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NYT Violates Standards of Basic Economics and Journalistic Procedures in Reporting on Venezuela Inflation Print
Written by Mark Weisbrot   
Thursday, 06 March 2014 12:32

En español

On Saturday, March 1 the New York Times ran a graphic accompanying its article on Venezuela that showed an “implied inflation rate” of more than 300 percent.

This is a statistic that was manufactured by the Cato Institute. It is not a meaningful measure of inflation, and there are few economists who would accept it as such. I will explain below why the Times has violated both the standards of basic economics and also standard journalistic procedures with this decision, which as of today (March 6), the editors have refused to correct, despite being presented with explanations of why it is wrong. But first, a note on the significance of this kind of misreporting.

If this bogus statistic is picked up by Venezuela’s opposition media and becomes another “fact,” it could have a significant influence on the actual dynamic of inflation in Venezuela. To the extent that this statistic is believed, many Venezuelans would not want to hold domestic currency and would move their money into dollars or other assets, thus fueling both black market currency depreciation and inflation.

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What Do the Local Ecuadorian Elections Tell Us about Alianza PAIS? Print
Written by Nate Singham   
Wednesday, 05 March 2014 12:59

Ecuadorians went to the voting polls last Sunday to participate in municipal and provincial elections for the second time since Rafael Correa was elected president. Early results indicate that 11,682,314 Ecuadorians voted which is equal to a 16.9 percent voter abstention rate; this is nearly 8 percentage points lower than in the previous municipal and provincial elections. Following the elections, UNASUR (the Union of South American Nations) issued a statement congratulating the Ecuadorian people for what they called “transparent and normal” elections.

The preliminary election results reveal that governing AP (Alianza PAIS) party candidates won a larger share of mayoral (30 percent) and prefecture (43 percent) elections than any other party.[i] In addition, AP achieved a 4 percent gain in prefecture electoral victories compared to the previous election. Table 1a shows the prefectures where Alianza PAIS won the highest percentage of voter shares.

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US Administration Considering Targeted Sanctions against Members of Venezuelan Government Print
Written by Jake Johnston   
Tuesday, 04 March 2014 16:13

Members of Congress and the Obama administration have consistently placed the blame for the violence stemming from protests on the Venezuelan government, while overlooking or ignoring violent incidents by opposition protesters, including the decapitation of motorcycle riders, the burning of government buildings and metro stations, attacks against state media companies, and the killing of individuals seeking to dismantle barricades, including a National Guard officer. Officials have referred instead to “systematic” human rights abuses and government repression, without citing evidence.

Based on these assertions, momentum is building to implement sanctions on members of the Venezuelan government. U.S. Rep. Debbie Wasserman Schultz (D-FL) told the press on Monday that, “There should be sanctions on individuals. ... The administration is looking at those.” Wasserman Schultz, the Democratic National Committee chairwoman, cited a “high-level” State Department official that she had recently spoken to.

That the administration is considering sanctions comes on the heels of demands from members of congress that the Obama administration go further in its application of pressure on the Venezuelan government. After introducing legislation “supporting the people of Venezuela as they protest peacefully for democracy,” Rep. Ileana Ros-Lehtinen (R-FL) stated that:

"But this resolution can only be the first step to hold Maduro and his fellow regime thugs accountable for their violent response and their abuses of the Venezuelan people's liberties and human rights. I have already begun circulating a letter amongst my colleagues in the House, addressed to President Obama, asking him to take immediate actions against Maduro and other Venezuelan officials who are responsible for violations of their people's human rights. We are calling for the President to enact immediate sanctions against these officials, under authorities granted to him under the International Emergency Economic Powers Act (IEEPA), including denying them visas to enter the United States, blocking their property and freezing their assets in the U.S., as well as prohibiting them from making any financial transactions in the U.S.”

