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Driving a Wedge Between Brazil and Venezuela: Condi’s Divide and Rule Strategy in South America

When you can’t stamp out progressive social change, the next step is to try to desperately derail it or otherwise water it down. That’s exactly the kind of strategy being pursued right now by the likes of Condoleezza Rice, who recently concluded a South American tour designed to ostracize the bad countries, namely Venezuela, Bolivia, and increasingly Argentina, and to cultivate ties with the good countries such as Brazil and Chile.

Rice and her colleagues are alarmed because, notwithstanding their ideological differences, South American nations appear to be moving towards extensive political and economic integration. The only question now is which economic development model will predominate within the region and what the eventual complexion of integration will look like.

The vehicle for closer integration could well be Mercosur, a trading bloc of South American countries. At present the bloc’s members include Brazil, Argentina, Paraguay and Uruguay. Venezuela is in the process of joining the bloc, and a number of countries including Bolivia and Chile are associate members. Mercosur nations have declared their intention of forming a South American Community of Nations modeled after the European Union.

The bloc is beginning to take on political projects rather than pursuing strictly economic objectives. For example, Mercosur now has a European Union-styled regional parliament in Montevideo, and many Uruguayans hope their capital might evolve into the "Brussels of South America." In a repudiation of Washington’s diktat, Mercosur nations openly debated what the future of free trade should be in South America during a heady 2007 summit.

In line with his usual penchant for over the top rhetorical flourishes, Hugo Chávez of Venezuela stressed the need for Mercosur to be "decontaminated" from the ravages of neo-liberal economics. Mercosur, noted the Venezuelan leader, was an "outdated mechanism and is leaking like a sieve." The trade bloc, Chávez added, was "founded in the context of a free- market economic model and offers integration for the élites, for business, for transnational companies, not integration for the peoples." Such remarks have riled the Bush White House which has come to distrust Mercosur, an entity which has acted to block the corporate-friendly Free Trade Area of the Americas.

Having woken up to the fact that its free trade and neo-liberal agenda for the region lies in tatters, and that wielding a Big Stick to defang its enemies cannot work politically in the present milieu, the Bush White House is now pursuing stealthy diplomacy. Rice’s strategy is to divide and rule, to contain radical social change and to steer it within acceptable boundaries.

These are important geopolitical developments which have largely fallen beneath the media radar screen. It’s a deficiency I seek to rectify in my new book, Revolution! South America and The Rise of The New Left (just released with Palgrave-Macmillan), based on extensive interviews with activists, intellectuals, political experts, and government officials in six countries throughout the region.

Venezuela and Brazil: Their Differing Visions for the Future

Officially, Venezuela and Brazil are close allies and are not vying for regional political control. But waning U.S. prestige has led to something of a power vacuum and the two countries are now pushing very different economic agendas. On the one hand, Brazil seeks to create economic opportunities for itself which in turn might offer advantages for smaller South American countries. Within President Lula’s scheme, these smaller nations would buy Brazilian goods and supply Brazil with energy resources. With Brazil as the hub of a southern bloc of countries, the region would head towards a more equitable development model mitigating the savage effects of globalization. Lula’s model is market-friendly though not explicitly "neo-liberal;" it is predicated upon government support for domestic companies which are intent on exploiting regional and global opportunities.

Lula’s agenda stands in contrast to that of Hugo Chávez who has overseen an avowedly socialist and strong statist approach to the economy. Rhetorically, Chávez rails against the market and globalization, thus sparking fear in Brazil that the Venezuelan leader will scare off investors from flocking to the region. Chávez would like to see a more "un-savage" version of globalization spread forth from Venezuela into neighboring countries.

In order to advance Venezuelan interests, Chávez provides development assistance and oil at discount prices to sympathetic regimes in the hemisphere. He has sought to bring Venezuela into Mercosur and hopes to subvert the bloc from within, presumably by shifting the entity’s focus from free trade to more equitable, reciprocal trade. Simultaneously however he has hedged his bets by promoting the Bolivarian Alternative for the Americas (known by its Spanish acronym ALBA), a scheme based on solidarity and barter trade outside of the usual corporate strictures.

Driving a Wedge between Brazil and Venezuela

Rice is trying to exploit these differences and to effectively drive a wedge through South America’s incipient left bloc. "Brazil has a president from the left. He’s one of America’s closest friends and partners in the region and on the globe. I will go on to Chile, another country where the president is from the left and again, we have excellent relations with Chile," the Secretary of State remarked in an interview with Brazil’s Globo TV.

Now that South America is headed on a new trajectory which is more independent of Washington, Rice hopes that the "responsible" left as exemplified by Brazil’s Lula and Chile’s Bachelet will steer the region away from the likes of Venezuela’s Chávez and Bolivian President Morales. "This is not about where you are on the ideological spectrum," she said. "It’s a question of: Do you respect democratic values and democratic institutions; are you working for the good of your people; are you working for the good of your neighbors. Those are the issues that are important to the United States, but it’s certainly not a matter of whether you come from the left or from the right."

Rice then urged nations such as Venezuela to meet their United Nations obligations by keeping terrorists out of their territories. In sounding the alarm, Rice was merely parroting her boss who had earlier remarked that Venezuela’s response to the recent border crisis in Colombia and Ecuador was "the latest step in a disturbing pattern of provocative behavior by the regime in Caracas." (In March, Chávez and Ecuador’s president, Rafael Correa, ordered troops to their Colombian borders and withdrew their ambassadors from Bogotá after Colombia killed a top rebel leader, Raúl Reyes, on Ecuadorean soil. During the raid, Colombia obtained computer hard drives that U.S. officials claim show the Venezuelan government may have had dealings with the Revolutionary Armed Forces of Colombia, or FARC, which the U.S. labels a terrorist group). When she was asked whether the U.S. was considering designating Venezuela a state sponsor of terror, Rice declared: "We will watch the situation and act accordingly."

