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Venezuela's Chavez Shifts Gears in Leftist Revolution
CARACAS - Undaunted by a slowing economy, Venezuela's still popular President Hugo Chavez is picking up the pace of his left-wing revolution with a relentless raft of nationalizations and an offensive against opponents.
Venezuela's President Hugo Chavez talks to the media after his arrival at Salvador City, capital of the northeastern state of Bahia May 26, 2009. REUTERS/Juan Carlos Solorzano/Miraflores Palace/Handout Hot on the heels of nationalizing dozens of oil service companies in the OPEC nation earlier this month, Chavez ordered the takeover of several large iron makers last week, then snapped up a large bank and vowed to further limit the private sector.
"We are not subordinated to the bourgeoise elite but to the interests of the people," Chavez said on Saturday. "We are proceeding and will continue to proceed with nationalizations of strategic sectors."
In separate moves that erode democratic credentials earned with a string of election victories since he first won office a decade ago, Chavez has also stripped power from opposition mayors and governors this year and harassed an opposition TV station.
His government has already taken over oil projects, along with telecoms, power and steel companies, and there are numerous sectors including food, health and education that could yet feel his hand through tight regulation or nationalizations.
Oil drillers including Halliburton are also potential targets of Chavez's push to build what he dubs "21st Century Socialism" in one of the most Americanized corners of Latin America, where he is popular for spending on the poor.
Despite record oil prices, 2008 was a tough year for the anti-American leader, who lost support following the defeat of a proposed new constitution that would have given him broader powers.
But Chavez has found his stride again this year, winning a referendum that lets him stay in power as long as he wins elections. He has 60 percent approval ratings even as the economy slows and his government struggles to pay bills in the vital oil sector where income has fallen.
He is operating on two fronts, increasing state control of business through takeovers and heavier scrutiny while battering critics with everything from tough policing of marches to threats to punish the fiercely critical Globovision television station.
The government has opened a number of corruption probes, including one against leading opposition voice Manuel Rosales, who fled charges and was granted asylum in Peru.
"I've said it before and I repeat, we must keep up the offensive, bulldozing the counter-revolution," Chavez told party activists in April. "We can no longer be the idiots we were."
'POWER TO THE PEOPLE'
Chavez started his nationalization drive in 2007 during a five year oil boom, when bulging state coffers allowed him to buy majority stakes in oil projects run by foreign companies such as Total and worth billions of dollars.
With oil revenues so far this year at half what they were in 2008, Chavez has warned companies that he may pay for new takeovers with government bonds.
Putting profitable ventures in state hands is a way to bolster financing for social projects, and Chavez recently said his government has recovered its investment in telephone company CANTV two years after buying a $572 million stake from U.S.-based Verizon Communications.
The government agreed last week to pay $1 billion for a unit of Spanish bank Santander, and intends to use its purchase to facilitate credits to farmers and poor families.
Major oil service companies such as Halliburton and Schlumberger Ltd are perhaps the largest interests now at risk of takeovers, since state oil company PDVSA has fallen behind in payments worth hundreds of millions of dollars.
Chavez's critics accuse him of trying to establish himself as a dictator, although he has repeatedly won elections and some of his opponents' own democratic credentials are poor after trying to oust him in a 2002 coup. They also closed down the oil industry for months, and then sidelined themselves by boycotting legislative elections.
Still, Chavez has clearly clamped down following opposition wins in major cities and states in regional elections last year, stripping Caracas's new mayor of power over half the capital and naming his own unelected representative.
Chavez, who has a taste for fiery rhetoric and military uniforms, first tried to take office in a 1992 coup, but he denies he is power hungry.
"The bourgeoise accuses me of accumulating power. I am not accumulating power, I want nothing for me, everything is for the Venezuelan people," he said.
Additional reporting by Enrique Andres Pretel; Editing by Kieran Murray
146 Comments so far
Show AllHe buys these companies outright. Takeover might not be the best word to describe the state's acquisition.
But, like any government takeover of business, the people sent to run it may not be the most qualified to do so and they may not think competitively or be motivated to make a profit.
The U.S. is taking over banks and auto manufactures. We are doing the same thing except these institutions were failed!
When we do it, it's OK because we are dong it for the elite. Besides, we are not giving the banks anything. They control the government via the Internal Revenue System, and they are simply making sure that power and wealth stays in the proper hands. If someone here in the States tried to do what Chavez is doing, we would have the national guard and the armed forces patrolling the streets while 'proper government' was restored. It's true that capitalism has failed in the United States. Now our masters are going to take off the kid gloves.
I wouldn't call it takeover, I would call it... re-nationalization.
You will always have qualified and un-qualified people in any organization.
