THE RELATIONSHIP BETWEEN HUGO THE RELATIONSHIP BETWEEN HUGO CHAVEZ AND FIDEL CASTROCHAVEZ AND FIDEL CASTRO

“FIDEL FOR ME IS A FATHER, A

COMPANION, A MASTER OF THE

PERFECT STRATEGY…”

– HUGO CHAVEZ

THE BEGINNING OF THE RELATIONSHIPTHE BEGINNING OF THE RELATIONSHIP

1992: Chavez imprisoned after failed coup attempt by Chavez against Venezuelan president Carlos Andres Perez• Leader of

Revolutionary Bolivarian Movement-200 (MBR-200)

1994: pardoned and released from prison by Pres. Rafael Caldera

BEGINNING OF THE RELATIONSHIP BEGINNING OF THE RELATIONSHIP (CONT.)(CONT.)

Chavez goes on tour of Latin America to garner support for his Bolivarian movement

Received by Castro in Cuba as if Head of State• The two spend several

days together Chavez always

admired Castro for his achievements and for resisting American interference

“Chavez's opponents would use the visit [to Castro] against him for years to come. They cited it as evidence he planned to impose a Cuban-style dictatorship in Venezuela…

It was true Chavez admired many aspects of Castro's revolution, including an educational system that gave Cuba a higher literacy rate than the United States and a health system that the World Health Organization cited as a model for Third World countries…”

– Bart Jones (Chavez's biographer)

CUBA AS THE MODEL FOR VENEZUELACUBA AS THE MODEL FOR VENEZUELA

1998: Chavez elected as president of Venezuela

Looked to Castro for advice and guidance when entering office

"Venezuela is traveling towards the same sea as the Cuban people, a sea of happiness and of real social justice and peace…” – Chavez

BOLIVARIAN ALTERNATIVE FOR THE BOLIVARIAN ALTERNATIVE FOR THE AMERICAS (ALBA)AMERICAS (ALBA)

Alternative to the American supported Free Trade Area of the Americas (FTAA)

Opposes:• Unregulated profit

maximization• Privatization and

liberalization of public services

Supports:• Increased trading within

L.A. through elimination of tariffs

• Solidarity of economically weak nations

• Improving the welfare of the lower classes

TOGETHER AGAINST THE U.S.TOGETHER AGAINST THE U.S.

Loudly speak out against the war in Iraq• "It is not a war on

terrorism, it is terrorism itself...” – Chavez

• “…brutal bombing spectacle…“ – Castro

2007: attack U.S. for supporting the production of ethanol• Diverting crop

production to fuel instead of food for people will cause hunger

TOGETHER AGAINST THE U.S. (CONT.)TOGETHER AGAINST THE U.S. (CONT.)

U.S. has attempted to remove Castro from office• Cut of Cuba economically• Support Cuban dissidents

Massive oil subsidy from Venezuela to Cuba• Allowed for economic

improvement• Increase in Castro’s

popularity

INTEGRAL COOPERATION ACCORD

• A barter agreement made between Hugo Chavez and Fidel Castro, that was signed in October of 2000

• Represented an economic cooperative system between Venezuela and Cuba based on Venezuela's nationalized oil company and Cuba's medical professionals and social workers

• This was an evolving agreement between the two nations that was a driving force behind Cuba's economic sustainability and Hugo Chavez's ability to consolidate power

INTEGRAL COOPERATION ACCORD:VENEZUELA

• Venezuela received medical professionals and social workers from Cuba's superior medical industry

• These doctors and health care professionals were sent to marginalized and previously ignored regions of Venezuela to provide free healthcare to those previously neglected

• This served to consolidate Hugo Chavez's power among those marginalized citizens and overtime radicalized many to follow Chavez's beliefs

• Over 12,000 medical professionals and social workers came from Cuba as part of the accord and charged the Venezuelan government nothing other than room and board

