THE RELATIONSHIP BETWEEN HUGO
CHAVEZ AND FIDEL CASTRO
“FIDEL FOR ME IS A
FATHER, A
COMPANION, A
MASTER OF THE
PERFECT
STRATEGY…”
– HUGO CHAVEZ
THE BEGINNING OF THE
RELATIONSHIP
 1992: Chavez
imprisoned after
failed coup attempt
by Chavez against
Venezuelan president
Carlos Andres Perez
• Leader of
Revolutionary
Bolivarian Movement200 (MBR-200)
 1994: pardoned and
released from prison
by Pres. Rafael
Caldera
BEGINNING OF THE RELATIONSHIP
(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 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
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.
 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.)
 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:
•
•
•
•
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:
•
•
2001: US$34 million
2002: US$25 million
2003: US$154 million
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 COMMUNICATION
 Feb. 2011: ALBA-1
Cable, an
underwater fiberoptic 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
FINANCIAL 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” 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.)
 Chavez advocates
a “new” form of
socialism
 “We have to reinvent socialism...” –
Chavez
 Accept more
private enterprise
 Use different
methods to achieve
socialist goals
RAUL CASTRO
 Current President of
Cuba
 Took over from
brother Fidel in 2006
RAUL- 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.)
 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 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 END
WORKS CITED
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http://www.proveo.org/egolinger.pdf
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