Chavez is dead

“God is dead. God remains dead. And we have killed him. Yet his shadow still looms. How shall we comfort ourselves, the murderers of all murderers? What was holiest and mightiest of all that the world has yet owned has bled to death under our knives: who will wipe this blood off us? What water is there for us to clean ourselves? What festivals of atonement, what sacred games shall we have to invent? Is not the greatness of this deed too great for us? Must we ourselves not become gods simply to appear worthy of it?”
—Nietzsche, The Gay Science, Section 125, tr. Walter Kaufmann

 

Overcoming the goods and bads of Mr. Chavez will not be any easy.  Eliminating redistribution of wealth programs will be almost impossible and the surrender of greater virtues like rationality, honesty, integrity, productivity and justice will be most surely sacrificed by the ruling leader for the sake of his reelection.  Even now that Mr. Chavez died, the Venezuelan Welfare State supports millions of its voters.  Just last year,  Venezuela added more than 800,000 people to the rolls of the state welfare system and  the number of pensioners reaches nearly 2.5 million, an increase of over 600 percent since 1999 in total pensions paid by the state, all of which are indexed to the national minimum wage (via venezuelanalysis.com).  Though he died, his party continues living and his ideas will continue been fostered in the form of more programs in the Venezuelan welfare state.  For this and many more reasons I say: Chavez is dead.

In a global scale the death of former President of Venezuela, Hugo Chávez Frías, will be very limited but noticeable for countries like China and Russia who benefited after Mr. Chavez expelled Western oil companies operating in the country and replaced them with Chinese and Russian state owned companies.  This oil companies were the most important strongholds of this two powerful countries in Latin America.

In a regional perspective the disappearance of this controversial figure will have important effects in Latin America as well.  Specially, around the league of the group ALBA (Spanish Acronyms for the Bolivarian Alliance for the Americas) in which he played an important role as its founder and main speaker against the North American interventionist policy.  Without Mr. Chavez the possibility of a halt of the oil donations to the member countries of this alliance could have an important significance as well. Venezuela donated millions of barrels of oil to needy Caribbean states, particularly Cuba, but also countries like Trinidad and Tobago and this countries in exchange commissioned their doctors to help in the most needed areas of Venezuela.  This symbolic gesture has been a constant diplomatic activity of the poor Caribbean states.

Also, Nicaragua benefited from Mr. Chavez anti-American policy.  The government of the former guerrilla leader Daniel Ortega and his party’s politburo have been recipient of more than $2.2 billion in Venezuelan petrodollars since 2007.  To them, the election of a member of the Chavez regime is fundamental to continue holding control of elections in the next term.  Further, the Pulitzer Center reports that “Since Ortega returned to power democratically in 2007, the wellspring of aid from ALBA — a bloc of eight left-leaning Latin American countries underwritten by Chavez — has provided the Sandinista government with an average of $500 million a year in loans, donations and oil credit. In 2011, Ortega’s ALBA allowance jumped to $609 million during his own re-election campaign.”  Showing how Venezuelan interventionism in the region was in occasions more powerful than the interventions of the United States of America that are historically hated and protested by leftists demagogues.

Venezuela has been officially (though in contravention to its Constitution) under the rule of the Vicepresident Nicolás Maduro since the death of Mr. Chavez.  He is now the interim President of Venezuelafollowing the death of Hugo Chávez.  Mr. Maduro will most probably run for the elections with very high chances of winning.  Before dying, Hugo Chavez ran for reelection in 2012 and got the vote of 55% of the voters.  His approval ratings among the poorest of the voters is very high and his main opponent, Henrique Capriles Radonski, will have it very difficult to win.  More important to note is the fact that Mr. Capriles is mentioned as being part of the Centre-Right of the country.  However, if elected his main policies may end up been very similar to the ones that gave popularity to Mr. Chavez.  He may thus be a centre-right from hand-to-mouth and a centre-left activist in practice.

