World > Americas from the April 15, 2003 edition The Christian Science Monitor By David Buchbinder

CARACAS, VENEZUELA – At the gleaming offices of Petroleos de Venezuela (PDVSA), the country's state-owned oil giant, a corporate revolution is under way. Nine-to-fivers have come to think of themselves as patriots. Senior managers now eat at the same cafeteria tables as secretaries. And former soldiers have left the battlefield for the boardroom.

After PDVSA workers walked off the job last December in a bid to force Venezuelan President Hugo Chávez from office, the fiery populist hitched his social revolution to the $110 billion business: He purged the company's ranks and installed his own people. What was widely regarded as a world-class energy company before the strike has a new philosophy: to help the poor. And a new corporate culture is gradually taking shape, injected with the president's particular brand of leftist ideology.

Whether or not this do-good idealism can prevail amid the high-pressure realities of running the world's fifth-largest oil supplier remains to be seen. For a country that relies on PDVSA for 50 percent of its federal budget, the success or failure of this massive corporate social experiment could have ripple effects throughout the country - even the world - for years to come.

"The old culture is dead, and a new one is developing," says Omar Enrique Perez, a compensation analyst with 15 years at the firm, who is working to slash salaries across the board - including his own. "Because we feel we have to do something about the problems that are confronting our country, and we believe our work will help Venezuela develop."

While PDVSA's rhetorical about-face has yet to lift up the poor - even in the stone-broke villages that surround the oil refineries - change has swept through the company's Caracas headquarters.

In addition to the classless cafeteria, volunteerism is up, and salaries are said to be on their way down. The dress code has been loosened, and in some departments the high-five has replaced the curt nod in the hallways.

"There has been a change of mentality in all levels of the company," says a member of PDVSA's board of directors, who speaks on the condition of anonymity. "We believe that PDVSA should be subordinated to the needs of the state. For us, job No. 1 is fighting poverty."

The main force reshaping the company's philosophy is Chávez himself. The former paratrooper has handpicked company managers to promote his vision for a more egalitarian society and has vowed to plow more oil profits into social programs.

PDVSA has been staggered by the dismissal of 17,000 workers, nearly half the workforce, forcing the company to bring in help from private industry and, controversially, the ranks of the active-duty military. One commander, who helped put down the short-lived coup against Chávez a year ago by driving a tank up to the gates of the presidential palace, is now assisting with restructuring efforts now under way. Another soldier uses a military metaphor to explain the role of the Army in the oil company.

"We're here to establish a beachhead, move in, and clean the place up," he says. "When we are finished ... we will move on."

A humanitarian oil company is almost a contradiction in terms, though, and many critics are dismissive of the lofty sentiments heard inside the company.

"Plain and pure rhetoric," says Edgar Leal, senior associate with Cambridge Energy Research Associates, in Cambridge, Mass. "What are they going to do, have PDVSA start distributing food? They have a business to run."

The man in charge of this business is Ali Rodriguez, a former guerrilla fighter who ran the OPEC oil cartel until he was installed by Chávez as company president. Mr. Rodriguez has not won over his critics, including the far left, who question his decision to eschew an oil embargo against the United States by countries opposed to the war in Iraq.

But Rodriguez has signed on with the government game plan - to divert some revenue to federal coffers that would otherwise be reinvested in PDVSA. The government says infusions of cash into schools and hospitals has already pushed down illiteracy and infant mortality rates.

Previously, PDVSA's management used its considerable degree of autonomy to aggressively explore for oil, develop new technologies, and acquire overseas assets. The new PDVSA management says much of that money was wasted, and points to operating costs that are three times higher than other oil majors as proof. Officials at the energy ministry say that restructuring will save $1 billion a year.

But critics say the new system can't be sustained. "Chávez and Rodriguez will probably use whatever they can get out of PDVSA for projects this government wants to do," says Michael Coppedge, a political science professor and Venezuela specialist at the University of Notre Dame in South Bend, Ind. By some measures, PDVSA's production capacity has already suffered as a result. The company was operating 120 oil rigs only four years ago. Today that number has fallen to less than 40. "They may be able to extract more revenue from PDVSA than before for a short time, and then production capacity will fall, and the oil industry will deteriorate and won't be able to produce as much and earn as much," Mr. Coppedge adds.

Oil industry experts also say that the loss of many skilled laborers and specialists will negatively impact PDVSA's long-term capacity to grow and produce.

