Latin America

Venezuela’s large quantities of oil have allowed Chávez to export subsidized oil to developing Latin American nations such as Cuba and Nicaragua. Today, Chávez is exporting 300,000 barrels of oil per day to Cuba and other Carribean countries that are allied to Venezuela. (Exxon’s wrathful tiger takes on Hugo Chavez; Oil in Venezuela) In exchange for the oil, Cuba has sent 17,000 Cuban doctors to Venezuela. (Using oil to spread revolution; Venezuela and Latin America) In Nicaragua, he promised Daniel Ortega, the current president, to build 32 power plants, send subsidized Venezuelan oil, to build 200,000 houses for the underprivileged, and to improve the health and education system. (‘Twixt Washington and Caracas; Nicaragua) In return, Nicaragua will export large amounts of their food production, such as beans, to Venezuela, which is in need of food.

Socialist Countries

Chávez is also making deals with other countries around the world. As he exports the Venezuelan oil abroad, his allies provide him mainly with more infrastructure for the oil industry or military weapons. However, the money spent on weapons could be better invested in social programs for the poor.

In Russia, Chávez made an accord with president Mendvedev to form an energy association between Russia and Venezuela. This partnership would imply that the two countries would share oil and gas resources, which would be exploited and later, sold. While Russia explores oil-rich zones in Venezuela, Russia gave Venezuela a 1 billion dollar loan to buy Russian military weapons. (Barry) The weapons Venezuela purchased include fighter planes, helicopters, and one thousand Kalashnikov firearms. (Schwirtz)

Another country that Chávez has become allied to is China. The Venezuelan President said that China would be an ideal market to substitute Venezuela’s oil exports to the US. China is also attracted to a partnership with Venezuela because they see several unexploited oil-rich areas in Venezuela. The extraction of these Venezuelan oil resources would assure China with more energy security; in other words, it would be an assured source of energy to sustain China’s booming economy. During Chávez’s visit to China, 26 accords were signed between the two countries. Some of these deals included projects having to do with “agriculture, telecoms, electronics, petrochemicals”, and oil tankers. (Dyer, Mander)

United States

With regards to the U.S., Chávez has voiced many negative statements and opinions towards Americans and President Bush, as he considers them “imperialists”. During the Bolivarian Alternative for the Americas (ALBA) in February 2008, Chávez spoke to the other ALBA members, which include countries like Cuba, Bolivia, Nicaragua, and Dominica. Chávez said, “We should work on a joint defense strategy because our enemy is the same – the United States Empire.” (The mouse that roared; Venezuela) During the United Nations General Assembly, he called President Bush a “tyrannical president of the world” and “the devil”. (The world according to Chavez; Venezuela and the United States) Another enemy on Chávez’s mind is Colombia. Álvaro Uribe, the current president of Colombia, is allied with the US and refuses to participate in any of Venezuela’s Bolivarian ideas. Before the ALBA meeting began, Chávez blamed the US and Colombia for organizing a “military provocation” aimed at Venezuela. He said that this provocation’s goal was to drag Venezuela into war and to wreck the plans for his sought-after socialist revolution. (The mouse that roared; Venezuela)

Venezuela and the United States have the most interaction in the domain of the economy, specifically in what concerns oil. Venezuela’s exports to the U.S. represent three-quarters of its payments, and, in turn, the U.S. depends on the 1.2 million barrels of oil per day they receive. Thus, we can see that these two nations depend on each other, despite Chavez’s anti-West statements. (Exxon’s wrathful tiger takes on Hugo Chavez; Oil in Venezuela)

This year, with the plummeting US economy, Chávez compared the financial difficulties of the government and of Wall Street to “a hundred hurricanes” and said that all of this disaster was due to the irresponsible acts of the American government. This sparked more of Chávez’s “anti-American rhetoric”. Despite the hatred between the US and Venezuela, Venezuela still depends on the US for over 75% of its oil export incomes from the US. On the other hand, Venezuela holds over $300 million dollars (US) in the Lehman Brothers banks. The chute of the economy has somewhat affected certain Caracas banks while other Venezuelan economists argue that their banks were not affected by the crisis. (Mander (a))

England

Among western countries, such as England, he has been widely criticized not only for his 21^st century socialism, but also for his statements, disagreements, and social aid programs. For example, Chávez was providing oil at discounted rates for Great Britain, which was used to run a program that offered half-priced bus fares for the unprivileged residents of London. (Parker) When London’s new mayor, Boris Johnson, a rightwing man, decided to end this program, 250,000 people on welfare were no longer able to benefit from the reduced rates. The reason why Mr. Johnson decided to end the program was that he did not believe it was right for a developing nation with so much poverty to help a developed nation with lots of resources. (Parker)

Works Cited:

• Barry, Ellen. “Russia Strikes Oil Deal With Chavez and Plans Modernization of Military.” The New York Times 27 Sept 2008: 7.

• “Broadcast battles; Venezuela.” The Economist 21 July 2007

• Dyer, Geoff, and Benedict Mander. “‘Maoist’ Chavez strengthens oil ties with China.” The Financial Times 25 Sept 2008: 8.

• “Exxon’s wrathful tiger takes on Hugo Chavez; Oil in Venezuela.” The Economist 16 Feb 2008

• Guevara, Aleida. Chávez: Venezuela & The New Latin America. New York: Ocean Press, 2005.

• Gott, Richard. Hugo Chávez and the Bolivarian Revolution. New York: Verso, 2005.

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• Mander (b), Benedict. “Chavez eyes ‘strategic sectors’ for state control.” The Financial Times 11 April 2008: 5.

• Mander (c), Benedict. “Venezuela expels two activists over attack on Chavez rights record.” The Financial Times 20 Sept 2008: 9.

• Oxford American Dictionary and Thesaurus. 2008.

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• Romero (c), Simon. “Venezuela’s Hope of More Sway Dims as Riches Dip.” Venezuela’s Hope of More Sway Dims as Riches Dip. 19 May 2009. New York Times. 15 Jun 2009 <http://www.nytimes.com/2009/05/20/world/americas/20venez.html?scp=1&sq=Venezuela%92s%20Hope%20of%20More%20Sway%20Dims%20as%20Riches%20Dip&st=cse>.

• Rothkopf, David. “The Fund faces up to competition.” The Financial Times 22 Oct 2008: 11.

• Schwirtz, Michael. “Russia Loans Venezuela $1 Billion for Military.” The New York Times 27 Sept 2008

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• Wilpert, Gregory. Changing Venezuela by Taking Power. New York: Verso, 2007.