• Cuba also provided political aides and intelligence operatives who worked to undermine Chavez's political opponents

“I don't know which was a bigger factor in returning Chavez to power: the ineptitude of his enemies or the effectiveness of the Cubans, but I do know that both played a role. “ –European diplomat after 2002 coup attempt

INTEGRAL COOPERATION ACCORD:CUBA

• Venezuela agreed to sell 53,000 barrels of crude oil and derivatives such as gasoline a year from their nationalized oil company PDVSA to its Cuban counterpart CUBET

• This was sold at fair market prices, however Venezuela made countless unique concessions for Cuba, allowing triple the time to pay for oil and accepting IOU's from Cuba's Banco Nacional

• The Integral Cooperation Accord was adjusted in 2001 to celebrate Castro's 75th birthday

• The main changes called for Venezuela to pay hard currency to Cuba for the previously free medical and social services

•  Due to this generous changes made by Chavez, Cuba profited greatly from the Integral Cooperation Accord

EFFECTS OF THE INTEGRAL COOPERATION ACCORD

• Trading between the two nations increased dramatically• In 2001, Cuban goods and

services exports to Venezuela were $34 million

• In 2003, Cuban goods and services exports to Venezuela were above $150 million

• Venezuelan ministries and Cuban government officials began collaboration on everything from Pharmaceutical development to building pre-fabricated housing

• Venezuela became Cuba's 3rd largest exporter passing Spain in 2003

ISSUES AND SUCCESS OF THE INTEGRAL COOPERATION ACCORD

Issues• Though the original deal called for only

53,000 barrels Venezuela typically sold upwards of 80,000 barrels per year to the Cubans while allowing them to rack up massive debt

• Castro has enjoyed massive charity from Chavez who demands his national oil company to give oil subsidies to Cuba and allows Fidel to defer payment as well as ignoring growing debt

• Over time Cuba has become the larger economic winner of this deal as Chavez showers Fidel with oil subsidies, low interest loans, and financing

• CUBA'S RISING OIL DEBT TO VENEZUELA• 2001: US$96 million (27)• 2002: US$144 million (28)• 2003: US$380 million (29)• 2004: US$992 million (30)

Success• CUBA'S HARD CURRENCY EARNINGS

FROM COOPERATION WITH VENEZUELA:• Cuban Exports to Venezuela:

• 2001: US$34 million • 2002: US$25 million • 2003: US$154 million

• Payments to the Cuban Government for Services of Cuban Physicians in Venezuela:• US$50 million per year [2004]

• Payments to the Cuban Government for Services of Cuban Consultants and Trainers in Venezuela & Training and Education Programs for Venezuelans in Cuba:• US$88 million [2002-2003] (24)

• NET VALUE OF VENEZUELAN OIL SUBSIDIES TO CUBA• 2003: US$503 million (25)• 2004: US$826 million (26) 

IMPROVED COMMUNICATIONIMPROVED COMMUNICATION

Feb. 2011: ALBA-1 Cable, an underwater fiber-optic cable reached Venezuela from Cuba

Will provide faster internet and telephone service for Cuba

Cuba to pay around $70 million for the 1,000 mile cable

OPPOSITION TO MULTILATERAL OPPOSITION TO MULTILATERAL FINANCIAL INSTITUTIONSFINANCIAL INSTITUTIONS

Castro and Chavez criticize multilateral financial institutions at the International Conference on Financing for Development in 2002

Chavez: role of the IMF needs to be reformed• “recipes” for development have been “venom” for poor

countries

Castro: multilateral financial policies imposed by the masters of the world• “humiliating, conditional and interventionist handouts”• “ruinous institutions like the IMF”• Left IMF in 1964

2007: Chavez removes Venezuela from IMF and World Bank

““REAL” VS. “NEW” SOCIALISMREAL” VS. “NEW” SOCIALISM

Castro uses the traditional “real” socialist model

Strong state control of the economy

State has significant power over foreign trade and interactions among its citizens

““REAL” VS. “NEW” SOCIALISM (CONT.)REAL” VS. “NEW” SOCIALISM (CONT.)

