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January 19, 2007
Biased Coverage of Venezuela in US Media
Write Letters Today To Get a Fair View IN 2007 VENEZUELA USHERS IN NEW PLANS FOR THE NATION
Venezuelan President Hugo Chavez was sworn in for his third time last week as the democratically elected President of the Bolivarian Republic of Venezuela. Elected with an overwhelming majority in December, President Chavez recently announced some new and interesting plans for the country. Coined the Simon Bolivar National Plan, Chavez plans to nationalize sectors of the nation’s electrical and telecommunications companies. Like other governments in Latin America, Venezuela has committed itself to natural resource nationalism, or the control of key industries whose record of privatization has led to diminished growth over the years. Towards this end, the National Assembly gave its preliminary approval to the “ley habilitante” or enabling law yesterday, which if passed next week, will enable the President to pass through economic reforms by decree.NATIONALIZATION THROUGH COMPENSATION
Although financial markets were caught a bit off guard by the nationalization news, they reacted as many economists predicted with associated stocks dropping. Unfortunately, most news outlets omitted the fact that in the past the Venezuelan state has paid for all the companies it has aqcuired and will continue to do so at fair market value. In fact, Ricardo Sanguino, head of the National Assembly Finance Committee, stated that the nationalization plan will involve compensation rather than expropriation.” Read more news on this.
POLL SHOWS VENEZUELAN’S ARE HAPPY WITH THE DIRECTION THEIR COUNTRY IS HEADED
Despite the press’ adamant claims to the contrary, the most recent annual poll carried out by the Chilean polling firm, Latinobarometro, found that Venezuelans are more optimistic about the economic outlook in the year ahead than any other country in the region, they are less likely than most Latinos to worry about unemployment, and are far less likely than any other country in the region to blame unemployment on “inadequate government policies”. View the full poll results.
DEFAMATION CAMPAIGN CONTINUES
Despite this, many media outlets including the Washington Post, Washington Times, and Wall Street Journal have amped up their attacks against Venezuela and President Chavez, branding him a “menace” and even a possible threat to the security of the United States.
ACTION! WHAT YOU CAN DO:
Review the press coverage and talking points below and write a letter to the editor.
Victim of His Power Grab by Steven Mufson, Washington Post, January 18, 2007.
Write and send your letter!
Chavez’s Holy War by Samuel Gregg, Washington Times, January 17, 2007.
Write and send your letter.
Hugo and Mahmoud by the Wall Street Journal, January 17, 2007
Important Points to Note:
According to Ricardo Sanguino, the head of the National Assembly Finance Committe, the nationalization plan will involve compensation rather than expropration. “Confiscation, expropriation are banned words in our dictionary,” said Sanguino. “We will be tough but fair negotiators. There are legal mechanisms in the Constitution that give support to our plan.” Some American companies including Verizon and AES hold stakes in the affected Venezuelan electrical and communication companies. Although Washington seems concerned, as evident from White House press secretary Tony Snow’s remarks that Venezuela is making a mistake, average Venezuelans appear to think differently according to the Associated Press. Read the full story.
An Associated Press-Ipsos poll conducted three weeks before Chavez was re-elected on Dec. 3 found that 62 percent of those asked supported nationalizing companies when in the national interest.
A recently released annual poll, carried out by the Chilean polling firm Latinobarometro and based on 20,000 face-to-face interviews in 18 Latin American countries, found that Venezuelans tend to be far more optimistic about their economy than other nations, participate more in the political process, and are more likely than most other Latin Americans to be happy with the direction their country is headed. Read the poll.
Last Saturday President Chavez announced that private oil companies would be able to own a minority stake in the Orinoco region’s oil projects. While speaking to the National Assembly he said that British Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA and Statoil ASA would all be able to keep a stake in the projects as partners. Since last year the joint ventures have saved the state $6 billion, said Chavez.
Chavez’ use of oil revenue to fund his government’s social programs has not come at the expense of investment in oil exploration and development. In fact, on top of its programs for the poor, which have directly benefited more than half of the population, Venezuela’s state owned oil company-PDVSA last year committed 48% of its budget to exploration and production (E&P). In fact, PDVSA has put aside nearly $60 billion over the next 5 years for investment, which includes refining and exploration. Venezuela continues to be more open to private exploration and technology investment and development than other states with nationalized oil companies such as Mexico and Saudi Arabia.
This action alert was prepared by the Venezuela Information Office. If you submit a letter please send an email to newsandaction<at>veninfo.org and send them a copy. Your support is appreciated!