Gringo Go Home!

On June 2012, I took a trip to Venezuela for the first time in over 10 years. My husband and I were questioned and searched multiple times when we arrived on Venezuelan soil. In addition, our American passports were carefully scrutinized. Upon exiting the airport, the humidity and hot sun made everything feel so familiar.

However, during my car ride from the airport, I was able to appreciate how much the country had really changed. The streets of Venezuela were full of writings, some of it promoting the government's Misiones social program, and some were expressing anti-American ideals. There was one particular mural that caught my attention and I just had to snap a picture.

 

Mural in Caracas, Venezuela - June 26, 2012
 

The mural shows an American eagle with a scroll that read "GRINGO GO HOME" which in lay terms means: Americans, leave our country. One can also see what appears to be fists of the Venezuelan people up as a signal of protest against the eagle that is coming to attack them.

This picture pretty much summarizes the sentiments of many Venezuelans. For many years, president Hugo Chavez instilled into the people of Venezuela that America is an evil empire that is trying to take over the world and invade the country. The anti-American attitude has grown in the last 15 years and it continues to grow under president Maduro.

In a March 2007 rally in Argentina, president Hugo Chavez perfectly summarized the reasons behind his demise of the American presence in Latin America. If you would like to get a better understanding of what "gringo go home" represents to the Venezuelan people, feel free to see an excerpt of his speech in the following link: Hugo Chavez Rally in Argentina 2007.

There is definitely some irony to this outlook as Venezuela continues to be one of the largest suppliers of oil to the United States and most of its products are imported from America.

Venezuela: Murder Capital of the World

In the past 15 years, Venezuela has reached an alarming murder rate.

It is estimated that as many as 82 people are murdered for every 100,000. It cannot be denied that since Hugo Chavez took power, crime has skyrocketed in Venezuela, and it continues to rapidly rise under Nicholas Maduro. At first glance, one could easily blame the current economic situation for elevated murder rates, but the truth is that the issues go beyond that.

Reason # 1
Venezuela is one of the most weaponized countries in the world where it is estimated that there is one gun for every two people. Most of the guns are believed to be supplied by the Colombian guerrilla via the border. This continues to be the case even after the Venezuelan government launched a national campaign to encourage people the voluntarily surrender their firearms. As expected, most people in the country did no such thing. 

Reason # 2
In addition, the police force has its hands tied. Most police officers are making close to the minimum wage with very little back up and at times, no proper weapons. Since cops do not feel protected by the government, many of them get their protection from the criminals. By turning a blind eye to crime, these police officers are spared their life and their family's life. 
 
Reason # 3
Sadly, more than 90 percent of the murders in Venezuela go without an indictment. Since criminals know that crimes are seldom resolved, they feel that they have the liberty to roam the streets freely. Kidnappings in broad daylight have become a daily bread. Many of these kidnappers have connections with the police force. The system is simple: pay a ransom or your loved one gets killed. Most of these kidnappings occur in the capital and they usually target the middle class. The elite are usually not the main target because they can afford to have more security which makes it harder for a successful kidnapping to take place.

If the murder rate continues to rise, the government will soon have no choice, but to launch an initiative that actually addresses the real issues.

The Generation Gap

On February 2014, large protests were organized across the major cities in Venezuela. These protests were led by Leopoldo Lopez, a Harvard educated political leader who has since been incarcerated for his role in the protests. Hundred of people were injured and dozens were killed.

February 2014 protests in Caracas, Venezuela

Most of the protesters consisted of college students and leaders of the Table for Democratic Unity. Many of them are law students and future engineers that have been consumed with a sense of frustration due to the grim economic panorama. Being born in the early 90s, the only thing these young people have known is the Venezuela of Hugo Chavez and his socialist ideals.

On the other hand, many of the older folks grew up knowing the Venezuela of the 60s, 70s, and 80s. The February that is still present in their minds is that of 1989. This marked the time of Caracazo where the working people of Venezuela (young and old) spilled out to the streets to denounced the democratic government led by president Carlos Andres Perez. Thousands of protesters were killed. 

