Social: Cowelates System Demise Populist Resurgence in Veneuela
Social: Cowelates System Demise Populist Resurgence in Veneuela
Social: Cowelates System Demise Populist Resurgence in Veneuela
ABSTRACT
Considering its strong, highly institutionalized two-party system,
Venezuela was surely one of the least likely countries in Latin Amer-
ica to experience a party system breakdown and populist resur-
gence. That traditional party system nevertheless was founded on a
mixture of corporatist and clientelist linkages to social actors that
were unable to withstand the secular decline of the oil economy
and several aborted attempts at market liberalization. Successive
administrations led by the dominant parties failed to reverse the
economic slide, with devastating consequences for the party system
as a whole. The party system ultimately rested on insecure struc-
tural foundations; and when its social moorings crumbled in the
1990s, the populist movement of Hugo Chavez emerged to fill the
political void. This populist resurgence both capitalized on and
accelerated the institutional decomposition of the old order.
35
36 LATIN AMERICAN POLITICS AND SOCIETY 45: 3
What are the conditions under which such a populist strategy can
tap a responsive chord in a nation with a long democratic tradition and
a highly institutionalized party system? Populism is clearly a durable and
adaptable political phenomenon in Latin America, one that is capable of
emerging in diverse and unexpected contexts. It arises most forcefully,
however, in periods of political and economic crisis or transition, when
established patterns of representation are strained or breaking down,
and new ones have yet to be consolidated. In such contexts, traditional
representative institutions may lose their capacity to appeal to large sec-
tors of the populace, or they may be eclipsed by the mobilization of
new groups by emerging leaders or political movements.
Not surprisingly, then, there have been two primary periods of pop-
ulist upheaval in the political development of Latin America. The first
period coincided with the demise of oligarchic sociopolitical orders and
the onset of mass politics after the 1920s and 1930s, when urbanization
and industrialization transformed the social landscape. The rapidly
growing urban middle and working classes were not easily absorbed
into the rural-based patron-client networks of traditional oligarchic par-
ties, and in much of the region they were available for mobilization by
populist figures-including Juan Peron, GetQlio Vargas, Liizaro Carde-
nas, and Victor RaQl Haya d e la To rre-o r new populist parties that
advocated grassroots organization, social reform, and nationalistic IS1
policies (see Conniff 1982).
Accion Democriitica (AD) was one of the most prominent of these
new parties, and its emergence in the 1940s fundamentally transformed
the elitist and authoritarian character of Venezuelan politics. New lines
of political cleavage were drawn, and a magnum leap occurred in the
levels of both social and political organization. AD built the first-ever
mass political party in Venezuela, and its social outreach efforts recon-
figured Venezuelan civil society, endowing the party with organic ties to
mass labor and peasant associations. For nearly half a century, these
sociopolitical bonds helped weave the fabric of a political system whose
central cleavage pitted a mass-based, labor-mobilizing party against its
more conservative arch-rival, the Christian Democratic COPE1 (Comiti.
de Organizaci6n Politica Electoral Independiente).
A second period of populist upheaval was initiated across much of
Latin America, however, when the “state-centric matrix” (Cavarozzi
1994) left behind by the first phase of populism began to decompose in
the 1980s. Despite their personalistic leadership patterns, the first wave
of populist movements eventually constructed an institutional edi-
fice-including mass-based party organizations, powerful trade union
movements, and state corporatist modes of interest intermediation-that
was deeply imbedded in the IS1 model of development and the oppor-
tunities it provided to mobilize political support around varied forms of
38 LATIN AMERICAN POLITICS AND SOCIETY 45: 3
to social actors that were unable to withstand the secular decline of the
oil economy and several aborted attempts at market liberalization. Suc-
cessive administrations led by the dominant parties failed to reverse the
economic slide, with devastating consequences for the party system as
a whole. The party system ultimately rested on insecure structural foun-
dations, and when its social moorings foundered in the 1980s, the insti-
tutional edifice of the old order began to crumble. As Chavismo filled
the political void, it both capitalized o n and accelerated the institutional
decomposition of the old order.
