Do we need another president for life?

Ex-foreign office minister Denis MacShane gives his analysis of the Venezuelan constitutional refere

This weekend, the world will see another president for life emerge. A referendum in Venezuela will vote to endorse changes to the nation’s constitution to allow President Hugo Chavez to stand as often as he likes to be president.

Unlike Mexico with its one-term rule or Brazil where a president has to stand down after two terms, Venezuela will now join those countries like Uganda, or the Maldives, or, if he gets his way Musharraf’s Pakistan where the people will enjoy the blessings of living under one leader for the foreseeable future.

Lieutenant-Colonel Hugo Chavez was the last expression of the golpismo – coup d’état – movement of South American militarism.

While the generals had been forced back into their barracks in Brazil after the great metalworkers’ strikes of 1978-1982 led by Lula, or been humiliated in Argentina by British soldiers on the Falklands, Lt Col Chavez saw himself as the man of destiny when he tried to stage a golpe in 1992.

He failed and had to wait a few more years before his chance came again, this time by electoral means. Still today, he wears uniforms as much as civilian clothes. Like his hero, Fidel Castro, his leadership is sartorially expressed by dressing up as a soldier and commandante, rather than the wearing the attire of civilian democracy.

What then should we make of Chavez? He is today’s idol for a global left that is looking for new bearings. Hagiographic biographies of him have appeared in several languages. For the British writers tired of the stubborn, patient search for a workable social democracy by a Cardoso in Brazil or a Lagos in Chile, the excitement and revolutionary rhetoric of a Chavez is thrilling to focus on.

To submit Chavez to the same critical analysis that other leaders have to put up with is to produce instant denunciations from those who search for the shining path to socialism in Latin America.

Probably Gabriel Garcia Marquez got it right when he wrote that there are ‘two Chavezes’. One might perform wonders for Venezuela. The other was ‘just another despot.’

For Gaba, whose left credentials are unchallenged to describe Chavez in such Jekyll and Hyde terms shows the deep doubts across the Latin American left and intellectual world about the Venezuelan president’s credentials and ambitions.

In the 19 November edition of Libération, the French left daily paper, sixty mainly Latin American intellectuals, writers, journalists and political activists, published an open letter critical of Chavez.

They argued that this weekend’s referendum would ‘abolish all controls on the powers of the state and the actions of the executive’. They further alleged that Chavez was spending a fortune on arms expenditure instead of using the golden showers of oil wealth Venezuela enjoys to develop a balanced economy based on sustainable development. The authors also claimed that Chavez was setting up his own private army, an armed militia that exceeded the size of the nation’s armed forces.

Naturally, not a word of this cry of alarm was published in the British media. Newspaper coverage of Latin America, other than in the Economist is a joke. The New Statesman, to its credit, has published reports on Venezuela which have been both supportive and critical of Chavez.

The most recent (published 15th November) showed a picture of a gunman on the back of a motorbike firing shots at students demonstrating for democracy in Caracas. As with the Mexican students in 1968, or other students movements over the years, the young men and women of Caracas are taking a huge risk in expressing concern about the slow death of democracy in Venezuela.

It does not have to be like this. Chavez presents no threat to capitalism in Venezuela. Businessmen are doing very well.

Like China, Russia, Saudi Arabia and Nigeria we are witnessing the arrival of unrestrained market economics fusing with centralised state power.

Chavez’s oil populism allows him to hand out money to the poor. In past eras of high oil prices, notably under Carlos Andres Perez (CAP) in the 1980s, a populist president acted charitably.

CAP was a hero of the global left and the international trade union movement as he supported the Venezuelan corporatist trade unions, especially the union controlling the country’s petrol industry.

In 2002, Chavez smashed the union to take full state authority over the oil industry and installed military trusties in key sectors of the economy and civil society.

It was this assault on a trade union which forced the trade union bosses into an alliance against nature with elements of the Venezuelan right that launched the abortive coup in April 2002.

I was in Caracas in the days before the coup in my then capacity as the FCO minister responsible for Latin America. The tension was palpable.

