Latin America’s revealing reaction to the Venezuelan election

The Bolivarian Revolution vs. the Brazil model.

As the whole world looked on, the indefatigable Hugo Chávez overcame his strongest obstacle yet to claim another six-year term as Venezuela’s President, keeping him in power until 2019.  

“Venezuela will continue along the path of democratic and Bolivarian socialism for the 21st century”, Chávez thundered from the balcony of Miraflores palace, holding aloft the sword of Latin American revolutionary Símon Bolivar.

This election was so salient because it showcased a clash of two different ideologies; of two different futures. It was a battle of two visions that pitted a leftist firebrand against one of the Venezuelan 1 per cent; between a populist demagogue and a wealthy elite out-of-touch with Venezuela’s bulging underclass.

Henrique Capriles promised major changes for Venezuela. He pledged to move the country away from quixotic idealism to pursue a more pragmatic foreign policy; away from pariah states such as Belarus and Iran and towards a more sanitised global image.

He promised to depoliticise the economy through spurring private investment and reviving oil deals with outside partners - a notion unimaginable under the current government that holds economic self-sufficiency and state nationalisation as sacrosanct principles of governance.

Crucially for Chávez, Capriles threatened to undermine Venezuela’s role as the flag-bearer for the continent’s radical left; as the leading extoller of Latin American anti-imperialism.

Naturally, for supporters of the chavista cause, Sunday was most certainly a red-letter day; a democratic endorsement of the Bolivarian revolution espoused by Chávez.

“Forward, comrade Chávez”, tweeted Ecuadorian President Rafael Correa. “All Latin America is with you and with our beloved Venezuela”.

“The victory of President Chávez is a victory for democracy, for the Bolivarian alliance, and all of Latin America”, declared Bolivian President Evo Morales.

“Your decisive victory ensures the continuity of the struggle for genuine integration in our America”, proclaimed Raul Castro, Cuba’s de facto President.

Nicaraguan President Daniel Ortega also paid effuse tribute to him, labelling him an “indisputable leader that will continue leading the Latin American revolution”.

These sentiments were echoed in Argentina as well, with President Cristina Fernández de Kirchner praising the victory whilst Argentines rallied outside the Venezuelan embassy in Buenos Aires to celebrate the news.

However, the response from other major regional players, particularly Peru, Mexico and Brazil was muted, highlighting a degree of indifference to the radical model of leftist politics extolled by South America’s chavista movement.

There is no question over the importance of Latin American independence on the continent. Last year, the establishment of a 33-country “Community of Latin American and Caribbean States” (CELAC) intentionally excluded Washington and other “Western” powers from membership, cementing the region as a power bloc with its own interests and agendas.

But the “Bolivarian Alliance for the Americas” (ALBA), conceived by Chávez in 2004, is a step too far for some. That only the most radical of Latin American governments claim membership (Bolivia, Nicaragua, Cuba and Venezuela) is a telling indicator of the state of South American leftism.

Many often interpret the left-leaning approach of most South American states as a unified, cohesive ideological movement against imperialist forces, but a more nuanced approach reveals some major fault lines.  

To some, Bolivarian governance has hit a crisis. With soaring inflation rates, over-reliance on nationalised industry and bloated bureaucracies rife with cronyism, much of Latin America’s far-left finds itself in an unenviable position.

The alternative model, embodied by Brazil, offers a different brand of leftism; one that embraces private property rights and upholds the sanctity of democratic institutions. Since the election of Luiz Ignácio Lula da Silva as President 2002, Brazil has shown that you do not have to stack the courts, censor the media, and politicise a country’s financial system to ameliorate poverty. As an emerging player on the world stage, Brazil has also shown that you can have sovereign independence whilst integrating into the global economy; that you can resist imperialism without having to denounce capitalism.

A signal that the Brazil mould is gaining momentum in Latin America came with the Peruvian election of Ollanta Humala in 2011. Humala originally campaigned under the chavista banner in 2006 and and lost. For the 2011 election, he rebranded as a more moderate socialist and has governed as such ever since.

Does this reveal a political schism in Latin America? Not exactly. Whilst fault lines have appeared, it doesn’t mean incompatibility. Nevertheless, the Brazilian model shows that Latin American governments can have their cake and eat it too; they can remain economically and politically self-sufficient without resorting to authoritarian and isolationist policies that breed malaise.

Whilst Sunday’s election victory has not derailed the Bolivarian revolution, its tight victory margin and the increasing appeal of the Brazilian mould has certainly taken the wind out of its sails.

A pro-Chávez mural in his hometown of Sabaneta, Venezuela. Photo: Getty

Alex Ward is a London-based freelance journalist who has previously worked for the Times & the Press Association. Twitter: @alexward3000

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North Yorkshire has approved the UK’s first fracking tests in five years. What does this mean?

Is fracking the answer to the UK's energy future? Or a serious risk to the environment?

Shale gas operation has been approved in North Yorkshire, the first since a ban introduced after two minor earthquakes in 2011 were shown to be caused by fracking in the area. On Tuesday night, after two days of heated debate, North Yorkshire councillors finally granted an application to frack in the North York Moors National Park.

The vote by the Tory-dominated council was passed by seven votes to four, and sets an important precedent for the scores of other applications still awaiting decision across the country. It also gives a much-needed boost to David Cameron’s 2014 promise to “go all out for shale”. But with regional authorities pitted against local communities, and national government in dispute with global NGOs, what is the wider verdict on the industry?

