his election as president that state power is of central importance in 
the struggle for socialism, and its achievement must take precedence 
over other considerations. Maduro is thus at odds with those on the left 
and beyond who argue that the Chavistas should be willing to relinquish 
power now that the government’s popularity is well under 50 percent.

But gaining and keeping power is not enough to make a revolution. 
According to the Chavista strategy, an old state and a new one will, in 
the words of Marta Harnecker, an unofficial advisor to Chávez, “coexist 
for a long time.” This approach contrasts with Lenin’s classic “dual 
power” strategy, in which the old state is considered enemy territory. 
Nevertheless, Harnecker recognizes that while it is legitimate for 
leftists to work within the old state, it has a corrupting influence. 
The only solution is for the “organized movement…[to] exert pressure on 
the inherited state.”^13 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en13> 
  Greek Marxist Nicos Poulantzas, who theorized along similar lines, 
pointed to autonomous social movements as the essential element exerting 
that pressure.^14 
<https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#en14>

In Venezuela, however, social movements—for indigenous rights, gender 
equality, environmental justice, and more—have traditionally been weak. 
This distinguishes it from a country like Bolivia, where the governing 
Movement toward Socialism party of Evo Morales emerged from such 
movements. In the absence of strong and independent grassroots groups, 
the key element in the Venezuelan process is thus the party. To combat 
bureaucracy, corruption, and inefficiency, the PSUV must become more 
independent of the state and more internally democratic.

Two fundamental challenges face the governing party in this drive for 
greater autonomy and internal participation by a committed and 
well-informed membership. First, if left unchecked, the government’s 
relationship with sectors of the bourgeoisie will solidify and continue 
to undermine the leadership’s socialist commitments. Second, if it is 
necessary to walk a tactical tightrope when the left finds itself on the 
defensive, the specifics of that strategy require input from those 
closest to the mood of the people. Decision-making cannot be the 
exclusive preserve of the party’s national leadership, still less of the 
president’s inner circle. A truly democratic party is essential in 
Venezuela not only as a matter of principle, but because the very 
survival of the country’s revolutionary process depends on it.


    Notes

 1. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn1>Jacobin andNACLA:
    Report on the Americas have each published articles both for and
    against the “plague on both your houses” position. For a
    representative “for” argument, see Gabriel Heitland, “Why Is
    Venezuela Spiraling out of Control?
    <https://www.jacobinmag.com/2017/05/venezuela-crisis-maduro-opposition-violence-elections-economy>”Jacobin,
    May 14, 2017. Marea Socialista worked as a faction within the PSUV
    from the party’s founding in 2007. In 2014, after taking an
    increasingly critical stance toward the government, MS announced its
    intention to become a separate political party.
 2. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn2>Ignacio
    Ramonet, “One Hundred Hours with Chávez,” in Hugo Chávez with
    Ramonet,My First Life(London: Verso, 2016), xxxiv.
 3. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn3>Luis
    Bilbao,Venezuela en Revolución: Renacimiento del Socialismo (Buenos
    Aires: Capital Intelectual, 2008), 182, 195–96.
 4. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn4>Víctor
    Alvarez, “Cambio en el gabinete,”El Mundo, August 5, 2016.
 5. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn5>“Chávez:
    Tengo moral para exigirle a mi equipo eficiencia,” YouTube, November
    5, 2012. In his last famous speech, Chávez also scolded those in
    charge of implementing policy for failing to promote direct
    democracy through the establishment of communes. Chávez,Golpe de
    Timón (Caracas: Edición Correo del Orinoco, 2012), 17–21. See also
    John Bellamy Foster, “Chávez and the Communal State: On the
    Transition to Socialism in Venezuela
    <http://dx.doi.org/10.14452/MR-066-11-2015-04_1>,”Monthly Review 66,
    no. 11 (April 2015): 1–17.
 6. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn6>Julio
    Escalona, “¿Una Asamblea Nacional Constituyente para la Simple
    Negación, para la Venganza?
    <https://www.aporrea.org/ideologia/a249218.html>” Aporrea, July 14,
    2017, http://aporrea.org
    <https://www.aporrea.org/ideologia/a249218.html>.
 7. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn7>For
    a brief discussion of the uneven performance of the communal
    councils and communes, see Steve Ellner, “Social Programs in
    Venezuela under the Chavista Governments
    <https://thenextsystem.org/learn/stories/social-programs-venezuela-under-chavista-governments>,”
    Next System Project, August 7, 2017, http://thenextsystem.org
    <https://thenextsystem.org/learn/stories/social-programs-venezuela-under-chavista-governments>.
 8. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn8>George
    Ciccariello-Maher,Building the Commune: Radical Democracy in
    Venezuela (London: Verso, 2016), 77.
 9. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn9>Felipe
    Rangel, interview with the author, Puerto La Cruz, July 11, 2017.
10. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn10>Jorge
    Arreaza, interview with the author, Barcelona, Venezuela, July 14, 2017.
11. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn11>For
    a vivid history and analysis of protests in Caracas’s famed 23 de
    Enero barrio in recent decades, see Alejandro Velasco,Barrio Rising:
    Urban Popular Politics and the Making of Modern Venezuela (Berkeley,
    CA: university of California Press, 2015).
12. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn12>Before
    1998, it was a notorious fact that most high-ranking officers were
    sympathizers of one of the two establishment parties, Democratic
    Action and Copei. Not even the moderately leftist Movement toward
    Socialism (MAS) was allowed any influence within the military.
13. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn13>Marta
    Harnecker, “Latin America and Twenty-First Century Socialism:
    Inventing to Avoid Mistakes
    <http://dx.doi.org/10.14452/MR-062-03-2010-07_2>,”Monthly Review 62,
    no. 3 (July–August 2010): 42.
14. ↩
    <https://monthlyreview.org/2017/10/01/venezuelas-fragile-revolution/#fn14>For
    a discussion of the application of Poulantzas’s thinking to the
    Chavista experience, see Steve Ellner, “Implications of Marxist
    State Theories and How They Play Out in Venezuela,”Historical
    Materialism 25, no. 2 (2017): 29–62.

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