Friday, June 10, 2011

The Venezuelan Migration to Columbia


from Semana
"The best president that Columbia has ever had is Hugo Chavez," states a refined Venezuelan lady of the Caracas elite who decided to move to Bogota. "Thanks to him, the best prepared Venezuelans with money to invest are here today."

And it's true. The presence of Venezuelans in Columbia, and Bogata in particular, have ceased being a simple curiosity and have transformed themselves into a veritable phenomenum. And although many Columbians could not have predicted it, what is happening is interesting because this is one of the rare cases of high impact immigration into Columbia in her two centuries of republican history.

The exodus made it's first pronounced imapct in 2005, when petroleum experts who had been laid off from PDVSA in mass began to arrive. But in reality, the peak was in 2011, when every day 46 entry visas are approved for Venezuelans to live in Columbia.

In spite of becoming a diaspora in less than five years, we have to say that they have left a significult hole in the infrastructure of that country. And it remains to be related is how a bunch of fired employees from PDVSA have presided over a veritable petroleum boom in Columbia over these past few years.

But the Venezuelans haven't only inserted themselves in the midst of the heart of the economy. Last week opened two new super film productions of Caracol and RCN, and in both Venezuelans without papers appeared: in "the witch", Gledys Ibarra is "la negra" and in "El Joe", Andres Suarez is Francisco Vergara, to cite two recent examples.

But in whatever sector you look, you'll see a Venezuelan. From the more exclusive art galleries, to other more popular venues like in the spectacular musicals and comedies. "The La Cometa gallery is featuring for the next few months the Venezuelan Carlos Cruz Diez, one of the masters of optical art in the world who has sold 41 works so far at prices reaching 120,000 Euros. About half of the works were purchased by Venezuelans. Today I'm happy with them," said Steven Jaramillo, gallery owner.

Venezuelans have also entwined in the daily life of Columbians. Like the Health Store retailers Locatel and Farmatodo, whose owners brought them with them. Or restaurants and cafes like "Picollo Venezia", and "Ciboulette", and "Positano", "Budares", and "The Venezuelan Areparia", and "Sueko Bread", and "Andrea's", to mention a few recently established by Venezuelans. A magazine, "The Librarian" was launched in Columbia by the recognized journalist Sergio Dabhar, ex-director of the daily "El Nacional de Caracas". And even a member of the Academy of Language from the neighboring country, Rafael Arraiz Lucca, who today is now a university professor in Columbia.

The 1st Wave: The P Factor

This new migration is so interesting because after only a few years a few Venezuelans, not to mention any individually, decided to fix their eyes upon Columbia. On the contrary, there had been evident antagonism. "The Venezuelan did not see Columbia as an option for tourism or investment. In Venezuela arrived the worst of the poor: undocumented Columbians, without skills and looking for work", explained the Venezuelan.

What was it then that lead to a change of opinion? From the beginning, above all classes, middle and high that fled Chavez, most sought refuge in Miami. But around 2005, the oilmen started to open their door.

It all began towards the end of 2002 when workers from PDVSA united to ask for the resignation of president Hugo Chavez. It was one of the most critical episodes of the now long legacy of Chavez climb to power. The companies losses that year were calculated to be more than $10 million and the president, without a second thought, in a huff laid off some 18,000 employees, including those who had made the oil company the third largest in the world.

All those minds, filled with experience, now looked for other markets. And that is how they came to Columbia, first Luis Giusti (preident of PDVSA from 1994-1999), later Ronald Patin (the 2nd from the oil company since 2000) and Humberto Calderon Berti (who had been president of PDVSA, chancellor of Venezuela and president of OPEC) arrived. They created the three firms who have shaken the world of hydrocarbons in Columbia, Pacific Rubiales, Alange and Vectra.

Between the three are produced a large portion of the crude oil in the country. But the most important thing that they were the front line protagonists is the increase of the petroleum industry in Columbia which according to government sources this week, is now close to a millions barrels of oil a day.

The three oil men consulted by SEMANA agree that when they arrived in Columbia as a result of changes in the oil production model created by the National Hydrocarbon Agency which created a favorable climate for investment. With them arrived a litter full of engineers, geophysicists, and all kinds of other well qualified scientists. In the immigration records one can note the first great leap in 2004, when Venezuelans created the first company, in this case Pacific Stratus. "According to information given, there could be as many as 1,300 Venezuelan oil workers," said Luis Giusti to this reporter.

