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Violent protest on 11 April resulted in
numerous deaths and prompted a military coup. The military installed an
interim government and temporarily suspended the constitutional order,
arresting president Chávez and senior government officials. However, the new
interim administration headed by a civilian industry representative lasted
just one day as the inner-military support for the coup disintegrated amidst
further social upheaval and international criticism. |
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Severe social
backlash prompts military coup
Political opposition to the president had been mounting since 10 December
when civic groups, unions and business organizations staged the first
nationwide strike to express discontent with the government’s decision to
decree the adoption of a large package of economic reform measures on 13
November. Among the 49 laws approved, the most controversial were a new
land law and the reformed hydrocarbons law. Social unrest and union
protests had persisted almost unabated since. The president’s decision to
dismiss several board members at the state-owned Petróleos de Venezuela
S.A. (PDVSA) on 7 April and the subsequent work stoppage at key oil
production facilities, due to a renewed nationwide strike on 10 April,
forced PDVSA to declare that it would not be able to comply with
contractual crude oil and product supply commitments with its
international clients. Increased prospects that the one-day nationwide
work stoppage could turn into an indefinite strike and an escalation of
violence that resulted in 15 deaths and 315 injured on 11 April prompted a
military coup and forced the arrest of president Chávez.
Even though the senior military command has stressed repeatedly its
respect for the democratic and constitutional order, presidential support
had been undermined in recent months by corruption charges against senior
Chavez-linked generals. Furthermore, military officials had become
increasingly dismayed about the president's public friendship with Cuban
President Fidel Castro and allegations that Colombian rebel groups were
active in Venezuelan territory, both of which the military traditionally
view as threats to Venezuela's national security. Several top military
officers had taken the unusual step of publicly voicing their criticism of
Chávez. The 11 April escalation of violence finally prompted military
intervention.
Military
ignores constitution and installs new government
Constitutional requirements specifically outline the succession of power
upon resignation of a president. Contrary to constitutional norms that
would have required the vice president, Diosdado Cabello, to assume the
presidency and, upon his resignation, the president of the National
Assembly, Willian Lara, to fill the position, the military installed its
own interim government. Pedro Carmona Estanga was designated interim
president. As the former president of the country’s two main industry
associations, the Venezuelan Federation of Chambers and Associations of
Comerce and Production (Fedecamaras, Federación Venezolana de Cámaras y
Asociaciones de Comercio y Producción) and the Venezuelan Confederation of
Industry (CONINDUSTRIA, Confederación Venezolana de Industriales), Carmona
was expected to install a more solid framework to the economy to bolster
investor confidence.
Upon assuming office, the new interim president immediately
appointed a new cabinet and issued a decree that temporarily dissolved all
branches of government (national, state and municipal). Activities of the
National Assembly were to be suspended until new elections in December for
a legislature authorized to undertake general revisions to the 1999
Constitution. Furthermore, general elections (presidential, state and
municipal) were scheduled to be held no later than 365 days from 12 April.
Carmona also intended to establish a special committee to review and
revise the 48 decrees signed into law by Chávez under the Enabling
authority in November. Given the indiscriminate adoption of the new
measures and the unconstitutional nature of the new government, along with
inner-military dissent over the coup and further social backlash, the new
government lasted only one day and constitutional order was reinstalled as
vice president, Cabello, temporarily assumed the presidency on 13 April
until president Chávez returned on 14 April. President Chávez will now be
faced with the difficult task of re-establishing political order and some
form of national consensus as the economy desperately needs a confidence
boost. In the meantime, further social and political unrest cannot be
dismissed.
Note:
The above text is an abridged version of the LatinFocus Consensus Forecast
briefing on Venezuela. For more details please click here. |