What is fracking?

Fracking, or “hydraulic fracturing”, is the extraction of shale gas from deep underground. A mixture of water, sand and chemicals is pumped into the earth at such high pressure that it literally fractures the rocks and releases the gas trapped inside.

Opponents claim that the side effects include earthquakes, polluted ground water, and noise and traffic pollution. The image the industry would least like you to associate with the process is this clip of a man setting fire to a running tap, from the 2010 US documentary Gasland

Advocates dispute the above criticisms, and instead argue that shale gas extraction will create jobs, help the UK transition to a carbon-neutral world, reduce reliance on imports and boost tax revenues.

So do these claims stands up? Let’s take each in turn...

Will it create jobs? Yes, but mostly in the short-term.

Industry experts imply that job creation in the UK could reflect that seen in the US, while the medium-sized production company Cuadrilla claims that shale gas production would create 1,700 jobs in Lancashire alone.

But claims about employment may be exaggerated. A US study overseen by Penn State University showed that only one in seven of the jobs projected in an industry forecast actually materialised. In the UK, a Friends of the Earth report contends that the majority of jobs to be created by fracking in Lancashire would only be short-term – with under 200 surviving the initial construction burst.

Environmentalists, in contrast, point to evidence that green energy creates more jobs than similar-sized fossil fuel investments.  And it’s not just climate campaigners who don’t buy the employment promise. Trade union members also have their doubts. Ian Gallagher, Secretary of Blackburn and District Trade Unions Council, told Friends of the Earth that: “Investment in the areas identified by the Million Climate Jobs Campaign [...] is a far more certain way of addressing both climate change and economic growth than drilling for shale gas.”

Will it deliver cleaner energy? Not as completely as renewables would.

America’s “shale revolution” has been credited with reversing the country’s reliance on dirty coal and helping them lead the world in carbon-emissions reduction. Thanks to the relatively low carbon dioxide content of natural gas (emitting half the amount of coal to generate the same amount of electricity), fracking helped the US reduce its annual emissions of carbon dioxide by 556 million metric tons between 2007 and 2014. Banning it, advocates argue, would “immediately increase the use of coal”.

Yet a new report from the Royal Society for the Protection of Birds (previously known for its opposition to wind farm applications), has laid out a number of ways that the UK government can meet its target of 80 per cent emissions reduction by 2050 without necessarily introducing fracking and without harming the natural world. Renewable, home-produced, energy, they argue, could in theory cover the UK’s energy needs three times over. They’ve even included some handy maps:


Map of UK land available for renewable technologies. Source: RSPB’s 2050 Energy Vision.

Will it deliver secure energy? Yes, up to a point.

For energy to be “sustainable” it also has to be secure; it has to be available on demand and not threatened by international upheaval. Gas-fired “peaking” plants can be used to even-out input into the electricity grid when the sun doesn’t shine or the wind is not so blowy. The government thus claims that natural gas is an essential part of the UK’s future “energy mix”, which, if produced domestically through fracking, will also free us from reliance on imports tarnished by volatile Russian politics.

But, time is running out. Recent analysis by Carbon Brief suggests that we only have five years left of current CO2 emission levels before we blow the carbon budget and risk breaching the climate’s crucial 1.5°C tipping point. Whichever energy choices we make now need to starting brining down the carbon over-spend immediately.

Will it help stablise the wider economy? Yes, but not forever.

With so many “Yes, buts...” in the above list, you might wonder why the government is still pressing so hard for fracking’s expansion? Part of the answer may lie in their vested interest in supporting the wider industry.

Tax revenues from UK oil and gas generate a large portion of the government’s income. In 2013-14, the revenue from license fees, petroleum revenue tax, corporation tax and the supplementary charge accounted for nearly £5bn of UK exchequer receipts. The Treasury cannot afford to lose these, as evidenced in the last budget when George Osborne further subsidied North Sea oil operations through increased tax breaks.

The more that the Conservatives support the industry, the more they can tax it. In 2012 DECC said it wanted to “guarantee... every last economic drop of oil and gas is produced for the benefit of the UK”. This sentiment was repeated yesterday by energy minister Andrea Leadsom, when she welcomed the North Yorkshire decision and described fracking as a “fantastic opportunity”.

Dependence on finite domestic fuel reserves, however, is not a long-term economic solution. Not least because they will either run out or force us to exceed international emissions treaties: “Pensions already have enough stranded assets as they are,” says Danielle Pafford from 350.org.

Is it worth it? Most European countries have decided it’s not.

There is currently no commercial shale-gas drilling in Europe. Sustained protests against the industry in Romania, combined with poor exploration results, have already caused energy giant Chevron to pull out of the country. Total has also abandonned explorations in Denmark, Poland is being referred to the European Court of Justice for failing to adequately assess fracking’s impact, and, in Germany, brewers have launched special bottle-caps with the slogan “Nein! Zu Fracking” to warn against the threat to their water supply.

Back in the UK, the government's latest survey of public attitudes to fracking found that 44 per cent neither supported nor opposed the practice, but also that opinion is gradually shifting out of favour. If the government doesn't come up with arguments that hold water soon, it seems likely that the UK's fracking future could still be blasted apart.

India Bourke is the New Statesman's editorial assistant.