Chávez in danger

Chávez has little more than four months - perhaps even less - to come up with a solution to a very d

On 5 July, Venezuelans celebrated the 197th anniversary of their Declaration of Independence from Spain.

On that day in 1811, a group of rebel criollos (those born in the Spanish colonies but of Iberian descent), gathered in the Santa Rosa Lima Chapel in Caracas to found a new Republic, the American Confederation of Venezuela.

It would take another decade of bloody warfare war before the republican rebels, famously led by Francisco Miranda and Simón Bolívar, could declare victory over their Royalist foes.

Almost two centuries on, another kind of rebel is in charge in Venezuela, a mestizo (a person of mixed race) this time round, inspired as much by his criollo ancestors’ determination to rid themselves of foreign domination, through another, more recent ideal, also partly of European “descent”: Socialism.

However, victory for Chávez’ Bolivarian Project is by no means guaranteed. If anything, it is in more danger of being derailed, both from internal rifts and external pressures, than at any other time in its ten year existence.

Later this year, on 23 November, Venezuela will hold regional and municipal elections to elect state governors in 22 of its 23 federal states, 219 members of regional parliaments, 332 mayors, 2 city mayors, and 13 city councillors. These elections will be the most decisive since Chávez came to power in 1999.

In Venezuela, regional elections always carry great weight reflecting the extensive powers of state governors. In fact, what here is called “the old geometry of power” – the territorial divisions of a decentralised system of public administration going back to colonial times – is a core axis of political and economic clientelism. This is preoccupied with the capture of shares of Venezuela’s huge oil rent for regionally and locally based family clans.

One of the central objectives of the constitutional reform project, defeated in a referendum on 2 December 2007, was precisely to lay the legal foundations for a gradual replacement of the “old” with a “new geometry of power”, designed to hand power to a parallel structure of new communal organisations.

More importantly perhaps, the November regional elections come at a time, at which the internal tensions and contradictions of the Bolivarian Project to transform Venezuela from a rentist oil state into a productive and participative developmental state are coming to a head: Chávez has little more than four months (and perhaps even less than this) to come up with a solution to a very difficult equation.

One central variable in this equation is the private business sector. On 11 June, Chávez announced a series of economic measures to revive private sector participation in long-term productive investment projects.

Stopping short of “pro-market” measures, such as a devaluation of the Bolivar and a wholesale lifting of capital controls, his olive branch included the abolition of a recently introduced tax on financial transactions, a government finance initiative for public-private investment projects and a significant flexibilisation of capital controls for imports worth up to US$50,000 by already registered companies. In addition, Chávez also announced a wide-ranging programme of subsidies for small agricultural producers.

The smirking faces of the leading members of Venezuela’s business community – mainly bankers - lined up in a neat row to face their president, said it all: They are not falling over themselves to take up the offer, and they don’t have to. Sky-high profit rates in the financial and service sectors make relatively lower and much more long-term returns from productive investment unattractive.

For more than 50 years, per capita value added in the private-dominated agricultural and manufacturing sectors has remained stagnant. Private investment in high value added activities in the country’s oil and mining sectors remains foreign controlled.

That the local business community can content itself with siphoning off quick returns from the ever increasing oil rent and with profits from the distribution of imported merchandise, is down to its multi-fold political alliances with a very large and growing middle class, itself a product of the rentist oil state and deeply embedded in the day-to-day running of the state apparatus.

These powerful alliances change political colours, ranging from the varying colours of the old oligarchic political parties to Chavista red and military olive-green, with great ease. Whichever their predominant colour, these alliances have the organisational power to threaten the government of the day with political and economic destabilization, and to demand their share of the oil rent in return for not mobilizing.

Not only do these clientelist demands fuel inflation, in a context of low productivity and large redistributive programmes to the poor classes. This behaviour is also likely to result in a serious banking crisis in the coming months. For many years now, state revenue from oil exports has been mainly deposited in private banks who, instead of channelling this into producer credits, have engaged in often unsound and, at any rate, obscure financial investment strategies. These now threaten to backfire, exposing the banking sector to serious refinancing risks.