The streets were full of pro and anti-Chavez demonstrations. It was impossible to sleep at night as women lent out of their windows banging saucepans to express discontent. In the first years of Chavez’s rule, before the post-Iraq invasion oil price spike gave him more money to spend than any leader in Latin America has ever enjoyed, Chavez’s economic rule was unsteady. Poverty actually increased and growth slowed.

Since then of course Chavez has been oil rich and some of that income has found its way to the poor. Other countries like Brazil or Chile have made bigger strides in combating poverty and done so without the oil windfalls Chavez has enjoyed.

Chavez is lucky in having one of the most arrogant, elitist, disconnected rightist oppositions that it is possible to imagine.

There are some exceptions like Teodoro Petkoff, a trained Marxist now editor of Tal Cual, but for the most part the right-wing press and opposition are boorish, arrogant and unworthy of support.

Nevertheless in 2002 they came together to do to Chavez what Chavez had done ten years previously – organise a golpe against the elected government of Venezuela. I had spent hours late at night in Miraflores , the presidential residence in the heart of Caracas, speaking to Chavez.

He claimed to be a supporter of Tony Blair and a fan of New Labour. The Labour government had gone out of its way to encourage Chavez, organising high level visits to London in 2001, in the hope that he would become an effective partner of the EU and Britain in a Latin America which needs to build bridges across the Atlantic in place of the region’s fatalistic obsession with the United States.

Other than the rightist government of Aznar in Spain there was no anti-Chavez feeling in any EU government. On the contrary, Britain invested in Chavez with John Prescott laying out a red carpet to greet him and in my 18 months as Minister for Latin America I detected no hostility to Chavez from British politicians or diplomats. The sentiment was rather one of curiosity at how this charismatic but politically unclear leader would develop.

I think Chavez was happy to meet a European politician with enough Spanish to listen to his views. We finished our talk towards midnight. He signed and gave me a copy of a biography of Bolivar. I gave him one of the wind-up radios invented in Britain. I wonder if he still has it? I left for the UN in New York when news arrived of the coup.

I put out a statement calling for a return of democracy in Venezuela. Britain was the only country to react this way. Other government bided their time to await the outcome of the coup.

Chavez now calls Aznar a fascist which is a silly, inaccurate insult unless we call every conservative a fascist. He says the US was behind the 2002 coup. All I know is that there was a planned naval exercise between the US Navy and the Venezuelan navy due to take place in the week of the coup. Against the protests of the US Navy who had spent $1 billion organising their biggest southern Atlantic exercise in years, the US State Department ordered that the exercise be cancelled. In the build up to Iraq, Washington could not afford, want or need accusation of supporting golpes in Latin America.

As a minister I was a useless civil servant. I wrote an article for The Times in which I described Chavez as a demagogue. I also said I was confident he would come back to power but sub-editors on The Times cut out that prophesy. Since then the uncritical Chavez worshippers have tried to paint me as some dark agent connected to the coup. If only. I was not sure of the man but I was clear democracy should be upheld in Venezuela.

Since then, like many, I have been tracking Chavez, more through the Spanish press than the useless puff or hate pieces written about him in the English media.

Michael Reid’s new book, ‘Forgotten Continent’ (Yale University Press) has a clear and objective chapter on Chavez. Reid is the Economist’s long-standing Latin America editor.

The 20 November edition of Le Monde, had a powerful editorial of concern about Chavez. ‘The concentration of power in his hands, the absence of dialogue with the opposition, the denunciation of the student movement as ‘facist’, the green light given to armed gangs, in short the militarization of political life is matched by unparalleled corruption’ the paper declared. Le Monde is no fan of the United States but its judgement cannot be ignored.

On the international scene, Chavez has embraced Robert Mugabe and told Belarus’ dictator, Lukashenko, that he is right to put down the democratic opposition in Minsk.

He has made five high profile visits to Teheran and calls Iran’s Jew-hating, gay-hanging, nuke obsessed president Ahmadinejad ‘my brother’.

There have been unpleasant outbursts of anti-semitism in the Venezuelan press and Chavez himself has made remarks which have frightened the Jewish community in Latin America.

