Posts tagged with: venezuela

Venezuelan President Nicolás Maduro

Venezuelan President Nicolás Maduro

Venezuela has been at the top of the news lately because of violnent demonstrations and government abuses (for background on the situation in Venezuela, check out Joe Carter’s post). Director of research at Acton, Samuel Gregg, has written a special report at The American Spectator commentating on Venezuela as well as Latin America as a whole:

Given Venezuela’s ongoing meltdown and the visible decline in the fortunes of Argentina’s President Cristina Kirchner, one thing has become clear. Latin America’s latest experiments with left-wing populism have reached their very predictable end-points. There is a price to be paid for the economics of populism, and no amount of blaming nefarious “neoliberals” can disguise cruel realities such as food-shortages, electricity-blackouts, endemic corruption, the disintegration of rule of law, utterly insecure property-rights, and wild inflation — all of which have helped Argentina, Venezuela, Bolivia, and Ecuador achieve the ignominious distinction of being categorized as “repressed economies” in the 2014 Index of Economic Freedom.

Certainly it’s not clear that Nicolás Maduro’s regime in Venezuela will lose power. As the Wall Street Journal’s Mary Anastasia O’Grady has underscored, the Castros who run the prison camp otherwise known as Cuba will do whatever-it-takes to try and prevent that. Nor is it certain that Argentines won’t vote for yet another Perónist who promises to solve everyone’s problems via government decree when presidential elections come due in 2015.

But if crises are indeed opportunities, now is the time for those Latin Americans who recognize populism’s flaws to think seriously about what comes next. One mistake would be to imagine that all that’s required are different economic policies. (more…)

venezuela-protestsWhat’s going on in Venezuela?

A wave of anti-government demonstrations has been sweeping through Venezuela since early February. There have been at least 13 people been killed, 150 injured, and over 500  arrested.

Where exactly is Venezuela?

Venezuela is a country on the northern coast of South America that borders Columbia, Brazil, and Guyana. The Caribbean Sea is along the northern border. The country, which is nearly twice the size of California, is is one of the ten most biodiverse countries on the planet.

What is the cause of the conflict?

The protests began earlier this month when students demanded increased security after a female student alleged she was the victim of an attempted rape. (Venezuela has the fifth highest murder rate in the world and crime plagues many of its urban areas.) The protestors are also concerned about record inflation (official figures suggest yearly inflation in December 2013 stood at 56.2%) and shortages of basic food items. One in four basic goods is currently out of stock, according to the central bank’s monthly scarcity index released Feb. 10. Milk, for example, is reported to have been missing from supermarket shelves for months.
(more…)

Blog author: jcouretas
posted by on Wednesday, January 26, 2011

When we think of rule of law failure, countries like Zimbabwe and Somalia come to mind. But as Acton Research Director Samuel Gregg points out in his latest piece over at Public Discourse, rule of law can also be subtly eroded in wealthy countries. The negative consequences for risk-taking, entrepreneurship, and long term investment, he says, can be far-reaching.

Risk is an inherent part of the workings of market economies. But Gregg notes that’s not the same thing as uncertainty:

Measurable risks are . . . no deterrent to the making of economic choices. If we take them seriously, they help us to calibrate our economic choices to be consistent with our responsibilities, resources, and opportunities. The same measurements also allow us to distinguish between prudent risk takers and the reckless, and reward them appropriately. Uncertainty, by contrast, involves those risks that cannot be quantified. It can occur either because of the sheer complexity of a given situation or because the subject matter cannot be reasonably measured. As long as a situation of uncertainty persists, it will deter many people from even considering whether to take economic risks.

Uncertainty in America, according to Gregg, is being magnified by the sheer complexity of laws such as the United States Internal Revenue Code:

A tax code of this size and complexity which is subject to so many sources of potentially conflicting official and semi-official explanations is bound to embody significant contradictions, and offers considerable scope for arbitrary decision-making. Uncertainty is the result. It’s also valid to claim that the same tax code may well be impossible for large numbers of honest law-abiding citizens to understand and comply with—not to mention difficult for conscientious civil servants to administer justly. As a result, many people may unintentionally violate the law or simply choose to forgo making any number of potentially wealth-creating opportunities for fear of violating the law.