In view of this state of affairs, another economic policy of recent Chávez governments looses much of its apparent radicalism: Many of the nationalisations carried out since early 2007 and announced with great pomp and scare in the international press, simply reversals of economically and/or socially disastrous privatizations of the 1990s. Not only did the private owners of telecommunication, electricity, cement, some strategically central foodstuff companies as well as most likely of Latin America’s largest steel plant – Ternium-Sidor – receive generous pay-offs for their troubles. More importantly, governments saddled with the kind of unproductive, yet powerful, alliances between the local business community and a large consumerist middle class, have little choice but to nationalise, if productivity performance and reasonable working conditions are a serious concern.

The second vital variable in the equation Chávez has to solve is “el bravo pueblo”. The Spanish word “bravo” means both “fierce” – as in courageous – as well as “angry”. This very aptly describes the situation: The poor and lower middle classes of Venezuela, Chávez’ traditional constituency, are both empowered by his decade-long rule as well as profoundly outraged by the inertia of the Bolivarian Project, blocked by those colourful private sector – cum – middle classes alliances, and in danger of falling prey to decades-old mechanisms of rentist corruption.

Perhaps ironically, their protest vote through abstention (rather than migration to the opposition) in the referendum on a socialist constitutional reform on 2 December 2007 was essential for its marginal defeat, and thus, for the current sense of empowerment of those very alliances.

This tension between, on the one hand, a strong determination not to give way, and a lack of orientation, organization and immediate purpose, on the other, in the rank-and-file of Chavista supporters finds its clearest expression in the travails of the foundation of a new political party in Venezuela, the United Socialist Party of Venezuela (PSUV).

Between April and May of last year, more than 5.7 million people – equivalent to 36 per cent of the national election registry and close to 80 per cent of the votes Chávez obtained in the 2006 presidential elections – inscribed themselves as “aspirants” to join the new socialist party.

This broad mass of Chavistas of very varying degrees of militancy were subsequently organised in more than 14,000 local organisations, called “battalions”, with up to 300 members. Between January and March 2008, the founding congress of the new party, constituted of close to 100,000 spokespeople and commissioners of the “battalions”, drew up the party’s constitution and elected its National Directorate.

The first signs of tension between radical grassroots groups and the “new Chavista elite” – one more of those private sector/middle class alliances mentioned above – surfaced during these elections for the National Directorate of the PSUV: Big names popularly associated with Chavista corruption did not make it.

Subsequently, these very names pushed their way into the party leadership, not by popular support, but by means of appointments “from above”. The wide-spread disaffection and outrage caused by these appointments amongst the Chavista base forced a truly democratic and bottom-up party-internal election of candidates for the regional elections scheduled for 23 November. This has produced a mix of truly popular candidates and some rather less popular candidates who were backed because of a lack of suitable rivals.

To date, the dinosaurs of the “new Chavista elite” can declare victory in terms of their control of the state apparatus, shared with other rentist alliances, and in terms of their control of government. They have not managed to take control of the newly founded socialist party.

Whether this party will manage to rebuilt popular confidence in the Bolivarian Project and a sufficient degree of determination of the “bravo pueblo” to carry it to victory in the November elections, remains to be seen.

The final variable in Chávez’ difficult equation concerns foreign relations. The recent liberation of Ingrid Betancourt, along with 15 other hostages of the FARC (Revolutionary Armed Forces of Colombia), has a profound effect on Venezuela’s negotiation powers in an international context.

The operation is the culmination of a long-standing process of infiltration of the FARC high command, carefully planned and prepared by French, Israeli and US secret services, working along-side Colombian military. Following on the assassination, death and defection of core members of the FARC high command over the past months, this operation signals the final decline of the FARC. Whatever one’s ethical views on the legitimacy of guerrilla warfare and kidnappings, the final dismantling of the FARC beyond a peasant resistance army does away with a guerrilla force that, for decades, engaged the US to the extent of limiting its immediate control of Latin American territories to the space ranging from the Northern Frontier of Mexico to the Southern Colombian boarders.

