Venezuela: Going Full Circle

Billionares seem to be talking about Venezuela. Richard Branson says investment will flow in once there are elections. On the one hand, it's good in the sense that it can create more pressure to have free elections. That was certainly a factor in the U.S. starting to pressure Augusto Pinochet in the mid-late 1980s.

On the other, it's a return to an era that Hugo Chávez specifically fought against, where foreigners dominate the economy, which also means they have significant influence over the government's economic decisions. In the late 1980s that led to austerity policies that hurt a lot of people, followed by protests that were met with deadly force. Chávez stepped into politics in that context and people looked to him because theyir own elected leaders were not serving their interests.

It's now 40 years later. What replaced that splintered system is far worse and hurts most Venezuelans, so clearly change is needed. But the current U.S.-pushed plan to have foreign companies and billionaires swooping in will have long-term consequences. There are think tank conferences that say they're aimed at the Venezuelan private sector and I hope that becomes more common.

Regardless, are any of these folks discussing historical context as they go on about licensing, enforceable contracts, and regulatory obstacles? I hope so, though I am not terribly hopeful. Richard Branson doesn't know the history and almost certainly would have no interest in it. But Venezuelans do.

We constantly hear about the need for investment, protection of property rights, etc. but we don't hear anything about social programs. Early on, Chavismo gave many people hope who otherwise felt entirely outside the system. They were ultimately betrayed and they begin whatever new era we're in as outside the system once more.