Showing posts with label latin. Show all posts
Showing posts with label latin. Show all posts

Tuesday, November 13, 2012

NEWS,13.11.2012



Latin America's middle class now rivals poor, study finds


Rapid economic growth and more inclusive social policies in Latin America in the last decade have lifted 50 million people into the middle class, which for the first time rivals the poor in number, the World Bank has said in a new study.Rising income levels have also created a 'vulnerable' class, which at 38% makes up the largest income group.These people hover just above poverty, living on a daily income between $US4 and $US10 per person."As poverty fell and the middle class rose... the most common Latin American family is in a state of vulnerability," the World Bank, the global development lender, said in a report looking at the middle class and economic mobility in Latin America and the Caribbean . The World Bank measures the middle class as people who have economic security, facing less than a 10% chance of falling back into poverty.For the region, that translates into a daily income of $US10 to $US50 ($12 and $61) per person.Roughly 30% of the population now falls into that category, equal to the third of people still in poverty a remarkable shift in a continent that has been known for its vast income inequalities, dominated by the poor and a narrow slice of the rich.With global economic expansion, and redistributive policies in some countries, at least 40 percent of the region's population has moved to a higher economic class between 1995 and 2010.In Brazil, the region's largest nation and the world's sixth biggest economy, booming commodity-led growth and conditional cash transfers helped pull 30 million people out of poverty under left-leaning former president Luiz Inacio Lula da Silva.Across the region, the rise of the middle class has had clear effects, helping countries like Brazil become less reliant on foreign assistance and less amenable to foreign pressure.Latin America is now the only region in the world with narrowing income inequality, the World Bank said in a report last month, though the rich-poor divide remains higher than in most developed countries.It has nudged some countries toward greater democracy, and raised hopes for businesses eager to take advantage of the growing consumer tastes for everything from the Internet to financial services.The question is whether this rapid rise can continue, especially with the global slowdown.While families have improved their situation in the last decade, children are often still bound by the incomes and education of their parents, meaning mobility between generations remains low, the World Bank said.It is unclear whether the middle class's rising expectations can by themselves create a society of more equal opportunities.Traditionally in Latin America the middle class has opted out of public services like education and health if they can afford to do so, creating a fragmented society where the poorest members are stuck with subpar social protection. Low taxation has also exacerbated the problem of low-quality services, the World Bank said."The middle classes may not automatically become the much-hoped-for catalytic agents for reforms," the Bank said.


US re-elected to UN Human Rights Council


The United States was re-elected on Monday to another three-year term on the UN Human Rights Council in the only contested election for the organisation's top human rights body.The US was competing with four countries for three open seats belonging to the Western Group on the council. Germany and Ireland were also elected by the 193-member General Assembly. Greece and Sweden lost out.US Ambassador to the UN Susan Rice said her country was "pleased and proud to have been re-elected to a second three-year term"."I'm proud to say that, today, the Obama administration's leadership of the Human Rights Council has delivered real results. Today's vote affirms that active US leadership in the Human Rights Council and throughout the United Nations system will continue to pay real dividends for Americans and for the rest of the world," Rice said following the voteGermany's UN Ambassador Peter Wittig also praised the vote, thanking member states for their support."It was a good sign that we had a healthy competition at least in the Western Group, we could explain and promote our human rights agenda and we believe this also should also be an example for other regional groups," Wittig said.African, Asian, Eastern European and Latin American countries put forward uncontested slates, meaning candidates were virtually certain of winning one of the 18 open seats up for grabs in this year's election on the 47-member council.Several human rights groups have criticised a number of the candidates as unqualified, including Ivory Coast, Ethiopia, Gabon, Kazakhstan, Pakistan and Venezuela.On Monday, Venezuela's UN Ambassador Jorge Valero said his country's efforts to become a member of the council had "unleashed a truly unusual campaign"."It's important to emphasise that Venezuela has committed itself to defend the sovereignty and liberty of people," Valerio said in an apparent allusion to Venezuelan President Hugo Chavez's comments that Venezuela would oppose any actions or aggressions against allied countries such as Syria or Cuba.The five Western nations competing for seats were all deemed qualified by the rights groups as was Estonia, which was elected from the Eastern Europe groupAlso elected on Monday were Argentina, Brazil, Ivory Coast, Ethiopia, Gabon, Japan, Kazakhstan, Kenya, Montenegro, Pakistan, South Korea, Sierra Leone and the United Arab Emirates. They begin three-year terms on 1 January 2013.Jamil Dakwar, the director of the American Civil Liberties Union's Human Rights Programme, welcomed the US re-election to the council."Despite an imperfect human rights record, US membership on the council helped turn the tide on key issues, especially in the area of LGBT [Lesbian, Gay, Bisexual and Transgender] rights, freedom of speech and association, and women's rights," Dakwar said in a statement. "Now that the Obama administration has won a second term, human rights at home and abroad should be a high priority." The Human Rights Council was created in March 2006 to replace the UN's widely discredited and highly politicised Human Rights Commission. But the council has also been widely criticised for failing to change many of the commission's practices, including putting much more emphasis on Israel than on any other country and electing candidates accused of serious human rights violations.Former President George W Bush's administration boycotted the council when it was established because of its repeated criticism of Israel and its refusal to cite flagrant rights abuses in Sudan and elsewhere. But in 2009, then newly elected President Barack Obama sought to join the council, saying the US wanted to help make it more effective. Rice said Obama's decision was vindicated on Monday when the US was re-elected to serve on the council with 131 votes."The United States is clearly of the view that the Human Rights Council clearly has its flaws ... including its excessive focus on Israel, but it is also a body that is increasingly proving its value and we've been proud to contribute to some of what we think are some of the finer moments of the Human Rights Council it's approach to Syria, it's approach to Sudan, it's approach he situation in Libya with the commission of inquiry."