Another example is the thousands upon thousands of pages of legislation being passed by Congress every year. As Gregg writes:

Then there are the rule-of-law problems associated with the sheer volume of law that directly shapes American economic life. The 2010 healthcare reform legislation, for instance, amounted to 2,700 pages. Not far behind it in length was the 2010 financial overhaul act: a mere 2,300 pages. More than a few legislators have confessed to never having read either piece of legislation in its entirety. Nor should we assume any great familiarity on their part with the thousands of pages of legislation which these acts superseded, integrated, or reinterpreted. The possibility that many laws governing healthcare and financial services have subsequently been rendered unclear, inconsistent, and impossible to comprehend is high.

These erosions of rule of law, Gregg says, result in large incentives not to take risks and not to make long-term investments. It also encourages entrepreneurs to look elsewhere for a more friendly, stable and comprehensible legal environment.

Read the piece in its entirety at Public Discourse.

News from the Acton Institute:

Grand Rapids, Mich. (October 22, 2010) – The Acton Institute won first place in the Ethics and Values category in the 2010 Templeton Freedom Awards for Excellence in Promoting Liberty competition. The award, managed by the Atlas Economic Research Foundation, recognized Acton for its production of film documentaries that “communicate the principles and values of individual liberty and a free society.”

Atlas cited Acton for “first-rate documentaries designed to communicate the importance of virtue, limited government, and free enterprise to general audiences. They have impressed the judges through two of their very successful documentaries, The Call of the Entrepreneur and The Birth of Freedom,” which have “attracted attention from U.S. media, public policy institutes around the world, and even education ministers in Eastern Europe.”

This is the fourth Templeton Freedom award for Acton. The Institute also won an award in 2007 in the Free Market Solutions to Poverty category for its “Don’t Just Care, Think!” campaign; in 2005 in the Excellence in Promoting Liberty category for its Toward a Free and Virtuous Society conferences; and in 2004 in the Ethics and Values category for “its extensive body of work on the moral defense of the free market.”

Acton shared the 2010 Ethics & Values award with the Centro de Divulgación del Conocimiento Económico para la Libertad (CEDICE) in Venezuela which won for its initiative, “A Country of Owners.” The project promotes awareness in Venezuelans of one of the most basic human rights, which is the right to own property. The purpose of “A Country of Owners” is to encourage ideas and actions in favor of individual private property through educational activities. The initiative has been called “a courageous and timely response to the events in Venezuela” as well as a “beacon in the growing darkness of Venezuela.”

Exceptional think tanks from 10 countries have been recognized by the 2010 Templeton Freedom Awards for Excellence in Promoting Liberty for their accomplishments in advancing freedom. Representing three continents, the 16 recipients were chosen from over 132 applications from 48 countries by an independent panel of expert judges.
Named after the late investor and philanthropist Sir John Templeton, the Templeton Freedom Award was established in 2003 and is the largest international prize program that celebrates think tank contributions to the understanding of freedom. The Templeton Freedom Awards program has awarded more than $1.5 million in prizes and grants in the past 7 years. This year’s awards program grants a $10,000 prize to each winner.

The Awards include eight different categories including Free Market Solutions to Poverty, Social Entrepreneurship, Ethics and Values, Student Outreach, Initiative in Public Relations, Innovative Media, and Awards for Special Achievement by a University-based Center and by a Young Institute.

The Atlas Economic Research Foundation has supported a worldwide network of independent think tanks that promote a society of free and responsible individuals for nearly three decades. Atlas, based in Washington, currently works with more than 400 partners in 84 countries. More than half of these organizations were assisted in their formative years by Atlas through financial support or advisory services.