More important, they say that oil alone cannot meet all of Venezuela's needs, even in the rosiest of scenarios.

"There's a myth in this country that petroleum can save us, but at least in the short term, that's just not possible," says Elie Habalian, a retired professor and an expert in petroleum economics. "To Venezuelans, oil is like blood; without it, this country would be nothing. But sooner or later, we're going to have to find other solutions to our problems."

World from the April 15, 2003 edition Reporters on the Job • REEDUCATION TAKES TIME: Contributor David Buchbinder went to Venezuela's state-run oil company recently to report on high-minded efforts to give its elite corporate culture a more populist flair (see story). During his visit, not surprisingly, he was given a grand tour of the company's facilities. Then he and his hosts headed out to lunch at one of Caracas's finest restaurants.

It was a bit surprising to a reporter who expected something more on the lines of an arepa, a corn bun filled with meat or black beans that is Venezuela's answer to the tuna-fish sandwich. "It was the best meal I ever had in my life," says David, who dined with three company employees. The food, service, and atmosphere were without compare - but David found the VIP treatment at odds with the corporation's stated goals of helping the poor.

"I estimate the cost of lunch, depending on the prices on the spot market that day, at around three or four barrels of oil," he says.

Amelia Newcomb Deputy world editor

Virginia Sports April 14, 2003

CHARLOTTESVILLE - Student Athlete-of-the-Month showcases athletes who have demonstrated excellence both on the playing field and in the classroom. The April Female Student Athlete-of-the-Month, fourth-year Ruby Rojas has displayed a strong work ethic in her academic and athletic endeavors. A double major in Women's Studies and Sociology from Santa Ana, CA, Rojas was one of the 10 UVa Golden Anniversary Team honorees and selected to the 50th Anniversary Softball team.

Q: You are originally from Venezuela, correct? When did you move to the states?

A: When I was two my family moved to southern California to Santa Ana.

Q: When did you become involved with softball?

A: My family has always been huge baseball fanatics. My dad got me into softball when I was ten and I absolutely fell in love with it and I've been playing ever since!

Q: What brought you all the way across the country to Virginia?

A: Primarily the academics associated with this school. I basically liked the overall environment of UVa and felt comfortable being here. I think it was a great decision for me!

Q: Who or what has influenced your life the most?

A: My parents are my biggest influence. They have always been there for me, always encouraged me to work hard and do well. I have 110% of their support in everything I do and they have been my greatest motivation in both softball and in life.

Q: What has been the most memorable moment of your softball career?

A: Playing in the Women's World Cup this past summer in Canada was amazing. I was recruited to play at the age of 17 and have been playing with this team every summer since. It is one of the highest levels of competition and we basically travel all over Canada playing different teams for one month. This summer I played some of the best players in the world and my team made it to the World Cup.

Q: How did you feel when you were named one of the 10 UVa Golden Anniversary Team honorees? What does it mean to you to have been selected to the 50th Anniversary Softball team?

A: I was delighted when I was named to the team, it was such an honor. The ACC definitely has lots of great teams and it's an overall highly competitive conference. So I was kind of shocked to be selected to receive this great honor. It really hasn't affected my performance this season because I'm really trying to stay focused on our games.

Q: What is the most difficult thing about being a student athlete at Virginia? Why?

A: I would have to say the stigma attached with being an athlete. We are always being watched academically and athletically. People think we get extra privileges and there is a stereotype that athletes like to cut corners. But we don't.

Q: What do you do in your free time?

A: When I have free time, I try to hang out with friends as much as possible. I like to go to the movies and just spend time relaxing. During the season though, I get free time once a week if I'm lucky!

Q: Are you graduating this year?

A: Yes, I will be graduating this May and then I'm going to graduate school at Longbeach State in California. I will be studying Physical Education and will be a graduate assistant for the softball team.

Q: Where do you see yourself in ten years?

A: I definitely think that in ten years I'll be coaching college softball and eventually I'd like to coach a national softball team.   University of Virginia Softball

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<a href=english.aljazeera.net>Aljazeera Robert Jensen

The US attack on Iraqi has brought the collapse of Saddam Hussein's brutal regime, which is cause for celebration. For the first time in at least 35 years, the conditions could exist for Iraqis to chart their own destiny.

Now the United States has a crucial part to play in making Iraqi self-determination a reality: It must get out.