And I would actually consider government/non-profit to be more efficient than the private sector in certain cercumstances.
Just because an institution is making money does not mean it is a 'good' business.
a lot of those private business's were holding back development.
"Just because an institution is making money does not mean it is a 'good' business." Who says private industry is making any kind of money? After the recent bubble bursting bonanza, I would think there is a strong argument that private industry has destroyed wealth in America, not "made money."
"But, like any government takeover of business, the people sent to run it may not be the most qualified to do so"
But, like any business takeover of business, the people sent to run it may not be the most qualified to do so
But, like any business takeover of government, the people sent to run it may not be the most qualified to do so
But, like any business takeover of society, the people sent to run it may not be the most qualified to do so
"and they may not think competitively or be motivated to make a profit"
And they may not think cooperatively or be motivated to serve the society's better interests.
On the far left, we prefer the government take over the businesses if this is the only way to make them think cooperatively and serve the society's better interests. Thanks, Bill, for this opportunity to further illustrate the far left platform, shown by polls to be favored overall by USans.
>>But, like any government takeover of business, the people sent to run it may not be the most qualified to do so and they may not think competitively or be motivated to make a profit
How are these PROFITS achieved? By polluting the Enviroment as they did in Nigeria and Ecuador? By paying workers slave labor wages? By hiring goons to kill labor leaders?
Where do these profits go to?
Firms on wall street that pay CEOS 200 million in bonuses? The already wealthiest of the worlds "Investors" while the peoples whose country they extract the wealth from live in Poverty?
What are they profiting FROM?
It is exploitation, destruction of enviroments and the resources of another country.
Why should people in Nigeria, Venezuala and elsewhere live in poverty so that Investors in Europe and North America can make profits?
Is profit always a dirty word? Nope. But it certainly is in the case of the Exxons, The Shells, The Chevrons and the Halliburtuns of the world.
The more the USA does dirty operations in Venezuela, the more authoritarian Chavez will have to be to protect his country from another USA violent overthrow and enthroned dictator.
Sad but true. Ask Castro the price for separation from capitalist USA. As the flower children found out in the mid-60s, you can't have utopia with the rest of the country ready to tear you apart and sell you as mementos.
True, if history is any indicator of what is to come...
I'd like you to put your money where your mouth is and explain WHY.
"His government has already taken over oil projects, along with telecoms, power and steel companies, and there are numerous sectors including food, health and education that could yet feel his hand through tight regulation or nationalizations."
Lets deconstruct this alarming list:
"His government has already taken over oil projects...
Most oil-exporting countries have nationalized oil industries
...along with telecoms, power...
Anyone who travels out of the US knws that telecom and power are nationalized in most countries of the world. Telecom used to be effectively nationalized here too (the tightly regulated Bell System) and power was nationalized an a lot of places too - Bonneville Power Administration, TVA, many municipalities. Water too, from local towns to the Bu-Rec.
Service is generally better and cheaper when utilities are run by the government.
...numerous sectors including food, health and education...
In all civilized countries in the world outside the US health is nationalized. Publicly-run education is a prerequisite to be called a democracy at all.
As far as food, when I was Venezuela, vast amounts of arable land sat idle growing brush. The climate is dry (much of the interior of Venezuela looks like central Texas), but the Mississippi-sized Orinoco River flows just to the south, untapped. They even had to import tomatos. Looks like "free markets" were failing Venezuela as far as food security. Time to try something else.
In Lincoln County in the state of Oregon, we have PUBLICLY OWNED utilities, which include telecom and power. Indeed, the customer discovers s/he is an OWNER/SHAREHOLDER of the COOPERATIVE as soon as service is initiated. This setup gives us great service and ratesbecause there aren't any NYSE-type "investors" and their associated "managers" demanding big profits to pay their inflated salaries and unearned incomes.
Reuters is highly biased as usual, but this item actually represents a large improvement.
Here in SE MN my electric supplier, telephone company and farm input supplier/grain buyer are all cooperatives. I feel very fortunate that those who lived in this area before I was born, took the initiative to do this. Good things can happen when a few people with good ideas, get together.
Will the Real Hope & Change candidate please stand up...?
Viva Chavez...! Viva la Revolucion de Bolivar...!!!
I love this man and wish he would take over the United States.
amen
Sorry, Chavez is NOT an imperialist.
The purpose of an economy is to benefit society, not just to make sure the wealthy stay wealthy.
The maxim, "The devil is in the details," applies writ large here. Additionally, how has Chavez's government done in delivering basic services, improving the standard of living for the vast majority of the population, & preparing Venezuela for the day when their oil reserves runs out? The jury is very much out on those counts.
What jury is out, Nate?