Satellite shows N Korea missile activity


Satellite imagery indicates North Korea has been testing rocket engines, a sign it continues to develop its long-range ballistic missiles, a US academic institute said on Monday.The analysis provided to The Associated Press is based on satellite images taken as recently as late September of the Sohae site on the secretive country's northwest coast. In April, the North launched a rocket from there in a failed attempt to propel a satellite into space in defiance of a UN ban.The analysis on the website of the US-Korea Institute at Johns Hopkins School of Advanced International Studies, which is called "38 North", said it remains unclear whether the North is preparing another rocket launch but predicted it may embark on new rocket and nuclear tests in the first half of 2013.The analysis underscores the challenges posed by the North's weapons programmes to the United States and its allies as President Barack Obama heads into his second term. Washington's most recent attempt to negotiate a freeze in the North's nuclear programme and a test moratorium in exchange for food aid collapsed with the April launch that the US regarded as a cover for testing ballistic missile technology.In 2009, North Korea tested a long-range missile and its second nuclear weapon within months of Obama taking office, and the 38 North analysis says North Korea may conduct new tests in the aftermath of presidential elections recently completed in US and due in December in South Korea. That could be viewed as a tactic to exert more pressure on the close allies as the North seeks recognition as a nuclear power.Last month, Defence Secretary Leon Panetta said North Korea continues to prepare for such tests, and the North, angered by Washington's recent agreement to let Seoul possess missiles capable of hitting all of its territory, has recently claimed that the US mainland is within range of its missiles.According to South Korea's Defence Ministry, North Korean missiles are believed to have a range of up to about 6 696km, putting parts of Alaska within reach. But the North is not believed to have mastered the technology needed to hit a distant target and miniaturise a nuclear warhead to mount on a missile. The North has a spotty record in test launches, raising doubts about whether it is truly capable of a long-distance attack.The 38 North analysis concludes that since the failed launch on 13 April of the Unha-3 rocket that disintegrated shortly after takeoff, the North has conducted at least two, and possibly more, tests of large rocket motors at a test site less than a kilometre away. The tests are critical for the development of new rockets."Pyongyang's large motor tests are another clear sign that its missile programme is moving forward. Whether there will be another long-range missile test this spring remains unclear but is a distinct possibility," said Joel Wit, a former US State Department official and editor of 38 North.A 9 April satellite image shows what appear to be dozens of fuel tanks near a stand used for conducting tests of rocket engines. A 17 September image shows the tanks are no longer there, and a flame trench has been stained orange and surrounding vegetation has been burned from the exhaust of an engine. An image from 28 September indicates a further test has taken place.The analysis was written by Nick Hansen, a retired expert in imagery technology with a 43-year experience in national intelligence.He concludes the tests were likely of the first-stage engines of the Unha-3 or the new, bigger KN-08 long-range missile first viewed in a military parade in Pyongyang shortly after the April launch attempt.The capabilities of the KN-08 and whether it could pose a potential threat to the continental United States remains unclear. Some analysts have also questioned whether the half-dozen of KN-08 missiles shown at that parade were genuine or just rigged up for show.The analysis by 38 North says the 28 September images also show construction work on the upper platform of a launch tower at Sohae to enable it to accommodate even larger rockets than the Unha-3 or KN-08.