February 1989 protests in Caracas, Venezuela

Don't get me wrong—the older generation of Venezuelans are just as unhappy with the current economic state of the country as the young people, but they are also reluctant to elect a democratic leader that may bring back some of the grievances of the late 80s. They do not want to elect a leader that is once again going to set forth measures to undermine the working class. In essence, they are going to vote for the leader, who in their mind, represents the lesser evil. 

How Hard Is It To Obtain a U.S. Visa?

With the economic and political unrest, many ask themselves, why people don't just leave Venezuela? Well, it is much easier said than done. The truth is that many Venezuelan citizens want to leave the country at this point, but this is an impossibility for most. There are just a few avenues by which one can get that coveted U.S. visa and there are only two types of visas.

• Non-Immigrant Visas: allows you to travel to the U.S. as a temporary visitor. Temporary is the key word here because you are only allowed to stay in the U.S. for a maximum of 3 months. 
• Immigrant Visas: allows you to travel to the U.S. and apply for legal permanent residence. This is the ultimate golden ticket which allows you to legally live in the U.S., be legally employed, and eventually become a U.S. citizen.

You can apply for a non-immigrant visa:

• If you are traveling for pleasure
• If you are traveling for study
• If you are part of an exchange program such as the Fulbright Program

The truth is that it is highly unlikely that your non-immigrant visa will be approved. The reason for this is that many people who travel to the U.S. with a temporary visa have never returned and have decided to stay in the United States illegally. You would need to provide proof that you have substantial investments (such as property and fat bank accounts) in Venezuela which would make you more likely to return. Students will need to show that they have the means to pay for their education before getting an approval.

You can apply for an immigrant visa:

• If you have a family relationship (including spouse) with a U.S. citizen or legal permanent resident
• If you are sponsored by an employer
• If you are selected in the Diversity Visa Program (visa lottery)

Even if you are one of the lucky Venezuelans who has been petitioned by a U.S. family member, don't pack your bags just yet! With the recent tensions between the U.S. and Venezuela, visa requests are so backed up that it is normal for a Venezuelan visa request to be processed in 7-10 years.

The majority of Venezuelans have been given no alternative, but to wait out the economic storm.

 

Where Have These Four Venezuelan Dishes Gone?

If it was not already obvious from previous posts, the economic crisis in Venezuela has greatly affected all aspects of the Venezuelan life. Venezuelan cuisine is no exception to this.

One of the main ingredients in virtually every traditional Venezuelan dish is the pre-cooked white corn flour that is better known in Venezuela as Harina PAN, which is the name of the most popular brand of this staple. Due to recent shortages and the almost 218% increase in corn prices (yes, you read that right), this product has become almost impossible to find in the supermarkets of Venezuela. For now, Venezuelans will have to live with the reality of a Venezuela without Harina PAN. For those that are curious about some of these dishes, I am including four of the most popular Venezuelan dishes made with Harina PAN.



1. Arepas: These are traditional corn cakes. These salty cakes can be accompanied with butter, cheese, black beans, shredded meat, shredded chicken, etc. Arepas can be fried, grilled, or baked. Due to its versatility, arepas are consumed for breakfast, lunch, and/or dinner. 
2. Bollitos: This is a go-to food when one is pressed for time. Unlike with arepas, bollitos consist of boiling the corn-flour dough. Bollitos are traditionally served during breakfast time with scrambled eggs and shredded cheese.  
3. Hallacas: These are very similar to the Mexican tamales with the exception that they are prepared with Harina PAN. Since this popular Venezuelan dish usually requires a very long prep time and consist of many ingredients, this dish is mainly prepared during Christmas time. 
4. Empanadas: You can think of these as hot pockets or calzones made with Harina PAN. As with arepas, these can be filled with virtually any leftovers from last nights dinner, but Venezuelans especially like them with cheese and  shredded chicken. They are usually served as appetizers, but can also be served for dinner depending on the filling. 



Arepas



Bollitos



Hallacas

Empanadas
 

 

These dishes were very inexpensive and fulfilling options for the working class people of the country. One could only hope that these items can once again be enjoyed by all Venezuelans in the near future.