From 3 July, this is no longer the case, and Chávez’ Venezuela is very obviously on top of the list of US officials concerned with the defence of their country’s hegemony in the Southern Hemisphere. From June, after almost 60 years on standby, the Fourth US fleet has once again been reactivated and dispatched to the Caribbean Sea, sending a clear signal that has not been missed. The most persistent rumours are of plans to “do a Noriega” on Chávez, meaning a design to kidnap him to face trial in the US – for what exactly is not as yet clear.

Finally, with Ingrid Betancourt at last and thankfully escaping from capture, and only negligible Venezuelan oil exports to Europe, there is no hope for an “enlightened Europe” stepping in to offer a pragmatic helping hand.

It would be deeply unfair to blame Chávez for this state of affairs. His hero – Simón Bolívar – failed, certainly in terms of his ideal vision of a united and egalitarian Latin American continent but not because of any specific mistakes he made.

Two centuries on, Chávez has, and always had, limited options. So far, he has played his cards impressively well, if not always elegantly.

But, perhaps inevitably, by now the game is up and the cards are on the table: Today´s equivalent of the powers of reaction of the Vienna Congress of 1815 are calling in their debtors. The poor of Venezuela and their revolutionary leader are largely on their own, backed only by idealist internationalists, the poor of Latin America, and some of its lesser influential nations.

As with their ancestors, they might not make it, and today’s Simón Bolivar will find himself hauled up before the modern equivalent of the Spanish Inquisition. However long the list of mistakes committed and of confusions incurred, it is worth remembering that a failure of the Bolivarian Project will be to the detriment of ordinary people in Latin America and all around the world.

Dr Stephanie Blankenburg is Lecturer in International Political Economy in the Economics Department at the School of Oriental and Social Studies (SOAS), London. She is currently on secondment to Venezuela as an economic advisor and analyst. This article reflects her personal analysis and is unrelated to any government views or policies.

Laura Hynd for New Statesman
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Having the last laugh

How Diane Abbott – overlooked, mocked and marginalised by her own party for three decades – ended up as the closest ally of a Labour leader

“I don’t think you’re up to it.” It is 1970, and Diane Julie Abbott, aged 17, is keen to apply to Cambridge University, but her history teacher has other ideas.

“I was an omnivorous reader,” she says now, sitting in her parliamentary office, in a prime spot overlooking the Thames, “and in all these books, particularly these novels between the wars, if you went to university, you went to Oxford or Cambridge.”

The teachers at Harrow County School for Girls, where Abbott was the only black girl in her class, were not supportive. Her memories are less happy than those of her contemporary Michael Portillo, who attended the affiliated boys’ grammar school, and who played Macduff to her Lady Macduff in a school play.

Even when Abbott succeeded, she was regarded with suspicion. She remembers getting an A-minus in an English class – a mark that disappointed her – and being asked to stay behind by the teacher. “She picked up my essay between her thumb and her forefinger and said: ‘Where did you copy this from?’ I was genuinely shocked.”

The story suggests that she acquired her ability to shrug off criticism early. It is also a reminder of how often she is underestimated. The Times journalist Matt Chorley once described a successful day for Labour as one in which “Diane Abbott was on TV a bit less”. Julie Burchill described her in the Spectator as a “preposterous creature” who “blotted the landscape of English politics, speaking power to truth in order to advance her career”. In the Guardian, Michael White dubbed her a “useful idiot”.

She has been endlessly dismissed as stupid, untalented and bad at politics – an obvious “diversity hire”. These criticisms are immune to evidence: her time at Cambridge, the only black British student from a state school in the entire university; her 12 years on the sofa with Portillo on BBC1’s This Week; her time in the shadow cabinet under Ed Miliband; her reliable ability to hold the line in television interviews; and now her status as Jeremy Corbyn’s closest political ally. She is largely ignored by lobby journalists, even as they lament their failure to secure a line into the Labour leader’s thinking. In 2017, Diane Abbott celebrates her 30th year in parliament. Should we take her seriously?