Mr. Chavez ruled the country since February 2 1999 until 5 March 2013.  During his 14 years in power he reformed to his convenience the Venezuelan Constitution several times, created dozens of agencies formed by members of his party, formed hundreds of thousands of state-owned cooperatives, fuelled billions of dollars in his stated goal to lower inequality in the access to basic nutrition, and to achieve food sovereignty for Venezuela.  Further, he placed Venezuela at the centre of the regional foreign policy with states in Africa, Asia and Europe.

What is Capitalism?

Before defining what is Capitalism I have decided to provide you with five videos that explain the philosophical foundations of Capitalism as a social system. By listening to these videos, you’ll get a wonderfully elaborated explanation of What Capitalism is and of what it consists of.

Video – What Is Capitalism (1/5)

“Capitalism is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships.”1

Published in 1966 this abstract from Ayn Rand‘s work on Capitalism explains in a clear and unequivocal way the true concept and definition of a system based on reason and in the recognition of the rights of free and responsible men.

Capitalism in the previous quote means a full, pure, uncontrolled, unregulated social system known as “Capitalism Laissez-faire“. It is a system that works as a set of interacting or interdependent moral, political and economical principles that are incorporated into legal systems, institutions and governments. This moral, economical and political principles are contingent to the identification that the members of the system do in order to understand the nature of man and are applied to the rational understanding of man’s psycho-epistemology (man’s mode of functioning in acquiring knowledge).

In human history there hasn’t yet existed a capitalist laissez-faire social system that fulfills the previous requirements; and only glimpses of its potentiality have been achieved through history. However, since the 15th Century “economies organizing themselves on capitalist lines have experienced greater economic dynamism: increasing productivity, increasing employment, and generating more rapid advances in economic wealth, living standards, and improved health of the population.”2  It is because of many of the principles of Capitalism Laissez-faire that Globalization and all the different forms of Capitalism have managed to benefit humanity and achieved our current conditions. Unfortunately, it has been because of the philosophical contradictions and irrational actions of man that also many adverse results have come into being from these mixed forms of capitalism and economic crisis, inequalities in the distribution of wealth and environmental degradation are still existing.

The Board of the Center for the Study of Capitalism at Wake Forest University explains what are some of these forms of Capitalism that currently exist and also explain which are some of its capitalist characteristics,

In the 21st century capitalism exists in several forms. These include 1) free market or market-led capitalism such as we are accustomed to in the U.S.; 2) corporatist or state-led capitalism where the government exerts significant guidance, leadership, and influence over the deployment of private capital (e.g. France, Japan in the 1980s); and 3) managed capitalism, in which worker groups and broad social welfare issues exert significant influence on private corporate behavior (e.g. Sweden, Germany).3 Whereas some evidence suggests that market-led capitalist economies experience greater economic dynamism and higher rates of per capita income growth than economies with other forms of capitalism,4 other evidence points to less volatility and fewer inequities in other forms of capitalism than in market-led economies.5

This blog was created to study how and when Capitalism and its philosophical principles played a role in Global History.  It is my goal to demonstrate with a narration of past events how the roots of Wealth enabled for the interconnection of the World and how we could learn from the past to build more rational and objective societies.

Sources:

1 Rand, Ayn. Capitalism: The Unknown Ideal. Signet; Fitst Signet Printing, 1967 edition (July 15, 1986)

2 About Capitalism. BB&T Center for The Study of Capitalism. http://capitalism.wfu.edu/about/capitalism/

3 D. Coates, 2000, Models of Capitalism, Blackwell: Malden MA.

4 R. L. Heilbroner & W. Milberg, 2006, The Making of Economic Society, Prentice-Hall: Upper Saddle River NJ; E. Phelps, 1999, “Lessons from the Corporatist Crisis in Some Asian Nations”, Journal of Policy Modeling, 21 (3), 331-339. E. Phelps, 2007, “The Economic Performance of Nations: Prosperity Depends on Dynamism, Dynamism on Institutions”, in E. Sheshinski, et al, ed., Entrepreneurship, Innovation, and the Growth Mechanism of Free Enterprise Economies, 342-356, Princeton University Press: Princeton NJ.

5 M. Walker & R. Thurow, 2009, “U.S., Europe are an Oceans Apart on Human Toll of Joblessness”, Wall Street Journal, May 7, A1.