Many lesser impact sanctions, on many more soft-liners (50.000?) are also needed in Venezuela.

The Atlantic Council has just published a document on the issue of “What US sanctions would be most effective in maximizing pressure on President Maduro’s government while minimizing repercussions for the Venezuelan people?”

It includes to “Extend the use of individual sanctions, and potentially some entity-focused sanctions, to fracture the regime soft-liners from the hard-liners with nothing to lose.” 

I agree, but I do not think that only severe sanctions, of some few very responsible hard-liners, like to “block all property belonging to those individuals and entities subject to US jurisdiction and prohibit US persons from engaging in transactions with them”, will suffice.

Lesser impact sanctions, extended to many more soft-liners, could prove easier to implement and be even more effective.

For this it might suffice with USA, Canada, Europe and all those nations that recently signed a declaration in Lima, informing they were now contemplating issuing a blank prohibition to all members of the Constituent Assembly, and of the National Guard, sort of 50.000 Venezuelans, to access any kind of visa. 

If that prohibition could, at a later moment, perhaps also be extended to include all their close relatives, it would ignite many serious discussions and doubts in the homes of the soft-liners.

All bureaucrats should be created equal

In the second volume of his autobiography titled “The Invisible Writing”, the European intellectual Arthur Koestler (1905-1983) writes about the time during the early thirties when a primitive town, in the area of Pamir in the south of Central Asia, received the visit of a Russian patrol unit mounted on bicycles. 

The local folk ran away in total terror. During their lives they had seen many airplanes, but never a bicycle. The planes were seen to be simple machines and so they seemed quite normal. 

However, the fact that a person could glide along on two wheels without touching the ground could only be explained by the intervention of Satan himself.

Thirty years have gone by since I read about this incident which I believe illustrates in a curious way a less than harmonious development. 

Since then, I have been repeatedly reminded of this by living in a country such as ours, where the modern lives together with the antiquated without any complex whatsoever. Obviously, our public administration has been a fertile area in this sense.

Last year I had the opportunity to visit both the recently created Banco de Comercio Exterior (Bancoex) as well as the National Institute for Minors (INAM). Without going into which of the two entities is of more importance for the country, the differences between the two were so great that they seemed abominable to me.

I cannot faithfully express the magnitude of the surrealism, but it should be sufficient to say that Bancoex has modern offices, systems employing the latest technologies and an organization with staff selected with the assistance of an international advisory firm while the INAM, accessible only by means of a rickety elevator which takes of every half an hour towards the 42nd floor of one of the towers of Parque Central, has papered its walls with wall to wall Oslo type files labeled with things like “Invoices – Meat Purchases Month of February 1994”.

If a government determines that it must assume the direct responsibility of fulfilling two specific functions, whichever they may be, it should at least try to do both with the same enthusiasm and with the same service standards. 

We are constantly harping about the fact that we should fight to narrow the social gap in income distribution that creates first class and second class citizens. 

Likewise, it is equally as important to avoid creating first class bureaucrats and second class bureaucrats. Sometimes I believe we even have third class bureaucrats.

This does not mean I am promoting automatic and irrational equality as far as salaries of public officials is concerned. It has much more to do with the identification of the role and the social support given each public servant in order to stimulate his or her pride. 

He who thinks or feels that other believe his work is not important, or who is actually doing work that is indeed not important and should therefore be eliminated is as incapacitated emotionally as a baseball player who has lost his arms.

In the same way, as we head towards the Constituent Assembly which initiates the debate on the role of the State it is of utmost importance to establish the norms and regulations that require the State to comply with its current responsibilities before it is permitted to accept new ones. 

Should we not do this, we should not be surprised about the capacity of certain sectors to negotiate resources that allow them to incur in new initiatives that normally possess noteworthy or glamorous characteristics at the expense of other that, although no less important, require quiet dedication, day after day, from 9 to 5.

I now wish to share with my readers a nightmare I have over and over again. During the last decades, the Venezuelan State has frittered away an immense amount of resources. 