 

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Abbott’s mother, a nurse, and her father, a welder, were born in the same village in Jamaica, but met and married in London and lived in Notting Hill “before it was a fashionable place to live”. Abbott was born there in 1953, 12 years before the phrase “race relations” first made its way on to the statute books. “My father was very aspirational,” she recalls, “and so every weekend, he and my mother would drive round houses in Pinner, and every Monday they’d ring the estate agent, and the estate agent would say the house had gone. But, of course, the house wasn’t gone.”

Eventually, they did buy a house, not in Pinner but in Edgware, north London. “My brother – his best friend was Jewish,” she tells me, “and he’d attend the Jewish youth club with his friend, and one day his friend said in a really embarrassed way: ‘I’m really sorry, I’m afraid you can’t continue to attend the club, because they’re afraid it will encourage the girls to marry out.’

“The thing was,” she continues, “my brother was upset about this. We were all upset on his behalf but it was just part of life.” And in 1970, a black straight-A student being told that she wasn’t good enough to go to Cambridge was, again, part of life. It was her response that was out of the ordinary: “Well, I do think I’m up to it. And that’s what matters, isn’t it?”

At university, Abbott didn’t get involved in politics, and she found the Cambridge Union off-putting. Her hall tutor advised her to go into the civil service, and so she arrived at the Home Office in 1976, the lone black graduate trainee on what she now describes as “a quixotic quest to do good”.

In turn, that took her to the National Council for Civil Liberties, now Liberty. Believing it to be a hotbed of communist sympathisers, MI5 tapped the office phones, an action that was ruled unlawful in 1990. “One of the things that Diane still talks about,” a friend tells me, “is her experience not only of the Home Office, but of being the subject of official surveillance. She has a cynicism about the state that hasn’t gone away.”

Abbott also joined local campaigns on some of the issues that have defined her career, such as the abolition of the “sus laws”, the informal provision that allowed the police to stop and search anyone under the ­Vagrancy Act, which activists claim was used to target ethnic minorities in Britain. After joining the Labour Party, she became a councillor in Westminster in 1982.

In the 1970s and 1980s, as today, Labour took the lion’s share of the ethnic minority vote. But no one from an ethnic minority had ever sat as a Labour MP. In the 1983 election, just one person from a minority was selected as a parliamentary candidate, and in an ultra-safe Conservative seat. In response, Labour’s minority activists formed the Black Sections, a campaign to secure ethnic minority representation.

It was through these that Abbott met Linda Bellos, who was the leader of Lambeth Council, where Abbott worked as a press officer – her last job before entering parliament. “I was born here in 1950, one of 50,000 black people [living in the UK],” Bellos tells me. “We might have talked about going home but home for me was bleeding London, wasn’t it? Hence the need to make sure we were involved in all of the parts of the state. Someone like Diane had been to Cambridge, she’d been a councillor, she knew the democratic process, she was friends with a number of MPs, she knew the score. If someone like her couldn’t be selected, what was the point of any of us being here?”

The Black Sections wanted affiliated status, similar to that of the Fabians. But there were concerns that black candidates would not appeal to Labour’s presumed core white working-class vote. Some on the left saw “identity politics” as a distraction from the class struggle; and some on the right thought the Black Sections were too radical. At the 1984 conference, their plan was thrown out by a margin of ten to one.

Despite this setback, the fight had an important legacy. In the 1987 elections, four ethnic minority MPs entered the Commons for Labour: Paul Boateng in Brent South, Keith Vaz in Leicester East, Bernie Grant in Tottenham – and, in Hackney North and Stoke Newington, there was the 33-year-old Diane Abbott.

 

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She was the first black woman to be selected for a safe parliamentary seat. The Times marked the occasion with a leader denouncing her “rhetoric of class struggle and skin-colour consciousness”.

A few months later, the Sun profiled the “ten looniest Labour candidates” in Britain. “We were all there,” Abbott recalls. “Jeremy [Corbyn], the rest of us, and I was number eight.”

The local party in Stoke Newington was delighted with this firebrand reputation. “They said: ‘Stick with us, and we’ll take you right to the top!’”

