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Venezuela Key Challenges to the Community Network Model in Venezuela

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Venezuela Key Challenges to the Community Network Model in Venezuela Community Networks GLOBALGLOBAL INFORMATION INFORMATION 2018 2018 SOCIETY WATCH 2018 THE 43 COUNTRY REPORTS included in this year’s Global SOCIETYCOMMUNITY WATCH NETWORKS 2018 Information Society Watch (GISWatch) capture the different GLOBAL INFORMATION SOCIETY WATCH experiences and approaches in setting up community networks across the globe. They show that key ideas, CommunityCommunity Networks Networks such as participatory governance systems, community ownership and skills transfer, as well as the “do-it-yourself” spirit that drives community networks in many different contexts, are characteristics that lend them a shared purpose and approach. The country reports are framed by eight thematic reports that deal with critical issues such as the regulatory framework necessary to support community networks, sustainability, local content, feminist infrastructure and community networks, and the importance of being aware of “community stories” and the power structures embedded in those stories. GLOBAL INFORMATION SOCIETY WATCH GLOBAL INFORMATION SOCIETY WATCH GLOBAL INFORMATION SOCIETY WATCH 2018 Report www.GISWatch.org International Development Research Centre Centre de recherches pour le développement international AssociAtion for Progressive communicAtions (APc) A SSOCI ATION FOR PROGRESSIVE COMMUNIC ATIONS (AP C) And internAtionAl develoPment reseArch centre (idrc) Tapa_GISW_2018.indd 1 12/10/18 12:44 Global Information Society Watch 2018 International Development Research Centre Centre de recherches pour le développement international Global Information Society Watch 2018 Community Networks Operational team GISWatch 2018 advisory committee Roxana Bassi (APC) Carlos Baca (REDES) Valeria Betancourt (APC) Luca Belli (FGV) Kathleen Diga (APC) Jane Coffin (ISOC) Alan Finlay (APC) Kazanka Comfort (Fantsuam Foundation) Michael Jensen (APC) Stéphane Couture (York University) Carlos Rey-Moreno (APC) Alison Gillwald (Research ICT Africa) Michuki Mwangi (ISOC) APC project coordination team Leandro Navarro (PANGEA) Namita Aavriti (APC) Dorothy Okello (WOUGNET/Makerere University) Roxana Bassi (APC) Nico Pace (AlterMundi) Valeria Betancourt (APC) Steve Song (Village Telco/Rhizomatica) Kathleen Diga (APC) Ritu Srivastava (DEF) Anriette Esterhuysen (APC) Flavia Fascendini (APC) Project coordinator Alan Finlay (APC) Kathleen Diga / Roxana Bassi (APC) Chat Garcia Ramilo (APC) Michael Jensen (APC) Editor Carlos Rey-Moreno (APC) Alan Finlay Assistant editor and proofreading Lori Nordstrom (APC) Publication production support Cathy Chen Graphic design Monocromo [email protected] Phone: +598 2400 1685 Cover illustration Matías Bervejillo This work was carried out with the aid of a grant from the International Development Research Centre (IDRC), Ottawa, Canada, as part of the APC project “Community access networks: How to connect the next billion to the Internet”. More information at: https://www.apc.org/en/project/ local-access-networks-can-unconnected-connect-themselves The views expressed herein do not necessarily represent those of IDRC or its Board of Governors. International Development Research Centre Centre de recherches pour le développement international Financial support provided by This edition of GISWatch came into being alongside a brand new baby boy. Welcome to the world, Ronan Diga! Published by APC 2018 Printed in USA Creative Commons Attribution 4.0 International (CC BY 4.0) https://creativecommons.org/licenses/by/4.0/ Some rights reserved. Global Information Society Watch 2018 web and e-book ISBN 978-92-95113-06-0 APC-201810-CIPP-R-EN-DIGITAL-296 Disclaimer: The views expressed in the introduction, thematic and country reports of GISWatch are not necessarily the views of APC or of its members. VENEZUELA KEY CHALLENGES TO THE COMMUNITY NETWORK MODEL IN VENEZUELA Maureen Hernández While acquiring foreign currency is an extremely cumbersome process, the system has also changed a lot over the years, which makes it difficult to un- Introduction derstand properly. However, what is not difficult to see is that due to the exchange control system, the The digital gap undermines the development oppor- import of any hardware that could be used in a com- tunities of communities profoundly. The asymmetric munity network is cost prohibitive. distribution and use of communication resources According to calculations by Reuters, the last negatively affects a developing community, increas- update of the currency auction system led to a de- es its vulnerability, and deepens the vicious cycle in valuation of the Venezuelan bolívar fuerte (VEF) of which not having access to information inhibits the more than 100% compared to last year. At the time awareness of this information, and, therefore, the of writing, the official exchange rate – known as the ability to claim it as a right. DICOM rate3 – was fixed at 201,363.84 VEF per euro While, as Ritu Srivastava says,1 the internet has (EUR). a democratising effect on society, this is not always There is no official United States dollar (USD) the case in countries that are authoritarian states, rate, so for this we will apply a simple rule of three. or, such as Venezuela, have features in common At the time of writing, the exchange rate was at EUR with these states.2 0.86 per USD 1: Community networks, defined along clear princi- ples such as non-discriminatory and open access, open • USD calculated rate = EUR rate in VEF x EUR participation and community ownership of infrastruc- per USD rate ture, do not exist in Venezuela – or, if they do, are not • USD calculated rate = 201,363.84 x 0.86 = widely known to the internet community in the country. 