October 6, 2012

hISTORY ENDS EVERYWHERE:

How Hugo Chávez Became Irrelevant (FRANCISCO TORO, 10/05/12, NY Times)

Brazil's remarkable success in reducing poverty speaks for itself. Building on a foundation of macroeconomic stability and stable democratic institutions, Luiz Inácio Lula da Silva, who was Brazil's president from 2003 to 2010, oversaw the most remarkable period of social mobility in Latin America's living memory.

As millions of Brazilians rose into the middle class, Mr. Chávez's autocratic excesses came to look unnecessary and inexcusable to Venezuelans. Mr. da Silva and his successor, Dilma Rousseff, have shown that a country does not need to stack the courts, purge the army and politicize the central bank to fight poverty. Brazil proves that point, quietly, day in and day out.

It isn't just democratic institutions that have suffered from Mr. Chávez's radicalism; it's the economy, too. Venezuela's traditional dependence on oil exports has deepened, with 96 percent of export revenue now coming from the oil industry, up from 67 percent just before Mr. Chávez took office. Nationalized steel mills produce a fraction of the steel they're designed for, forcing the state to import the difference. And nationalized electric utilities plunge most of the country into darkness several times a week. The contrast with Brazil's high-tech, entrepreneurial, export-oriented economy couldn't be more stark.

For all of Mr. Chávez's talk of radical transformation, Venezuela's child mortality and adult literacy statistics have not improved any faster under his government than they did over the several decades before he rose to power.

With oversight institutions neutered, the president now runs the country as a personal fief: expropriating businesses on a whim and deciding who goes to jail. Judges who rule against the government's wishes are routinely fired, and one has even been jailed. Chávez-style socialism looks like the worst of both worlds: both more authoritarian and less effective at reducing poverty than the Brazilian alternative.

And the region has noticed. The key moment came in April 2011, when Ollanta Humala won the Peruvian presidency. Long seen as the most radical of Latin America's new breed of leaders, Mr. Humala had run on a Chávez-style platform in 2006 and lost. By last year, he'd seen the way the wind was blowing and remade himself into a Brazilian-style moderate, won and proceeded to govern -- so far, successfully -- in the Brazilian mold.

Now, in a final indignity, Mr. Chávez is facing a tight re-election race against Henrique Capriles Radonski, a 40-year-old progressive state governor who extols the virtues of the Brazilian model.

Posted by at October 6, 2012 6:24 AM
  

blog comments powered by Disqus
« DOESN'T LOSING RISK IMPLYING SHE'S FAT?: | Main | MITT'S CONSTITUENCY IS THE 47%: »