You're Welcome Wikipedia: Venezuela's Labor Laws

The Wikipedia entry titled "Economy of Venezuela" gives the history and an overview of the sectors related to the economic structure of the country. For your convenience, I am including a link to the Wikipedia entry:  https://en.wikipedia.org/wiki/Economy_of_Venezuela#Labor

The section in this entry titled "Labor" provided the following information:

Under Chávez, Venezuela has also instituted worker-run "co-management" initiatives in which workers' councils play a key role in the management of a plant or factory. In experimental co-managed enterprises, such as the state-owned Alcasa factory, workers develop budgets and elect both managers and departmental delegates who work together with company executives on technical issues related to production.

In November 2010, following the expropriation of U.S. bottle-maker Owens-Illinois, workers spent a week protesting outside factories in Valera and Valencia.

Given the recent developments in the economic condition of the country, it was quite difficult for me to understand why the last information entered was from 2010. This section was begging for an update and so I decided to make a short addition to this Wikipedia entry. Below is my contribution to the "Labor" section of the "Economy of Venezuela" Wikipedia entry.

Labor disputes have continued to increase since the financial crisis in 2008. With inflation at over 56% and widespread shortages of basic goods, even the government has admitted that productivity is low. According to The World Economic Forum, Venezuela is ranked as 134th of the 148 countries for economic competitiveness. Many in the private sector attribute these findings to the inflexible labor market. 

In recent years, a barrage of pro-worker decrees have been passed. The most significant could be the 2012 labor laws known as the LOTTT. These laws included the virtual ban on dismissal, shorter work week, improved holidays, and enhanced maternity benefits. The LOTTT offers job security to most workers after the first month. Employers have reported an absenteeism rate of up to 40% which they blame on the leniency of these labor laws. As expected, employers have been less willing to recruit.  

On November 17, 2014, the President of the Republic issued a decree to increase the minimum salary for all workers by 15%. The decree became effective on December 1, 2014. 

As you can see, I added some of the recent labor laws that have contributed to the current state of the labor market. It is important not only to know what is going on in this sector, but also to have an understanding of when these laws came to be and how the same have affected employers and employees alike.

Socialism of the 21st Century

Contrary to popular belief, Venezuela is not a synonym for Communism or Dictatorship. Many media outlets have used these terms loosely when referring to the Venezuelan government.

Revolution is PEACE

Inside the Revolution: A Journey into the Heart of Venezuela (Pablo Navarette, director, Alborada Films, 2009) is a short documentary that not only tries to dismiss some of these misconceptions, but also paints a clear picture of how the country went from being democratic to becoming socialist.

In 1958, the democratic regime took over. At the end of the oil boom of the 1970s the country started to enter into a crisis and the standards of living diminished drastically. Carlos Andres Perez was elected president in 1989 and soon thereafter he presented new economic measures which included an internal increase in oil prices. This resulted in an increase in prices of goods and services.

Caracazo - February 27, 1989

The people of Venezuela became very unhappy during this time and many protests were organized throughout the country. Thousands of people were killed by the government as a result of the rise in protest--now known as the Caracazo.

An army leader, Hugo Chavez, led a failed coup in 1992 against the democratic government. As a result of his participation in the coup, he was incarcerated for over 2 years where he formed a political party and ran for election.

On Dec 6, 1998 he won with more than 56% of the vote. During the democratic regime, 3% of the country's population controlled 70% of the country's land. Chavez started to change all of that when he passed a series of laws in 2001 which included the elimination of larger estates and oil sovereignty.

By 2003, poverty was down by 53% and government spending had more than tripled. In 2005, Chavez officially announced his 21st century socialism. He made it clear that this was a new socialism and should not be compared with the Soviet Union. He managed to convince people that the leaders of the new socialism would be the people and that this new socialism would bring freedom from capitalism.

As detailed by the film, most of Hugo Chavez's supporters were those that live in the barrios, the poor neighborhoods. Many respected him because they felt that he was able to relate to the struggle of the poor and wanted to give them what they always lacked such as education and land.

The film also included exclusive interviews with some of the revolutionary youth groups in Venezuela. They expressed that before Chavez, youth were not interested in politics, but he ignited an interest in the youth of Venezuela to discover its history and culture. He also taught them that politics could be a powerful weapon.

This film gave a very thorough representation of how the country became socialist and why many people of Venezuela, although not happy with the current government, would not want to have a democratic government that resembles the one they experienced in the 1980s. It is very difficult to find a documentary on Venezuela that is not propaganda, but this film gives viewers a clear understanding of why Venezuelans came to accept socialism and why many still hold on to its ideals today.