From Bio Fuels to Free Trade

In the fight for geopolitical influence, energy politics looms large: that’s why the issue of bio fuels was at the top of Rice’s agenda during her Brazilian trip. In recent years, Brazil has become an energy giant by producing ethanol, a fuel made from sugar cane, which is even more environmentally destructive than oil in certain respects. It’s all part of Lula’s bid to rival Chávez, who has used oil for diplomatic and political advantage in the region.

In Brasilia, Rice discussed progress on an initiative launched by Bush last year to develop ethanol industries. At a press conference, she surprised the audience by seemingly becoming a born again environmentalist. Putting bio fuels on the map, she remarked, was "a way to deal with the terrible problems that we face in energy supply and climate change."

Brazil would like to become a more important political player on the world stage, and Rice was careful to bring up the issue of United Nations Security Council reform. The South American giant has long hoped to obtain a permanent seat, and the Secretary of State offered the carrot of possible U.S. backing for the move.

In Chile, Rice sought to revive a long-standing, but largely dormant, strategic partnership between Chile and the U.S. state of California. State Department officials argue that both have complimentary economies; spokesman Sean McCormack said that a centerpiece of Rice’s visit was a proposed educational exchange program. For Rice it was important to visit Chile, a country with which the United States has a free trade agreement: the Bush White House hopes the accord will serve as a model for other free trade initiatives in the region, including a pending deal with Colombia.

Snubbing Argentina by Refusing To Set Foot in the Country

What is truly startling to consider is that Rice altogether skipped Argentina during her tour. That’s a monumental diplomatic snub of a major country within the region. What’s it all about?

Relations between the United States and Argentina have been plummeting ever since Bush’s first term. Argentina still blames the American-controlled International Monetary Fund for its financial collapse in late 2001 (Argentina was forced to default on billions of dollars in debt to the IMF).

In 2003 incoming President Néstor Kirchner played on anti-American sentiment as a means of consolidating leftist constituencies, while simultaneously becoming a key Chávez ally. When I was in Buenos Aires researching my book, I was truly amazed at the extent of the growing Venezuelan-Argentine alliance. The two nations now barter and trade everything from cattle, to oil, to agricultural products and ships.

In 2005, things got worse when, right in front of Bush, Kirchner criticized the neo-liberal policies of the 1990s that the United States sponsored. Kirchner delivered his riposte at a meeting of Latin American leaders in Mar del Plata. The Argentine president did little to stop anti-American protests, leading Bush to leave the summit feeling totally humiliated. In an effort to avoid further embarrassment, Bush avoided Argentina altogether during his South America tour last year, preferring instead to pay his respects to Brazil and Uruguay.

The White House hoped that things might turn around with last year’s election of Cristina Fernández de Kirchner, the former president’s wife. But then relations took a further nose dive when American prosecutors in Miami named four Venezuelans and one Uruguayan in connection with a plot to cover up $800,000 found in a suitcase at a Buenos Aires airport allegedly meant as a secret campaign contribution from Venezuela’s government to Kirchner. The new Argentine president lashed out at the U.S., calling the investigation "garbage operations." Kirchner argued that the investigation was politically motivated and designed to drive a wedge between Argentina and Venezuela.

In retaliation, Kirchner restricted the diplomatic access of the American ambassador in Argentina, Anthony Wayne. Rubbing Bush’s face in the mud yet further, Kirchner has cultivated even greater ties to Chávez: the Argentine leader has continued to sell more consumer products to Venezuela as well as some $4 billion in Argentine bonds to help refinance the country’s debt. What’s more, energy-strapped Argentina will be the proud recipient of more than 10 million barrels of Venezuelan fuel oil and diesel per year.

What’s behind Argentina’s geopolitical maneuvers and what do the Kirchners want from Venezuela? Argentina seems to be playing a rather Byzantine game in an effort to offset Brazil’s big footprint in the Southern Cone. The Brazilians have always seen Mercosur and the Southern Cone as their backyard which offends Argentina’s sense of national pride. When Néstor Kirchner and now Cristina further ties to Venezuela, it’s a way of poking the eye of their northern neighbor.

To an extent, the growing rapprochement is also based on shared ideological affinity. Indeed, Néstor Kirchner once stressed that Mercosur needed to transcend its mere emphasis on economic growth. "We are not interested only in economic integration," he remarked. "We are not interested in a region of the world where integration is full of poverty, exclusion and unemployment."

Chávez to Brazilian Senate: "You’re Parrots"

For Chávez, the advantages of Argentine friendship are eminently clear. By securing important support from his ally to the south, Chávez makes it easier for Venezuela to join Mercosur and hopefully overcome Brazilian skittishness. That support has become more and more critical as Venezuela’s bid to join Mercosur has been held up and stalled. Though Argentina and Uruguay have ratified Venezuela’s bid, Paraguay and Brazil have still not agreed.

In Brazil, the biggest thorn in Chávez’s side has been the Senate, which was outraged by Venezuela’s refusal to renew Radio Caracas Televisión’s broadcast license; the station was a hotbed of opposition sentiment. Characteristically, Chávez flew off the handle and accused the Brazilian Senate of being subservient to the United States. In a move which hardly ingratiated himself amongst the Brazilian elite, Chávez said that the Senators were "puppets of the (U.S.) empire" and "oligarchs" more interested "in their pockets than the people." Memorably, the Venezuelan leader said that the Senate was a "parrot that just mimics Washington." Meanwhile, a Venezuelan negotiator remarked that the United States did not want "the strong bloc of the present Mercosur plus Venezuela leading the way to South American unity."

Chávez’s outburst led the leader of the Brazilian Social Democracy Party in the Senate, Arthur Virgílio, to declare that his colleagues would try to prevent Venezuela’s entry into Mercosur. Both the Social Democracy Party and the Democrat Party declared that Venezuela could not be admitted to Mercosur because it was "a country that cannot respect disagreement in a civil fashion." President Lula himself told Venezuela to mind its own business. In anger, Chávez issued an ultimatum, saying that Venezuela would withdraw its application to join Mercosur unless its bid was approved within three months. "We won’t wait any longer than that. The Brazilian and Paraguayan Congresses have no reason not to approve our entry: no political, legal, economic or moral reasons," Chávez said. Incensed, Brazilian government officials retorted that they would not accept deadlines from anyone.