Sunday, October 7, 2012

NEWS,07.10.2012



Chavez's socialist rule at risk as Venezuelans vote


Venezuelans have voted with President Hugo Chavez's 14-year socialist revolution on the line as the leftist leader faced youthful rival Henrique Capriles in his toughest electoral challenge yet. Henrique Capriles, a centrist state governor, edged toward the still popular Chavez in final polls thanks to a vigorous campaign that united the opposition and made him its best chance of ending Chavez's 14-year rule.Chavez has used record oil revenue to support ideological allies around the world, while preaching a fiercely anti-US line, so the election will be watched eagerly from the United States to Belarus and Iran.Across the poor neighbourhoods where the flamboyant former soldier draws his most fervent following, loyalists prepared to blow bugles and trumpets in a predawn wake-up call for voters.Opposition sympathizers banged pots and pans in a protest against Chavez on Saturday night, creating a racket in the upscale neighbourhoods of eastern Caracas. In the city centre, which is more pro-government, the noise was drowned out by supporters playing his campaign music and shouting his name."I ask political actors from the left, right and centre to prepare emotionally to accept tomorrow's results. It's not going to be the end of the world for anyone," Chavez said at a last- minute news conference at the presidential palace.The 58-year-old president staged a remarkable comeback from cancer this year. But he could not match the energy of past campaigns - or the pace set by his 40-year-old basketball-loving opponent.Most well-known pollsters put Chavez in front. But two have Capriles just ahead, and his numbers have crept up in others.There is a risk of violence if the result is contested.There will be no formal international observers, although Venezuela invited a delegation of the UNASUR group of South American nations to "accompany" the vote.Local groups will be monitoring and both sides say they trust the electronic, fingerprint vote system. The opposition says it will have witnesses at all of the 13,810 polling centres from tiny Amazon villages to tough Caracas slums.Capriles geared up on Saturday for the vote by hiking a mountain trail at the edge of Caracas that is popular with athletic Venezuelans. He donned running clothes and mirrored sunglasses, and posed for pictures with supporters.Chavez spent about half an hour in the evening speaking to reporters alongside members of the UNASUR delegation, headed by an Argentine politician. Asked by one reporter if he wanted to stay in office beyond 2018, he glibly replied, "Twenty years is nothing," in reference to a popular Argentine tango song.Capriles shot back via Twitter. "Right now some people continue with the same nonsense and the same stories as always, the difference is this time they're on their way out!"In a politically polarised country where firearms are common and the murder rate is one of the highest in the world, tensions have risen alongside weeks of tough campaign rhetoric, and both camps are vowing to "defend" their votes.Capriles would face big challenges Chavez accuses the opposition of plotting violence and planning to "reject the people's triumph" when he wins, but says that effort will be defeated. Some opposition activists fear he could refuse to step down if the result goes against him.Victory for Capriles would remove the most vocal critic of the United States in Latin America, and could lead to new deals for oil companies in an OPEC nation that pumps about 3 million barrels a day and boasts the world's biggest crude reserves.Capriles wants to copy Brazil's model of respect for private enterprise with strong social welfare programs if he is elected - but he would face enormous challenges from day one.For a start, he would not take office until January 2013, meaning Chavez loyalists might throw obstacles in the way of the transition.He also would have to develop a plan to tackle entrenched high inflation, price distortions and an over-valued currency, while surely butting heads with the National Assembly, judiciary and state oil company PDVSA - all dominated by Chavez loyalists.Another big task would be to figure out the real level of state finances. Last month, a Reuters investigation found that half of public investment went into a secretive off-budget fund controlled by Chavez and had no oversight by Congress.The president has denounced his foes as traitors and told voters they plan to cancel his signature social "missions," which range from subsidized food stores to programs that build houses and pay cash stipends to poor women with children.Tens of thousands of new homes have been handed over this year, often to tearful Chavez supporters at televised events.If Chavez wins, he can consolidate his control over Venezuela's economy and continue his support for leftist governments across Latin America, as well as allies farther afield such as Iranian President Mahmoud Ahmadinejad, Syria's Bashar al-Assad, and Alexander Lukashenko of Belarus.


