Oil revenues during the next forty years enabled Venezuela to evolve from one of the most impoverished nations in the world to one of the wealthiest in Latin America. All of the country’s vital statistics improved: health care, education, employment, longevity, and infant survival rates. Businesses prospered.
During the 1973 OPEC oil embargo, petroleum prices skyrocketed and Venezuela’s national budget quadrupled. The EHMs went to work. The international banks flooded the country with loans that paid for vast infrastructure and industrial projects and for the highest skyscrapers on the continent. Then, in the 1980s, the corporate-style EHMs arrived. It was an ideal opportunity for them to cut their fledgling teeth. The Venezuelan middle class had become sizable, and provided a ripe market for a vast array of products, yet there was still a very large poor sector available to labor in the sweat-shops and factories.
Then oil prices crashed, and Venezuela could not repay its debts. In 1989, the IMF imposed harsh austerity measures and pressured Caracas to support the corporatocracy in many other ways. Venezuelans reacted violently; riots killed over two hundred people. The illusion of oil as a bottomless source of support was shattered. Between 1978 and 2003, Venezuela’s per capita income plummeted by over 40 percent.5
As poverty increased, resentment intensified. Polarization resulted, with the middle class pitted against the poor. As so often occurs in countries whose economies depend on oil production, demographics radically shifted. The sinking economy took its toll on the middle class, and many fell into the ranks of the poor.
The new demographics set the stage for Chávez — and for conflict with Washington. Once in power, the new president took actions that challenged the Bush administration. Just before the September 11 attacks, Washington was considering its options. The EHMs had failed; was it time to send in the jackals?
Then 9/11 changed all priorities. President Bush and his advisers focused on rallying the world community to support U.S. activities in Afghanistan and an invasion of Iraq. On top of that, the U.S. economy was in the middle of a recession. Venezuela was relegated to a back burner. However, it was obvious that at some point Bush and Chávez would come to blows. With Iraqi and other Middle Eastern oil supplies threatened, Washington could not afford to ignore Venezuela for long.
Wandering around Ground Zero and Wall Street, meeting the old Afghan man, and reading about Chávez’s Venezuela brought me to a point I had avoided for many years, and it forced me to take a hard look at the consequences of the things I had done over the past three decades. I could not possibly deny the role I had played or the fact that my work as an EHM now affected my daughter’s generation in very negative ways. I knew I could no longer postpone taking action to atone for what I had done. I had to come clean about my life, in a manner that would help people wake up to the fact of corporatocracy and understand why so much of the world hates us.
I started writing once again, but as I did so, it seemed to me that my story was too old. Somehow, I needed to bring it up to date. I considered traveling to Afghanistan, Iraq, and Venezuela and writing a contemporary commentary on those three countries. They seemed to embody an irony of current world affairs: each had undergone traumatic political turmoil and ended up with leaders who left a great deal to be desired (a cruel and despotic Taliban, a psychopathic Saddam, and an economically inept Chávez), yet in no case did the corporatocracy respond by attempting to solve the deeper problems of these countries. Rather, the response was simply to undermine leaders who stood in the way of our oil policies. In many respects, Venezuela was the most intriguing case because, while military intervention had already occurred in Afghanistan and appeared inevitable in Iraq, the administration’s response to Chávez remained a mystery. As far as I was concerned, the issue was not about whether Chávez was a good leader; it was about Washington’s reaction to a leader who stood in the way of the corporatocracy’s march to global empire.
Before I had time to organize such a trip, however, circumstances once again intervened. My nonprofit work took me to South America several times in 2002. A Venezuelan family whose businesses were going bankrupt under the Chávez regime joined one of my trips to the Amazon. We became close friends, and I heard their side of the story. I also met with Latin Americans from the other end of the economic spectrum, who considered Chávez a savior. The events unfolding in Caracas were symptomatic of the world we EHMs had created.
By December 2002, the situation in both Venezuela and in Iraq reached crisis points. The two countries were evolving into perfect counterpoints for each other. In Iraq, all the subtle efforts — both the EHMs and the jackals — had failed to force Saddam to comply, and now we were preparing for the ultimate solution, invasion. In Venezuela, the Bush administration was bringing Kermit Roosevelt’s Iranian model into play. As the New York Times reported,
Hundreds of thousands of Venezuelans filled the streets here today to declare their commitment to a national strike, now in its 28th day, to force the ouster of President Hugo Chávez.
The strike, joined by an estimated 30,000 oil workers, threatens to wreak havoc on this nation, the world’s fifth-largest oil producer, for months to come…
In recent days, the strike has reached a kind of stalemate. Mr. Chávez is using nonstriking workers to try to normalize operations at the state-owned oil company. His opponents, led by a coalition of business and labor leaders, contend, though, that their strike will push the company, and thus the Chávez government, to collapse.6
This was exactly how the CIA brought down Mossadegh and replaced him with the shah. The analogy could not have been stronger. It seemed history was uncannily repeating itself, fifty years later. Five decades, and still oil was the driving force.
Chávez’s supporters continued to clash with his opponents. Several people, it was reported, were shot to death and dozens more were wounded. The next day, I talked with an old friend who for many years had been involved with the jackals. Like me, he had never worked directly for any government, but he had led clandestine operations in many countries. He told me that a private contractor had approached him to foment strikes in Caracas and to bribe military officers — many of whom had been trained at the School of the Americas — to turn against their elected president. He had turned down the offer, but he confided, “The man who took the job knows what he’s doing.”7
Oil company executives and Wall Street feared a rise in oil prices and a decline in American inventories. Given the Middle East situation, I knew the Bush administration was doing everything in its power to overthrow Chávez. Then came the news that they had succeeded; Chávez had been ousted. The New York Times took this turn of events as an opportunity to provide a historical perspective — and also to identify the man who appeared to play the Kermit Roosevelt role in contemporary Venezuela:
The United States… supported authoritarian regimes throughout Central and South America during and after the Cold War in defense of its economic and political interests.
In tiny Guatemala, the Central Intelligence Agency mounted a coup overthrowing the democratically elected government in 1954, and it backed subsequent right-wing governments against small leftist rebel groups for four decades. Roughly 200,000 civilians died.