By Dan Beeton | CEPR Americas Blog | January 25, 2014
On Thursday, the Brookings Institution issued a memo to President Obama titled “Venezuela Breaks Down in Violence.” As might be expected from the title, the memo (and an accompanying video) depicts an alarming situation where
Venezuela is experiencing declining export revenues, accelerating inflation and widespread shortages of basic consumer goods. At the same time, the Maduro administration has foreclosed peaceful options for Venezuelans to bring about a change in its current policies.
But, contrary to the alarmist title, the violence is only a possibility in the future: “Economic mismanagement in Venezuela has reached such a level that it risks inciting a violent popular reaction,” and further on the reader learns that actually “[t]he risk of a violent outcome may still be low…”
The possibility of such chaos is troubling to the author, Harold Trinkunas since “it is in the U.S. interest that Venezuela remain a reliable source of oil,” while “[p]opular unrest in a country with multiple armed actors, including the military, the militia, organized crime and pro-government gangs, is a recipe for unwelcome chaos and risks an interruption of oil production.”
Trinkunas, who “previously served as an associate professor and chair of the Department of National Security Affairs at the Naval Postgraduate School in Monterey, California” urges the Obama administration to take action. At the top of his recommendations is for the U.S. to enlist Brazil – “whose interests are also at risk” – in an attempt “to convince the Maduro administration to shift course.”
Trinkunas makes clear what course he wants the U.S. government to take should a crisis result in Maduro being removed from power. While one might think that such a hypothetical scenario would indeed be one when the Inter-American Democratic Charter should be invoked (Trinkunas suggests that it be used against Maduro now), that would be naïve. Instead:
…we should also begin quiet conversations with others in the hemisphere on what steps to take should Venezuela experience a violent breakdown of political order. Such an event could potentially fracture the regional consensus on democracy on a scale much greater than that of the Honduran coup in 2009. Maduro’s allies in the region would most likely push for his immediate restoration, but in the absence of functioning democratic institutions, this would only compound Venezuela’s internal crisis. The United States would need to work with key states in the region—Brazil, Mexico, Chile, Peru and Colombia—on a regional consensus in favor of rebuilding democracy in Venezuela.
In other words, should a coup occur, Trinkunas wants the U.S. to “work with” the Latin American countries it is closer to politically – and also Brazil – to help it succeed. This is in fact what the Bush administration attempted to do during the short-lived 2002 coup against Hugo Chávez, and the Obama administration worked to ensure that the 2009 coup against the democratically-elected government of Honduras would succeed.
Of course Trinkunas seems to be unaware – despite a passing reference to “distance from the United States over NSA surveillance issues” – that in recent years Brazil’s government has not shied from challenging U.S. foreign policy on a variety of hot-button issues, including over Iran’s nuclear program, the FTAA, and a planned U.S.-Colombia military bases agreement. Brazil led the South American opposition to the Honduran coup and refused to recognize the new government of Pepe Lobo following the November 2009 elections in Honduras. Former president Lula da Silva – who has hinted at another presidential run in 2018 – was always vocal about his support for the Venezuelan government of Hugo Chávez and released a video in support of Maduro ahead of the April elections last year.
Perhaps Trinkunas can be forgiven if he isn’t aware of these things; they aren’t talked about much in Washington foreign policy circles, where Brazil is still often referred to as part of the “good left” – unlike Venezuela, Bolivia, Ecuador, Argentina and other bad apples.
Why is Trinkunas so concerned that Venezuela could soon collapse into violence? He cites a number of economic factors, some vague, some not. He frets, for example, about “declining” output by state oil company PDVSA, and that Venezuela had “the highest inflation rate in the world in 2013.” But as CEPR Co-Director Mark Weisbrot recently pointed out in a contribution to the Inter-American Dialogue’s Latin America Advisor:
inflation appears to have stabilized. Inflation data for November and December show a monthly rate of 4.8 percent and 2.2 percent, putting the three-month annualized rate at 60.6 percent; the annual rate for 2013 was 56.1 percent.
Further, citing an analysis by Bank of America, Weisbrot states:
BOA sees Venezuela’s current debt as sustainable. A devaluation would not likely have much effect on the economy, as previous devaluations did not. Nor is social unrest a likely prospect, as there are no elections for two years, and most opposition protests in Venezuela tend to focus on elections…
Trinkunas attempts to cast doubt on Venezuela’s electoral process (the same one that former president Jimmy Carter called “the best in the world” ahead of the October 2012 elections). He writes, “A now unified national opposition continues to emphasize elections as the solution, but the playing field is hardly level, and elections are not scheduled to take place again until 2015.” Venezuela observers know that the opposition has been relatively unified for some time now, coming together to support the presidential candidacy of Henrique Capriles in both October 2012 and April 2013. Capriles lost both times, and last month the opposition was dealt a blow by a poorer showing in municipal elections than it had hoped. Analysts and some members and supporters of the opposition now question Capriles’ status as an opposition leader, so if anything the opposition is probably now less unified than it was prior to these recent elections.
Ironically – perhaps unaware that Brookings’ website is available to the public, as is YouTube – Trinkunas writes, “Overt U.S. criticism of the Maduro administration or efforts to exert our limited economic leverage would be grist for the mill of the Venezuelan propaganda machine; we should avoid that.” Certainly if one of the most prominent Venezuelan think-tanks called for supporting the overthrow of the U.S. government, that would simply be ignored by the U.S. “propaganda machine,” right?