Spain faces fresh street protests


Thousands of Spaniards have marched in cities across the country to decry tough austerity measures, part of a growing protest movement that shows no signs of abating and could culminate in a general strike in November.Hundreds of thousands of Spaniards took to the streets yesterday, creating a headache for the centre-right government as it faces regional elections and tries to assure investors the country is stable.Spanish labour unions said they would call a general strike if the government did not hold a referendum on unpopular spending cuts. Prime Minister Mariano Rajoy unveiled 13 billion euros in additional savings in a tough budget last month."It's up to the government whether there's a general strike or not. If they were going to hold a referendum things would be completely different," said Ignacio Fernandez Toxo, leader of Spain's biggest union, Comisiones Obreras. Spain is now at the eye of the euro zone storm, with expectations mounting that the government will soon seek European aid to keep its borrowing costs under control."It's shameful - we're losing everything," said Carmen Lopez, a department store worker at Sunday's protest in the capital. "Pensions, salaries, public healthcare and education. They're taking everything."Some 60,000 people attended the union-organised march in the centre of Madrid. "How can there be peace without bread?" and "Their plunder, my crisis", placards read."I'm a teacher and they've really cut back in education - there are fewer resources, fewer teachers and more students," said Agustin Moreno, who teaches in the Madrid neighbourhood of Vallecas."We will do everything we can. We will keep protesting," he added.Protesters were decked out in the colours of various unions, and many wore T-shirts saying "I used to have social and labour rights"."They're taking away help for people who are unemployed, just at the time when people most need the help," said primary school teacher Francisca Valverde.Protests were taking place in dozens of cities on Sunday, but there were no reports of any violence.Under pressure Rajoy's People's Party (PP) faces regional elections in Galicia, the Basque Country and Catalonia - increasingly vocal about its desire to break away from Spain - in the coming weeks.In the wake of violence during a protest in Madrid on September 25, Rajoy urged a business audience in New York last week to focus on the "silent majority" of Spaniards who do not protest.But a survey in El Pais newspaper on Sunday showed 77% of Spaniards support the protesters, while more than 90% think protests will become more frequent.The government is increasingly unpopular at home and must convince uneasy investors that it can keep a lid on social unrest and carry out its austerity policies.The right to protest has become a topic of fierce debate in Spain since the September 25 demonstration ended in 35 arrests and left 64 people injured.Last week politicians from the ruling People's Party (PP) said laws surrounding protests should be tightened up, with Madrid's local government chief Ignacio Gonzalez saying the capital was in "a constant state of collapse" because of demonstrations.But a Spanish court on Thursday threw out a police case against the organisers of the protest, saying people had a right to express their opinion. The court will also investigate police brutality at Madrid's Atocha station during the demonstration.


Wall Street: US companies 'blaming' weakness in Europe


Wall Street may be bracing for a pullback as US season begins next week - if the clouds of profit warnings from bellwethers ranging from FedEx to Hewlett-Packard lead to a downpour of lower profits - or even losses.Thanks to aggressive stimulus plans from central banks around the world, the Standard & Poor's 500 index. SPX gained 5.8% over the third quarter.That sharp rally occurred even as companies were struggling. Earnings for that period are forecast to fall 2.4 percent from the year-ago quarter. If that happens, this would be the first earnings decline in three years..Market strategists and investors say US stock valuations are broadly out of sync with earnings estimates.They forecast a pullback in stocks in the coming weeks as more companies report results and reduce expectations for the fourth quarter and beyond.Fourth-quarter estimates for S&P 500 companies show a 9.5% gain in profit from a year ago, according to Reuters data. Analysts say that outlook is too high, given what investors are already hearing from the corporate world."It's a divergence right now where the valuations as far as equity prices (are concerned) have soared, and are really putting in place a stronger economy and stronger fundamentals," said Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm in Toledo, Ohio."But earnings will be the telltale sign," Lancz added. "And if the guidance isn't particularly strong, the market might be setting itself up for a little disappointment. I don't see a major correction, but I do see a pullback."The earnings season will kick off on Tuesday with results from after the bell.Analysts expect Alcoa's third-quarter results to show it broke even, down from a profit of 15 cents per share a year earlier.JPMorgan Chase & Co and Wells Fargo, the first big financial names to report, are also on tap next week.Blame Europe Nearly half of S&P 500 companies guiding lower for third- quarter earnings blamed weakness in Europe, according to a Thomson Reuters survey.Another 11% blamed the weak global economy, 8% cited strength in the US dollar, and 6% cited the slowdown in China, the survey showed.Weakness in the US economy has not helped. The final read on US second-quarter gross domestic product last month showed growth of just 1.3%, weaker than an expected 1.7%.On Thursday, software maker Informatica issued a profit warning and said business conditions were worsening in Europe. The software company is considered a bellwether because its products are used alongside those made by larger software companies."Parts of Europe aren't just in recession, they're in depression," said Jeff Kleintop, chief market strategist at LPL Financial in Boston. "I think (analysts) underestimated the extent of the global slowdown, and maybe are still underestimating it."Tech feels chill from China While estimates have come down sharply in all 10 S&P 500 sectors since the start of the year, technology is one area where the lower expectations are most notable. Slower growth in China is a big factor in that trend.Earnings growth in the tech sector is expected to be just 2.3% for the quarter, compared with a July 1 forecast of 13.1%.Apple is a big driver of those gains.Technology's profit growth has been crucial for the S&P 500. Minus technology, S&P 500 earnings are expected to be down 3.4%.The tech sector is where the slowdown in China's economy is having the biggest impact, Kleintop said."They consume a lot of US technology products," he said.Recent data shows that the pace of growth in China, the world's second-largest economy, may slow for a seventh quarter, straining earnings in the tech and materials sectorsApplied Materials lowered its third-quarter estimates in August, citing China and Europe. On Wednesday, the chip gear maker said it planned to cut its global work force by 6% to 9%.FedEx, the world's second-largest package delivery company, cut its fiscal 2013 forecast on September 18, saying a weakening global economy gives its customers a reason to switch to less expensive and slower shipping options. FedEx said its earnings could drop as much as 6% for its fiscal 2013 year, which will end in May.On Wednesday, shares of Hewlett-Packard fell a whopping 13% to a nine-year low after it forecast a far steeper-than-expected drop in 2013 profit.The slide in HP's stock price sharply cut the Dow industrials' gains for the day.The S&P 500 sectors showing the biggest projected earnings decline are materials, forecast down 24%, and energy, expected down 18.8%, data show, with those declines tied largely to the global slowdown.In contrast, consumer discretionary stocks are expected to have the strongest profit growth for the quarter data showing a gain of 7.7%.