So inefficient is Chavez’s economic management that the country has to import most of its requirement.

Petrol is a few cents a gallon as Chavez refuses any environmental politics that would lessen dependence on oil. At some stage, the uncritical admirers and promoters of Chavez will have to adjust to reality.

He is not yet a dictator like Castro, locking up poets and journalists and throwing away the keys. There is an opposition press. Elections are held and Chavez wins just as he will win the referendum this weekend. 20th century dictators are old hat.

This century we have Mugabes, and Lukashenkos, and Musavenis, and Putins, and Musharrafs, and now Chavez who cannot give up power. We need an adequate political science to describe this new type of populist, authoritarian but elected leader. Whether it is a direction the world left should go is for all of us to decide.

Denis MacShane is MP for Rotherham and was a minister at Foreign and Commonwealth Office
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Paul Mason: How the left should respond to Brexit

It's up to the labour movement to rescue the elite from the self-inflected wound of Brexit.

For the first time in a generation there is a tangible split between the Tory leadership and the business elite. Forget the 41 per cent poll rating, forget Theresa May’s claim to have moved towards “the centre”; the most important thing to emerge since the Tory conference is a deep revulsion, among wide sections of normally Conservative voters, at the xenophobia, nationalism and economic recklessness on display.

Rhetorically, May has achieved a lot. She quashed any possibility of a soft Brexit strategy. She ended 30 years of openness to migration. She scrapped the Tories’ commitment to balanced books by 2020 – though she neglected to replace this keystone policy with anything else. And she pledged to stop constitutional scrutiny over the Brexit process from Holyrood, Westminster or the courts.

Yet in reality she achieved nothing. May’s government is not in control of the crucial process that will define its fate – the Brexit negotiations. And on Scotland, she has triggered a sequence of events that could lead to the end of the UK within the next five years.

In the light of this, the left has to be refocused around the facts that have emerged since the referendum on 23 June. Britain will leave the EU – but it faces a choice between May’s hubristic nonsense and a strategy to salvage 30 years of engagement with the biggest market in the world. Scotland will hold its second referendum. Labour will be led through all this by a man who, for the first time in the party’s history, cannot be relied on to do the elite’s bidding.

Brexit, on its own, need not have caused a great shift in British politics. It is the new, visceral split between Tory xenophobia and the implicitly liberal and globalist culture in most boardrooms that makes this a turning point. It is a challenge for the left as big as the ones Labour faced in 1931, when the gold standard collapsed; or in 1940, when the reality of total war dawned. It represents a big opportunity – but only if we jolt our brains out of the old patterns, think beyond party allegiances, and react fast.

Let’s start with the facts around which May, Philip Hammond and Amber Rudd constructed their rhetorical body swerve at the Tory conference. Britain is £1.7trn in debt. Its budget deficit cannot be eradicated by 2020 because, even on the steroids of quantitative easing, growth is low, wages are stagnant and its trade situation deeply negative. Austerity, in short, did not work.

With sterling weakened, by next year we’ll begin to feel the pressure of imported inflation on real wages, re-creating the economic pain of 2011-12. On top of that, by attempting a “hard Brexit”, May has created damaging uncertainty for investment that no degree of short-term positivity can mitigate. Even if the range of outcomes only widens, investment will get delayed – and with May’s commitment to hard Brexit the range of outcomes will get significantly worse: 7.5 per cent lopped off GDP, according to a leaked Treasury assessment.

Civil servants believe Britain’s negotiating position is so weak that it will have to leverage its intelligence-providing services to Europe and concede “free movement of high-skilled workers”, just to persuade the French and the Germans to cut any kind of decent bilateral deal. Yet in the two years of brinkmanship that begin when Article 50 is triggered, the EU27 will have no reason whatsoever to concede favourable terms for bilateral trade. By adopting hard Brexit and hard xenophobia, Theresa May has scheduled a 24-month slow-motion car crash.

To orient the Labour Party, trade unions and the wider progressive movement, we need first to understand the scale of the break from normality. Labour already faced deep problems. First, without Scotland it cannot govern; yet many of its members in Scotland are so dislocated from the progressive Scottish national movement that the party is bereft of answers.