President Bush has told the Iraqi people: "We will help you build a peaceful and representative government that protects the rights of all citizens. And then our military forces will leave." Will US occupation continue until US Secretary of Defense Donald Rumsfeld  is satisfied with the pace and direction of Iraqi learning

Bush has the sequence wrong; a truly representative government in Iraq is possible only if US military forces leave first. The reason is simple: Liberating the Iraqi people was part of the Bush PR campaign to justify a war, but it was not the motive force behind US policy. Neither were stated concerns about weapons of mass destruction or alleged terrorist ties.

Fundamental goal Bush's fundamental goal in Middle East policy is no different from other administrations since World War II: To strengthen US control over the flow of the region's oil resources and the resulting profits.

In a world that runs on oil, the nation that controls the flow of oil has considerable strategic power, not only over the terms of its own consumption but over other nations. US policymakers want leverage over the economies of our biggest competitors -- Western Europe, Japan and China -- which are more dependent on Middle Eastern oil.

From this logic has flowed US support for monarchies (Saudi Arabia), dictatorships (Iran under the Shah, Iraq in the 1980s) and regional military surrogates (Israel) -- always aimed at maintaining control.

A "democratic" government in Iraq will be allowed if, and only if, such a government lines up with US interests. The United States will allow the trappings of a democratic process as long as the process produces the right result.

This approach to democracy has been a consistent feature of US foreign policy. While many acknowledge that in the past the United States has supported dictators and derailed real democracy abroad, the conventional wisdom is that things have changed since the end of the Cold War.

Two recent examples suggest that though tactics may change, the goal remains the same. In Afghanistan, US support for "democracy" included strong-arm tactics at the loya jirga to eliminate a role for former king Zahir Shah and force his withdrawal as a candidate.

After the fall of the Taliban, there was considerable support for his return to the country to play a unifying role, but Bush officials preferred their handpicked candidate, Hamid Karzai.

In Venezuela, US officials were quick to proclaim support for last year's abortive coup attempt that temporarily displaced the elected president, Hugo Chavez. Even more embarrassing was the revelation that US officials had met with Venezuelan military officers and opposition activists, including the nominal leader of the coup.

Because Chavez defied the United States, the democratic process by which he had been elected was irrelevant.

Democracy in Iraq

What will democracy mean in Iraq? When Secretary of Defense Donald Rumsfeld was asked on Sunday whether the United States would accept in Iraqi elections a victory by candidates opposed to US policy, he waffled. The lack of a history of political freedom in Iraq meant that sometimes "people end up not understanding what really are the facts," he said. How long does it take to reverse that? "It takes some time."

Will Iraqis be allowed to choose their own government only when their understanding of the facts matches Rumsfeld's? Will U.S. occupation continue until Rumsfeld is satisfied with the pace and direction of Iraqi learning?

An ongoing US occupation will not be embraced by most Iraqis, with the exception of figures such as Ahmed Chalabi of the Iraqi National Congress exile group -- a "reliable" leader (defined as willingness to accept US orders) preferred by many in this administration.

Gen. Tommy Franks has said US forces will stay in Iraq "until there is a free government." Like his commander in chief, Franks misses the point: Real freedom stand a fighting chance only if the U.S. military withdraws and a U.N. peacekeeping force takes over the work of stabilizing the country. American military power can remove a dictator but -- given US actions in Iraq and the Middle East -- it cannot create meaningful democracy. --- Al Jazeera

Robert Jensen is an associate professor of journalism and author of "Writing Dissent: Taking Radical Ideas from the Margins to the Mainstream."

By Ansley Brown Ka Leo Staff Writer April 14, 2003

Director Fernando Birri, an early pioneer of the new Latin American cinema movement, will visit the University of Hawai'i tomorrow for a screening of his 1988 film, "A Very Old Man with Enormous Wings."

During the 1950s, he studied at the Centro Sperimentale di Roma where he was greatly influenced by the cinematic style of Italian neorealism.

Birri was in California for three months and agreed to visit Hawai'i at the request of Paul Schroeder, UH Manoa assistant professor of Spanish.

Birri's appearance is part of a series of lectures and presentations during II Latino American Week, which runs from April 14 to April 30. The events are sponsored by the Spanish division of the Languages and Literatures of Europe and the Americas at UH.

The film will be shown in Kuykendall Hall 101 and a question and answer session will follow. The event is free and open to the public.

