FOREIGN policy discussions over the past couple years have unfortunately focused more than anything on a single issue: Iraq. Whatever your opinions on the situation there and what should be done about it, however, you will no doubt agree from the experience that it is better to effectively deal with a problem sooner rather than later. This begs the question, then, why is no one paying attention to the rise of socialism in our own backyard?
Over the past couple of weeks, Venezuelan President Hugo Chavez has pushed for measures that could allow him to rule the country absolutely and indefinitely. The first of these, an "'enabling law'... would grant Chavez authority to pass a series of laws by decree during an 18-month period," according to the Washington Post. In other words, if this passes the Venezuelan National Assembly, Chavez would be able to do whatever he chooses and no one can question him in the near future. This possibility of Chavez holding dictatorial powers represents a clear threat to the United States, and to U.S. interests in the region and the world, as Chavez made his feelings toward our country very clear in a recent TV/radio broadcast. Saying "'Go to hell, gringos! Go home!,"' Chavez attacked the United States for interfering in Venezuela, while promising to expand what he called the socialist revolution.
Most strikingly, CNN reported that Chavez has "announced plans to nationalize Venezuela's main telecommunications company and the electricity and natural gas sectors" -- many of which are partially or fully owned by U.S. companies -- and he made only vague promises about adequate compensation. According to Fox News, for example, subtracted from any compensation will be among other things an unspecified "'technological debt' to the state."
On top of trying to rebuild socialism in Venezuela, Chavez is also setting himself up to be its penultimate ruler with no limit on how long he could remain in power. As the Washington Post notes, Chavez promised that removing term limits from the Venezuelan constitution would "extend his tenure as he hastens his country's transformation into what he calls '21st-century socialism.'"
So what exactly does all this mean for the United States? After all, with the exception of Cuba, and some to a lesser degree China, socialism seemed to be disappearing around the world in favor of democracy and free market economies. Yet this seems counterintuitive given Chavez' incredible popular support, Castro and now his brother remaining in control of Cuba, and revolutionary Daniel Ortega's recent election in Nicaragua. Unfortunately socialism seems to be on the rise once again, and if U.S. attention remains focused elsewhere it will no doubt continue to grow and potentially spread. This is dangerous to our country, which has strong trade relations with most Latin American countries and which has traditionally relied on the region as a stable support base while conducting policy around the world -- think World War II or the Cold War.
Not only has Chavez threatened to nationalize U.S.-owned companies with minimal compensation, but according to The Washington Post, as a result of this mere announcement "financial markets from Buenos Aires to Caracas reeled." What will be the impact on these already fragile economies when Chavez actually seizes these companies and resources or implements a Soviet-style planned economy? After all, Venezuela has significant oil and mineral resources; its oil exports are integral to the regional economy, and lower oil prices are a key factor in continued industrial development. In a region known for poor economic conditions, Chavez' actions could easily set off a recession which would then spread around the world.
The problem of what to do is that U.S. policy needs to be effective, yet not so overbearing that our assistance is rejected and new Chavez's, Castro's or Ortega's created. First and foremost, it is clear that the United States needs to insist on fair compensation for its investors. Confidence that the U.S. government will help to protect financiers and will promote fair and consistent legal codes in Latin America is the only way to ensure continued investment and economic development. This is without a doubt the most critical long-term step to ensuring a stable and friendly Latin America. By providing the funds to build industry and raise standards of living, the U.S. will not only build goodwill, but will also expand its own commerce.
A second critical step is that the United States needs to actively promote democracy, help ensure stable government and prevent the rise of dictatorships in the guise of reform. This may be difficult to do, but a combination of economic and political pressure, working with regional groups such as the Organization of American States and appealing directly to the citizens of countries such as Venezuela make the task possible.
Above all, however, the American people and press need to take a closer look at what is going on in our neighboring countries and in doing so let Congress know that Iraq, Clinton and Obama are not all that is important. By becoming educated and taking a proactive role in Latin America the United States can help its citizens and prevent a crisis before it blossoms out of control.
Allan Cruickshanks is a Cavalier Daily associate editor. He can be reached at acruickshanks@cavalierdaily.com.
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