People who support democracy and equality should take hope from the overwhelming victory of Venezuelan President Hugo Chávez in yesterday’s referendum. Millions of ordinary Venezuelans voted to support their president despite his vilification by the wealthy elite, the mainstream media and the U.S.

Venezuela, despite its vast oil wealth, ranks as the 68th best country in the world in which to live, according to the United Nations Human Development Index. Decades of pumping the black gold have only enriched a minority. The richest 10 per cent of the Venezuelan population has 62.9 times the yearly income of the poorest 10 per cent, according to UN figures. (The comparable ratio for the U.S. is 15.9, which makes it the most unequal of world’s 20 wealthiest countries. In Canada the ratio is 10.1.)

All of Latin America is watching Venezuela to see if something can be done about poverty and inequality. The region is the most unequal in the world. In Brazil, the richest 10 per cent of the population have 85.0 times more of the income/consumption than the poorest (46.7 per cent to 0.5 per cent). The least unequal is Uruguay where the ratio is a still high 18.9. In Mexico the richest have 45.0 times that of the poorest.

Inequality in Latin America

According the latest United Nations Human Development Index report the ratios of income/consumption for the richest 10 per cent of population compared to the poorest 10 per cent are:
Brazil 85.0
Paraguay 70.4
Venezuela 62.9
Panama 62.3
Colombia 57.8
Guatemala 55.1
Peru 49.9
Honduras 49.1
El Salvador 47.4
Mexico 45.0
Ecuador 44.9
Chile 40.6
Argentina 39.1
Nicaragua 36.1
Guyana 25.9
Costa Rica 25.1
Bolivia 24.6
Uruguay 18.9

Chávez has acted to expand democracy and reduce the drastic inequality that plagues most citizens of that and every other Latin American country. New social programs known as “missions” have been initiated. There are ten different kinds of “missions” including food, micro credit and literacy programs. The health mission, Barrio Adentro, is the most controversial mission with its clinics staffed by more than 10,000 Cuban doctors and dentists who work in under-serviced slums and poor rural communities. These “missions” have provided a huge boost in basic services to the poor majority.

Not only have the poor benefited from social programs, they are also active participants in the “missions” and the country’s democratic transformation. Tens of thousands of “Bolivarian circles,” named after Latin America’s liberator Simon Bolivar, have sprouted up across the country. These groups of seven to 20 residents work collectively to improve their neighbourhoods. In the face of an overwhelmingly pro-opposition private media, community media has flourished.

In addition to domestic transformations, social change in Latin America needs an international element. The path towards Latin American integration has been advancing on many different fronts, even in the face of Washington’s 200-year-old opposition. (The U.S. prefers to interact with smaller, weaker states.)

Chávez has been a vocal opponent of the Free Trade Area of the Americas, preferring to focus efforts on strengthening ties within South America. Venezuela recently gained partner status in Mercosur, the common market among Brazil, Argentina, Uruguay and Paraguay. A few weeks ago, Chavez announced plans to buy eight new oil tankers from long-slumping shipyards near Buenos Aires, Argentina. Venezuela and Argentina have begun the creation of a common energy company named Petrosur. Brazil’s state-owned oil company, Petrobas, plans to be associated with this emerging Pan South American oil enterprise. Colombia and Venezuela also plan to build a gas pipeline that will ship natural gas between the two countries.

Venezuela provides Caribbean countries with oil on good terms and Chavez is trying to bring together the Caribbean countries in the creation of PetroCaribe, which would boost energy integration in the region. As a result the Caribbean nations are increasingly sympathetic to the present Venezuelan regime — i.e. they are decreasingly submissive in the face of U.S. pressure.

The Caribbean community (Caricom) recently made the decision to refuse to recognize the U.S.- and Canada-backed regime in Haiti. Right-wing commentators, nervous about newfound Caribbean independence, have been citing this decision as an example of Venezuela’s influence on the region. (In fact, Caricom’s action stems mainly from the fear that accepting such blatant disregard for the democratic process may increase the likelihood of similar events in their own countries.)

A public TV station broadcasting throughout South America is in the works and the Venezuelan government has discussed the idea of a South American Development bank.

The aforementioned steps towards Latin American integration are vital in undermining the Americans’ grip over the region. At the same time, to rectify hundreds of years of injustice it is necessary that oil revenue be spent to empower and improve the living standards of the poor.

So long as Chávez’s government continues to pursue important domestic and international social change the Venezuelan majority will continue to sing Uh! Ah! Chávez no se va! (Chávez won’t go!)

Yves Engler

Dubbed “Canada’s version of Noam Chomsky” (Georgia Straight), “one of the most important voices on the Canadian Left” (Briarpatch), “in the mould of I. F. Stone” (Globe and Mail), “part...