Chavez advocates a “new” form of socialism

“We have to re-invent socialism...” – Chavez

Accept more private enterprise

Use different methods to achieve socialist goals

RAUL CASTRORAUL CASTRO

Current President of Cuba

Took over from brother Fidel in 2006

RAUL- CHAVEZ RELATIONSRAUL- CHAVEZ RELATIONS Cuba’s new president is not

as close to Hugo Chavez as Fidel Castro was. But Raul and Chavez need each other, now more than ever.

Raul’s brother Fidel was said to be like a father to Chavez; now with Raul in charge, Chavez seeks to maintain a stable relationship with Raul.

However, even though Raul does not want to live in his brother’s shadow, he knows that the mutual needs of the two countries – Chavez needs the revolutionary brand, while Cuba needs the financing – is likely to take precedence over any lack of personal chemistry.

RAUL-CHAVEZ (CONT.)RAUL-CHAVEZ (CONT.)

Chavez wants people to believe that he has the same relationship with Raul as he has with Fidel, but Raul is trying to improve relations with other countries, including the United States.

Chavez also appears to be a barrier in the way of Raul’s attempt to carve out his own political identity, apart from his brother's.

This means that Chavez has had to put extra effort in building a relationship with Raul Castro and his advisors.

THE POLITICS OF OIL The U.S. Department of State reported in

August that Venezuela sends Cuba 90,000 barrels of crude oil and other types of fuel per day. The Venezuelan government has also spent $166 million to help Cuba retrofit a Soviet-era petrochemical plant in Cienfuegos, according to Oil & Gas Journal Worldwide Refining Survey.

Antonio Jorge, a professor of political economy at Florida International University, says the fuel and other forms of Venezuelan assistance amount to a subsidy of more than $2 billion per year – “Venezuelan aid is decisive for maintaining the Cuban regime…”

Chavez provides such an enormous subsidy that it is in Raul’s best interests to maintain a healthy relationship with Venezuela.

QUESTIONS FOR THE AUDIENCEQUESTIONS FOR THE AUDIENCE

1. Has Raul Castro kept the brothers' legacy in mind as he promotes his agenda in the post-Fidel era?

2. Is Hugo Chavez looking to be the next Fidel -- a revolutionary leader of Latin America? If so, how is he planning to achieve this?

3. How would you characterize the Castro-Chavez relationship as it stands now? How has this changed with Raul’s elevation to the Cuban presidency?

THE ENDTHE END

WORKS CITEDWORKS CITED

• http://venezuelanalysis.com/analysis/1207• http://online.wsj.com/article/BT-CO-20110209-720323.html• http://www.twnside.org.sg/title/twe277h.htm• http://

www.independent.co.uk/news/world/americas/chavez-pulls-out-of-imf-and-world-bank-447087.html

• http://www.proveo.org/egolinger.pdf• http://

www.jamaicaobserver.com/news/70736_Chavez-lashes-out-against-war-in-Iraq• http://venezuelanalysis.com/analysis/339• http://www.cfr.org/cuba/us-cuba-relations/p11113#p10• http://www.guardian.co.uk/environment/2007/apr/07/energy.cuba• http://www.reuters.com/article/2010/01/17/us-quake-haiti-chavez-

idUSTRE60G2DW20100117• http://articles.cnn.com/2010-07-25/world/venezuela.chavez.us_1_farc-

venezuela-and-colombia-revolutionary-armed-forces?_s=PM:WORLD• http://www.msnbc.msn.com/id/42042150/ns/world_news-americas/• http://www.thecuttingedgenews.com/index.php?

article=32109&pageid=13&pagename=Analysis• http://www.csmonitor.com/World/Americas/2008/1212/p25s25-woam.html/

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