The Blame Game

As the whole world is watching, it has become evident that Venezuela's economy is rapidly crumbling. But a question still remains, who is to blame? The answer to this question will all depend on who you ask.

Many Chavistas (supporters of former president Hugo Chavez and his policies) will say that it is an economic warfare from the opposition party. Others will blatantly blame the United States and other governments that are controlling oil prices. There are also some that blame the current socialist government and its failing economic policies.

Although there are many factors that have played a role in Venezuela's declining economy, it has become clear that the current government policies are to blame.

During Hugo Chavez's regime, the private sector faced stricter government regulations forcing them to cut back on production. New policies also gave way to a more powerful executive branch of government with very little checks and balances. This allowed the government to nationalize many of the services that had once been controlled by the private sector.

Unlike other members of the OPEC, Venezuela did not take advantage of the oil price boom in 2009 to accumulate surplus. Instead, it utilized the revenues towards fiscal stimuli such as lowering taxes, providing subsidies to low income families, and signing multi-million dollar contracts with local firms. This overspending was not done as a mere act of kindness towards the poor, but as a way to secure the electoral votes for the next elections.

The Venezuelan government has overstepped its boundaries through excessive intervention in the economy. These policies have put them between a rock and a hard place. Reducing spending is not an option for a government that needs votes; nationalized firms are in such bad shape that there are not many interested buyers; increasing oil prices locally would hurt low income supporters; and shortages will continue indefinitely if the the government continues to reduce imports.

It will be interesting to see if the current economic crisis will force the government to rethink some of its economic policies.

The New Reality

Many people do not realize the extent of the economic issues in Venezuela. It has one of the world's  largest petroleum reserves and 96% of its export revenues depend on it. When the international oil prices were at an all-time high, Venezuela was able to use the added revenues to develop "Misiones". Misiones are social programs established under Hugo Chavez which involved building houses, improving roads, healthcare, and education. With the recent decline in oil prices, the revenues have dried up and the economy has suffered.

Since the death of the former president Hugo Chavez in March 2013, the country's economy has continued to spiral out of control. His successor, Nicolas Maduro, has implemented stricter government regulations which have been detrimental for the people of Venezuela and especially for those in the lower class. Although the unemployment rate is less than 8%, more than a third of the country is living under the poverty line. To many, these are just statistics, but to the people of Venezuela, it has very serious implications.

It has been increasingly difficult for Venezuelan citizens to purchase basic products such as shampoo, soap, toilet paper, oil, and milk. The government has responded to the shortages and the ridiculously long lines by restricting the day in which people can make purchases at supermarkets to once or twice a week. The day that one is allowed to step foot into a supermarket is determined by the individual's last number on the Venezuelan identification card. In some of the more populated regions, individuals are required to provide fingerprints. As one could imagine, this creates a very long wait at the register.

In addition, the most sought out items, such as milk and chicken, are being rationed and offered in bundles. In order to purchase milk, you must also purchase juice, etc. This can become quite a problem for those who do not have enough money to buy the bundles as they will have to go without these essential items.

Unfortunately, the poor people of Venezuela have been the most affected by this new reality for which an end does not seem near.

Welcome to Venezuelan Economy Today!

I was born in Caracas, Venezuela to a Colombian mother and a Dominican father. My parents met and got married in Venezuela after escaping the economic and political unrest in their own countries. They migrated to Venezuela in the late 1970s when Venezuela's economy was booming and there were jobs-a-plenty. In the mid to late 80's, the Venezuelan economy started to shift for the worse and my parents (along with many others) decided to migrate yet again to an unknown land—America.

In recent times Venezuela has experienced an economic crisis that is far from any it has experienced before. The inflation rate is one of the highest in the world, there are supply shortages throughout the country, and tourism has declined drastically. These changes are usually analyzed from a macroeconomic view, but rarely is it examined from the point of view of the individuals and the smaller companies.

In this blog I want to emphasize on the ways these recent economic policies have reshaped the lives of some people in Venezuela as well as showcase the daily struggles that have become a norm for Venezuelan citizens. In addition, I hope to uncover how the country's current economy affects those families that are now living overseas.

I hope this blog will allow you to acquire a better understanding of the country and its unique economic issues.