{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"Oil and the Rule of Law in Venezuela","description":"This episode assesses the \u201ctransition\u201d\u2014if that is the correct word\u2014in Venezuela nine weeks after the January 3 U.S. military operation that extracted Nicol\u00e1s Maduro. This conversation with Laura Dib, director of WOLA\u2019s Venezuela program, and Francisco Monaldi, director of the Latin American Energy Program at Rice University\u2019s Baker Institute for Public Policy, focus particularly on the role of oil, the country\u2019s largest source of foreign exchange by far. Dr. Monaldi acknowledges that oil revenues have increased significantly. However, these revenues now flow into a U.S.-controlled account. The lack of transparency around this fund\u2014including unknown balances and unclear disbursement rules\u2014is deeply concerning. Dib emphasizes that ordinary Venezuelans have yet to feel material improvements. Over 12.4 million out of perhaps 29 million Venezuelans facing severe humanitarian needs, and \u201cwhen Venezuelans go to a supermarket right now, they don\u2019t really feel a change.\u201d While more than 600 political prisoners have been released since January, over 700 remain detained, and the repressive apparatus that sustained Maduro\u2019s government remains largely intact under Delcy Rodriguez\u2019s control. Dr. Monaldi explains that Venezuela needs approximately $100 billion in oil sector investment to restore production to levels seen twenty years ago. Yet the recent reform of Venezuela\u2019s hydrocarbons law grants the oil minister enormous discretion over tax rates and contract allocation, creating precisely the kind of uncertainty that deters serious investment. Monaldi and Dib note that Venezuela currently lacks even a published national budget, and its ranking as the third most corrupt country on Transparency International\u2019s Corruption Perceptions Index reflects the dismantlement of democratic institutions. Dr. Monaldi draws a parallel to post-Soviet Russia, warning that how oil contracts are allocated in the coming months could determine the country\u2019s trajectory for decades\u2014either creating a transparent system or enriching a new class of oligarchs. Both guests stress that sustainable economic recovery is impossible without meaningful progress toward the rule of law. \u201cOil companies do not care about democracy... they do focus on the rule of law. And in the case of Venezuela, I don\u2019t think we will see any stable rule of law unless we get a transition to democracy,\u201d Dr. Monaldi says. With their current leverage, oil firms should push for democratic reforms as a condition of investment, Dib suggests. She calls on the U.S. Congress to exercise oversight and notes that the administration\u2019s stated goals\u2014regional security and reducing migration\u2014cannot be achieved without addressing the humanitarian emergency and rebuilding institutions. Both guests express concern that the Trump administration appears focused narrowly on oil production rather than the broader institutional reforms necessary for Venezuela\u2019s long-term stability. \u201c\u200aI don\u2019t see any indication that a system is being built for this to happen in the proper way,\u201d Monaldi warns. Expectations are rising in Venezuela, but they will not be met without transparency, accountability, democracy, and the rule of law. ","author_name":"Latin America Today","author_url":"http:\/\/www.wola.org\/podcast\/","html":"