THEPUZZLE
OF PARTY DECAY
SYSTEM
IN VENEfllELA
The decomposition of the Venezuelan party system in the 1990s poses
a significant challenge to the scholarship o n political institutions and
representation. In a region notorious for the shallow institutional devel-
opment and ephemeral character of its political parties, Venezuela was
thought to be different. The post-1958 democratic regime was anchored
by two dominant parties that were electorally stable, internally disci-
plined, and deeply embedded in civil society. AD and COPE1 were hier-
archically and bureaucratically structured parties, and their organiza-
tional tentacles penetrated every nook and cranny of Venezuelan
society, generating powerful political loyalties and cohesive collective
identities. A far cry from the patrimonial networks and personalistic
vehicles that masqueraded as political parties in many other Latin Amer-
ican nations, Venezuela’s party organizations were formidable govern-
ing institutions that were built to last. Their demise therefore raises
unsettling questions about the sustainability of representative institu-
tions in modern Latin American democracies.
To be fully understood, the Venezuelan case needs to be viewed
from a comparative perspective that includes the interaction between
representative institutions, their social constituencies, and the evolving
structural context in which parties try to mobilize support. The crisis of
IS1 and the shift to neoliberalism in the 1980s and 1990s were a turning
point in Latin America’s political development, as they shredded the
social bonds that many traditional parties had relied on and created a
new socioeconomic matrix for political representation. Although some
traditional party systems survived and adapted to the new social land-
scape, the period of transition proved to be especially traumatic and
politically disruptive in the Venezuelan case. By the end of the 1990s,
when Hugo Chhvez and his upstart Movimiento Quinta Republica
(MVR) had swept to a series of electoral victories, not only the party
system but the entire constitutional order of the post-1958 democratic
regime had decomposed in Venezuela.
40 LATIN AMERICAN POLITICS AND SOCIETY 45: 3
party system stability. Similarly, but from a more micro level of analysis,
Converse (1969, 139) claims that once party institutions survive the ini-
tial threats that accompany their founding, they are expected to “accu-
mulate a deepening stability with the passage of time” through
processes of habituation, socialization, and political learning. Although
the political turmoil of the 1960s, the emergence of new social move-
ments, and the social changes that accompanied the rise of postindus-
trial society spawned a flurry of studies o n electoral realignment and
party system change in advanced industrial democracies (Crewe and
Denver 1985; Inglehart 1990; Dalton et al. 1984), established party sys-
tems and their underlying cleavage structures proved to be highly
resilient (Bartolini and Mair 1990). And even if social and economic
changes or political crises induce electoral realignments or the weaken-
ing of traditional parties, it hardly follows that highly institutionalized
party organizations will simply collapse as serious political competitors.
Dominant theoretical perspectives thus provided little reason to
anticipate the decomposition of Venezuela’s formidable party institu-
tions. As Converse declares, “the timing o f . . . terminal events, embed-
ded as they will be in a complex nexus of change, seems almost impos-
sible to forecast” (1969, 139). Nevertheless, political scientists love a n
empirical anomaly, and the Venezuelan case has spawned a range of
efforts to interpret and explain its apparent singularity. Indeed, all four
of the main contending theoretical approaches to the study of contem-
porary comparative politics-institutionalism, structuralism, rational
choice, and political culture-have generated interpretations of the
crisis, if not necessarily the demise, of the Venezuelan party system.
These four approaches have focused attention on two critical variables
in the development of the Venezuelan crisis: the design of political insti-
tutions, and the impact of oil on the country’s economic development,
political culture, and patterns of political representation.