Contours of Further Integration Unclear

Despite such incendiary tit-for-tats, some experts believe that integration will eventually occur, even though it may take 30 or 40 years to complete the process. While in São Paulo researching my book I caught up with Valter Pomar, Secretary of International Relations with Brazil’s Workers’ Party. Regional integration, he said, would have a significant geopolitical impact because it "would take place within the context of a rising left movement. That is important, because the European Union was pushed for and created under conservative governments."

Perhaps, but what will be the precise contours of economic and political integration? For the time being, the future is still plenty murky. Even if Venezuela becomes a member of Mercosur, the trade bloc faces daunting economic and political pressures which are far too complicated and arcane to even enumerate here. With Mercosur, and implicitly the South American Community of Nations future in some doubt, Chávez has turned his attention elsewhere.

By far the most enlightened and socially progressive initiative guiding South American integration today, Venezuela’s ALBA is designed to serve as a counterweight to free trade blocs. In particular, growing integration between Venezuela, Cuba, and Bolivia has led to important developments in health care which have benefited millions. On the other hand, ALBA has had little effect on the overall volume of trade between member nations. It’s difficult to see how particular South American nations, for example Brazil or Chile, would ever accept ALBA as a viable economic model. Meanwhile, Chávez’s plans to transform ALBA into some kind of a military alliance have foundered and gone nowhere as I have previously explained (see "`We Will Respond Jointly,’ Hugo Chávez’s Anti-Imperialist Army," February 16/17, 2008).

Such lack of political clarity has given the White House a slight opening. Though the Bush administration is reviled throughout the region and Washington cannot hope to turn back the rising pink tide of progressive regimes, Rice believes she can mitigate Venezuelan influence by cutting bilateral energy and trade deals with individual South American countries. As long as Brazil and Venezuela play out their big power rivalry, smaller countries may choose to either wait on the sidelines or secure advantages from either Lula or Chávez based on their particular needs at any given time.

Despite his constant rhetorical outbursts directed at the likes of parrots within the Brazilian Senate, Chávez has expressed regret at the lack of overall diplomatic progress. If they are ever to achieve meaningful integration, the big powers of Venezuela, Argentina, and Brazil must find a way to resolve their differences. Up to now, all three have been engaged in a precarious geopolitical dance, an irony not lost on Chávez himself. Recently the Venezuelan leader remarked, "Neither Venezuela alone, nor Brazil alone, nor Argentina alone can become a world power. We can only achieve that together."

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We Will Respond Jointly: Hugo Chávez’s Anti-Imperialist Army

It is testament to how much Latin America has changed politically over the past several years that Venezuelan President Hugo Chávez not only criticizes U.S. military policy in the region but now actively seeks to form a new defense force designed to counteract the colossus of the north.

 

Recently, Chávez invited Nicaraguan President Daniel Ortega to join him on his weekly TV show, Aló, Presidente! Turning to his friend and ally, Chávez remarked that Latin American countries which formed part of ALBA (or Bolivarian Alternative for The Americas) "should set up a joint defense strategy, and integrate our armed forces and intelligence services because the enemy is the same: the United States empire."

 

Chávez, who is known for his bravado and rhetorical flair, then added, "Whoever takes on one of us will have to take on everyone,because we will respond jointly."

 

ALBA is an initiative set up by Chávez to encourage greater solidarity and reciprocity amongst left leaning regimes throughout the region; its members include Venezuela, Cuba, Nicaragua, Bolivia, and Dominica. In recent years, ALBA has served as a mechanism to enhance barter

exchange between nations. For example, Venezuela has shipped oil to Cuba and in return receives thousands of Cuban health professionals who attened to the Venezuelan poor.

 

Originally set up to upstage the Free Trade Area of The Americas sponsored by the Bush White House, ALBA also seeks greater cultural integration amongst Latin American countries. Now, Chávez seems intent on expanding ALBA's scope to the military realm as well.

 

Chávez's comments come at a particularly sensitive time in U.S.-Venezuelan relations. American officials such as Admiral Michael Glen Mullen, Chief of the U.S. Southern Command, as well as Secretary of State Condoleezza Rice, say Venezuela is a threat to the region. They claim that Venezuela is encouraging an arms race in South America and has become a drug transshipment point. Meanwhile the U.S. continues to arm the Colombian military and the civil conflict there has spilled over the Venezuelan border. Chávez has accused the Colombian "oligarchy" of collaborating with Washington in an effort to foment an armed conflict with Venezuela.

 

Ratcheting up the rhetoric, Chávez remarked that "The time will come when the Colombian people get red of that oligarchy. We won't provoke them unless they provoke us." Chávez claims that Colombia, acting on U.S. instructions, wants to create obstacles for the proposed

South American Union of Nations or Unasur.

 

In the midst of the Colombian imbroglio and escalating tensions, Chávez would like ALBA

nations to demonstrate greater solidarity in an effort to oppose Washington's military influence. The Venezuelan leader has called on the defense ministers of each ALBA member-nation to begin preparation for a joint Defense Council. While it's unlikely that such plans will come to fruition, the Bush administration's policy of seeking to isolate Chávez has produced the exact opposite effect.

 

During his meeting with Chávez, Ortega declared "If they touch Venezuela, it will light up the

region. No one is going to stand idly by, because to touch Venezuela is to touch all of Latin America." The Nicaraguan President added that the United States sought to threaten Venezuela via Colombia. In return for Ortega's diplomatic support, the grateful Chávez offered to provide technical assistance to maintain Nicaragua's Russian helicopters.

 

Ortega has commented that ALBA nations have just as much a right to form a joint military force as European countries and NATO. His pronouncements represent a shift from earlier, more pro-U.S. administrations in Nicaragua. In 2003, in the wake of the U.S. invasion of Iraq, Nicaraguan President Enrique Bolaños sent a team of doctors, nurses, and mine sweepers to the Middle Eastern nation to assist a Spanish brigade.

