Identifier
Created
Classification
Origin
07CARACAS554
2007-03-14 13:00:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

THE FIFTH MOTOR OF THE REVOLUTION SHIFTS INTO

Tags:  PGOV ECON VE 
pdf how-to read a cable
VZCZCXRO5044
RR RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHNG RUEHNL
RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHCV #0554/01 0731300
ZNY CCCCC ZZH
R 141300Z MAR 07
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 8122
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUMIAAA/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHDC
C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 000554 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 03/13/2017
TAGS: PGOV ECON VE
SUBJECT: THE FIFTH MOTOR OF THE REVOLUTION SHIFTS INTO
GEAR: BRV TO CREATE 32,000 COMMUNAL COUNCILS IN 2007

REF: A. 06 CARACAS 01067

B. CARACAS 404

Classified By: Economic Counselor Andrew Bowen, Reasons 1.4 (B) and (D)

C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 000554

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 03/13/2017
TAGS: PGOV ECON VE
SUBJECT: THE FIFTH MOTOR OF THE REVOLUTION SHIFTS INTO
GEAR: BRV TO CREATE 32,000 COMMUNAL COUNCILS IN 2007

REF: A. 06 CARACAS 01067

B. CARACAS 404

Classified By: Economic Counselor Andrew Bowen, Reasons 1.4 (B) and (D)


1. (U) Summary: On February 28, Minister of Popular Power
for Participation and Social Development David Velazquez and
other senior BRV officials announced the BRV's intention to
form 32,000 new communal councils (Consejos Comunales) during
a crowded inaugural kick-off in Caracas. These new councils,
along with the 18,200 existing councils, would allow the BRV
to reach its target of 50,000 councils by 2008. Communal
councils are grassroots community organizations the BRV is
pushing to the political forefront. With up to $8 billion in
direct central government funding, the councils can
theoretically plan and execute local projects, independent of
any elected local government involvement. During the event,
BRV officials said the plan was to eventually move towards a
confederation of communal councils, including participation
in the BRV's civilian and defense security committees.
President Chavez also recently accused the CIA of trying to
infiltrate these councils. Mainstream opposition parties are
trying to participate in communal councils, despite
government obstacles. While the structure and future plans
for the councils are still not well-defined, the intention
appears clearly to allow the BRV to bypass elected regional
and local governments. This schema, consistent with Chavez'
stated contempt for representative democracy, will also
further centralize state power. End Summary

--------------
50,000 COMMUNAL COUNCILS IN 2007
--------------


2. (U) President Chavez hailed the communal councils as the
"Fifth Motor" of his "21st Century Socialism" (Reftel A) and
as the means to insure popular participation in his
"revolutionary" government. The formation of 32,000 new
councils would allow the BRV to reach its goal of 50,000
councils by the end of the year. Per Chavez' announcements,
the councils will receive Bs 6 trillion (USD 2.8 billion) in
2007 and $4.7 billion in 2008 from the National Development
Fund (FONDEN) to conduct community projects (e.g. housing,

electricity, roads, etc.) generated by citizens who attend
the meetings. The communal councils then propose the
projects to the BRV-appointed Presidential Council for the
Communal Government for approval and the communal banks for
funding. In the end, it is the central government that
decides whether a project receives funding or not. At the
rally, Minister of Popular Power for Participation and Social
Development David Velazquez told the crowd that he had
completed a review of the budget requests and planned on
submitting a Presidential Council work plan for the communal
councils later on the week of March 5.

-------------- --------------
COUNCILS TO PARTICIPATE IN SECURITY AND DEFENSE COMMITTEES
-------------- --------------


3. (U) At the same rally, Gustavo Rangel Briceno, National
Reserve commanding general and member of the Presidential
Council for the Communal Government, announced that the
communal councils will participate in the BRV's civilian
defense and security committees. General Briceno indicated
that the National Armed Forces (FAN) is looking for ways to
incorporate the Venezuelan people in the country's security
and defense, explaining, "Without security we cannot exercise
our rights." This new role is in addition to the decree two
weeks ago that authorized communal council members to act as
consumer watchdogs, ensuring compliance and enforcement of
price controls (Reftel B).

--------------
A GLIMPSE OF FUTURE PLANS FOR THE COUNCILS
--------------


4. (U) During the event, Vice President Jorge Rodriquez said
that the plan is not to create isolated communal councils,
but rather to move toward a confederation of communal council
bodies acting as a new form of government. Velazquez
reaffirmed this idea and expressed the need to give more
power to the people through the communal councils. However,
in an earlier televised appearance, when asked the
requirements for establishing a council, Velazquez could not
come up with an answer and had to look the law up and read
the text verbatim. In the past, the BRV claimed that the
communal councils would not replace local or regional
governments, but pro-government sources report that communal
councils will have authority over local governments'

CARACAS 00000554 002 OF 003


technical and administrative staff to carry out their
projects.

