USAID/OTI Venezuela Quarterly Report January - March 2009

The program operates out of the U.S. Embassy and is part of a larger U.S. diplomatic effort to promote democracy in Venezuela. The program has two main objectives: to strengthen democratic institutions and promote space for democratic dialogue, and to encourage citizen participation in democratic processes. USAID works with several implementing partners drawn from the spectrum of civil society, focusing on dialogue, public debate, citizen participation, and training for democratic leadership. Implementing partners offer technical assistance for political parties and provide technical support to human rights practitioners and civil society organizations. The program's activities are designed to promote democratic values and principles, including free and fair elections, human rights, and good governance. The Venezuelan political environment in the first three months of 2009 was marked by a constitutional referendum on term limits, which took place on February 15. The referendum was contentious, with the government expending significant state resources in its campaign for a "yes" vote. President Hugo Chavez announced his plans to repeal presidential term limits immediately following the municipal and state elections in late 2008. The referendum passed by a vote of 54 percent to 46 percent, removing term limits for all Venezuela's elected leaders. The global economic crisis and low oil prices also had a significant impact on Venezuela's economy. Inflation reached 31 percent in 2008, and GDP growth fell to 4.9 percent from 8.5 percent in 2007. The Venezuelan Government announced plans to slash public spending to address revenue shortfalls created by the falling price of oil. The state-run oil company, PDVSA, announced plans to cut production costs by 40 percent to make up for falling crude prices. USAID continued its work with local counterparts during the quarter to support nonpartisan education campaigns. Activities focused on generating civic participation from all sectors and political parties, as well as supporting forums on good governance principles. Programmatic highlights included supporting forums on democratic governance principles, assisting local groups to create nonpartisan materials on local governance, promoting fair elections, and supporting and training human rights groups. USAID/OTI approved 29 grants during the quarter, and reports and public activities by the grantees were successful in diffusing information about areas critical to a functioning democracy.