Populism: the lesson from Venezuela #nlpoli

Born and raised in Venezuela,  Andreas Miguel Rondon is an economist who now lives in Madrid.

He wrote for The Washington Post last week on the lesson Americans should learn from the Venezuelan experience with Hugo Chavez.  Trump may be a capitalist and Chavez may have been a socialist but the populist formula remains the same.

The recipe for populism is universal. Find a wound common to many, find someone to blame for it, and make up a good story to tell. Mix it all together. Tell the wounded you know how they feel. That you found the bad guys. Label them: the minorities, the politicians, the businessmen. Caricature them. As vermin, evil masterminds, haters and losers, you name it. Then paint yourself as the savior. Capture the people’s imagination. Forget about policies and plans, just enrapture them with a tale. One that starts with anger and ends in vengeance. A vengeance they can participate in. 

That’s how it becomes a movement. There’s something soothing in all that anger. Populism is built on the irresistible allure of simplicity. The narcotic of the simple answer to an intractable question. The problem is now made simple.

The solution?

Not so simple, but worth considering no matter where or when you encounter a populist politician.

-srbp-

Hugo under pressure

Venezuela must be experiencing severe economic difficulties.

Hugo Chavez wants the Organization of Petroleum Exporting Countries to cut production in an effort to get oil prices about US$80 a barrel.

Good luck with that, Hugo.

-srbp-

This Danny-Hugo Thing, Part 2

Hugo Chavez hangs out with decrepit dictators like Fidel Castro, right.









Danny Williams gets his picture taken with Miss Universe Canada, left.

Of course, she might have mistaken him for ageing 70s television star Lee Majors in this photo.

-srbp-

This Danny-Hugo thing

Another reason why Danny isn't Hugo.

Hugo gets internationally respected actors to visit his country, left. [Photo: AP, Howard Yanes]





Danny gets a split screen with the soon-to-be ex-wife of an ex-Beatle, right. [Photo: Charles Leblanc]

-srbp-

Exxon,Conoco quit Venezuela

ExxonMobil and ConocoPhilips wrote off multi-billion dollar investments in Venezuela today, rather than accept increasingly tough operating terms laid down by Venezuelan President Hugo Chavez.

BBC is reporting Conoco's loss at US$4.5 billion.

Chevron, BP, Total SA and Statoil will continue to work in Venezuela. BBC is reporting that Statoil will be reducing its stake to 15% in a country where, As Associated Press reports, the companies will also face flat rate taxes of 50% and royalties of 33.3% on its minor equity position.

Petro-Canada had previously announced it was abandoning its projects in the South American country.

Under Chavez, Venezuela first raised royalty and tax rates, then later assumed majority control of all oil projects as part of a larger nationalization drive of "strategic" economic sectors. Chavez says those policies are ensuring that oil benefits Venezuelans instead of foreign corporations and governments.

Rising energy prices and Venezuela's huge oil deposits have strengthened his hand: The country's reserves are the largest in the Western Hemisphere and may eventually prove bigger than Saudi Arabia's if it continues certifying heavy oil deposits in the Orinoco River region.

For a commentary on developments in Venezuela, the Financial Times offers some insights.

-srbp-