 

The Chávez-Morales Axis

 

Bolivia is the South American nation which shares the most ideological affinity with Chávez

at the current time and it's no surprise that Morales has sought greater military cooperation with Venezuela. Despite U.S. complaints about Chávez's allegedly expansionist aims in the region, Bolivia's chief of staff, General Freddy Bersatti, reportedly backs the idea of "merging" the Venezuelan and Bolivian armed forces. Chávez has provided helicopters to Bolivia and says he will send weapons to replace equipment. The Venezuelan President has reportedly pledged to provide up to $22 million to build 20 military bases in Bolivia.

 

In late 2006, Venezuela's ambassador to Bolivia, Julio Montes, remarked that "if for some reason this pretty Bolivian revolution were threatened, and they asked us for our blood and our lives, we would be here." Morales faces a particularly active and vigorous political opposition from the right, and Chávez has remarked that he will not sit idly by if the "Bolivian oligarchy" tries to forcibly remove his ally.

 

It's not the first time that Chávez has proposed forming wider military alliances in the region to put a break on the United States. In 2006, Chávez invited Argentine President Néstor Kirchner and Evo Morales to a military parade in Caracas where he proudly announced "We

must form a defensive military pact between the armies of the region with a common doctrine and organization." In another speech, Chávez added: "We must form the armed forces of Mercosur [a South American trade bloc] merging warfare capabilities of the continent."

 

During a trip to Bolivia, where he was accompanied by Venezuela's army chief, Raul Baduel, Chávez declared that there was a need for a Latin American alliance akin to NATO "with our own doctrine, not one that's handed down by the gringos."

 

During a two month trip through South America in 2007, I spoke with a number of military experts. Without exception, they all scoffed at Chávez's proposals to form a joint defense force. Chávez's proposals are problematic in a couple of respects. First of all, it would prove logistically challenging, not to mention costly, for Venezuela to maintain its troops if they were sent abroad.

 

The other obstacle for Chávez is political in nature: not all governments in the region share his particular socialist views or vision, nor do they necessarily view the United States as a mortal enemy which must be confronted.

 

In a region still beset with political and national rivalries, Chávez's bid for a unified military force faces an uphill battle. It is difficult to imagine, for example, how the Chilean armed forces -- which have an enormous amount of institutional pride and which have never lost a war-- would ever be willing to enter into a joint military force with Venezuela. Indeed, Chile has rebuffed Chávez's military proposals.

 

Meanwhile, the largest and most important country in the region, Brazil, is unlikely to become a member of a military force if it is constituted under Venezuelan leadership. In fact, Brazilian army commanders have declined Chávez's initiatives.

 

Even amongst sympathetic ALBA nations, it's doubtful that Chávez can succeed in creating

a united defense force.  Despite growing military ties between Venezuela and Bolivia, there is pressure on Morales not to go too far. Conservative media in Bolivia such as the paper La

Razón have ridiculed Chávez's proposed ALBA military alliance. What's more the Venezuelan leader is reviled by the Bolivian right wing opposition. If Morales were to increase military collaboration with Venezuela it would give rise to calls that Chávez is interfering in Bolivia's internal affairs.

 

Meanwhile, in Nicaragua the political opposition has rejected Chávez's proposals as a "senseless adventure." Eduardo Montealegre of the Alianza Liberal Nicaragüense party remarked that the idea of an ALBA force was a "smokescreen" designed to obscure real problems facing ALBA nations such as misery, hunger and lack of medicines. Even within his own ruling Sandinista party, Ortega faces opposition to Chávez's plan. Edwin Castro, the leader of the Sandinista parliamentarian faction, dismissed the idea that the Nicaraguan Army might fight, together with Venezuela, in a likely U.S. attack. "The Sandinista Front wrote in the Constitution (of 1987) that we have a defensive Army. It is prohibited to have an offensive Army," Castro said.

 

Despite the dim prospects for an ALBA military force, the armed forces in South America (with the exception of Colombia) are tied to new left of center regimes which are less sympathetic to the wider U.S. agenda in the region.  Unlike the 1970s, the military establishment is beholden to civilian rule and is unlikely to intervene in the political arena by staging an armed coup.

 

Take for example the case of Argentina. The Minister of Defense, a woman named Nilda Garré, was a sympathizer with the Montonero guerrillas of the 1970s. A former political prisoner during the military dictatorship, Garré wants to bring rogue military officers to justice for past human rights abuses.  Before coming to the Ministry of Defense, Garré was the Argentine ambassador to Venezuela. In Caracas, Garré was a vocal Chávez supporter, and when she got the call from Kirchner offering her the new job the Venezuelan president

phoned her in congratulation.

 

Garré has severed ties to the notorious military School of the Americas (now renamed the Western Hemisphere Institute for Security Cooperation or WHINSEC) located in Fort Benning, Georgia. In taking the momentous step to break with the school, Garré followed on the heels of Chávez, who severed ties in January, 2004.

 

Over the years, U.S.-Argentine military relations have been quite cordial, but recently ties have become strained. According to an official who I spoke with at the Ministry of Defense in Buenos Aires, in 2006 there wasn't a sole bilateral military meeting between the U.S. and Argentina.

 

Up to that point the two nations had met every year. Initially Argentina could not fix a date but when the government proposed an alternative time to meet, the U.S. responded that "the

Pentagon was being restructured" and could not schedule a summit.

 

Garré's counterpart in Chile is another woman, Vivianne Blanlot. She has been similarly

confrontational towards the military top brass identified with past human rights abuses. Recently there's been a lot of cooperation between the Chilean and Argentine armed forces. The two countries signed an agreement to form a combined military force for peacekeeping

missions which will be ready by the end of 2008.

 

Chávez's ALBA military initiative is probably a non-starter, but in the Southern Cone the armed forces have turned a critical page in their evolution. Though the military establishment is not strictly anti-U.S., it has become less identified with American strategic goals. It's a historic reversal for Washington, which now faces a much less inviting political environment within the region.