Governor Capriless house being attacked by a mob

Venezuelan President Hugo Chavez says that “the world needs a new moral architecture.” He also has a clear idea of what that morality ought to look like. Speaking at a conference on socialism in May of this year, he said that “every factory must… produce not only briquettes, steel, and aluminum, but also, above all, the new man and woman, the new society, the socialist society.” If Chavez manages to convince enough people that socialists are a new breed of humanity, a breed that has evolved beyond the old ideas of liberal democracy and individualism, then there is no compelling reason to acknowledge the rights of anyone else. Rights in the “new society” are not based on humanity, because the socialists are part of a new humanity. Rights are based on conformity.

Henrique Capriles is not a conformer.

Capriles is the Governor of Miranda, a state in northern Venezuela. He won election on the ticket of the only party to field a presidential candidate against Chavez in 2006. He knows firsthand what happens when democracy falls to socialist ideals: he served jail time in 2004 on trumped up charges of conspiring to overthrow Chavez, and his parents arrived in Venezuela as Jewish refugees seeking to get out from the threat of Nazi tyranny.

Unfortunately, socialism did not die with Nazi Germany. Owing to their allegiance with Iran, President Chavez and his supporters, the chavistas, have made no secret of their intense hatred for Israel. In early 2009, Chavez supporter and political columnist Emilio Silva posted a piece on Aporrea, a pro-government website, calling on his comrades to “publicly challenge every Jew that you find in the street, shopping center or park, shouting slogans in favor of Palestine and against that abortion: Israel.” To the chavistas, Venezuelan Jews are targets because Venezuelan Jews do not conform to the new society’s ideas about Israel. The men and women who dissent in the new society do not enjoy old human rights.

Governor Capriles learned that the hard way last month when mobs of angry Chavez supporters attacked his house in an orchestrated political demonstration by the Mayor of Miranda’s capital city, Alirio Mendoza. The mobs sprayed swastikas and climbed the walls of the home, terrorizing Capriles and his family (pictured above). Speaking that day, Mendoza justified his actions: “We are showing Capriles that… people are opposed to his continuous attacks against the initiatives and socialist projects of president Chávez.”

By the Venezuelan state’s morality, Capriles is outdated. He does not conform to socialism. He refuses to embrace Iran. He opposes political tyranny. In short, he is not a new man.

The moment that rights and even humanity itself are granted only on the basis of conformity is the moment that real morality ends. Chavez’s “new moral architecture” for the world, if adopted, will only end with a socialist swastika for whoever stands in his way.

(Thanks to Tim Mak at New Majority for the article that inspired this one.)

Everyone seems to be going ga-ga over nationalization in the US these days, and why not? Heck, it seems to be working pretty well for Hugo Chavez in Venezuela.

Blast from the not-so-recent past: Maxine Waters on the domestic oil industry

This piece brought tears to my eyes…(not the commercial)

The NYT editorializes today that Venezuelan president Hugo Chávez is, at worst perhaps, a necessary evil given the current political climate: “if it takes Mr. Chávez’s demagogy to spur Washington toward more enlightened policies in the Americas, so be it.”

Oh yeah, and more US foreign aid to Latin America equals “social justice.”

“Mr. Bush deserves praise for doubling the assistance to Latin America, to $1.6 billion a year. But much of this has been for security programs in Colombia. A lot more will be needed if promoting social justice is to be more than a sound bite.”

In any case, I think it may in fact be true that President Bush’s “reputation in the hemisphere [is] nearing its modern nadir” if in a comparison of Bush and Chávez the latter comes off looking favorably. Or maybe it says more about the discernment of those making such judgments than it does about Chávez’s objective quality.

From the Washington Post, a snippet from Hugo Chavez, discussing Bolivia’s recently elected president, Evo Morales:

“We have to create, one, two, three Bolivias in Latin America, in the Caribbean,” [Chavez] said echoing a quotation from Argentine hero Ernesto Che Guevara. “Only aiming for power can we transform the world.”

Why do I get the idea Chavez didn’t do so well in his history classes?