Friday, October 5, 2012

NEWS,05.10.2012



Venezuela's Chavez faces cliffhanger election


Venezuelan President Hugo Chavez faces the toughest election of his 14-year rule on Sunday in a vote pitting his charisma and oil-financed largesse against fresh-faced challenger Henrique Capriles' promise of jobs, safer streets and an end to cronyism.Chavez, 58, staged a remarkable comeback from cancer this year and wants a new six-year term to consolidate his self-styled socialist revolution in the OPEC nation.Capriles, a boyish 40-year-old state governor, has run a marathon eight-month campaign of house-by-house visits that have galvanised the historically fractured opposition and set up its best shot at the presidency since Chavez's election in 1998.Defeat for Chavez would defenestrate Latin America's leader of anti-US sentiment while potentially boosting oil companies' access to the world's largest crude reserves.Victory would allow Chavez to continue a wave of nationalisations and consolidate control over the economy, though a recurrence of his cancer would weaken his leadership and possibly give the opposition another chance.In torrential rain, red-shirted supporters of the president filled much of downtown Caracas on Thursday for his final rally."Chavez will not fail the Venezuelan people," the president said, soaked to the skin in a dark raincoat, on a stage before a sea of fans. "You know that my loyalty to the people almost brought me to the point of death. This is my path."The former military officer, who survived a short-lived coup in 2002, has developed a near cult-like following by casting himself as a messianic reincarnation of 19th century liberation hero Simon Bolivar while pushing billions of dollars in oil revenue into social programmes.Most best-known pollsters put Chavez in front. But two have Capriles just ahead, and his numbers have edged up in others.The opposition leader has had more momentum in the final days of the campaign and he is confidently predicting victory."The time has come to leave the past behind," the opposition leader told a cheering crowd on Thursday, wrapping up a grueling months-long series of rallies across the country.The vote is also a cliffhanger for other left-wing governments in the region, from Cuba to Ecuador, who depend on Chavez's discounted oil sales and generous financial assistance.Emotional ties Seamlessly flipping from jocular prankster to blustering anti-capitalist crusader, Chavez's stories of his poor but happy childhood in a small village have helped him create an emotional bond with poor Venezuelans who see him as one of the family.For nearly a decade, he has won over voters with free health clinics, subsidized groceries and new universities.Over the last year he launched programs to give pensions to the elderly, stipends to poor mothers, and tens of thousands of new homes were handed over on live TV to tearful supporters.Everywhere Chavez has gone on the campaign trail, supplicants have shouted to him asking for help getting a home or a job, or thrust hand-written letters at his staff."I work for the state and I'm offended that the loser (Capriles) says we're made to attend and made to wear red!" said Paulo Garralaga, at Thursday's giant rally in Caracas. "I came to support Chavez and to tell him I'm going to vote for him."Yet day-to-day issues are overshadowing ideological fervor.Nationalisations have weakened private enterprise and given party apparatchiks growing control over jobs. Weak law enforcement, dysfunctional courts and plentiful arms have made Venezuela more violent than some war-zones. Frequent blackouts are an annoying reminder of squandered oil income."Each one of you should make a list of the problems that you have, and ask yourself, how many of those problems has this famous revolution solved for you?" the wiry and sports-loving Capriles intoned at one of his final rallies.The business-friendly law graduate easily won an opposition primary election in February and has united anti-Chavez parties like no one before him. His rallies have been notably more energetic and swollen with ecstatic fans in the final weeks.Sporadic violence has dogged the campaign, with three Capriles activists shot dead last weekend, demonstrating the volatile atmosphere and potential for violence around the vote.Capriles has promised to shed Chavez's doctrinaire vision of a state-led economy for a pragmatic balance between social welfare and free enterprise. He calls himself an admirer of Brazil's market-friendly left, which has pulled close to 35 million people into the middle class over a decade.Chavez has made ample use of state resources to bolster his campaign, speaking for hours about the virtues of socialism in "chain" broadcasts that all public access channels are required to run. The electoral authority has demurely declined to regulate such broadcasts, calling them "institutional" messages.Despite complaints of Chavez's advantages, opposition leaders say they see little risk of fraud during the electronic balloting itself. There will be no formal international observation of the vote, though local groups will be present and voting centers will have witnesses from both sides.Chavez's frequent vote victories over the last 14 years have undermined shrill opposition criticism that he is a dictator.But he has never had to hand over power. Though he accepted defeat in a 2007 referendum on his proposed overhaul of the constitution, in less than a year he used special decree powers to make many of the changes that voters had rejected.A win for Chavez could prompt a sell-off of Venezuelan bonds, which have risen steadily since June and jumped in recent weeks as investors bet on a possible Capriles win.Venezuela's heavy borrowing has made its debt among the most actively traded emerging market bonds - creating an odd romance between Wall Street and one of the world's most virulent critics of capital markets.Capriles is promising to improve the country's finances by cutting wasteful expenditures and halting politically motivated gifts to allied left-wing and anti-American nations."President Chavez, I thank you for what you have been able to do," the opposition leader said at his final campaign rally, in Lara state, in a rare direct use of his opponent's name."With the greatest respect: the time has come to move forward, and you will not be able to stop the people's advance."