The voters of north London were less welcoming. A brick was thrown through the office window of her local party. With Abbott as the candidate, some traditional Labour voters switched to the SDP-Liberal Alliance, taking the Labour vote below 50 per cent for the first time in the seat’s history (the second occasion was in 2005, just after the invasion of Iraq).

In parliament, the intake of ethnic minority MPs was regarded with caution. Abbott recalls that the then speaker of the House of Commons, Bernard Weatherill, was “very anxious”. She adds: “He thought we’d be like the Fenians and disrupt and collapse parliamentary process. So he invited Bernie [Grant], who was regarded as our leader, for port. And Bernie came for port and the speaker was very nice to him. And I imagine the speaker thought this was what stopped us being like the Fenians.”

Those Labour MPs who were disruptive – such as Corbyn the serial rebel – were in low spirits for other reasons. The marginalisation of Abbott and her allies during the late 1980s and 1990s explains why they have so little sympathy for the party’s beleaguered centrists in the current power struggle.

At the Labour conference in Liverpool this year – where she spoke as shadow health secretary – Abbott told me: “I came to party conference every year for 20 years, and we would lose and lose and lose. These people have lost twice and they’re complaining!”

Her thick skin was toughened during the New Labour years – and it reaffirmed her close friendship with Corbyn. (The two had a short sexual relationship in the early 1980s, which ended amicably. Abbott was married for two years to a Ghanaian architect from 1991 to 1993; her son, James, was born in 1992.) “She’s always had an odd hold on Jeremy,” one Labour MP tells me. “You would see them having lunch together and her bossing him about. I think people underestimate how influential she
is on his thinking.”

When David Lammy, her neighbouring MP in Tottenham, entered parliament in 2000 following the death of Bernie Grant, he found her “vilified, ostracised and exiled by the Blairites”. There were several attempts to remove her as an MP – another reason why the Corbyn camp is unconcerned by complaints from MPs such as Stella Creasy and Peter Kyle about their local parties threatening to deselect them.

Abbott retains a network of friends from her time before politics, including from her stint as a television producer. They urged her to quit in the Blair years – or to end her association with the left-wing Socialist Campaign Group. “I never thought I was willing to trade what I thought was right for some position in the party,” she says.

Some allies see it differently. “I don’t think Diane is someone who can quit [politics],” a friend told me. “I see her tweeting at all hours. She has interests, books and so forth, but she couldn’t walk away.”

Abbott says that Keith Vaz convinced her to stay, telling her, “You have forgotten what it took for us to get here.” (Some of Corbyn’s allies believe that this is what made the leader so supportive of Vaz during his latest scandal.) This sense of solidarity with other ethnic minority MPs has led to the long-standing rumour that Abbott would have nominated Chuka Umunna had Corbyn not stood for the Labour leadership.

“Diane is absolutely loyal to Jeremy,” one MP who knows them both well tells me. “She’s loyal to the project, yes, but she’s also loyal to him, in a way I don’t think you could honestly say about John McDonnell or Clive Lewis.” During the coup attempt against Corbyn last summer, Abbott spoke forcefully in favour of Corbyn remaining in place, rather than striking a deal to put Lewis or McDonnell on the ballot. “Her position,” one insider recalls, “was that we’d got a candidate we knew could win, and that candidate was Jeremy.”

Not that they always agree. Abbott advocated a less conciliatory approach after Corbyn’s first victory in 2015. “The thing that can be infuriating about Jeremy is that he likes to think the best of everyone,” she says. “I’m always perfectly straight with him as to what I think, and even if he doesn’t believe me at the time, he always does come round to my point of view.”

Abbott is one of the few people in the Parliamentary Labour Party whom Corbyn trusts completely. In their relationship, it’s hard to see who is the senior partner.

In the late 1990s and early 2000s, Corbyn and Abbott settled into a pattern of dissent, followed by defeat. Corbyn spent the time attending to foreign and human rights campaigns and signing thousands of early day motions. Abbott carved out a niche as a reliable critic of the Labour government under Tony Blair, with a month-long slot at the launch of the BBC’s This Week in 2003 blossoming into a regular gig alongside Michael Portillo. But away from Westminster, Abbott was making a decision that she knew could destroy her political career.

