USAID/OTI Venezuela Annual Summary Report
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October 2009 - September 2010 |
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Program Description
In August 2002, USAID initiated a program in Venezuela to provide assistance to maintain democratic stability and strengthen the country's fragile democratic institutions. The program operates out of the U.S. Embassy and is part of a larger U.S. diplomatic effort to promote democracy in Venezuela.
The specific objectives of the Venezuela program are to enhance access to objective information and peaceful debate on key issues, provide support to democratic institutions, and promote citizen participation and democratic leadership. USAID works with several implementing partners drawn from the spectrum of civil society focusing on dialogue, public debate, citizen participation and training for democratic leadership—offering technical assistance for political parties, providing technical support to human rights practitioners, and supporting efforts to strengthen civil society.
Activities
Support for Nonpartisan Election Campaigns – OTI works with local counterparts to generate civic participation from all sectors and political parties and also supports forums on good governance principles. OTI has supported voter registration campaigns to stimulate debate on key issues as well as forums on the tenants of democratic governance principles and the value of citizen responsiveness.
Enhance Access to Objective Information and Peaceful Debate – OTI supports the promotion of political debate among independent civic groups to raise the level of discourse on some of the most important issues for Venezuelans. OTI also works with local partners to strengthen new media tools that can improve access to information and allow open and productive debate on the Internet.
Provide Support to Democratic Institutions – OTI works through civil society and offers technical assistance to all political parties to support democratic systems. Program partners use materials and technical expertise to provide objective and tested support to improve the effectiveness and responsiveness of local governments, political parties, and systems to help local governments and citizen groups exchange ideas.
Promote Citizen Participation and Democratic Leadership – Recognizing that access to objective information and strong democratic institutions require citizen involvement and strong leaders, OTI supports citizen participation in local and national policymaking, often with involvement and guidance from community and locally elected leaders. OTI supports community leaders and local organizations to improve their access to locally elected leaders and increase their ability to provide input in participatory budgeting and policy discussions. This process results in strengthened leadership, as communities increasingly recognize that they have a productive role to play and as oversight of elected offices is improved.
Country Situation
National Elections – Both the governing Partido Socialista Unido Venezuela (PSUV) and its opponents claimed victory in the National Assembly elections held on September 26, 2010, an election that saw 66.5 percent participation rates. The PSUV won 98 of 165 seats, opposition parties won 65 seats, and the Patria Para Todos (Fatherland for All) party won 2 seats. The results change the composition of the National Assembly. Opposition parties, which previously did not hold any seats, now comprise more than one-third of the parliament. The new balance empowers the opposition to influence the course of proposed legislation, as a two-thirds majority is needed to pass bills.
New electoral districts were delineated in a third of Venezuela by the National Electoral Council (CNE). Opposition candidates accused the CNE of gerrymandering, arguing that the redistricting favored pro-Chavez candidates. Despite the changes, the election gave seats to opposition parties in all but two states.
Currency Controls – In January 2010, President Chavez announced a change in the official exchange rate for the Bolivar, increasing the rate from 2.15 to 2.6 to the dollar; he also announced the creation of an "oil Bolivar," which is pegged at 4.3 Bolivars per dollar. The devaluation allowed government spending to be ramped up in the months leading up to the National Assembly elections, but also led to an inflation rate in excess of 30 percent. Chavez claimed the devaluation would revitalize the economy, reduce unnecessary imports, and stimulate exports following a contraction in the economy in 2009.
In May, the National Assembly approved a law that regulates foreign exchange activities by barring private brokerage firms from operating in the parallel dollar market through bond trading. The government initiated a crackdown on alleged illegal money-changing businesses: conducting audits, staging raids, and making arrests. The government halted the operations of more than a dozen brokerage firms.
Centralized Control of Civil Society – The Venezuelan Government continued to increase controls on previously independent segments of civil society. In January 2010, President Chavez announced plans to nationalize the Exito supermarket chain, accusing the retailer of raising prices following the currency devaluation. Chavez has also threatened to nationalize Empresas Polar, the country's major food processor. In the media sector, the President ordered cable providers to take several television stations off the air. Chavez also ordered two dozen local TV channels to carry government programming, including the President's marathon speeches that last up to seven hours.
Individuals that openly challenge the government continue to be the targets of accusations and threats. In June, the government issued an arrest warrant for Guillermo Zuloaga, the major shareholder of Globovision, the only remaining television station that takes a critical line against the President. Zuloaga, who is in exile in Miami, is accused of usury and conspiracy for keeping 24 new vehicles stored at his home. Zuloaga denies the accusations.
Increased Security Concerns – Security has become a major concern for Venezuelans. A study released earlier this year showed that homicides have quadrupled in the last 11 years. The New York Times reported that there were more than 16,000 civilian murders in Venezuela in 2009, while Iraq, a country with a similar number of inhabitants, saw fewer than 4,700.
International Diplomacy – In the weeks leading up to the National Assembly elections, President Chavez turned his attention toward the international sphere and accused the U.S. Government of meddling in Venezuela's internal election affairs. He also accused several international nongovernmental organizations of acting as the "hand of the empire" and launched criminal investigations into their activities.
President Chavez formally rejected the nomination of Larry Palmer, who had been asked by the administration to serve as the U.S. Ambassador to Venezuela. Chavez cited Palmer's suggestion to a Senate confirmation committee that morale is low in Venezuela's military as his reason for the rejection. Palmer also raised concerns about Colombian rebels finding refuge in Venezuela.
In late July, Venezuela cut diplomatic ties with Colombia after the Colombian Government declared that Colombian rebels were in possession of anti-tank weapons purchased by the Venezuelan Government. President Chavez denied these allegations and recalled the Venezuelan Ambassador to Colombia and nearly all the embassy staff. Chavez reestablished relations with Colombia in early August following a four-hour meeting with newly inaugurated Colombian President Juan Manuel Santos.
Upcoming Events
| 5 January 2011 |
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Newly elected National Assembly seated |
| December 2012 |
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Presidential elections (scheduled) |
Program Appraisal
The program has made efforts to take recent lessons learned and implement them going forward. Efforts have been made to focus debate on issues that are relevant to average Venezuelans and to work with willing partners in making government more responsive and accountable.
Reports and public activities by grantees were successful in diffusing information about areas critical to a functioning democracy, including free and fair elections, human rights, and other important social issues. These activities show the successful work of building the capacity of civil society organizations to play a meaningful role in Venezuelan society.
The Venezuela program is like USAID programs in other countries in this hemisphere and around the world in that it seeks to strengthen democracy and its supporting institutions. The program in Venezuela is designed to strengthen civil society and political parties, the key components of a healthy democracy and the channels through which citizens often express their desires, needs, and concerns as well as find ways to collectively address them.
There continue to be threats against program counterparts, who fear for their well-being and ability to operate and help build a strong and independent civil society. OTI will continue to monitor these threats. Physical threats against human rights defenders have continued unabated.
Next Steps
OTI priorities for the next year include the following:
- Continue to implement recently signed agreements with local partners on citizen participation, democratic leadership, and enhanced information and peaceful debate;
- Continue to support human rights defenders as they improve their ability to research, report on, and present cases of human rights abuses; and
- Maintain responsiveness to constantly changing dynamics in Venezuela and provide needed support to Venezuelans struggling to maintain a strong, independent civil society.
For further information, please contact the USAID Latin America and the Caribbean Regional Bureau.
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