Washington Doesn't Like Democratic Elections in Venezuela, Because of the Result

On May 30, Dan Rather, one of America's most well-known journalists, announced that Venezuelan President Hugo Chávez would die "in a couple of months at most." Four months later, Chávez is not only alive and campaigning but widely expected to win re-election on Sunday. Such is the state of misrepresentation of Venezuela it is probably the most lied-about country in the world  that a journalist can say almost anything about Chávez or his government and it is unlikely to be challenged, so long as it is negative. Even worse, Rather referred to Chávez as "the dictator"a term that few, if any, political scientists familiar with the country would countenance.Here is what Jimmy Carter said about Venezuela's "dictatorship" a few weeks ago: "As a matter of fact, of the 92 elections that we've monitored, I would say that the election process in Venezuela is the best in the world."Carter won a Nobel Prize for his work through the election-monitoring Carter Center, which has observed and certified past Venezuelan elections. But because Washington has sought for more than a decade to de-legitimize Venezuela's government, his viewpoint is only rarely reported. His latest comments went unreported in almost all of the U.S. media.In Venezuela, voters touch a computer screen to cast their vote and then receive a paper receipt, which they then verify and deposit in a ballot box. Most of the paper ballots are compared with the electronic tally. This system makes vote-rigging nearly impossible: to steal the vote would require hacking the computers and then stuffing the ballot boxes to match the rigged vote.Unlike in the United States, where in a close vote we really have no idea who won (see Bush v. Gore, 2000), Venezuelans can be sure that their vote counts. And also unlike the U.S., where as many as 90 million eligible voters will not vote in November, the government in Venezuela has done everything to increase voter registration (now at a record of about 97 percent) and participation.Yet the U.S. foreign policy establishment (which includes most of the American and Western media) seethes with contempt for Venezuela's democratic process. In a report timed for the elections, the so-called "Committee to Protect Journalists" says that the government controls a "media empire," neglecting to inform its readers that Venezuelan state TV has only about 5-8 percent of the country's television audience. Of course, Chávez can interrupt normal programming with his speeches (under a law that pre-dates his administration), and regularly does so. But the opposition still has most of the media, including radio and print media -- not to mention most of the wealth and income of the country. The opposition will most likely lose this election not because of the government's advantages of incumbency  which are abused throughout the hemisphere, including the United States. If they lose, it will be because the majority of Venezuelans have dramatically improved their living standards under the Chávez government. Since 2004, when the government gained control over the oil industry and the economy had recovered from the devastating, extra-legal attempts to overthrow it (including the 2002 U.S.-backed military coup and oil strike of 2002-2003), poverty has been cut in half and extreme poverty by 70 percent. And this measures only cash income. Millions have access to health care for the first time, and college enrollment has doubled, with free tuition for many students. Inequality has also been considerably reduced. By contrast, the two decades that preceded Chávez were one of the worst economic failures in Latin America, with real income per person actually falling by 14 percent from 1980-1998.In Washington, democracy has a simple definition: does a government do what the State Department wants them to do? And of course here, the idea of politicians actually delivering on what they promised to voters is also an unfamiliar concept. So it is not just Venezuela that regularly comes under fire from the Washington establishment: all of the left and newly independent governments of South America, including Argentina, Ecuador, and Bolivia are in the cross-hairs (although Brazil is considered too big to get the same treatment except from the right). But the State Department tries to keep its eyes on the prize: Venezuela is sitting on 500 billion barrels of oil, and doesn't respect Washington's foreign policy. That is what makes it public enemy number one, and gets it the worst media coverage.But Venezuela is part of a "Latin American Spring" that has produced the most democratic, progressive, and independent group of governments that the region has ever had. They work together, and Venezuela has solid support among its neighbors. This is Lula da Silva last month: "A victory for Chávez (in the upcoming election) is not just a victory for the people of Venezuela but also a victory for all the people of Latin America . . . this victory will strike another blow against imperialism." South America's support is Venezuela's best guarantee against continuing attempts by Washington - which is still spending millions of dollars within the country in addition to unknown covert funds to undermine, de-legitimize, and destabilize democracy in Venezuela.