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Mr. Big Stick In Latin America: Meet John McCain

Now that John McCain has presumably wrapped up the Republican nomination, it's natural to wonder what kind of foreign policy he might pursue towards the rest of the world if he were elected President. For example, how would the "maverick" McCain deal with Latin America?

In recent years, the region has taken a decidedly leftist turn; new leaders such as Hugo Chávez of Venezuela, Evo Morales of Bolivia, and Daniel Ortega of Nicaragua have openly challenged U.S. diplomatic and political influence. McCain's record suggests that he would pursue a very hawkish and antagonistic policy in the hemisphere. It's even possible that the Arizona Republican, who has suggested that the United States might be in Iraq for hundreds of years and might "bomb, bomb, bomb, Iran," could ratchet up military tensions in Latin America and escalate conflict with countries like Venezuela.

The International Republican Institute (IRI)

McCain has chaired the International Republican Institute (IRI) since 1993. Ostensibly a non-partisan, democracy-building outfit, in reality the IRI serves as an instrument to advance and promote the most far right Republican foreign policy agenda. More a cloak-and-dagger operation than a conventional research group, IRI has aligned itself with some of the most antidemocratic factions in the Third World.

On the surface at least, IRI seems to have a rather innocuous agenda including party building, media training, the organization of leadership trainings, dissemination of newsletters, and strengthening of civil society. In reality, however, the IRI is more concerned with crushing incipient left movements in Latin America.

One of the least known Washington institutions, IRI receives taxpayer money via the National Endowment for Democracy and the U.S. Agency for International Development (U.S. A.I.D.). The organization is active in around sixty countries and has a budget of $74 million. On the board of IRI, McCain has been joined by a who's who of Republican bigwigs such as Senator Chuck Hagel of Nebraska, former National Security Adviser Brent Scowcroft, and former U.S. Ambassador to the United Nations Jeane Kirkpatrick.

IRI's Latin American Activities

In Haiti, IRI helped to fund, equip, and lobby for Haiti's two heavily conservative and White House-backed opposition parties, the Democratic Convergence and Group 184. The latter group, comprised of many of the island's major business, church and professional figures, was at the vanguard of opposition to Jean Bertrand Aristide prior to the Haitian President's forced ouster in 2004. At the same time, IRI funneled taxpayer money to hard-line anti-Castro forces allied to the Republican Party.

In Venezuela, IRI generously funded anti-Chávez civil society groups that were militantly opposed to the regime. Starting in 1998, the year Chávez was elected, IRI worked with Venezuelan organizations to produce anti-Chávez media campaigns, including newspaper, television and radio ads. Additionally, when politicians, union and civil society leaders went to Washington to meet with U.S. officials just one month before the April 2002 coup, IRI picked up the bill. The IRI also helped to fund the corrupt Confederation of Venezuelan Workers (which played a major role in the anti-Chávez destabilization campaign leading up to the coup) and Súmate, an organization involved in a signature-gathering campaign to present a petition calling for Chávez's recall.

McCain and Cuba

McCain has taken a personal interest in IRI's Cuba work and praises the anti-Castro opposition. The Arizona Senator has called Cuba "a national security threat," adding that "as president, I will not passively await the long overdue demise of the Castro dictatorship ... The Cuban people have waited long enough." McCain wants to increase funding for the U.S. government's anti-Castro radio and TV stations, seeks the release of all Cuban political prisoners, supports internationally monitored elections on the island, and wants to keep the U.S. trade embargo in place. What kind of future does McCain envision for Cuba? No doubt, one in which the Miami anti-Castro exiles rule the island. McCain's most influential advisers on Latin American affairs are Cuban Americans from Florida, including Senator Mel Martínez and far right Congress members Lincoln Diaz-Balart and Ileana Ros Lehtinen.

For McCain, It's Never Ending Free Trade and Militarization

On Capitol Hill, McCain has championed pro-U.S. Latin American regimes while working to isolate those governments which are rising up to challenge American hegemony. On Colombia, for example, McCain has been a big booster of official U.S. policy. Despite Colombia's status as a human rights nightmare, the Senator supports ongoing funding to the government of Álvaro Uribe so as to combat the "narco-trafficking and terrorist threat."


McCain has taken a personal interest in the Andean region. He has traveled to Ecuador and Colombia so as to drum up more support for the counter insurgency and drug war, now amounting to billions of dollars a year. McCain's foremost fear is that the Democrats may turn off the money flow to Uribe. "You don't build strong alliances by turning your back on friends," he has said.

McCain seeks to confront countries such as Venezuela and Cuba by encouraging U.S. partnership with sympathetic regimes that support American style free trade. "We need to build on the passage of the Central America Free Trade Agreement by expanding U.S. trade with the region,'' he has said. "Let's start by ratifying the trade agreements with Panama, Peru, and Colombia that are already completed, and pushing forward the Free Trade Area of the Americas."

Chávez has been one of the greatest obstacles to the fulfillment of McCain's free trade agenda, however. In recent years, the Venezuelan has pushed his own barter trade scheme, the Bolivarian Alternative for the Americas, which promotes economic solidarity and reciprocity between Latin American nations. Concerned about growing ties between Cuba and Venezuela, McCain said "He [Chávez] aspires to be this generation's [Fidel] Castro. I think the people of Venezuela ought to look at the standard of living in Cuba before they would embrace such a thing."

Fighting the Information War in Latin America

Speaking in Miami's Little Havana, McCain said that "everyone should understand the connections" between Evo Morales, Castro, and Chávez. "They inspire each other. They assist each other. They get ideas from each other. It's very disturbing." McCain said Chávez breathed "new oxygen" into Castro's regime, and that the U.S. government should do more to quell dictatorships throughout Latin America. Perhaps not surprisingly given his historic involvement in IRI, McCain's campaign Web site even featured an online petition calling for support in his quest to "stop the dictators of Latin America." The petition called for the ouster of Chávez "in the name of democracy and freedom throughout our hemisphere."

