No Money, No Water, No Electricity

Water and electricity rationing and Bolivar devaluation, are examples of what current affairs look like in Venezuela. Although the country's president Hugo Chavez blames the problems on the climate, the opposition cites Chavez' lack of capacity to foresee the country's needs and to plan ahead in order to avoid calamity.

Overnight, the country's currency was devalued from 2.15 to 2.6 per dollar causing the automatic increase in the price of goods. A multitude of Venezuelans took to the street to spend the little money they have before it becomes nearly worthless. An announcement by Hugo Chavez warned citizens that the currency would have two rates. One would be used for the purchase of food and other necessary goods and another one for electronics, cars and other items considered less important. The food exchange rate is set at 20% less of its previous value, while for clothes, cars and electronics, the Bolivar lost half its value against the dollar.

Although Venezuela is the fifth oil exporter in the world, all the monies derived from the sale of petroleum do not seem to be enough to raise the standard of living in the South American nation. Most of the population still lives in poverty, and the number of people living in deep poverty increased in 2009. Although the government blames the recession for the fact that less oil has been sold abroad, and sees the devaluation of the Bolivar as a facilitator of oil exports, many see Chavez' move as a strategic way to make sure he can increase spending in an electoral year.

Alfonso Marquina, a spokesman for the opposition in Venezuela said that the measures announced by Hugo Chavez resemble a 'black Friday' because "it imposes the most damaging of taxes on the Venezuelans, that is, inflation through devaluation." Marquina added that the move only has fiscal goals and nothing else.

Besides the devaluation of the Bolivar, Venezuela has issued cuts in electricity as the capital of Caracas experiences blackouts on a daily basis. Hugo Chavez blamed this on the fact the country's main dam, which services three quarters of the population, is running out of water. As an answer to this problem, the utility companies are rationing the amount of water that comes through the dam, in order to buy some time. No proactive measures have been announced by the government.

On top of having less money and less energy, the inhabitants of Venezuela also have to cope with lack of water. After an 11-year term, Hugo Chavez has not figured out how to ensure the existence of the most basic services, and people are getting angry. In Caracas, a two-day rationing program began, and it is expected that such rationing is one of many to come. Hugo Chavez called on citizens to spend only three minutes in the shower as a way to slow down the water and electricity crisis. Many of Venezuela's' reservoirs are half empty at what is the end of the rainy season. Chavez says El Niño is to blame for the lack of water across the country. He however, has not presented any plans to obtain energy or water from other sources. The lack of investment in infrastructure and alternative energy sources are to blame for the current situation, says the opposition, as they point their fingers to the president.

It is well know that El Niño and La Niña are phenomena that come and go with a fairly predictable frequency, and that is what many critics cite this as a reason to blame the government for the crisis. In many slums around the cities such as Mariche, people do not have clean water to drink, cook or shower. Their only supply comes in trucks every two weeks. Anything they need after that, has to be purchased at skyscraper high prices.

Although the Venezuelan government has praised itself for providing cheap goods and services to the poor for the past 11 years, when it comes to essential water and electricity, it seems the progress is lacking. A local resident of Mariche explains that they often have to recycle the water they use to wash the dishes in order to be able to take a shower. "That is just not fair," she says.