Institutional explanations have attributed the crisis to the character-
istics of Venezuelan political institutions, both at the level of the politi-
cal regime and at the level of party organizations. The important study
by Coppedge (19941, for example, suggests that the overinstitutional-
ization of a party system may be as problematic as the underinstitution-
alization stressed by Mainwaring and Scully. According to Coppedge,
Venezuela’s hierarchically controlled, bureaucratically organized parties
so thoroughly dominated electoral campaigns, legislative proceedings,
and civic organizations that they destabilized democracy and generated
disillusionment by “blocking off most of the informal channels through
which citizens voice their demands” (1994, 158). When combined with
presidentialism at the regime level, this partidocracia undermined dem-
ocratic accountability and flexibility while encouraging unprincipled
political factionalism within the parties. Corrales (2000, 136-38) and Lev-
42 LATIN AMERICAN POLITICS AND SOCIETY 45:3
itsky (2001, 50-51) concur that the “cartelization” and bureaucratic rou-
tinization of the AD directorate created organizational rigidities that
impeded the adoption of economic reforms.
In a related vein, Crisp (2000) argues that the electoral and consul-
tative arrangements established during Venezuela’s democratic transition
in 1958 produced political stability, but at the price of institutional rigidi-
ties that culminated in crisis by blocking adaptation to a changing social
and economic context. Dominant parties and interest groups thus
“became a frozen status quo,” with institutional safeguards that allowed
them to “control policymaking, exclude new groups from participating,
and keep new issues off the agenda indefinitely” (2000, 173). Efforts to
reform these institutions in the midst of crisis failed to reinvigorate them,
and may have even hastened their demise. Explanations drawing on
rational choice and game theoretic models of political behavior have
argued that post-1989 decentralizing reforms weakened AD and COPE1
by lowering barriers to the entry of new parties and encouraging polit-
ical entrepreneurs to abandon or assert their autonomy from traditional
parties (Benton 1997; Penfold Becerra 2000).
A second variable that has been stressed by scholars working from
a variety of theoretical perspectives is the political and economic
impact of oil. This emphasis is most explicit in the structural approach
of Karl (1997), who argues that developing states and their affiliated
modes of political representation are heavily shaped and constrained
by their dominant export commodities and strategies for revenue
extraction. According to Karl, the availability of extraordinary (yet
undependable) oil revenues engendered a highly interventionist but
grossly inefficient state, erratic economic performance, and a patron-
age-ridden party system that entered into crisis as it progressively lost
its capacity to provide public services and distribute benefits to a broad
range of clients. Likewise, political culture approaches have empha-
sized the role of oil in creating a “rentier mentality” among Venezuelan
citizens, who supported democracy o n purely instrumental grounds
and thus turned against democratic institutions when they failed to
deliver the mythological bounty from the nation’s oil wealth (Romero
1997). According to Romero, the illusion of affluence encouraged dem-
agoguery and “pathological learning” among political elites, along with
a popular aversion to economic reforms that could have addressed the
nation’s deepening crisis.
Even institutional and rational choice approaches have acknowl-
edged the structural importance of oil revenues, which fueled the polit-
ical pacts (Penfold Becerra 20001, patronage distributions (Benton
1997), and semicorporatist consultative mechanisms (Crisp 2000) that
upheld Venezuela’s democratic regime. The decline in oil revenues in
the 1980s and 1990s thus undermined the material foundations by
ROBERTS: VENEZUELA’S PARTIES 43
and they were severely strained by the crisis of IS1 and the shift (how-
ever incomplete in the Venezuelan case) toward market liberalism, with
its emphasis on economic austerity and diminished state intervention.
Historically, parties in Latin America have relied on two principal
modes of societal linkage to mobilize constituency support. Patron-
clientelism, which entails an exchange of material benefits for political
support, is a nearly universal linkage mechanism in Latin American
party systems. Vertical patronage networks managed by political brokers
link individual clients to a party machine by means of discretionary and
selective distribution of political favors, public employment and serv-
ices, and government contracts or subsidies. Patron-clientelism was the
primary linkage mechanism in nineteenth-century oligarchic party sys-
tems, and it was frequently used by both elite and mass-based parties
to mobilize lower-class electoral support following the onset of mass
politics in the twentieth century.