Though the petition was later taken down, McCain has staked out hawkish territory on Venezuela and would surely escalate tensions with the South American nation. Most troubling is the Senator's strong push for renewed U.S. propaganda in the region. McCain has criticized the Venezuelan government's decision to not renew Radio Caracas Television's license, and has called for reestablishing an agency like the United States Information Agency (the USIA oversaw a variety of agencies including the Voice of America radio network before it was merged into the State Department in 1998).

"Dismantling an agency dedicated to promoting America and the American message amounted to unilateral disarmament in the struggle of ideas,'' McCain has said. "We need to re-create an independent agency with the sole purpose of getting America's message to the world. Thiswould aid our efforts to communicate accurately with the people of Latin America."


If McCain was ever able to push through his aggressive media initiatives, he would antagonize many nations in the region which resent the pervasiveness of U.S. dominated media. Already, Venezuela, Cuba, Argentina, and Uruguay have formed a joint satellite news station called Telesur (in my upcoming book scheduled for release in six weeks, I devote an entire chapter to the issue of media politics in South America).

From Bolton to Big Stick

To make matters worse, the Chair of IRI has sought to promote neo-conservative figures from the Bush regime such as John Bolton. During the latter's confirmation hearings in the Senate, McCain urged his Democratic colleagues to approve the diplomat's nomination quickly. Bolton has been a hawk not only on Iran but also Venezuela. McCain, who refers to Chávez as a "wacko," said it was important to confirm Bolton. With Bolton at the United Nations, the U.S. would be able to talk back to "two-bit dictators" like the Venezuelan leader.

Like Bolton, McCain apparently shares his colleague's disdain for the United Nations and wants to create a so-called League of Democracies. As envisioned by the Arizona legislator, the new body would take the place of the United Nations on such issues as conflict resolution, disease treatment and prevention, environmental crises, and access to free markets. Interestingly, McCain's inspiration for the League is Teddy Roosevelt, who had a vision of "like-minded nations working together for peace and liberty."

Roosevelt, however, was no dove: he wielded a Big Stick and practiced gunboat diplomacy in Latin America. It's a policy which John McCain would probably like to revive if he is elected President in November.

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Hugo Chávez’s Coca: It’s The Real Thing

Venezuelan President Hugo Chávez has never lacked a sense of theatricality -- that is for sure. He recently shocked his diplomatic counterparts in the middle of a Latin American summit held in Caracas. In the midst of the proceedings Chávez turned to his ally, Bolivian President Evo Morales, and remarked "You brought me coca, I want the coca that Evo produces there."

 

Chávez's stimulant of choice is coffee. A year and a half ago, I saw him speak at Cooper Union in New York. At one point, he paused in the middle of his speech to drink a cup of espresso. Chávez, who is totally hyperactive, is reportedly a caffeine fiend and sleeps very little. Now, however, the Venezuelan leader's favorite fix seems to be changing. Before his audience of sympathetic Latin leaders, Chávez popped a coca leaf into his mouth
while defending use of the plant.


"Capitalism and international mafias have converted (it) into cocaine, but coca is not cocaine," Chávez remarked. Bolivian President Evo Morales, himself a former labor leader of a coca growers' union, had personally brought the coca leaves to Caracas for Chávez. In recent years, Chávez has sought to further his strategic alliance with Bolivia in an effort to further his socialist agenda and to counteract U.S. economic and political influence. 

 

"I knew you wouldn't let me down, my friend, I was running out," Chávez said as he received the leaves from Morales. 

 

As Chávez chewed the coca, he drew applause from the audience.

 

Even before the Caracas summit, Caracas had revealed that he chewed coca "every day in the
morning." The Venezuelan leader said that he received ice cream and other items from Fidel Castro, but Morales sent him coca paste.

 

Coca paste is a highly addictive substance made from coca leaves that serves as a base for cocaine.  It is sometimes smoked -- not chewed -- by drug users. Apparently Chávez misspoke and meant instead to say that he chews coca leaves, which have been used for centuries by indigenous peoples in the Andean highlands to boost energy and ward off
hunger.

 

"I Recommend Coca"

Coca leaf, which was domesticated over 4,000 years ago, is usually chewed with a bitter wood-ash paste to bring out the stimulant properties, which are similar to caffeine or nicotine. For Andean Indians, coca leaf is closely tied to the spiritual world.  Offerings to Pachamama, the Mother Earth, begin in August to scare away malevolent spirits of the dry season and to encourage a good harvest. Offerings consist of llama foetuses, sweets of various colors, coca leaf and other herbs. The yatiri, or indigenous priest, burns the offerings in a bonfire while
muttering prayers to the achachilas, Gods that inhabit the mountains.

 

Chávez has praised the health benefits of chewing coca and refers to the plant as the sacred leaf of Bolivia's Aymara Indians. In a speech delivered to the Venezuelan National Assembly
no less, Chávez brazenly remarked "I recommend it [coca] to you" (Chávez's admission prompted a Venezuelan opposition leader to accuse the Venezuelan leader of being a "drug consumer." Chávez, charged the politician, ought to submit to a drug test). In his search to legitimize and rehabilitate coca leaf, Chávez has been joined by Morales. The Bolivian President says that coca in its natural state does not harm human health, and that scientific research has demonstrated that the plant is "healthy."

 

When drug smugglers change coca into cocaine, Morales says, they change the plant's chemical composition. While Morales condemns such practices, he also touts the commercial uses of coca leaf. In a riff on Chávez's earlier misstatements, Morales said that one could indeed consume coca in paste form, that is, through coca toothpaste.

 

In praising the therapeutic properties of coca leaf, Morales echoes claims made by the Coca
Research Institute in La Paz. According to the organization, coca has nutritional and pharmaceutical uses. For example, coca flour is rich in iron and helps balance blood sugar. Additionally, coca tea can counter altitude sickness. David Choquehuanca, Bolivia's foreign minister, claims that coca leaf is so nutritious that it should be included on school breakfast menus.

 

"Coca has more calcium than milk," he told the Bolivian newspaper La Razón. An eight ounce glass of milk contains 300 milligrams of calcium. According to a 1975 study conducted
by a group of Harvard professors, a coca leaf weighing 3.5 ounces contains 18.9 calories of protein, 45.8 milligrams of iron, 1540 milligrams of calcium and vitamins A, B1, B2, E and C, which is more than most nuts.