The Lifeline for Damascus and Tehran Is in Putin's Hands


The collapse of the Iranian currency by one-third of its value over a week will leave an impact on Iran's nuclear and strategic ambitions - especially through the gateway of Syria. Russia may thus find itself in need of salvaging its Iranian ally for numerous reasons, among them, its need for Iran in its battle against the United States in its Muslim neighborhood, in the wake of the American withdrawal from Afghanistan. There are three schools of thought on where things are going in the relationship between the United States and Iran, and what it entails in terms of indications and repercussions in the Middle East and for Russia.The first states that President Barack Obama - who is likely to win a second term  will not bomb Iran no matter what and that the Islamic Republic of Iran will therefore obtain military nuclear capability, and perform a nuclear test within a year or two.The second states that there is no escaping a military confrontation between the United States and Iran, which would start with an Israeli strike against Iranian nuclear sites, followed by Iranian retaliation against economic locations in Arab countries in the Gulf region. Finally, the third states that sanctions are leading Iran to collapse from within, and that the deterioration in the value of the currency and the economy at large will lead to reducing Tehran's ability to fund the regime in Damascus and Hezbollah in Lebanon. At the end of the day, it is purported, Russia will not be able to bankroll Iran and save it at the economic and nuclear levels.Each of those schools of thought advances detailed and noteworthy scenarios. What they have in common is that the Russian-Chinese-Iranian alliance with the regime in Damascus will not be able to maintain President Bashar Al-Assad in power, no matter how long it takes. In addition, prolonging the conflict in Syria will lead to a war of attrition, in a civil war that could lead to dividing Syria in a manner similar to what took place in the former Yugoslavia. Yet opinion is divided over this scenario, with some considering it possible, while others believe otherwise. Another common denominator is the assessment of both US President Barack Obama and Russian President Vladimir Putin, as both lacking in strategic visions and thinking into long-term interests. Obama is, in the view of some, arrogant and stubborn, as well as an isolationist who lacks the courage to take the initiative and prefers to hide behind the American aversion to further interventions, instead of being a leader who knows where the interest of the United States lies in these times of transitions and new strategic equations. As for Putin, he is, again in the opinion of some, aman of posturing and excessive Russian nationalism, who values himself highly and considers himself to be the leader of a superpower - while Russia remains at the level below. He adopts revenge as a policy in the face of offense, and does not care for the price paid by innocent civilians in return. Vladimir Putin exploited the North Atlantic Alliance (NATO) in Afghanistan, then rebelled against it in Libya and is now taking revenge against it over the dead bodies of innocent Syrians. Former US President George W. Bush did favors to both Russia and China in Afghanistan, in his war against terrorism and Islamic extremism. The aim was to eradicate Islamic extremism in Afghanistan before it spreads and reaches the five Muslim republics that surround Russia and come near to China, without Moscow and Beijing participating in covering the exorbitant cost. Barack Obama made the mistake of not satisfying Putin in a so-called "Grand Bargain", including by not granting Russia the port of Tartus. Yet what he is preparing to do in Afghanistan may well unintentionally represent a lethal blow for Vladimir Putin. The withdrawal of the United States within the framework of NATO's withdrawal from Afghanistan may well represent the tipping point for Russia to slip into a war against Islamic extremism on its home soil and in its immediate neighborhood in the five Muslim republics. Vladimir Putin will find himself alone in such a confrontation, of which he has sowed the seeds himself in Syria, when he could have done the opposite if he had not made use of his veto for a third time, committing a major strategic blunder in the process.Vladimir Putin may well be forced to wage his own war on terror as George W. Bush had done in the past - and in fact probably believes himself to be doing just that in Syria. Bush summoned Al-Qaeda and groups like it to Iraq and waged the war there in order to keep terrorism away from American cities, as he said. Similarly, Putin contributed to the arrival of jihadists to Syria through the series of vetoes he made use of at the Security Council, in revenge for what NATO did in Libya. He thus encouraged the rise of extremism in Syria, while demonstrations had at the beginning been secular and only demanded reform in Syria. Bush entered into a war with his troops in Iraq. Putin is gathering a budget of around 70 billion dollars to confront the Muslim extremism arriving at his gates. Bush offered Iraq to Iran and played the Shiite-Sunni card based on the fact that the 9/11 terrorist attacks had been the work of Sunnis. Putin is allying himself with Iran on the same confessional basis, but also for reasons connected to his hatred of the United States on the one hand, and of the Arabs on the other. He respects Iran's arrogance and despises the weakness and fragmentation of the Arabs. He also finds a common denominator between himself and Tehran's mullahs in their absolute hatred of