Ros-Lehtinen also plans to introduce a bill that would require the administration to take these steps. The moves from the House of Representatives have been echoed in the Senate, where the Senate Foreign Relations Committee Chairman Bob Menendez (D-NJ) and U.S. Senators Marco Rubio (R-FL), Dick Durbin (D-IL) and Ted Cruz (R-TX) have introduced a resolution calling for sanctions. Menendez stated:

"Now is the time to pursue a course of targeted sanctions by denying and revoking visas, and freezing the assets of Venezuelan officials complicit in the deaths of peaceful protestors. Human rights violators should be held accountable for the crimes they committed and their presence should not be welcome in our nation. Venezuelans today are denied basic rights, freedoms, and the ability to peacefully protest the dire economic circumstances caused by President Maduro and his government. We stand with the Venezuelan people and the brave opposition leaders in their pursuit to build a more hopeful Venezuela that embraces a bright future while discarding a failed past."

Marco Rubio even made the case for sanctions on NBC News’ “Meet The Press,” telling host David Gregory that, “I would like to see specific U.S. sanctions against individuals in the Maduro government that are systematically participating in the violation of human rights and anti-democratic actions.” Florida Governor Rick Scott has also called for sanctions. Although neither the House nor the Senate have passed these resolutions calling for sanctions, Secretary of State John Kerry told reporters last week that, “with respect to Venezuela, Congress has urged sanctions.”

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What is Happening in Venezuela? Print
Written by Miguel Tinker Salas (guest post)   
Tuesday, 04 March 2014 11:43

On February 12th, (Venezuelan Youth Day and the commemoration of the independence battle of La Victoria) some university students and traditional conservative opposition groups took to the streets in Venezuela. In Caracas students and others attacked a government building, burned cars and damaged the entrance to a metro station.  The demonstrations extended for several days, as it quickly became obvious that the principal purpose of the protests was to destabilize the government and seek the ouster of the democratically elected president of Venezuela, Nicolás Maduro.

Maduro faced a hotly contested presidential election shortly after the death of Hugo Chávez, in which he narrowly defeated Henrique Capriles. To gain support, Capriles promised to continue social programs initiated by the late president becoming what some called a “Chávez lite” candidate. The hard line elements of the opposition, including Capriles refused to accept the results of the elections and street violence generated by conservative forces left close to a dozen people dead.

Last December, Venezuela held municipal elections that the opposition purposely turned into a referendum on the Maduro presidency. Despite the opposition’s winning of several important areas in Caracas and the city of Maracaibo the government sponsored coalition (Polo Patriotico) won over 70% of the country’s municipalities. The election results revealed that the opposition had not won over the majority despite the country’s serious economic problems and the loss of the charismatic Hugo Chávez as leader of the left.

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Roger Cohen Defecates On Argentina, Gets Many Things Wrong Print
Written by Mark Weisbrot   
Friday, 28 February 2014 16:51

Roger Cohen, what a disappointment.  He is not Tom Friedman or David Brooks, and shouldn’t be insulting an entire nation based a clump of tired old clichés and a lack of information.  Argentina is “the child among nations that never grew up” he writes, and “not a whole lot has changed” since he was there 25 years ago.  OK, let’s see what we can do to clean up this mess with a shovel and broom made of data.

For Cohen, Argentina since the government defaulted on its debt has been an economic failure.  Tens of millions of Argentines might beg to differ.

For the vast majority of people in Argentina, as in most countries, being able to find a job is very important.  According to the database of SEDLAC (which works in partnership with the World Bank),  employment as a percentage of the labor force hit peak levels in 2012, and has remained close to there since.  This is shown in Figure 1.

FIGURE 1
Argentina: Employment Rate, Percent of Total Population

cohenfig1finaleoSource: SEDLAC (2014).