 

"Before, the coca leaf was totally satanized, penalized," Morales has said. "But we respect the doctors and scientists who have begun to industrialize it." During the colonial period the Spaniards looked upon coca leaf as a symbol of native people's inferiority, but today Morales employs coca as a potent political symbol. When speaking before adoring crowds, he drapes a garland of coca leaves around his neck and wears a straw hat layered with more coca.

 

Morales has even appointed Felipe Cáceres, a coca growers' union leader, as his point man in halting drug trafficking. Those types of moves play well at home, where the cocalero movement preaches indigenous ethnic pride as well as anti-globalization.  On the floor of congress, representatives of the cocaleros frequently deliver speeches in native languages while chewing coca.

 

Life in the Coca Market

Currently under the Morales administration, coca in its natural state is sold through markets established and controlled by the government. The regulation forms part of a government plan to industrialize and export coca to other countries such as Argentina.  Under the initiative, legally established companies, cooperatives, or organizations may opt to acquire coca, according to the quantity needed for consumption, from legal markets without any interference from retailers.

 

Though Bolivian officials claim not to possess information about the relative importance of coca in the Bolivian economy, clearly the leaf plays a vital role for many. The Adepcoca market in La Paz is the largest coca market in the country. A constant stream of poor Indians arrives here, day and night, seven days a week, to weigh and sell coca.  Women dressed in traditional Aymara clothing haul 23-kilo taquis,or sacks of coca leaves, to waiting vans. All the buyers are registered and the coca they buy is supposed to be used for chewing or tea.

 

Morales recently inaugurated the first coca industrialization plant in the town of Chulumani. The plant will produce and package coca and trimate (herbal tea made out of anise, chamomile, and coca leaves). In a snub at Washington, Chávez has even donated $125,000 to the Chulumani coca industrialization plant.

 

Chávez and Morales Speak Out Against the Drug War

Morales claims that the United States seeks to intervene in Latin American countries by playing up the drug war. Washington's policy, Morales has charged, is merely "a great imperialist instrument for geopolitical control." The Bolivian President argues that the only way to do away with drug trafficking is to cut off demand. Currently under Bolivian law, 29,600 acres of coca may be cultivated for traditional use and consumption.


Though Morales is expected to receive $30 million for coca eradication in Bolivia in 2008, his incendiary rhetoric and toleration of limited coca cultivation does not go over well in Washington.  To make matters worse, Chávez has long charged that the United States is destabilizing the Andean region by funding the drug war and arming the Colombian
military.

 

Colombian violence has in turn spilled across the Venezuelan border, creating chaos and lawlessness. The Venezuelan authorities combat drug trafficking, but Chávez has long
since severed any collaboration with the U.S. Drug Enforcement Administration (DEA).  He has also moved to prohibit U.S. over flights of Venezuelan airspace to combat drug trafficking and has railed against aerial fumigation of coca leaf in Colombia.


Washington has hit back, claiming that Venezuela does not do enough to combat the drug trade. According to U.S. officials, Venezuela has become a key transshipment point for Colombian cocaine.

 

Chávez Promotes Cultural Independence

Surely, by attacking the drug war Chávez scores points amongst many in the region who view U.S. militarization as a menace. But by going even further and promoting coca leaf as
a cultural symbol, Chávez hopes to encourage cultural nationalism in South America in opposition to the United States.


For years, the Venezuelan leader has railed against the homogeneity of U.S.-inspired globalization. Chávez denounces shopping malls and rejects consumerism while promoting Venezuelan art and music. Under the Law of Social Responsibility, 50 percent of what DJs play must be Venezuelan music. What's more, under a cultural law approved in 2004, at least 50 percent of all that music must be "folkloric."  As a result of the new laws, llanero (rat-a-tat ballads or mournful love songs from the Plains region) and gaita (lilting music from the city
of Maracaibo) musicians have been doing a thriving business.  Chávez has even founded his own publishing house, El Perro y La Rana, which publishes books on Marxism.

 

Meanwhile the government has promoted Ávila TV, a cultural TV station.  Additionally, Chávez has inaugurated a spanking new film studio, Villa del Cine, designed to encourage the growth of Venezuelan and Latin American cinema as a counterweight to Hollywood.

 

Encouraging Latin American Cultural Nationalism

By rehabilitating the coca plant, Chávez also hopes to foster cultural unity amongst sympathetic regimes throughout the region. Chávez's ALBA (or Bolivarian Alternative
for The Americas), a counterweight to U.S.-sponsored free trade schemes such as the FTAA (or Free Trade Area of The Americas) is an initiative which promotes reciprocity, solidarity, and barter trade amongst left wing Latin American nations such as Venezuela, Cuba, and Bolivia.  In recent years, Chávez has sent oil to Cuba. In exchange, Fidel Castro sent health professionals to Venezuela who attended to millions of poor Venezuelans.

 

ALBA, however, also has an important cultural component. In early 2006, Venezuela and Cuba agreed to set up a cultural fund under the scheme. The two countries will create an ALBA publishing house designed to showcase the work of prominent intellectuals and also promote an ALBA record label. Other South American countries have expressed interest in signing cultural agreements with Venezuela. Francisco Sesto, the Venezuelan Minister of Popular Power for Culture, is particularly interested in setting up a network of "ALBA houses" in Buenos Aires, Quito, and  La Paz.  More than mere bookstores, exhibit halls, or movie theaters, the ALBA houses would spur dialog among intellectuals in the region and facilitate integration of peoples throughout the hemisphere.

 

During a recent gathering, the ministers of culture from Cuba, Venezuela, Ecuador, and Bolivia met to discuss their future plans. Abel Prieto, the Cuban minister, described the countries of the region as locked in a struggle to preserve their cultural diversity against the forces of globalization.

 

"The defense of our own multiple identities and traditions is a priority," Prieto
said. "It was a necessity," he added, "to confront racism as well as all forms of colonization and exclusion."