the United States and their need to confront it - yet only through proxy wars. This kind of thinking reveals Vladimir Putin's ignorance of both the Arabs and Iran, and it will lead him to take Russia down a slippery slope to collapse, if he does not correct his course quickly before it is too late. What he is doing in Syria is investing against himself in the Muslim republics and in Chechnya. And if he is to correct his course, Syria is the place to start, as it would improve his relations with the leaderships of the Arab Maghreb and would lead him to partner with them, with the Gulf countries and with the United States to eradicate the Jihadist extremism that is spreading in the Arab Maghreb. The interviews conducted by Al-Hayat last week with Libyan President Mohamed El-Magariaf and Tunisian President Moncef Marzouki, show the extent to which this trend has proliferated. There is no use for Russia to be alone in the forefront, and this is what will happen after the withdrawal of the United States from Afghanistan, the stronghold of jihadists, as well as the base from which this new jihadist action will be launched against Russia as a result of the stances taken by Vladimir Putin and of his short-sightedness. He will come to regret it. So will China, if it continues to follow the direction into which Putin is taking it. Indeed, it in turn is exposed to this, particularly in Turkestan (Xinjiang), and will suffer after the Western withdrawal from Afghanistan, which will become the center of Russia and China's entanglement with Jihadistextremism. China in turn will foster enmity with the Arabs because of Syria, and will not benefit from allying itself with the losers in Damascus or perhaps in Tehran. Iran will not be among the losers according to the first scenario, adopted by the school that states that it will obtain nuclear capabilities after performing a military nuclear test some say will take place within a year or two. After the test, it will be too late. Then, an arms race will begin in the Gulf region, and there are indications that serious precautionary preparations are being made by some Gulf countries capable of obtaining nuclear capabilities. Then, it will be too late for the United States and for Israel, as they will not be able to rein in Iran or the nuclear arms race in the Arab region. Yet this will not mean salvation for the regime in Damascus, because Iran moving to the level of a nuclear power will make it, in the opinion of some, more cautious and careful not to get implicated in confrontations. Indeed, it will not make use of nuclear weapons even if it obtains them - it will behave like a nuclear power and will avoid proxy wars because it will have no need for them. Thus, according to those who are of this opinion, Tehran will adopt of policy of neglecting the regime in Syria as well as Hezbollah in Lebanon, because it will stabilize and position itself at the nuclear level, and rein itself in at the regional level.As for Israel, what is referred to as the "weakness" of its Prime Minister, Benjamin Netanyahu, will lead Iran to move forward at the nuclear level, according to an opinion held by some, especially as the US President will not let himself be dragged into bombing Iran on behalf of Israel. The second scenario is based on the assumption that Israel will direct a military strike against Iranian sites that would implicate the United States and force Obama to intervene militarily, if Iran were to respond to Israel at the military level. Yet there is information indicating that Iran will not take revenge on Israel directly or on American troops in the region, but will rather respond by striking against vital economic locations in Arab countries in the Gulf. Then too, some deem it likely that the United States will not be able to stand idly by and will be forced to strike against Iran, because directing military strikes against such vital economic locations would represent a blow to interests essential to the United States. Thus, according to this scenario, a war between the United States and Iran will take place either way.It is unlikely for Iran's leadership to remain completely silent in the face of an Israeli strike, because this would represent a national offense and would be perceived as weakness at the domestic level. If it does remain silent, this could be because it would have come very close or even become ready to perform a nuclear test. Matters developing in the direction of a war between the United States and Iran will lead to a quicker collapse of the regime in Damascus. Hezbollah could get implicated by using the Lebanese scene as an arena for Iran's revenge on Israel, and thus in turn quickly collapse. Or it could disassociate itself from the issue and choose to reform its ways.The third scenario is based on economic collapse within Iran, which would start with the sharp devaluation of its currency and would go through an economic crisis that would turn the Iranian interior against the leadership in Tehran. Such decay will lead to Tehran being forced to seriously lower the support it is extending to its ally in Damascus, which in turn has entered the cycle of economic erosion and decay. It will also lead to reducing Iranian funding of Hezbollah in Lebanon as well. Indeed, the three of them are subject to economic sanctions that will become increasingly stifling, even if they have tremendous reserves of weapons. No matter how arrogantly they behave, these sanctions will weaken and besiege them. Their lifeline to salvation rests in Putin's hands alone, but he in turn is besieged, after having allowed himself to commit strategic mistakes he may well sorely regret.