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Wall Street Journal Trashes Argentina Based on WSJ’s Economic Error Print
Written by Mark Weisbrot   
Friday, 28 February 2014 14:54

The Wall Street Journal today published a report trashing Argentina based on an economic mistake which renders the article meaningless. The headline:

Devaluation Hurts Argentina's Regional Standing: Colombia Has Likely Overtaken Argentina as Latin America's Third-Largest Economy

The article is laden with gloating and derogatory language such as the opening sentence: “Following Argentina's humbling currency devaluation, the country is suffering another economic embarrassment …” and “’This is symptomatic of a broader trend that is seeing Argentina's economic model unravel..’”

Actually, it’s not symptomatic of anything, including the relative living standards in Argentina and Colombia or the rest of Latin America.  When the peso is devalued against the dollar, the size of the Argentine economy measured in dollars is smaller.  This does not mean that the living standards of Argentines have fallen.

If the U.S. dollar falls against the euro, Americans who travel in Europe will find it more expensive.  But most Americans get their income in dollars and spend it in dollars, and will only be affected negatively by the exchange rate to the extent that some imports become more expensive. (In fact, there is a very strong argument that most Americans would be better off with a significantly lower dollar, as we would reduce our trade deficit, increase employment and therefore wage growth, and cease to be dependent on asset bubbles for growth as we have in the past two decades.)  U.S. GDP measured in euros will be smaller, but who cares?

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When Protests and Violence Are Important to the U.S. Media Print
Written by Nate Singham   
Friday, 28 February 2014 10:40

In light of the recent political demonstrations that have swept the country, Venezuela has received considerable attention from both the US State Department and mainstream media. In recent days, President Obama, U.S. Secretary of State John Kerry and several others have issued numerous statements regarding the protests. In the US major media, The New York Times has published articles nearly every day since the protests began. Extensive reporting can also be found in the Wall Street Journal, USA Today and The Washington Post.

It is worth comparing the extent of this coverage to protests of similar importance next door to Venezuela. In August of last year, Colombian farmers launched large-scale demonstrations in opposition to Colombian trade policies that are strongly supported by the U.S. government.

Unlike the protests in Venezuela, the Colombian protests received very little coverage from mainstream media, as CEPR pointed out at the time. The graph below compares the amount of coverage, in total number of articles published, that four of the United States’ most influential newspapers to the protests and violence in Colombia and Venezuela. The difference ranges from more than two times to 14 times as many articles devoted to the Venezuelan protests as compared with Colombia, despite the fact that the period covered for Colombia is twice as long.



Ven Col media comp 2

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Lula Backs Maduro and the Region Debates UNASUR vs. OAS Print
Written by Stephan Lefebvre   
Friday, 28 February 2014 11:48

On Wednesday, Brazilian ex-president Lula Da Silva spoke out regarding recent events in Venezuela:

I think that in the first place, Venezuela needs peace and tranquility, so that it can recover all its potential insofar as creating wealth and well-being for its people. All Venezuelans, both pro-government and opposition supporters, should understand that a country can only grow and develop with a lot of peace, with a lot of dialogue. [President Nicolás] Maduro has the best intentions; he wants to give his best for Venezuela.

These remarks come just a day after two other statements from Brazil: President Dilma Rousseff commented on Venezuela’s “advances …in terms of education and health for its people” and a representative of the Brazilian Foreign Ministry said that he sees the situation as one in which “the principle of non-interference must be respected.”

As we have noted, Brazil has not been the only country in the region to make statements in support of President Maduro, but there remains the question of which multilateral forum would most effectively allow for a fair and representative consideration of the situation in Venezuela.  The Venezuelan government itself has, in statements made by Foreign Minister Elías Jaua, indicated its support for UNASUR over the OAS.  The Venezuela representative there, Ambassador Roy Chaderton, has blocked, for the time being, a special request by Panama’s representative to the OAS who had called for a meeting on Venezuela while the president of the Permanent Council was absent.

Uruguay’s foreign minister Luis Almagro said in a press conference that his government agrees with Venezuela that UNASUR would be the preferred forum:  “UNASUR has been the natural arena for addressing these regional issues.  If we have the possibility of a request [for discussion] at UNASUR, for us that would be fine.” Most of the region, especially South America, recognizes that the United States has too much power in the OAS, because of its disproportionate funding and control over the bureaucracy, as well as a few allied right-wing governments.  That is one of the reasons that Latin America created CELAC (The Community of Latin American and Caribbean Nations), which excludes the U.S. and Canada, and also UNASUR, in recent years.