Upon returning to Argentina, Birri was determined to create a national cinematic style based on a more realistic portrayal of Argentine life. He met with industry resistance and so returned to Santa Fe where he began teaching a class in experimental film, which later became a complete cinema school.

Some of the best known features from the school include the documentary "Tire die" (1954) and a neorealist feature film "Los Innundados" (1961.) Both films centered on Argentine social classes that had been traditionally ignored. In the early 1960s, Birri fled Argentina and ended up living in Italy, making few films, until the late 70s when he returned to Latin America and resumed his teaching career in Mexico and Venezuela.

In 1986, he was appointed the head of the International Film School in Havana, Cuba. In 1997, he received a lifetime achievement award at the International Documentary Film Festival of Leipzig. Today, Birri splits his time between Buenos Aires, Rome and Cuba.

Nobel Laureate recipient Gabriel Garcia Marquez wrote "A Very Old Man with Enormous Wings." Marquez received the Nobel Prize in Literature in 1982 for his novels and short stories. He is the author of "One Hundred Years of Solitude" and "Love in the Time of Cholera."

The movie takes place amid the debris of a Colombian cyclone, in which a very old man with enormous wings has landed. His miraculous anatomy attracts the curious and devout from around the world. The onlookers wait for this silent and fantastical creature's heavenly message, which turns out to be a very mixed blessing.

<a href=reuters.com>Reuters Mon April 14, 2003 12:43 PM ET (Adds analyst quote, details, share price)

NEW YORK, April 14 (Reuters) - Hughes Electronics GMH.N on Monday said its first-quarter loss narrowed and its revenue rose on stronger-than-expected results at its DirecTV unit, the No. 1 U.S. satellite broadcaster.

The improvements led the company, in which Rupert Murdoch's News Corp NCP.AX NWS.N agreed last week to buy a controlling stake, to raise its financial and subscriber estimates for 2003, and suggested to one analyst that consumer spending could be recovering.

"This is the first concrete evidence of strong consumer demand we've been hearing about for communications items ranging from satellite TV and radio and cell phones," Cowen analyst Tom Watts said.

Hughes said its loss narrowed to $50.9 million from $837.7 million last year. The El Segundo, California-based company, which trades as a tracking stock of parent General Motors GM.N , does not report an earnings-per-share figure.

The improvement was primarily due to impairment charges last year related to its now-defunct fast Internet service DirecTV Broadband and DirecTV Latin American, the bankrupt broadcaster in which Hughes has a 75 percent stake.

First-quarter revenue rose 10 percent to $2.23 billion from $2.02 billion last year, compared with a Wall Street consensus of $2.14 billion, from a range of $2.1 billion to $2.18 billion, according to Multex.

Hughes said its earnings before interest tax, depreciation and amortization (EBITDA) rose to $305 million from $164.5 million last year. EBITDA is a measure of cash flow often used to track the performance of media companies as it excludes charges associated with the capital intensive satellite industry.

Analysts polled by tracking company Multex on average expected Hughes to post EBITDA of $208.53 million, in a range of $183.1 million to $242 million.

Hughes said it expects to report revenue of $9.5 billion to $9.6 billion in 2003 compared with its previous estimate of $9.3 billion to $9.5 billion. It also raised its EBITDA estimates to $1.15 billion to $1.2 billion from an earlier forecast of $1.1 billion.

The company raised its 2003 expectation for net new DirecTV subscribers, including customer turnover, to 800,000 to 850,000 from previous estimates of 750,000 to 800,000 subscribers.

DirecTV ended the quarter with a total of 11.4 million subscribers, including rural areas where the broadcaster resells its service.

Excluding its rural resellers, which lost 30,000 subscribers in the quarter, DirecTV signed up 275,000 new subscribers, Hughes said.

DirecTV Latin America, which suffered from regional turmoil including a strike in Venezuela, ended the quarter with 1.5 million subscribers, down 7 percent from the end of the first quarter last year, the company said.

DirecTV's revenue rose 16 percent to $1.7 billion from $1.47 billion last year due to subscriber growth and an increase in average revenue per subscriber (ARPU),Hughes said.

DirecTV's ARPU increased $2.40 to $59.10 in the quarter as more customers bought local channels and premium programming and paid additional fees for multiple set-top boxes.

Hughes shares were up 38 cents, or 3.6 percent, at $10.90 in midday trade on the New York Stock Exchange. This compares to a 52-week high of $17 and a year low of $8.