Recent media coverage paints a grim picture for the future of Venezuela; despite being the only South American member of OPEC, with the kind of earning potential that other small countries can only dream of, and having some of the best tourist beaches on earth, la gente Criolla appear to be en route to (and experiencing first hand) a nightmarish total collapse scenario whose story cannot be adequately told through economic forecasts or five minute news reels.
Let me elaborate briefly; Venezuela is my second home. I came into my understanding of politics during the height of the Chavista era, the time when former President Hugo Chavez was having murals of his own face painted on every other barrio wall, and trying so hard to please Fidel Castro that the infamous communist leader himself had to distance himself from the relationship. In a time when the people’s voting options were Vota No (don’t leave us, Hugo!) or Vota Si (yes, it might be time for a change), it was hard to imagine a worse situation for a nation with so much squandered potential. But as the old adage goes- just when you think it can’t get any worse-‘ we were horribly wrong.
Perhaps the toughest part to swallow is that even a basic understanding of leadership in a globalized world could have helped to avert the breakneck trajectory of the country; after all, when you’re sitting on 298.4 billion barrels of proven oil reserves (World Atlas, n.d.), you have options. Alas, like drunks, Venezuelan leaders have established a track record of taking the least favorable path so many times, it leads one to wonder about the average intoxication level of cabinet members by nine in the morning.
The first major issue comes from allowing corruption to affect the national state of readiness. According to Time Magazine, “Venezuela has budgeted for oil at $40 per barrel for years now, but instead of saving the surplus when prices were higher, much of this emergency oil fund was either spent or stolen. Venezuela would now need oil prices to reach $121 per barrel to balance its budget” (Bremmer, 2016). This rather shocking statistic is old hat to most Venezolanos, who live in “the most corrupt country in the Americas, and 9th most corrupt in the world, according to Transparency International. Its murder rate of 90 per 100,000 residents is the second-highest in the world” (Bremmer, 2016). Add to that the fact that former President Hugo Chavez’s daughter, Maria Gabriela, is worth nearly $4.2 billion dollars (Puglie, 2015). The daughter of a military officer-cum-social justice warrior, the disappearing money from state coffers… you do the math. When leaders are taking care of themselves, rather than their charge as leaders, failure is expected. For common reference, consider the fates of corporations like Enron; the similarities are stark.
The fall from grace itself is telling; Penn State lists Venezuela as an emerging market, having an economy among the top 50 in the world (Penn State University, 2016). The irony of the last couple of years’ damage done by the failing leadership of Venezuela in reference to that citation is painful. Compound that with the fact that today, “Venezuela is the world’s worst economy, according to the IMF… expected to shrink 10% this year and inflation is projected to rise over 700%” (Gillespie, Romo, Hernandez, 2016), and the mind simply boggles at the leadership catastrophe that Venezuela has become.
Simple tools for leadership like diversity, whether of opinion, cultural influence, education, or experience, could have been used to make sure that the country was on the right track. Instead, Chavez (and now Maduro) surrounded himself with yes men, people who would not dare to oppose his ideas or offer up advice not in confluence with his vision. As Americans saw during the 2012 election, even though Mitt Romney was never likely to win the Presidency, regular viewers of Fox News were largely shocked that Obama won, and won handily. Similarly, as a leader, working with a lack of diversity of opinion and experience is tantamount to an echo chamber of ideas; essentially, if you tell yourself something long enough, you’ll believe it. Add to that the academic level of a man who accidentally said that “Christ multiplied the penises” (Huffington Post, 2013) during a public speech, and the impression of disaster becomes impending, rather than simply possible.
Organizational Change methods are unlikely to be useful in this scenario, for the sole reason that those who hold all the cards don’t actually want things to change. It is terribly difficult to instigate organizational adjustments when none of the influential members of the organization are willing to buy-in to the new strategy; hence, unfreezing never occurs (Moran, Abramson, Moran, 2014). Even as Venezolanos are being subjected to industrial nationalization, shortages, and work camps by the government on a massive scale (Gillespie, Romo, Hernandez, 2016), people like Maria Gabriela Chavez and other members or family members of government are lining their pockets. Maduro’s state of “economic emergency” is little more than an excuse to continue the same behaviors of the ‘haves’ in La Republica Bolivariana at the expense of the ‘have-nots.’
Poor decisions from the leadership of the country, fueled by the desire to skim off the top and by the advice of yes men and sychophants hoping to be included in the short-run windfall, have led to the most egregious catastrophe not being talked about on the news in 2016. Oh it makes the news; there are articles galore. But in the land of ClinTrump for President, stories of improper resource allocation leading to starvation and work camps in a formerly growing national economy aren’t as good for ratings. The entire paradigm is more than a bit sad; I myself haven’t returned to the country for several years now, and I have no desire to be beaten and robbed for my skin color in a country whose crime rate is fueled by hateful government rhetoric, disparate propaganda/returns, and just plain old hunger. Close friends of mine are barely getting by. Families that I know and love have little to eat, little to do (at least for a paycheck), and little to hope for in the immediate future.
The only way the situation will change is if the corruption is rooted out from the bottom all the way to the top, so that organizational buy-in to a new plan can take place. So far, the attempts of opposition leaders like Henrique Capriles and Leopoldo Lopez have either gotten struck down by corrupt election-runners in the former’s case, or directly blocked through political imprisonment, in the case of the latter.
Perhaps someday, I’ll be able to walk on the white sands of the island off the coast of La Playa Colorada outside of Cumana again; but until the leadership paradigm is shifted drastically, it’s a pipe dream.
Gillespie, P., Romo, R., Hernandez, O. (2016). Venezuela’s New Decree: Forced Farm Work for Citizens. CNN. Retrieved from http://money.cnn.com/2016/07/29/news/economy/venezuela-decree-farm-labor/
Huffington Post. (2013). Nicolas Maduro says’Christ Multiplied The Penises’ In Major Screw Up. The Huffington Post. Retrieved from http://www.huffingtonpost.com/2013/08/28/nicolas-maduro-penises_n_3831686.html
Moran, R. Abramson, N. Moran, S. (2014). Managing Cultural Differences. 9th Ed. New York, Routledge.
Penn State University. (2016). OLEAD 410, Lesson 8: South America: Focus On Brazil. Retrieved from https://psu.instructure.com/courses/1802572/modules/items/21179105
Puglie, A.F. (2015). Maria Gabriela Chávez Net Worth: Hugo Chávez’s Daughter Richest Woman in Venezuela, Worth $4.2 Billion. Latin Post. Retrieved from http://www.latinpost.com/articles/71424/20150812/maria-gabriela-ch%C3%A1vez-net-worth-hugo-ch%C3%A1vezs-daughter-richest-woman-in-venezuela-worth-4-2-billion.htm
World Atlas. (n.d.). The World’s Largest Oil Reserves By Country. worldatlas.com. Retrieved from http://www.worldatlas.com/articles/the-world-s-largest-oil-reserves-by-country.html