Thank God that in spite of this, most of the spending occurred in public service sectors and that therefore it did actually leave something, however small, for posterity. Does this mean that if the State actually goes full tilt into privatizing public services (at the behest of ourselves) without having previously negotiated a corresponding reduction in their income, 100% of public spending will be wasted?

The town folk in Pamir did not bat an eyelash when airplanes roared overhead. They did not know that human beings were strapped inside at the controls.

Had they known this, the panic would have been absolute. I sometimes think about the high expectations we have of the privatization processes in Venezuela. Are we by chance also ignorant of the fact that there are human beings in these private companies?

I cannot resist finalizing with a quote that I underlined almost thirty years ago in the before above mentioned book by Koestler. 

“I automatically learned to classify all that is repugnant as an »inheritance from the past», and all that is attractive as the »seed of the future». With the aid of this automatic classification, it was still possible for a European in 1932 to visit Russia and continue to be a communist.”

Daily Journal, Caracas, May 7, 1999

Some –isms are still alive and kicking

I recently read an article published in The Daily Journal by a frequent contributor to these pages, Michael Rowan. I do not know Mr. Rowan, but I often envy his capacity for analysis and of expression. The article in question was titled “An End to the Age of Isms”, and it contained a few phrases which compel me to reply.

Specifically, Mr. Rowan wrote: “Yet there are still pockets of resistance to market democracy in the world. There are the nationalists who believe in protectionism and are afraid of globalization, ..... . In those places, one finds the old media, propaganda, hierarchies and also, deeply entrenched poverty. That is their tragedy. The world has passed them by ... . What work is freedom. Freedom in the market .... . For those with the responsibility of writing a new Constitution for Venezuela, this is the truth which can set them, and their country, free at last.”

I cannot agree more with the concept of freedom as expounded by Mr. Rowan in his article. However, when he attempts to segment or divide the world into right and wrong, into those that behave and those that sin, I have no other option as a Venezuelan but to cry “Foul”.

I do not believe there is any reason to, either directly or indirectly, label Venezuela as a country of protectionists afraid of globalization. On the contrary, Venezuela’s borders, both commercial as well as cultural, are among the most permeable and open in the world.

There are no limits as to what goods and services can be imported into the country. On top of this, the limited duties imposed are more than often not even paid at the ports of entry. In addition, few could question the eagerness and openness with which Venezuelans accept any type of external influence.

Champagne is charged a duty of 26%, quasi-monopolistic services such as those of international auditors and law firms are marketed with ease, patent and intellectual property right agreements are applied quickly, as in the case of laboratories, and finally, our early morning radio broadcasts allow us to hear all types of debate about matters typical of the globalized world such as oral sex.

What does Venezuela obtain in return for this extraordinarily good behavior as a citizen of the globalized world?

We know very well that the worth of something is what the consumer is willing to ultimately pay for it. Today, for each 100 units a European consumer pays for a tank of gasoline, the producer of the latter receives 10 units, the distributor 5 units and the taxman of the country it is pumped in receives 85 units. The fact that the taxman receives 85 units and the producer only 10 units means they are applying an effective commercial duty or tax of 850%. The experts, very able at managing the percentages in order to defend their interests, frequently refer to taxes on oil as being “only 85%” and never as a duty on the product. 

If, for example, we were talking about a Mercedes Benz which goes for US$ 100,000, I am sure Daimler Benz would not be talking about “only 85%” if this sale would be broken down into a sales commission of US$ 5,000, a payment to the manufacturer of US$ 10,000 and a transfer to the taxman of US$ 85,000.

It is not true that prices of oil are low, since for the consumer the prices have never been as high. Our only problem as a producing nation is that on the income side, we have never received less. The taxmen in the consumer nations receive more, a lot more, income from each barrel of oil commercialized than the producer of the same.

This is what Venezuela got. A system of free trade that only pays it a meager 10% of the value of the non-renewable asset that it liquidates. Just like any Little Red Riding Hood, we readily swallow the stories about the freedom of markets when in reality they hide the evil, bad wolf of protectionism, environmentalism and fiscalism, three “isms” that are very much alive and kicking, thank you!