Next, the old relationship between the urban salariat and the ex-industrial working class has inverted. With a vastly expanded membership, Labour is the de facto party of the urban salariat. Its heartland is Remainia – the cities that voted to stay in Europe. Its electoral battlegrounds are now places such as Bury, Nuneaton, Corby and Portsmouth, where the “centre” (as measured by the Lib Dem vote) has collapsed, to be replaced by thousands of Green voters and thousands more voting Ukip.

This was the known problem on the eve of Brexit, though layers of Labour MPs and councillors refused to understand it or respond to it. The solution to it was, even at that point, obvious: Labour can only attract back a million Green voters and hundreds of thousands of Ukip voters in winnable marginals with a combination of social liberalism and economic radicalism.

The alternative, as outlined in the Blue Labour project of Maurice Glasman and Jon Cruddas, was an overt return to social conservatism. That cannot work, because it might win back some ex-Labour Ukip voters but could not inspire Labour’s new urban core to go on the doorstep and fight for it. On the contrary, it could easily inspire many of them to tear up their membership cards.

A new strategy – to combine social liberalism, multiculturalism and environmentalism with left-wing economic policies aimed at reviving the “communities left behind” – was, for me, always the heart of Corbynism. Jeremy Corbyn himself, whatever his personal strengths and weaknesses, was a placeholder for a political strategy.

Brexit, the attempted Labour coup and the Tory swing to hard Brexit have changed things all over again. And Labour’s leadership needs to move fast into the political space that has opened up. The starting point is to understand May’s administration as a regime of crisis. It is held together by rhetoric and a vacuum of press scrutiny, exacerbated by Labour’s civil war and the SNP’s perennial dithering over strategy to achieve Scottish independence. The crisis consists of the perils of hard Brexit combined with a tangible split between the old party of capital and capital itself. The elite – the bankers, senior managers, the super-rich and the ­upper middle class – do not want Brexit. Nor does a significant proportion of Middle Britain’s managerial and investing classes.




All this presents Labour with a series of achievable goals – as an opposition in Westminster, in London, as the likely winner in many of the forthcoming mayoral battles, and at Holyrood. The first aim should be: not just oppose hard Brexit, but prevent it. This entails the Labour front bench committing to an attempt to remain inside the European Economic Area.

The wariness – shared by some on the Corbyn side, as well as the Labour right – is born of the assumption that if you commit to the single market, you must accept free movement of labour. The party’s new spokesman on Brexit, Keir Starmer, expressed perfectly what is wrong with this approach: first it’s a negotiation, not a finished relationship; second, you start from the economics, not the migration issue.

Leaving the single market will be a macroeconomic disaster, compounded by a social catastrophe, in which all the European protections – of citizens’ rights, labour rights, consumer and environmental standards – will get ripped up. That’s why the Labour front bench must commit to staying inside the single market, while seeking a deal on free movement that gives Britain time and space to restructure its labour market.

John McDonnell’s “red lines”, produced hurriedly in the days after Brexit, embody this principle – but not explicitly. McDonnell has said Labour would vote against any Brexit deal that did not involve some form of single-market access, and preserve the City’s passporting arrangement, where banks are authorised to trade across an entire area without having to be incorporated separately in each country. Freedom of movement is not included in the red lines.

May, meanwhile, insists there will be no parliamentary scrutiny of the negotiating stance, or of the outcome. This position cannot stand, and overthrowing it provides a big, early target for Labour and the other opposition parties. They should use their constitutional influence – not only in Westminster but at Holyrood, Cardiff and the mayor-run cities, to bust open the Conservatives’ secrecy operation.

By declaring – formally, in a written pact – that they will refuse to ratify a Brexit deal based on World Trade Organisation tariffs, the progressive parties can destroy May’s negotiating position in Brussels overnight. Let the Conservative press accuse us of being “citizens of the world”, undermining the national interest. They will dig their own political grave even faster.

