Transcription
Venezuela was once the richest country in Latin America. It has the largest known oil reserves in the world. And its democratic government was once praised globally. But today, Venezuela's democratic institutions and its economy are in ruins. The country has the highest inflation in the world, making food and medicine inaccessible to most Venezuelans. In the past four years, its GDP has fallen by 35%, a steeper decline than that seen during the Great Depression in the United States. The country's homicide rate has surpassed that of the world's most dangerous cities. These conditions have led to months of protests against President Nicolás Maduro. And it is easy to see why: the country has significantly worsened since his election in 2013. A poll showed that around 80% of Venezuelans want Maduro removed from office. Instead, the opposite has happened: Maduro has consolidated his power, bringing the country closer to authoritarianism. Maduro's political ambition became evident in December 2015. Two years after he became president, a coalition of opposition parties called the "Mesa de la Unidad Democrática" or MUD, won a two-thirds majority in the National Assembly, putting Maduro's authority at risk. In response, Maduro quickly removed several Supreme Court judges and filled the positions with loyalists. In March 2017, the court ruled to strip the opposition-led National Assembly of its powers -- an action that sparked massive protests across the country. The ruling was reversed a few days later, but the damage was done -- protests continued to grow and have left nearly 100 dead and hundreds injured so far. Despite the violence and public outcry, Maduro held votes in July to elect a new governing body called the National Constituent Assembly, which would have the power to rewrite Venezuela's constitution and replace the National Assembly. And leave, virtually, no opposition to Maduro's government. Election Day In Maduro's recent vote, Venezuelans had no say on whether the assembly should exist. They only had the option to elect its members. But when Maduro's predecessor, Hugo Chávez, proposed a rewrite of the constitution in 1999, he first called a referendum to propose the election of the assembly. After the majority of Venezuelans voted "yes," they elected a new National Constituent Assembly. You see, unlike Maduro, Chávez was a charismatic and beloved leader. In the 90s, he appeared on television screens across the country. He blamed government corruption and Venezuela's elite for economic inequality. His populist message resonated with the country's poor who eventually helped bring him to power. The key moment in his presidency came in 2004 when oil prices soared. Venezuela's oil-dependent economy was booming, and Chávez went on to spend billions of the profits on social welfare programs for the poor. He subsidized food, improved the education system, built an enviable healthcare system, and reduced poverty by more than half. These programs certainly helped the poor, but they also served a purpose for Chávez. In order to be re-elected, he needed to keep millions of poor Venezuelans happy. So he manipulated the economy for that very purpose... He did not reduce Venezuela's dependence on oil, and the rampant spending led to a growing deficit. Which meant that all these programs would be impossible to sustain if oil prices fell. After Chávez's death, when Maduro took over as his chosen successor, that is exactly what happened: Oil prices plummeted in 2014, and Maduro failed to adjust. Hyperinflation has made once-subsidized medicines and food unaffordable for Venezuela's poor, who today make up about 82% of the population. Like Chávez, Maduro has also manipulated the economy to stay in power, but this time he is not benefiting the poor. He has taken advantage of a complex monetary system established by Chávez. Maduro set the official exchange rate at 10 bolivars per dollar (USD) But only his friends and allies have access to this exchange rate. In reality, the Venezuelan currency has basically lost all its value. Most Venezuelans get their dollars on the black market, where the rate is close to 12,000 bolivars per dollar. The military, who were given complete control of food supplies by Maduro in 2016, are allegedly profiting from this monetary crisis. They import food at Maduro's special rate and sell it on the black market for a massive profit. So for military generals and political allies, the crisis has offered a lucrative opportunity that has helped Maduro stay in power. But he cannot rely solely on that support... ...which brings us back to Maduro's recent power grab. The opposition boycotted the vote, but Maduro held the elections for the new constituent assembly anyway, and won with a majority. "Protests in Venezuelan streets turn deadly after President Nicolás Maduro declares victory" "The violence on Sunday is very real" "The bomb detonated near a police motorcycle, injuring several." "Clashes on election day between protesters and police claim at least 10 more lives" "At least one candidate was shot dead" Day after the vote Maduro's government is trying to create an illusion of public support. The government claimed that about 8 million people, or 40% of the country, voted. But experts put that number much lower, at just 3 million people. The international community, including Peru, Canada, Spain, Mexico, and Argentina, condemned the election. The U.S. imposed financial sanctions on Maduro and members of his government. But Maduro's assembly, filled with loyalists, met anyway and quickly removed Attorney General Luisa Ortega, a leader of the opposition. Armed groups allegedly arrested several other opposition leaders as well. Whether the group will rewrite the constitution or postpone the next presidential elections remains to be seen. For now, Maduro has unprecedented power over a country that continues to spiral out of control.