I agree in no uncertain terms with Mr. Rowan that the Constituent Assembly has much work to do, but in my wish list I have not included his recommendations with regards to increased global aperture. My rather long wish list includes, for example, ensuring that the citizens of the country can access adequate information pertaining to the government’s management of its affairs, more effective limitations on new public indebtedness and finally (something inspired by Mr. Rowan) the banning of ingenuousness as a basis for our commercial policies.

https://petropolitan.blogspot.com/1999/04/some-isms-are-still-alive-and-kicking.html

A comparative look at Venezuela, Honduras

I have just returned from a few days of work in Honduras, which as everyone knows has been ravaged by Hurricane Mitch. During this trip I had the chance to jot down some observations about our own country.

On volunteerism: I saw young men and women of the Peace Corp arriving at the airport in Honduras, ready to cooperate as best they can by helping poor communities combat hunger, educate their children and fight AIDS among many other things. These young North Americans, all graduated, will work in a strange country for two years without remuneration of any sort and under immensely difficult circumstances given the comfort they leave behind at home.

In Venezuela, on the other hand, we have had to set aside a budget of Bs. 2.4 billion to entice our local “volunteers” to come forward to supervise what is to be an event of immense import for our country, i.e. the referendum calling for its own Constituent Assembly. 

When I think that our heroes of independence sacrificed their lives I can’t help but feel that it is a sad state of affairs when today we cannot even contemplate giving away one free day for our country.

On the evidence of crisis: I had the opportunity to visit many public offices in Tegucigalpa, Honduras, in which I found that most officials had to work in truly uncomfortable conditions in any small space or cubby-hole they we able to find.

God knows it is not my purpose to compare a crisis such as the financial one we are going through in Venezuela with the type of emergency, misery and loss of human life that nature has saddled Honduras with. In spite of this, I cannot help observing that in Venezuela, in which the financial crisis also created economic conditions that in turn created hunger (much of it due to the mishandling of the situation), many of the public offices today work in brand new offices which were recuperated during and after the collapse of the banking system, like the spoils of a war.

On information about the administration of government: I also had the chance of reviewing the Management Information System which allows Minister Manuel Zelaya Rosales, President of the Honduran Social Investment Fund (FIHS) to have exact information, day after day, about all the projects being undertaken by his office.

According to the information I have, the portable computer carried by the Minister wherever he goes contains information on at least 1,000 projects, schools, bridges, etc. that are currently under construction. 

On top of this, there is historical information about over 5,000 finished projects. 

The cost of a similar system is not very high today. Since the capture of the original information occurs only once and the system serves multiple purposes such as control, accounting, statistics, etc., it also has the potential of providing great operational savings.

In contrast, I recently read in the local press in Venezuela that it is impossible to find actual and up to date information as to how many employees are on the public payroll today. 

Having seen how the FIHS system works in Honduras, the only thing I can think of is that this level of information should be absolutely obligatory in any democracy worth its salt. One of the principal innovations our Constituent Assembly should produce is the right to total and instantaneous information about our government, something technically quite feasible today.

On gas stations: One clear coincidence between the two countries is the existence of a great number of sparkling new gasoline stations that offer, one way or another, to satisfy the consumers’ other needs. 

It is difficult for me to understand and accept that countries such as ours, with unattended basic needs such as food, education, health, transportation, water, electricity, etc., can develop models of economic development which offer this type of infrastructure as “evidence” of their success and potential.

I can perfectly understand that some of the up-scale neighborhoods have luxury gasoline stations for those who can and wish to pay more for service. Nobody can convince me that the recent epidemic in investment in gasoline stations responds to local free market decisions. 

“Someone’s” hand is manipulating the market in the name of free markets, and that must and will be paid for. For the moment, it seems that PDVSA will have to pay a part of the requirements for subsidies it has itself created.

Excited about the Constituent Assembly 2000

Like many Venezuelans, I have reflected on the Constituent Assembly. At first, I was one of those who believed that although it was true that it seemed necessary to make some changes to our Constitution, these, in any case, could be made through reforms, without the need to resort to what would undoubtedly be a process cumbersome.