--------------
IMPRESSIONS ON THE GROUND
--------------


5. (SBU) On February 3, a "Chavista-lite" NGO, which
receives limited USAID support, Radar de los Barios,
conducted a forum with nine communal council leaders to
discuss the implementation of the councils. Participants in
the forum identified numerous serious problems, including
poorly-administered and -attended council elections, that
often result in the election of unqualified leaders. Once
elected, power is overly concentrated in these leaders who
can often push projects through because they are the ones who
actually know the law. The other members' lack of knowledge
of the law and methodology to present a project makes it
difficult for anyone else to genuinely participate.
Participants denounced the use of giving food or making
housing promises as a way to obtain the signatures that are
later used for the attendance list. Even more worrisome for
forum participants is that the communal banks usually hand
over resources directly to one person, a process that lacks
transparency. Many noted that the BRV has concentrated too
much power in the unelected Presidential Committee that
oversees the councils. Lastly, participants explained that a
conflict already exists between the communal councils and the
municipal and regional government who are fighting against
encroachment by communal councils onto their turf. According
to their website, Radar de los Barios supports communal
council program, but recognizes the danger of
over-politicizing them.

--------------
THE OPPOSITION DECIDES TO PLAY BALL
--------------


6. (C) On February 2, Manuel Rosales, governor of Zulia and
leader of the New Time (UNT) political party, explicitly
called on the opposition to create and actively participate
in communal councils. Other prominent mainstream opposition
parties, including Primero Justicia (PJ) and the Christian
Democratic Party (COPEI),have also decided to participate in
the communal councils, apparently because of the financing
and influence they see flowing to the councils. Although
skeptical that the government will recognize or fund
opposition projects, opposition leaders tell us that they are
taking a pragmatic approach to the councils, both to access
resources and make political inroads in the barrios, Chavez'
traditional base. However, many opposition activists claim
that opposition-dominated councils have run into bureaucratic
road blocks, preventing them from registering and forming
their own councils. They insist that the communal councils
are a tool for the BRV to bypass elected local governors and
mayors, even though the vast majority of them are Chavistas.



7. (C) Karla Velasquez, legal consultant and trainer for the
NGO Hagamos Democracia, told Econoff on March 12 that the
opposition is often using its legal expertise and technical
experience to design neighborhood projects and then having
Chavista leaders sign-off on them. Since most people in the
councils do not understand the law or the methodology for
implementing a project, the more-savvy opposition has been
able to informally fill a niche in some communal councils
while increasing the likelihood that the central government
approves its projects. Velasquez reports that the communal
council program is very disorganized and funding is extremely
informal at this stage in the program. Nevertheless, even
with a cursory understanding of how the councils work, many
people in the poorer neighborhoods view the councils as a
fast track to obtain funding for community projects.

--------------
OBSTACLES TO PARTICIPATION
--------------


8. (C) Villapol Morales, opposition President of the City
Council of San Francisco, a municipality of 500,000
inhabitants adjoining Maracaibo, told Poloff that the
communal councils are being politicized in his municipality
by the BRV. He said that the National Guard is actively
recruiting and organizing pro-government, red-shirted
communal councils. The few opposition-minded people who are
able to join community councils find themselves in the
minority, and are frequently hassled by the pro-Chavez
majority. He added that some of the community councils are
working well, turning out decent housing and creating jobs in

CARACAS 00000554 003 OF 003


the process, but they are the exception, not the rule. As an
example of the obstacles the BRV creates for the opposition,
he recalled a case when one opposition barrio leader beat out
15 pro-Chavez candidates to lead a communal council. The BRV
invalidated the elections and held a new one, which the same
leader won again.

-------------- --------------
CHAVEZ: THE CIA IS TRYING TO INFILTRATE THE COUNCILS
-------------- --------------


9. (SBU) Chavez has repeatedly signaled the importance he
attaches to the councils. He paid them the ultimate
compliment during his February 27 "Hello President" show when
he accused the CIA of financing a project to undermine and
infiltrate the communal councils. He claimed that the CIA
planned to cause a conflict between the council leaders and
regular members and called for protecting the communal
councils from all foreign influence. He added that it is too
late to kill the councils since they are already born and,
like children, he would care for them. This unfounded
allegation could very well give BRV officials added
ammunition to disqulify opposition-minded citizens from
participating on communal councils.

--------------
COMMENT
--------------


10. (SBU) The rapid increase in numbers, funding, and powers
of communal councils allows the BRV to tout its populist
roots while at the same time bypassing elected local and
municipal governments. Although it is theoretically possible
for opposition groups to form or actively participate in a
communal council, it is clear already that the BRV is
establishing roadblocks to such participation. The
Bolivarian playbook seems to be to exclude not just the
opposition, but also any elected leadership, including
Chavistas. In this way, Chavez can control grassroots
organizations without the inconvenience of dealing with
elected leaders, and can further centralize power in the
national government that he fully controls. To its credit,
the mainstream opposition is not conceding local political
space to pro-Chavez parties and is pragmatically trying to
overcome government obstacles to lead and participate in
communal councils.

BROWNFIELD