Bloomberg Talks: Ricardo Hausmann Talks Venezuela

Episode Date: January 6, 2026
Host: Bloomberg
Guests: Ricardo Hausmann (Harvard University), Paul Sweeney

Overview

This episode features economist Ricardo Hausmann in an in-depth discussion about Venezuela’s ongoing political and economic turmoil. Drawing on personal history and Venezuelan political developments, Hausmann lays out a critical analysis of current U.S. policy towards Venezuela, the structural challenges facing the country, and what the Venezuelan people truly want. The conversation is candid, sharply critical, and rooted in both Hausmann’s family history and his expertise in development economics.

Key Discussion Points & Insights

Hausmann’s Family History and Venezuelan Roots

• [00:39–02:21]
  • Hausmann recounts his parents’ escape from WWII Europe to Venezuela.
    • His father, a Holocaust survivor, came to Venezuela via Spain.
    • His mother survived Nazi occupation in Belgium, was liberated by U.S. forces, and later joined family in Venezuela.
  • Venezuela "was this heaven," contrasting with war-torn Europe.
    • Quote (Hausmann, 01:52):
      “So when I grew up, Venezuela was this heaven. And well, I have this image of Europe as this horrible place where my parents had come right from.”

Critique of U.S. Policy Towards Venezuela under President Trump

• [02:21–04:28]
  • Hausmann’s recent essay calls the U.S. President's approach "delusional."
  • He explains oil extraction is not just technical; it's about property rights and trust in long-term investment.
  • Questions the legitimacy of Venezuela’s current government and highlights instability in property and contractual rights, which deter genuine recovery.
    • Quote (Hausmann, 02:42):
      “If [oil extraction] was a technical issue, Venezuela would be a powerhouse. But the reason why oil production... collapsed is because oil is a long-term investment proposition... you have to be assured that you have some property rights that are going to be respected.”
  • Argues democracy is a means to economic recovery, not a byproduct.
    • Quote (Hausmann, 04:08):
      “Democracy is not a goal to be put after economic recovery. Democracy is an instrument of economic recovery.”

Venezuelan Popular Sentiment and Elections

• [04:45–06:54]
  • Paul Sweeney probes what average Venezuelans want.
  • Hausmann responds that, when allowed, Venezuelans overwhelmingly voted for change (e.g., Maria Corina Machado winning >90% in primaries).
  • The government restricted participation (e.g., by barring overseas voters and 3 million new young voters).
  • Venezuelans are unified politically and would choose a competitive framework to spur an oil boom if free to choose.
    • Quote (Hausmann, 05:19):
      “Venezuelans are unified politically in a new direction. If you allowed Venezuelans to choose, they would choose a very competitive legal framework for oil and they would engineer an oil boom.”

Current Power Structure and Challenges

• [06:54–09:16]
  • Skepticism over the U.S. administration’s belief in being able to dictate terms or forcibly impose solutions.
    • Quote (Hausmann, 07:04):
      “What they think they can is to say either you do what I tell you or I kill you because I have drones... I can kill you, so you better do what we want.”
  • The necessity to work with legitimate Venezuelan democratic actors, not the current leadership.
  • Emphasis on the immense respect Maria Corina Machado commands.
    • Quote (Hausmann, 07:54):
      "I challenge you to mention somebody in the world who's more respected than Maria Corina Machado."

The Military’s Role and Corruption

• [09:16–10:44]
  • Venezuela’s military is labeled as a "narco-terrorist" organization at the top, with some in the ranks yearning for democracy.
    • Quote (Hausmann, 09:19):
      “The military of Venezuela is led by, by a narco terrorist organization and they're still in power.”
  • Calls for removal of figures like Yozdado Cabego (head of police) and Vladimir Padrino (Minister of Defense) who are named as heads of the criminal cartel, "el Cartel de los Soles."
  • Ongoing human rights abuses, including imprisonment of journalists and rising numbers of political prisoners.
    • Quote (Hausmann, 10:30):
      “They are now in charge of the country, and they are the ones who are who yesterday put in prison 12 journalists so that the number of political prisoners in Venezuela is going up, not down.”

Pathways for Change and Outlook

• [10:44–11:38]
  • Skepticism that popular uprising alone will produce change, as previous efforts failed to oust Maduro by themselves.
  • Initial optimism regarding U.S. involvement but concern about the vision outlined by Trump, which seems disconnected from Venezuelan realities or aspirations.
    • Quote (Hausmann, 11:07):
      "The statements of Trump after At Mar a Lago and afterwards were extremely disempowering and concerning. They described a vision for the future that I do not think is going to work."

Notable Quotes & Memorable Moments

• Hausmann on democracy and economic recovery
  • 04:08: “Democracy is not a goal to be put after economic recovery. Democracy is an instrument of economic recovery.”
• On U.S. policy and local legitimacy
  • 07:04: “What they think they can is to say either you do what I tell you or I kill you because I have drones... so you better do what we want.”
• On Maria Corina Machado's standing
  • 07:54: “I challenge you to mention somebody in the world who's more respected than Maria Corina Machado.”
• On current leadership and repression
  • 10:30: “They are now in charge of the country, and they are the ones who are who yesterday put in prison 12 journalists so that the number of political prisoners in Venezuela is going up, not down.”

Key Segment Timestamps

• 00:39–02:21: Hausmann’s family history; Venezuela as refuge.
• 02:21–04:28: Critique of U.S. and Trump’s approach to Venezuelan oil and democracy.
• 04:45–06:54: Venezuelan popular vote for change and blocked democratic channels.
• 06:54–09:16: Power dynamics, need for real engagement with opposition, corruption at the top.
• 09:16–10:44: Military’s role, repression, and drug cartel connections.
• 10:44–11:38: Prospects for popular uprising and critique of U.S. post-Maduro strategy.

Takeaways

• Venezuela’s crisis is deeply political, not just economic or technical.
• Democratic legitimacy and restoration of property rights are essential to any recovery.
• Popular will in Venezuela is clear, but current structures suppress change.
• U.S. approaches predicated on force rather than empowerment of local democratic actors are flawed.
• The current regime is entrenched with criminal and repressive elements.
• Hausmann calls for realignment with Venezuela’s democratic majority to accomplish meaningful change.

This summary covers all major discussion points and offers direct access to Hausmann’s perspective, invaluable for listeners seeking a clear, sharp understanding of Venezuela’s present and future.