Today, when the Constituent Assembly, due to its reception, is almost an accomplished fact, my approach becomes one of "if we are going to do it, let's do it well." Analyzed from this point of view, shaken off the fear of the process and embraced the hope of its potential, I must admit that I have become a fervent and enthusiastic defender of the Constituent Assembly.

My enthusiasm multiplied when I discovered that Venezuela has, at this moment, the unique opportunity to create, for the world, the first Constitution of the next millennium. To be able to live up to these circumstances, I believe it is essential to apply the Chinese proverb, which asks us to aim high for the stars because, even when we do not reach them, we will reach much higher than if we aim for something closer.

I do not downplay the importance of history and I believe that we can and should extract a lot of knowledge from it, when drafting a constitution. However, giving excessive importance to constitutional experts could make us lose an opportunity to thoroughly modernize our constitutional reality.

I accept that there are necessary reforms, which are situated within the context of a traditional constituent debate, such as those that concern the judicial power and the tax capacity of states and municipalities.

Likewise, we require reforms that arise from our own realities. Among these and given our disastrous experience, is that of limiting the State's debt. Because I am absolutely certain that, from time to time, we will have governments incapable of resisting the siren songs, ending up, at no cost, by mortgaging the future of other generations of Venezuelans, I believe that the limitation on the State debt must be have constitutional rank. If Venezuela had not incurred its external public debt, because there is a constitutional provision that prohibits it, I swear to you and I bet you my entire professional career, that thanks to that Constitution, Venezuelans today, "would go better to the supermarket."

Another reform, one of those originating in our own reality and that I consider necessary, is one that establishes the obligation that in the administration of State companies, there is effective representation of civil society. For example, I believe that a PDVSA Board of Directors, whose members were elected by popular vote, rotating a certain percentage of them in each national election, could be an excellent option, to ensure that there is no undue pressure from the political sector or of the oil technocrats.

Notwithstanding all of the above, at this time, what I most wish to highlight is the fact that, as a result of the great changes that have occurred in the world, there is an urgency to introduce constitutional considerations on aspects that have never been contemplated. , in their Magna Cartas, for any country. Allowing me, for these purposes, to suggest the following:

• The information revolution. If it can be stated that "a Democracy with hunger is not Democracy", it must be more valid to say that "a Democracy without information is not Democracy either." Is it not a citizen's right to be able to know the public payroll, the amount of the country's external debt, the “real” recoveries of Fogade, etc.?

There is no doubt that the technology that exists today, to collect and disseminate information, allows a society to have the right to demand from its rulers a level of information, dramatically different, than what could be contemplated when the constitutions currently in force were drafted. I believe that in our 2000 Constitution, the right of the citizen to be informed about government management, in a valid, detailed and real-time manner, should be enshrined.

• The power of advertising. Had they known, in their time, the impact that advertising media have today, I am sure that the drafters of the current constitutions would have introduced limitations to official advertising. The Nation, states, municipalities, government entities and/or state companies should be prohibited from spending a single cent on paying for advertising, clearly aimed at promoting the personal and political image of any public official on duty.

• The globalization. Without a doubt, just trying to redefine the concept of Nation, within what is a world, where global relations intensify, second by second, is a challenge whose importance is lost from sight. How proud it would be for Venezuela to be able to rediscover itself, in a way that guides and illuminates other countries that are lost, which is probably all of them.

Let us enthusiastically face the challenge of showing the world that Venezuela is capable of producing a Constitution that will be an example for the next millennium. Otherwise, not only will we have wasted a historic opportunity, but, to make matters worse, soon after, we would surely have to convene another Constituent Assembly...

Economía Hoy January 12, 1999

My Constitutional wish list

As do many Venezuelans these days, I have dedicated some time to reflection about the Infamous Constituent Assembly (La Constituyente). 

At the beginning I was among those that believed that, although it is true that our Constitution requires some changes, these changes could be made without having to go through what seemed to be an unnecessarily complicated process.

