“All within the state, nothing outside the state, nothing against the state.” — Benito Mussolini

“Revolutions do not measure their success in terms of productivity but in terms of control.” — Diego G. Maldonado

The author of the second quote is a pseudonym for the researcher of a magisterial investigation into the relationship between Venezuela and Cuba. He remains anonymous for obvious reasons.

Venezuela’s first democratically elected president was Rómulo Betancourt, elected in 1958 and inaugurated in 1959. 

In 1958, Venezuela had the 4th highest per capita GDP in the world. Its monetary policy was stable and property rights were respected and honored. To quote a Venezuelan writer: “In 1958, Venezuela became a democracy when the dictatorship was overthrown. With that came all the usual benefits of democracy such as freedom of the press, universal suffrage, and other civil rights. Unfortunately, these reforms came along with … destruction of our economic freedom.”

Fast forward to 2020 and we find Venezuela in 140th place in per capital GDP, poorer than any other Latin American country and than most other countries in the world. And that ranking is based on unreliable numbers. Judging from the massive emigration over the years, I suspect she ranks even lower.

Given the above, would you be surprised to know that Venezuela is Cuba’s principal source of income since the turn of this century? 

Despite (or because of) its collapse of oil production, Venezuela in 2018 (latest available figures) purchased $440 Million of foreign crude and sent it to Cuba at a lower price (at a loss), with flexible credit conditions. According to documents obtained by Reuters, this oil was purchased “at a cost of $12 per barrel more than the price she charged Cuba despite her great need of currency to sustain her own economy and import food and medicine midst a great scarcity.” 

And that has been the case since Chavez’ election.

Why? Is it all ideological? Did Chávez and now Maduro love Cuba so much that they were willing to sacrifice their own country for Cuba’s survival?

It’s a bit more complicated and yet more simple than that: it is all done for control, for power.

Shortly after Betancourt’s inauguration in early 1959, he welcomed Fidel Castro as his first foreign state visitor. From eye witness accounts, the meetings did not go well. Castro believed he had a kindred soul in Betancourt; after all the newly elected president had founded the Communist Party in Costa Rica during his exile there.

However, Betancourt was more moderate than Castro. He knew he had an army that would not look kindly on a civilian president who immediately and radically set about to thrust the country from 4th place GDP to 140th in less than a generation. Also, he rejected Castro’s request for free or heavily subsidized petroleum: “That oil is not mine to give,” Betancourt is reported to have said.

Castro was offended and angered. In the early 60s Cuba supported and fomented Communist guerrilla warfare in Venezuela, uprisings by leftist members of the Venezuelan army, and sabotage of oil pipelines and supplies warehouses. As a child I remember our family car being stopped many times by the National Guard for searches. That was a common sight throughout the country as Betancourt energetically sought to defeat his former allies. He also successfully backed the expulsion of Cuba from the Organization of American States.

Castro never forgave him and, with Chavez, he succeeded where he had failed with Betancourt. 

If, as noted above, it was all done for control and power, what then was the quid pro quo between Chavez, Maduro, and Castro? 

We will be writing more on this in future posts.