Corruption in Venezuela Hits Record Levels Under Hugo Chavez
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Corruption in Venezuela Hits Record Levels Under
Hugo Chavez
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Tuesday, Nov. 28, 2006
Higher oil revenues have enabled
mismanagement and abuse of power in
Venezuela, leading to record levels of
corruption, argues a new policy analysis by the
Cato Institute. In the study released Monday,
"Corruption, Mismanagement, and Abuse of
Power in Hugo Chavez's Venezuela," author
Gustavo Coronel, member of the first Board of
Directors of Petroleos de Venezuela from 1976
to 1979 and Venezuelan representative to
Transparency International from 1996 to 2000,
details how the Chavez regime is squandering
the country's wealth through rampant official
and personal corruption.
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Dubbing Chavez's government "hypercorrupt," Coronel identifies four main
reasons for the nation's rapid decline to the bottom of global corruption and
economic freedom indices. Misused oil income, mediocre management,
Chavez's determination to play a "messianic" role in world affairs, and political
populism designed to garner the affection of the people rather than promote
the creation of new wealth have also contributed to the rise of graft.
Coronel classifies Venezuelan corruption into three categories -- grand
corruption, bureaucratic corruption and systemic corruption -- and details
disturbing examples of graft, incompetence and flagrant disregard for both the
rule of law and the welfare of Venezuelans. For example, the operations of at
least two state-run financial institutions are completely opaque and the
institutions spend funds at the discretion of Chavez alone. The management of
national funds is done in secrecy and without accountability to the people.
Venezuela has received up to $225 billion from oil and new debt. Using
Venezuela's oil reserves as a tool of public diplomacy, Chavez has repeatedly
signed agreements with neighboring countries to buy loyalty -- one example
being the oil supply agreement with Cuba. Currently, Venezuela supplies Cuba
with 90,000 barrels of oil per day. Says Coronel: "In total, therefore,
Venezuela is giving Cuba a subsidy on the order of $2.2 billion to $2.3 billion
per year."
From suspect voter rolls (Venezuela has 17,000 voters born in the 19th
century, with one person 175 years old and still working) to state-owned
corporations, all levels of society have been affected. Failed social programs,
faulty infrastructure, and a judicial system in the pocket of the executive have
created an authoritarian system.
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7/9/2009 11:09 AM
Corruption in Venezuela Hits Record Levels Under Hugo Chavez
http://archive.newsmax.com/archives/articles/2006/11/27/220253.shtml?s=os
Unfortunately, prospects for reform seem bleak. Prominent cases of
corruption have not been punished. Coronel concludes: "Meaningfully reducing
corruption in Venezuela would require eliminating motives and opportunities for
corruption and punishing those responsible. After eight years of Hugo Chavez,
it's entirely clear that the battle against corruption in Venezuela cannot begin
until Chavez has gone."
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