In contrast, the second main linkage mechanism, corporatist or
“encapsulating” bonds, was a creation of the IS1 era and the mass polit-
ical participation it unleashed. These bonds were less universal than
clientelism, as they developed in some Latin American party systems but
not in others. Although corporatist bonds may also entail a n exchange
of material benefits for political support, they differ from clientelism in
their organizational basis: they are collective rather than individual in
nature. That is, corporatist bonds are established between parties and
group constituencies that are organized outside the partisan arena, such
as labor and peasant confederations, giving parties a horizontally organ-
ized, grassroots base of mass support that purely clientelistic machine
parties generally lack (see Kaufman 1977).
A basic differentiating feature of Latin American party systems was
whether they developed encapsulating corporatist bonds during the
IS1 era to complement clientelism, or whether they relied more exclu-
sively on the latter. In some Latin American nations, most notably
Argentina, Brazil, Bolivia, Chile, Mexico, Nicaragua, Peru, and
Venezuela, party systems were reconfigured during the IS1 era by the
rise of a mass-based, labor-mobilizing populist or leftist party with
encapsulating linkages to lower-class constituencies. In these nations,
parties were linked to society through a combination of corporatist
and clientelist bonds, and a central political cleavage typically devel-
oped between the labor-mobilizing party (or parties) and conservative
defenders of the socioeconomic and political status quo. In other
nations, however-namely Colombia, Costa Rica, the Dominican
Republic, Ecuador, Honduras, Panama, Paraguay, and Uruguay-either
traditional oligarchic parties remained electorally dominant throughout
the IS1 era, or new elite or personality-based parties emerged that pro-
vided little impetus for social mobilization. Party systems in these
ROBERTS: VENEZUELA'S PARTIES 45
24.4 percent in 1981 (Crisp 2000, 170). Given the existence of a highly
intervenionist state that, as Karl put it, “had the power to distribute raw
materials, grant tariff exemptions and subsidies, finance private firms,
set price controls, and decide who might enter an industry” (1997, 1581,
the private sector became highly dependent on rent-seeking ties to
public officials, just as ordinary Venezuelans increasingly relied on gov-
ernment jobs, consumer subsidies, and social programs.
Clientelism was complemented by the more collective, corporatist
linkages forged between the dominant parties and national labor and
campesino confederations (see Ellner 1995). Strong ties had existed
between organized labor and AD since the 1940s, when the populist
party beat out the Communist Party for leadership of the labor move-
ment (Collier and Collier 1991, 252-62). After 1958, the Venezuelan
labor movement developed into one of the strongest and most politi-
cally influential in Latin America, although its autonomy from the AD
was heavily restricted. By the 1980s, more than a quarter of the work-
force belonged to labor unions (well above the regional norm), and
over 80 percent of these unions were incorporated into the Confedera-
tion of Venezuelan Workers (CTV), which was dominated by AD but
included representatives from COPEI and minor parties as well.
Organized labor was well represented inside the AD through the
party’s Labor Bureau, which Coppedge calls “probably the most impor-
tant broker in the party, because of its size and impressive ability to
mobilize its membership” (1994, 112). Labor was also represented in
AD’Scongressional delegation, and it had a voice in public administra-
tion and policymaking through seats on the governing boards of
bureaucratic agencies and tripartite advisory commissions (see Crisp
2000). Although these political linkages limited organized labor’s mili-
tancy and autonomy, they also produced substantial material rewards:
Venezuelan workers benefited from some of the highest wages and the
most heavily protected labor market in Latin America (Marquez and
Pages 1998, 6). The state established extensive legal restrictions on job
dismissals, and union members received privileged access to social
security and government subsidies for food, transportation, and health
care (Coppedge 1994, 33; see also Davis and Coleman 1989). The gov-
ernment heavily subsidized the national labor movement and made
major contributions to a workers’ bank that financed its own enterprises
and “established a virtual financial empire under the control of the CTV”
(Crisp 2000, 171).