 

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The London borough of Hackney is today a national leader in schooling, but in 2002, just a third of students received five or more A*-C grades. That prompted Abbott to send her ten-year-old son, James, to City of London, a leading private school.

“I knew I could lose the seat over it,” she told me. “I was a single parent, and time after time, I had not been there for things at school, or I was too tired to take him out somewhere . . . I just thought, just this once, I should be prepared to make a sacrifice for him. If I lost the seat, then I lost the seat.”

She kept the seat. “Other things do annoy Diane – reporters saying things about her that aren’t true, people talking down to her,” one friend tells me. “But with [the schooling] I think she was very happy with that deal and to take that blow.”

Then, in 2010, Abbott’s career began a surprising second act: a bid for the party leadership. Activists and commentators felt uninspired by the choice in front of them – Ed Miliband, David Miliband, Andy Burnham and Ed Balls, four former special advisers from the New Labour era. Abbott called them “geeky men in suits”. Harriet Harman, in particular, was keen that the contest should not be an all-male field. Her support swayed Abbott. “If you had to pick one person, it was her,” she says, “because she was more mainstream.”

David Lammy set up a meeting between Abbott and David Miliband. The front-runner told her that, if she were a vote short in the nominations from MPs, he would vote for her. “But because it was David Miliband, I didn’t believe him.”

The elder Miliband had his own reasons for backing her. He believed that having her on the ballot would deprive his brother, Ed, of valuable support from the left. This was also the calculation that allies of Yvette Cooper made about Corbyn in 2015. “David’s legacy,” the Wakefield MP, Mary Creagh, wrote five years later, “made it normal – Blairite, even – to put a left-winger on the ballot to ‘have a broad debate’.’’

Of Corbyn’s campaign, Abbott says now: “I knew he’d do well, because what people missed is that had it been one person, one vote [in 2010], I’d have come third.”

Had the unions and the MPs not had a disproportionate influence on the result, she says, “I’d have beaten Andy Burnham, I’d have beaten Ed Balls. I’d been to 53 hustings – most Labour people are where Jeremy and I were. I knew there was much more left-wing sentiment in the Labour Party than the lobby thought.”

As a result of Corbyn’s victory in 2015, she is shadowing one of the great offices of state in what once looked like her final term in parliament. Her policy priorities as shadow home secretary are broad but include her favoured subjects of police reform and anti-racism. “I want to help shape the debate on migration,” she tells me. “I think we’ve had a very vacuous debate.”

That has put her at odds with the shadow chancellor, John McDonnell. Though both are long-time friends of Corbyn, their relationship is not warm. Allies believe that the division stretches back to the late 1980s, when McDonnell – then outside parliament – gloried in not going “soft” in the manner of Neil Kinnock. Abbott attracted suspicion, in part because of her early conversion to a pro-European position. Many believe that McDonnell never embraced the European project. He has ruled out opposition to Brexit and is behind the toughening of the party’s line on immigration. Abbott, privately and publicly, is determined to hold Labour to a more open and pro-immigration position. She has said that Labour cannot win as “Ukip-lite”, a coded rebuke to McDonnell.

The shadow chancellor is the only MP with a comparable influence to Abbott’s on Jeremy Corbyn and, thus far, the Labour leader has struck a middle path on migration, supporting Abbott’s line that the single market cannot be traded away for restrictions on the free movement of people but stopping short of a full-throated defence of free movement in principle.

As well as winning that internal battle, Abbott faces the task of landing more blows on Amber Rudd than her predecessors – Andy Burnham, Yvette Cooper and Ed Balls – managed against Theresa May when she was the longest-serving home secretary in a century, transforming the reputation of a department once regarded as a political graveyard. Not many give Abbott much chance of success but, as always, she believes in herself and thinks that she’s up to it.

Stephen Bush is special correspondent of the New Statesman

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

This article first appeared in the 12 January 2017 issue of the New Statesman, Putin's revenge