In parallel, Labour needs to lead – intellectually, morally and practically – the fight for a coherent, pro-globalist form of Brexit. In order for this to embody the spirit of the referendum, it would have to include some repatriation of sovereignty, as well as a significant, temporary retreat from freedom of movement. That means – and my colleagues on the left need to accept this – that the British people, in effect, will have changed Labour’s position on immigration from below, by plebiscite.

In response, Labour needs to design a proposal that permits and encourages high beneficial migration, discourages and mitigates the impact of low-wage migration and – forgotten in the rush to “tinder box” rhetoric by the Blairites – puts refugees at the front of the queue, not the back. At its heart must be the assurance, already given to three million EU-born workers, that they will not be used as any kind of bargaining chip and their position here is inviolable.

Finally Labour needs to get real about Scotland. The recent loss of the council by-election in Garscadden, with a 20 per cent swing to the SNP, signals that the party risks losing Glasgow City Council next year.

It is a problem beyond Corbyn’s control: his key supporters inside Scottish Labour are long-standing and principled left-wing opponents of nationalism. Which would be fine if tens of thousands of left-wing social democrats were not enthused by a new, radical cultural narrative of national identity. Corbyn’s natural allies – the thousands of leftists who took part in the Radical Independence Campaign – are trapped outside the party, sitting inside the Scottish Greens, Rise or the left of the SNP.

The interim solution is for Scottish Labour to adopt the position argued by its deputy leader, Alex Rowley: embrace “home rule” – a rejigged devo-max proposal – and support a second independence referendum. Then throw open the doors to radical left-wing supporters of independence. If, for that to happen, there has to be a change of leadership (replacing Kezia Dugdale), then it’s better to do it before losing your last bastion in local government.

The speed with which Labour’s challenge has evolved is a signal that this is no ordinary situation. To understand how dangerous it would be to cling to the old logic, you have only to extrapolate the current polls into an electoral ground war plan. Sticking to the old rules, Labour HQ should – right now – be planning a defensive campaign to avoid losing 60 seats to May. Instead, it can and must lay a plan to promote her administration’s chaotic demise. It should have the ambition to govern – either on its own, or with the support of the SNP at Westminster.

To achieve this, it must confront the ultimate demon: Labour must show willing to make an alliance with the globalist section of the elite. Tony Blair’s equivocation about a return to politics, the constant noise about a new centrist party, and signs of a Lib Dem revival in local by-elections are all straws in the wind. If significant sections of the middle class decide they cannot live with Tory xenophobia, the liberal centre will revive.

The best thing for Labour to do now is to claim as much of the high ground before that. It must become the party of progressive Brexit. The worst thing would be to start worrying about “losing the traditional working class”.

The “traditional working class” knows all too well how virulent Ukip xenophobia is: Labour and trade union members spend hours at the pub and in the workplace and on the doorstep arguing against it.

All over Britain, the labour movement is a line, drawn through working-class communities, which says that migrants are not to blame for poor housing, education, low pay and dislocated communities. For the first time in a generation Labour has a leader prepared to say who is to blame: the neoliberal elite and their addiction to privatisation, austerity and low wages.

It was the elite’s insouciance over the negative impacts of EU migration on the lowest-skilled, together with their determination to suppress class politics inside Labour, that helped get us into this mess. An alliance with some of them, to achieve soft Brexit, democratic scrutiny and to defeat xenophobic solutions, must be conditional.

We, the labour movement, will dig the British ruling class out of a self-made hole, just as we did in May 1940. The price is: no return to the philosophy of poverty and inequality; a strategic new deal, one that puts state ownership, redistribution and social justice at the heart of post-Brexit consensus.

That is the way forward. If Labour politicians can bring themselves to explain it clearly, cajole the party apparatus out of its epic sulk and make a brave new offer to Scotland – it can work. But time is important. We are up against a corrosive nationalist bigotry that now echoes direct from the front page of the Daily Mail to Downing Street. Every day it goes unchallenged it will seep deeper into Britain’s political pores.

Paul Mason is the author of “PostCapitalism: a Guide to Our Future” (Penguin)

This article first appeared in the 13 October 2016 issue of the New Statesman, England’s revenge