The nature of these corporatist and clientelist linkages and the
mechanisms by which they were forged and reproduced broadly reseni-
bled those in other Latin American countries with a strong labor-mobi-
lizing party. Comparatively speaking, however, petroleum revenues
gave the Venezuelan state, and by extension AD and COPEI, greater
48 LATIN AMERICAN POLITICS AND SOCIETY 45:3
stabilization. Established parties thus bear the full brunt of the political
costs associated with economic crisis, and the electorate is increasingly
inclined to turn to a political outsider as a potential solution, giving out-
siders the opportunity to reap the political rewards of stabilization. The
political economy literature has often stressed the severity of crises in
creating political conditions that are conducive to structural adjustment;
but when it comes to the fate of party systems, the duration of an eco-
nomic crisis may well be the more important consideration.
This dynamic can clearly be seen in Venezuela and Peru, the most
prominent cases of party system decomposition during the transition
from IS1 to neoliberalism. In Venezuela, the economic crisis gradually
deepened but never engendered a hyperinflationary spiral with such
immense short-term costs that it would induce public support for the
bitter medicine of structural adjustment policies (see Weyland 1998).
Consequently, the dominant parties chose to “muddle through” and
resist painful economic reforms, a pattern that was reinforced by AD’S
aforementioned inflexible bureaucratic structure (Corrales 2000; Levitsky
2001). The crisis therefore lingered on, politically damaging COPEI and
AD administrations in succession for their failure to reverse the slide.
When Perez defied his populist campaign message by adopting a harsh
neoliberal package to preempt a deepening foreign exchange and infla-
tionary crisis, the public turned on the party system with a vengeance,
and the groundswell of support for political outsiders commenced.
The electorate first opted for a familiar and “safe”outsider in former
COPEI leader and ex-president Rafael Caldera, who broke with his party
to win an independent bid for the presidency in 1993. By the end of the
decade, however, when a series of independents vied for the presi-
dency, voters sided overwhelmingly with Chhvez, who offered the most
thorough break with the traditional order and the most virulent antine-
oliberal line. A prolonged crisis produced systemic political costs that
were only exacerbated by the long tradition of collusion between AD
and COPEI; the two parties were held jointly responsible for the secu-
lar decline in economic performance, and neither could throw a lifeline
to the party system by restoring prosperity.
In Peru, a prolonged economic crisis elicited a similar cumulative,
systemic political effect as first one party and then another tried but
failed to manage a recovery in the 1980s, causing the electorate to
punish the entire political establishment and search for an outside
savior. Fujimori could then reap the political dividends from economic
stabilization, furthering the demise of the traditional party system.
It is not surprising that Peru and Venezuela have by far the worst
scores in Latin America on one of the clearest indicators of long-term
change in popular living standards, the decline in real industrial wages.
In 1996, Venezuela’s real wage index stood at only 38.8 percent of its
ROBERTS: VENEZUELA’S PARTIES 53
NOTES
Portions of this article were published in slightly different form in Spanish
as “La descomposici6n del sistema de partidos en Venezuela vista desde un
an5lisis comparativo,” Revista Venezolana de Economfa y Ciencias Sociales 7 , 2
(May-August 2001): 183-200.
1 . Costa Rica and Uruguay, which developed strong welfare states by Latin
American standards, are partial outliers on this particular dimension, but in other
respects they fit the general pattern. Uruguay was the only country in this cate-
gory to experience triple-digit inflation, but it did not fall prey to hyperinflation
like most of the countries with a labor-mobilizing party system.
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