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Alvaro Vargas Llosa: What to make of the book that Chavez gave Obama?

Hugo Chavez's gift to President Obama at the recent Summit of the Americas--a copy of Eduardo Galeano's "Open Veins of Latin America"--has many people wondering what the fuss is about.

A decade ago, I and the other two co-authors of the "Guide to the Perfect Latin American Idiot" devoted a chapter to refuting the historical and ideological fallacies contained in Galeano's tract, which we called the "idiot's bible." Everything that has happened in the Western Hemisphere since the book appeared in 1971 has belied Galeano's arguments and predictions. But I guess Chavez has given it the kiss of life and, since people are asking, here I go again.

The author claims that relations between Latin America and rich countries have been so pernicious that "everything ... has always been transmuted into European--and later United States--capital." Actually, for years that relationship has transmuted into the exact opposite: Latin American capital. In the last seven years alone, Latin America has benefited from $300 billion in net capital flows. In other words, a lot more capital came in than went out.

The book rails against the international division of labor, in which "some countries specialize in winning and others in losing." That division of labor in the Western Hemisphere has not changed--Latin American countries still export commodities--and yet in the last six years, poverty in the region has been reduced to about one-third of the population, from just under half. This means that 40 million were lifted out of that hideous condition. Not to mention the 400 million pulled out of poverty in other "losing" nations worldwide in the last couple of decades.

The author pontificates that "raw materials and food are destined for rich countries that benefit more from consuming them more than Latin America does from producing them." Sorry, amigo, but the story of this decade is that Latin America has made a killing sending exports abroad--the region has had a current account surplus for many years. Rich countries are so annoyed with all the things poor countries are exporting to them that they are asking their governments to "protect" them in the name of fair trade. The "buy American" clause in the fiscal stimulus package approved by Congress a few weeks ago is a case in point. The U.S. had a trade deficit of more than $800 billion last year. The poor, if I may echo Galeano's hemophilic language, are sucking the veins of the rich.

The book claims that for years "the endless chain of dependency has been endlessly extended." The story now is that the rich depend on the poor. That is why the Chinese have $1 trillion in U.S. Treasury bonds! The book's jeremiad goes on to say that "the well-being of our dominant classes ... is the curse of our multitudes condemned to exist as beasts of burden." One of the few countries that exemplifies that curse is the author's beloved Cuba, where a worker cannot be paid directly by a foreign company employing him or her; the money goes to the government, which in turn pays the worker one-tenth of the salary--in nonconvertible local currency....
Read entire article at New Republic