 
New York Times Corrects False Statement on Venezuela Print
Written by Mark Weisbrot   
Thursday, 27 February 2014 15:29

Kudos to the New York Times for correcting its error regarding TV media in Venezuela.  I had written about this error here on Monday (Feb 24).  It was an important mistake--the Times had led its Friday report with this statement:

“The only television station that regularly broadcast voices critical of the government was sold last year and the new owners have softened its news coverage.”

The Timescorrection reads:

Correction: February 26, 2014 

An earlier version of this article referred imprecisely to Globovision. Before its sale last year, it broadcast more voices critical of the Venezuelan government than any other TV station, but it was not the only one to regularly feature government critics.

It sure wasn’t, and it still isn’t during the current protests, as documented here.  This is important because the opposition leadership is trying to say that they are living under a dictatorship, and they are justifying their demands for the overthrow of a democratically elected government on this basis.

Many other news outlets have made the same error in reporting on the TV media in Venezuela.  Hopefully they will be more accurate in the future.

Many thanks to Robert Naiman of Just Foreign Policy and the nearly 13,000 people who quickly signed a petition to the New York Times asking for this correction.

People often ask what they can do to change U.S. foreign policy, and one important thing that almost anyone with an internet connection can do is hold the media accountable for these kinds of misrepresentations.  On the one hand, the mass media can play a huge role in legitimating terrible crimes, as in the run-up to the Iraq War, which cost more than a million lives and probably wouldn’t have happened if the media had done its job.  On the other hand, there are thousands of reporters and editors who are trying to do their job and adhere to basic journalistic standards of accuracy and balance.  Readers and listeners can help them do this.

Now, what about the Committee to Protect Journalists?  Their statement was more outrageously false than the one corrected by the Times: "Nearly all TV stations in Venezuela are either controlled or allied with the government of Nicolás Maduro and have ignored the nationwide protests."

Will they correct it?  Ask them.

 
OAS Meeting Called for Tomorrow; Brazil Defends “Non-Interference” Print
Written by Jake Johnston   
Wednesday, 26 February 2014 14:28

Yesterday the Organization of American States (OAS) announced that a meeting of the Permanent Council, would take place Thursday morning at 9:30 EST. It now appears that the meeting has been postponed, or that it may not occur at all, as a result of objections presented by Venezuela based on the OAS’ internal directives. The meeting would “consider the request of Panama to convene a Meeting of Consultation of Ministers of Foreign Affairs to consider the situation in the Bolivarian Republic of Venezuela.” It would take 18 votes in favor of Panama’s request for the extraordinary session to move forward.

Ahead of the planned meeting, a spokesperson for the Brazilian Foreign Ministry told EFE that “Brazil understands that the principle of non-interference must be respected.” The official added that Brazil “perceived” willingness for dialogue on the part of the Venezuelan government, citing President Maduro’s calls for a “Peace Conference” today. It remains to be seen if opposition leader Henrique Capriles, who chose not to attend a meeting with the government on Monday will attend the meeting with the Venezuelan president today. Bloomberg reported that “Maduro called on a cross-section of Venezuelan society, including union workers, intellectuals, clergy, students and governors to come to Caracas today and sign an agreement condemning violence.”

The Brazilian official also referred to statements made by Brazilian President Dilma Rousseff earlier this week, in which she stated, “for Brazil, it is very important that we always look at Venezuela from the point of view of the advances that the country has achieved, during this entire process, in terms of education and health for its people.”

 
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The Americas Blog seeks to present a more accurate perspective on economic and political developments in the Western Hemisphere than is often presented in the United States. It will provide information that is often ignored, buried, and sometimes misreported in the major U.S. media.

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