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As Chávez Falters: Raising the Stakes for South American Left

In the wake of President Hugo Chávez’s stinging defeat in Sunday’s constitutional referendum, it’s incumbent on the South American left to take stock of events in Venezuela and learn from the Chavistas’ mistakes. It’s the first time that Chávez has lost an electoral contest, and the Venezuelan President no longer looks as invulnerable as he has in the past. Foreign policy hawks in Washington will surely feel emboldened by yesterday’s electoral debacle in Venezuela; they may see it as an opportunity to go on the offensive and to turn back many of the progressive accomplishments of the Bolivarian Revolution. It’s a dangerous time for the South American left, which must guard against U.S. machinations as well as its own domestic right opposition while simultaneously avoiding the pitfalls of demagogic populism.

Having recently won reelection to a six year term by a wide margin, Chávez had the opportunity to deepen the process of social and economic change occurring throughout the country. But his constitutional referendum confused voters with a host of contradictory measures. The opposition did not increase its voter share, but was able to squeek out a tiny margin of victory when some of the Chávez faithful grew disenchanted and failed to turn out to vote. True, the U.S. Agency for International Development funded vocal anti-Chávez students who campaigned against the referendum and the CIA could have played a role in helping to strengthen the opposition. But no matter how much the Venezuelan President railed against the United States and outside interference, ultimately the Chavistas lost because of their own tactical missteps. What went wrong?

Though Chávez and his followers had already enacted a new constitution in 1999, the President claimed that the document was in need of an overhaul so as to pave the way for a new socialist state. Chávez sought to reduce the workweek from 44 to 36 hours; to provide social security to informal sector workers such as housewives, street vendors and maids; to shift political power to grassroots communal councils; to bar discrimination on the basis of sexual orientation or health; to extend formal recognition to Afro-Venezuelan people; to require gender parity for all public offices; to formalize the right to adequate housing and a free public education; to protect the full rights of prisoners, and to create new types of property managed by cooperatives and communities. The progressive provisions, certainly glossed over in the mainstream American media, would have done much to challenge entrenched interests in Venezuela and encourage the growth of a more egalitarian and democratic society based on social, gender, racial, and economic equality.

Unfortunately, Chávez sabotaged any hope of success by simultaneously seeking to enhance his own personal power. Over the past few years, the fundamental contradiction of the Bolivarian Revolution has been the constant tension between grassroots empowerment, on the one hand, and the cult of personality surrounding Chávez, on the other. In pressing for his constitutional referendum, Chávez played right into the hands of the opposition. Under the provisions, Chávez could declare a state of emergency and the government would have the right to detain individuals without charge and to close down media outlets. Chávez’s own term limit would be extended from six to seven years, and he would be allowed the right to run indefinitely for president. On the other hand, inconsistently, governors and mayors would not be allowed to run for reelection. Perhaps, if Chávez had merely backed the progressive provisions within the referendum and not tried to increase his own power, the vote would have tipped the other way. But by backing the retrograde measures, Chávez gave much needed ammunition to the opposition.

It’s a severe setback for Chávez and the Bolivarian Revolution, but does not necessarily represent a total rout. Chávez still retains the presidency until 2012, and the Chavistas control the National Assembly, state governments, and the courts. While opposition media such as Globovisión routinely attack Chávez, the government has been able to level the playing field somewhat through sponsorship of state media. What’s more, the opposition, which has historically enjoyed little credibility, still lacks a charismatic leader who might rival Chávez in stature and popularity.

On the other hand the opposition, having sensed victory, might launch another recall referendum in 2010, halfway into Chávez’s term in office. Meanwhile, for the Venezuelan President prominent defections from within the Chavista ranks such as General Raúl Baduel must come as an alarming sign. It would be tempting for the State Department to try and pry off former Chavistas in an effort to derail the Chávez experiment (if it hasn’t already tried). If a well known figure such as Baduel or an ex- Chavista like him should emerge, he might garner more of a popular following than polarizing figures from the more traditional opposition. A more moderate ex-Chavista politician, if he or she ever succeeded in coming to power, could do a lot of damage by derailing radical reform under the guise of reconciliation and bringing pro- and anti- Chávez forces together.

In order to head off political disaster, Chávez must take immediate measures to ensure that yesterday’s victory doesn’t turn into a future rout. While the cult of personality around Chávez helped to solidify his movement in the early years, his demagogic populism and centralizing tendencies have now become a serious liability and must be jettisoned as soon as possible. If he follows through on promises of fostering greater "participatory democracy" through the more progressive measures called for under the referendum for example, then he may be able to prevent the opposition from turning the clock back on the Chávez experiment.

Failure to do so would almost surely have dire political consequences for the entire region. For all its internal contradictions, ridiculous missteps and even failures, Venezuela’s Bolivarian Revolution remains the most progressive hope for change in the hemisphere. If it should sputter or get somehow derailed, then Brazil would become the dominant South American player and would advance a much more conservative social agenda. As I describe in my upcoming book, Revolution! South America and The Rise of the New Left (Palgrave Macmillan, April, 2008), there is now a kind of battle for hearts and minds in the region; it’s a contest to see which nation can have the most influence on the smaller countries such as Bolivia, Ecuador, Paraguay and Uruguay.

Right now Chávez, who seeks to reverse U.S.-style "neo-liberal" economic initiatives, enjoys warm economic and political ties with Bolivia and Ecuador, two nations which are advancing a more radical political and social agenda. In contrast to Chávez, Brazilian President Lula favors something called the "Santiago Consensus," a kind of watered down neo-liberalism with a human face and some social protections. The idea of Brazil taking the regional lead with help from U.S. ally Chile is a depressing prospect. On the other hand, if Chávez can learn from yesterday’s debacle and successfully re-energize his political movement, then Venezuela could still represent a strong countervailing force within South America. If he fails, then Bolivia and Ecuador, chronically unstable nations facing strong domestic right wing opposition, will be isolated and the prospects for spearheading a more radical social agenda throughout the hemisphere will be greatly reduced.

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