With no signs of sanctions being lifted, Caracas turns to Beijing for respite

Author: Hamzah Rifaat Hussain

Facing increasing isolation and a pandemic on its doorsteps, the Maduro government has turned to allies such as China for financial relief in times when his government’s legitimacy is not recognised by the United States and sanctions continue to stifle economic growth. With China, Venezuela aims to renegotiate oil for loan deals, previously done under Hugo Chavez almost 15 years ago. Both states also oppose US sanctions. China is considered to be the last beckon of hope for a government, which acknowledges that any form of sanctions relief with the COVID-19 pandemic being rampant would be absent beyond its traditional allies.

Cash strapped, debt-ridden and crisis-inflicted Venezuela, like much of the world, has been severely impacted by the COVID-19 pandemic. Unlike its neighbour, Brazil, where President Jair Bolsonaro has been cosying up to the Donald Trump Administration, Venezuela has witnessed extreme turmoil and internal strife due to Washington DC’s interference in its internal affairs. The government of Nicolas Maduro, which is supported by Russia, Turkey and Iran, continues to be at loggerheads with the Juan Guaido-led opposition, which is backed by the US and its allies. As both leaders were vying for legitimacy in the country, the turmoil made global headlines before the pandemic as nationwide protests by the latter were suppressed by the former. This conflict also jeopardised the oil-rich country’s political stability with a rise in rampant corruption, poverty and unemployment.

Along with charging Maduro for “narcoterrorism,” American assistance has been inextricably tied with the Trump Administration, considering his regime as illegitimate and being solely responsible for rising unemployment, pervasive corruption and extreme poverty. Facts, however, run to the contrary given that Venezuela’s economy, with its unique political system, has been rocked by sanctions imposed on it by the very same Trump Administration, which disputes the legitimacy of the government in Caracas. Internal interference with the opposition leader, Juan Guaido, being billed by Washington DC as the leading successor to Maduro has also contributed to the crisis.

Internal interferences aside, Venezuela currently confronts a whole range of issues. The COVID-19 pandemic, which has established a footprint in the country, is coupled with a sharp drop in oil prices. While not too dissimilar from Iran in terms of the pernicious impact of the US sanctions on its economy, Venezuela is beset by pressing challenges of rolling blackouts, severe shortages of running water and a lack of adequate medical infrastructure to cater to its population, which has suffered internal strife and is now faced with a global pandemic. The International Monetary Fund has also rejected a request by the government to have $5 billion available as financial assistance to curb the COVID-19 virus, citing concerns directed over Maduro’s legitimacy.

States, previously demonised by Washington DC, have stepped up assistance for countries reeling from the COVID-19 pandemic in comparison to those with a history of providing humanitarian assistance

It is within this backdrop that a vacuum of desperately needed developmental assistance was created with allies such as China playing a key role. The ability to import food, medicines and basic facilities from Beijing offers Venezuela a much-needed respite. Without such assistance, Venezuela’s case would be similar to Iran’s where the Trump Administration’s adamancy over not lifting sanctions resulted in the Iranian public being impeded from accessing key medical supplies, which was a contributing factor to the mass deaths, witnessed as a result of the COVID-19 pandemic. China currently accounts for about 40 per cent of Venezuela’s food supply with the federal government in Caracas recognising Beijing’s assistance recently. By trading oil for food with Beijing, Venezuela could also help its already impoverished population sustain itself, which would further strengthen a relationship that goes beyond geopolitics or conditional aid.

The US, in stark contrast, has subjected sanctions relief for states such as Venezuela with regime change. Interestingly enough, the very same states, which were previously demonised by Washington DC, have stepped up assistance for countries reeling from the COVID-19 pandemic in comparison to countries that have a history of providing humanitarian assistance. Various member states of the European Union, for example, were lax in their response towards Italy, the moment the epidemic became rampant in the country. This vacuum of assistance was later filled by Cuba, which sent its team of health specialists and experts to assist the overwhelmed Italian authorities. This received positive press coverage and considerable approbation. Cuba’s regime has always been vilified by Washington DC for its perceived human rights abuses domestically even though the country boasts one of the best health care systems in the developing world. Like Cuba, states like China, as it has done with its allies such as Pakistan recently, can assist Venezuela in times when the US blatantly disregards dire humanitarian situations.

This push for regime change, the promotion of vested interests by emboldening factions at the expense of others and funding of destabilising elements to dethrone a sitting government has been an integral aspect of American foreign policy for decades. Such an approach stands in stark contrast to aid and assistance from states like China and Cuba, which have forged relationships based on trust and goodwill and do not link the provision of aid with preconditions, which violate the receiving state’s sovereignty. Cash-strapped states, such as Venezuela, would need policies to revive its faltering economy, societies and health sector instead of conditions centred on regime change, which is essentially an internal matter.

The writer is an Assistant Research Officer at the Islamabad Policy Research Institute. He was also a Visiting Fellow at Stimson Center, Washington DC in 2016

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