Three years later, they bought Petro Rubiales, and in 2008 fused the two companies and there was born "Pacific Rubiales". To give you the idea of dynamism which the neighboring Venezuelans imprinted upon the petroleum business one needs to listen to what Pantin says, president of Pacific Rubiales: "When we came here in 2007, the company produced 24,000 barrels and by the end of the year we were producing 275,000 barrels. Columbia then produced 560,000 barrels per day and today produces close to a 900,000."

And Humberto Calderon, president of Vetra, added: "Columbia was delayed many years due to a lack of human capital, which has now arrived. To make a good petroleum engineer takes 15-20 years, and those that arrived in Venezuela were persons with 30 or more years of experience."

Without a doubt, thanks to these oil workers, the word of mouth spread to Caracas that Columbia was a great port.

The 2nd Wave: To Save their Money!

Regardless, the most pronounced effect of the exodus has been made in the past few months. While in 2004 Venezuelans visas were given to about 2 people a week, by the middle of 2010 it was 163 and now in 2011 it has reached 230.

If in the first wave that arrived in Bogata were petroleum experts fired under harsh weather by Hugo Chavez, in the second wave were all the bourgeoisie that had been denounced by him and who now fled terrified. Chavez: "Stateless bourgeoisie, since economic war was declared on me. Then I declare the war económic" , it said in June of the past year. "We are going to see who can produce more: if you, bourgeois of junk, bourgeois without mother country, or us, I expect."

Excited with that battle cry, Chávez first eliminated the parallel dollar or 'exchange permitted', which much more made the access difficult of people to obtain the currencies they needed to make businesses or to move their savings out of danger, considering that was living with an inflation of the 30 percent. And later, in December, it confiscated from industralists six residential sets that were in construction and eight more then pending.

For that reason it doesn't seem strange that there was created a particular interest on behalf of the Venezuelans to make businesses in Colombia. They come openning restaurants, to install businesses, to buy property, root. What matters to them is to save whatever money that they have left.

And for that reason also, those that landed in Bogota were members of the refined Venezuelan bourgeoisie. Last names like Oteiza, Pocaterra, Priange, Machado, Mussi, Cohen, Mishaan and others that have been presidents, ministers, of the bank, of the stock-market, of the arts or are of the intellectually outstanding of that country. Although, if one notices of them, "in Colombia arrived not only the powerful ones, but also the children of "potentially powerful".

Proof of this is that in the walled city of Cartagena, for example, Venezuelans have bought five old mansions, as well as one of the best boutique hotels.

Camilo Herrera, manager of the consulting firm Raddar, said to Money Magazine that in the history of its company there had not had so many inquieries as those that have been received since October of 2010. "We have received requirements from at least 15 companies or Venezuelan investors interested in market studies and business consultions".

A similiar frenzy has been felt in the real estate sector. An alliance of the main manufacturers of Colombia, that is appropriately called Own House Colombia G-5, and the Web page mudateacolombia.com has made only this year four fairs in Venezuela. And also it was already created a binational writing desk of lawyers, Arciniegas, Briceño and Plana, that tries to help Venezuelan investors to settle down in Colombia.

The situation has reached such point that the main food company of Venezuela, Polar, in spite of having its headquarters in the neighboring country, now exports from Colombia. In addition, within the last months have arrived or announced that are going to relocate to Colombia are the Dipromuro group (concessionary of vehicles), Ovejita (a traditional mark of clothes), Proseín (multinational of remodeling) and Valmy (cosmetic), among others. All to establish production plants or retail outlets. In this way, the things are not easy for all. Some, like those of the Cotti coffee, have not resisted and have been closed.

We are without a doubt in the middle of a new phenomenon in Colombia. The exodus of people from other nationalities has not been common in our country. The great migrations were those of afro-Spaniards during la Conquista. And those of Arabs - Syria, Lebanese and Palestinian at the end of nineteenth century. The rest have been of smaller scope, which at most have gotten to become expatriot colonies that can have an impact in localities, but they do not permeate the society. That was, until the Venezuelans came.

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