173,172.90 VEF The reason for this, as I argue in this report, is The equivalent DICOM rate in USD contrasts with that community networks conceptualised in this the more than VEF 3,524,330.15 that 1 USD was way require certain structural conditions to be in worth on the black market at the time of writing,4 place so that they can flourish. As I point out, at the latter which is the de facto exchange rate for least three areas in Venezuela – the economy, pol- a large part of the economy of the country that icies on access, and laws impacting on freedom of does not have access to the auction offered by the expression – are particularly unsupportive of the government. open community network model found in many oth- This hyperinflation translates into a simple er parts of the world. consequence: the purchasing power of the average Economic factors Venezuelan is almost nil.5 The new minimum monthly salary6 in the Hyperinflation and purchasing power country is VEF 4,196,000, calculated based on 30 Venezuela has a rigid currency exchange control working days for social benefits with five days a system, and to understand the economic problem week as workdays. According to the calculated DI- and how to acquire any equipment not produced in COM rate (VEF 173,172.90/1 USD), the minimum the country, this problem must be understood first. 1 Srivastava, R. (2016). A Network by the Community and for the 3 DICOM is now the country’s only official exchange rate, although Community. In L. Belli, Community Connectivity: Building the US dollars trade on the black market. www.dicom.gob.ve Internet from Scratch. Annual Report of the UN IGF Dynamic 4 On 29 July 2018 at https://dolartoday.com Coalition on Community Connectivity. https://bibliotecadigital.fgv. 5 Chinea, E., & Ramirez, M. (2017, 26 December). Venezuelans br/dspace/handle/10438/17528 scramble to survive as merchants demand dollars. Reuters. 2 Urribarrí, R. (2013). Venezuela: De la Sociedad del Conocimiento https://www.reuters.com/article/us-venezuela-economy/ al Socialismo del Siglo XXI. Paper presented at IV Congreso venezuelans-scramble-to-survive-as-merchants-demand-dollars- Venezolano de Investigadores de la Comunicación, Barquisimeto, idUSKBN1EK0XK Venezuela, 29-30 November. www.congresoinvecom.org/index. 6 dctos.finanzasdigital.com/Gaceta-Oficial-6383-Ajuste-Sueldo- php/invecom2013/INVECOM2013/paper/viewFile/338/353 Minimo.pdf 252 / Global Information Society Watch TABLE 1. Costs of wireless network equipment Device Mercado Libre Venezuela Amazon.com Work time (days)* (VEF) (USD) Xiaomi MiWiFi R3 187,880,5137 39.99 1084.76 TP-Link WDR3600 200,000,0008 49.99 1154.73 Ubiquiti PicoStation M2 368,000,0009 81.49 2124.71 Cost of items on 28 July 2018. wage represents only USD 30, and only USD 1.47 on When we talk about grants or subsidies that we the black market. can apply for in Venezuela, it is important to under- Now let us see how “low-cost” the acquisition stand that the currency received by the organisation of equipment for a wireless network can be in Ven- must be entered into the country legally, that is, at ezuela. We will compare the prices found on local the DICOM rate. This results in a significant weaken- and international markets for some equipment ing of the purchasing power of the funding received. needed for the installation of a LibreMesh10 network To clarify this relationship let’s look at an exam- (see Table 1). ple. A grant of USD 20,000 at the DICOM rate (VEF For local reference we are using MercadoLibre, 173,172.90) would end up having a net value in boli- the Argentine e-commerce platform which is domi- vars of 3,463,458,040 Bs. nant in the region and by far the most popular portal • Funding in bolívars = Amount (USD) x DICOM in Venezuela. This platform is very often the only rate (VEF/USD) way to buy computer hardware locally, due to the fact that formal merchants are subject to econom- • Funding in bolívars = USD 20,000 x 173,172.90 ic regulations and often price-imposing policies by = VEF 3,463,458,040 the government, frequently leading to their closure. We can, further, use this equation: As a reference for global markets, prices on Ama- • Funding in bolívars/Local cost of the item = zon.com are included. The work time is calculated Number of units. dividing the monthly wage by 30 days.
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