Today, this assembly, due to its enormous public appeal, is basically a done deal. My outlook, therefore, is now more in the realm of “if we are going to do it, let’s do it properly”. Having analyzed this point of view, having expunged my fear of the process and having embraced the hope in its potential, I must admit I have now become a fervid supporter of the Constituent Assembly.

My enthusiasm is based on the fact that Venezuela now has the opportunity to create the first new Constitution of the next millennium in the world. It is our challenge and our responsibility to ensure that this Constitution is in line with the requirements of this next millennium. To achieve this, we must follow that ancient Chinese proverb that states something like: aim for the stars, and although you may not reach them, you will surely reach higher than if you had aimed at something within easy reach.

I certainly don’t wish to minimize the importance of history. Certainly, we must take heed and learn from the past if we wish to come up with a good Constitution. 

However, if we allot excessive importance to the gaggle of “constitutional experts” that surround us today, we will most surely miss the opportunity to truly modernize our Constitutional reality.

I accept the fact that there are various reforms that are based on traditional constitutional debate. Among these are, for example, those that correspond to reforms in the judicial system and in the fiscal capacity of decentralized entities such as the States and the Municipalities to create and collect taxes.

Likewise, there are other reforms that are born out of our own particular realities. Among these, I have given special attention to the following two reforms.

The first is a strict constitutional restriction on public indebtedness, specially in light of our disastrous experience in the past. This is vital for our country, since we know with absolute certainty that every now and then, the government of turn will not be able to resist the bankers’ siren song, incurring in debt and mortgaging the futures of several generations of Venezuelans without producing tangible results. These limitations on indebtedness should be established in our Constitution.

The second reform born out of our own realities, is one that inserts an effective representative of civil society between the political and technocratic sectors. I personally consider that the Petroleum sector as well as other productive activities undertaken by the State (Sidor, CVG and Pequiven) should be governed by a Board of Directors whose members are elected by popular vote, rotating a percentage of them at every national election.

Notwithstanding the above, what I really wish to address is the fact that as a result of the profound changes that have occurred worldwide, it is urgent that we introduce aspects based on today’s realities that were never taken into account by any country in the world when drafting previous Constitutions, simply because similar problems never existed before. Among these I can highlight the following:

The information revolution: If we can say that a democracy with hunger is not democracy, we can also safely state that a democracy without information is also not democracy. 

Without a doubt, new technological advancements that make the collection and dissemination of information quick and easy also give societies the right to demand of its governments a level of information that dramatically exceeds the level present at the moment the world’s existing Constitutions were drafted. 

In this sense, Venezuela’s next Constitution must include the citizens’ right to be informed as to the government’s management of the Nation’s affairs. This information must be valid, truthful, detailed and in real-time.

The power of publicity: Should the drafters of previous Constitutions have been aware of the immense power that the public media can wield, I am absolutely sure that they would have included an article that limits the amount of publicity that governmental entities can undertake. 

To begin with, they would have put a stop to the spending often undertaken by a Nation, a State, a Municipality or a governmental agency or company on behalf of, and to promote the name of, a particular public official.

Globalization: Without a doubt, to try to redefine the concept of a “Nation” within a world in which global relationships intensify second by second is a challenge of incredible importance. 

What a source of pride it would be for Venezuela if we could find our way forward in a way that would guide and illuminate the other countries around the world (probably all of them) that have lost their way. 

Let us face this challenge with enthusiasm and show the world that Venezuela is capable of producing a Constitution that is an example for the world of the coming millennium. 

If we don’t achieve this, we will have wasted a golden historic opportunity. Worse still, we will soon have to call for another Constituent Assembly.

PS. 2023 I asked ChatGPT and in 2025 Grok: Can you visualize Artificial Intelligence being used to measure the effectiveness of governments? They both say YES!

https://perkurowski.blogspot.com/2023/08/ai-chatgpt-openai-can-you-visualize.html

https://perkurowski.blogspot.com/2025/03/grok-can-you-visualize-artificial.html