When YOUR standard of living improves, and YOUR country does something for the vast majority of the population, let's hear from you again.
That'll be the day.
Quite the petulant response from not too active poster assuming facts not in evidence with the purpose of obfuscating the question posed. That is usually the response of someone whom is invested in such a way as to cast doubt upon their motives.
So when you actually attempt to answer the question posed in a rational reasoned manner instead of a childish tactic borrowed from the US troglodyte right, that will be the day.
Since when is anyone obligated to answer your question?
Venezuela's president owes you no answers, nor explanations.
He sees folks from the US for what they are: arrrogant buttinskys.
What about YOUR country, oh childish tactician? What's it doing to insure ANYTHING for its people?
Personally, all I see are bakruptcies and foreclosures and bottomless bailouts of completely failed businesses. Venezuela is buying businesses that are not bankrupt--and not bailing out losers.
YOUR country is in recession.
Venezuela is not.
That should tell you something.
Or maybe you prefer to wrap yourself in the Patriot Acts and sing US ubér Alles.
Sigh....
"Your country isn't doing well, therefore youir opinions are of no value." Implied- "so shut up".
Incorrect. The value of his opinion, or of anyone else's, can be ascertained from examination AND DISCUSSION of the opinion itself, its implications, and comparison with history. This is a discussion board under an article, intended for, I believe, discussion. Telling people to shut up defeats that purpose. If he is wrong, explain why he is wrong. Since the thrust of his post is a question, I fail to see how he can be proved wrong in any event.
If NateW were responsible for the policies of the US for the last decades, or if his opinions were similar to those policies, an examination of his comment in light of those policies would be apt. But is not, and they are not. As it is, I harbor some suspicion that most posters on this site disagree with those policies. To claim that an American's (please no yelling about that name- you know darn well what I and 99% of the world mean by it) opinions are invalid merely because America's policies are incorrect is foolish. For that matter, I see nothing in Nate's post that indicates that he IS an American, other than a handle that includes an English name and the fact that as this is an American-run website, it is probable most posters are American. I am, in the interests of full disclosure.
Nate had the temerity to question a world leader's policies. (Question a government's policies, that sounds familiar- where have I heard people urging that?) If you think Chavez's policies are good, answer his question and defend them. If you think the question is beneath answering, don't answer it. But since some of us have a prejudice in favor of a polite and enlightening discussion of ideas, don't descend to changing the subject with incorrect assumptions and an invalid argument that amounts to "You're an American, so your opinions have no value! Shut up!"
Incidentally NateW, I loved your response. Elegant.
Right.
I see.
If you live in the US, you have the right to free speech entailing , but if I, a US citizen and longtime resident of Latin America, choose to post that perhaps USites should be looking at how to sort out the mess in their own country instead of criticizing the government of a country that they have never visited and know nothing about and who are only spouting US MSM propoaganda, I do NOT have the right to free speech?!
You need to learn to READ, as at no point did I tell Nate to shut up.
Lying about what I post, BTW, is NOT polite.
The fact that the US sucks in most every way does not mean all 'mericans are buttinskis or anything else. We're a diverse group of individuals.
But this is beside the fact that Chavez has indeed shown authoritarian instincts in his treatment of any and all opposition, for which I'll criticize him any time anywhere.
Anyone who acts as though they are impervious to criticism, be that yourself or Chavez, only shows that they are lacking in intelligence. Not that you have to be a genius to run a country. I applaud Chavez for standing up for poor people, but I can't applaud his attempts to run for president indefinitely.
And to watch him on television during those council meetings (or whatever they call them) berating his own followers, taking all the credit when things are working and none of the blame when something isn't, it makes him look ridicules and arrogant. His arrogant attitude undercuts those worthy goals. Chavez should ask himself what is more important, political posturing on TV or lifting poor people out of poverty.
Johnny J-Rock
When you finish sorting out the devil in the USA's details, then you can start in on Venezuela.
Talk about "moral hazard." We nationalize failed corporations at taxpayer expense and let the fraudsters run free while foreclosures continue apace. Why not take a tip from Chavez and nationalize Exxon? Or Time-Warner for that matter (we could only improve their programming...).
-30-
What a Great Idea!
Let's Nationalize Exxon and merge it with BofA. Might even balance out both!
TJ
"All tyranny needs to gain a foothold is for people of good conscience to remain silent." - Thomas Jefferson
There are some critical aspects to this story that were not included in this article.
Some highlights from another article:
"To the cheers of the workers, Chavez announced the nationalisation of six iron briquette, ceramics and steel companies, one after the other.
He said this started “a process of nationalisations” aimed at creating an integrated basic industry complex as part of building socialism.
Chavez also said it was necessary for there to be workers’ control along “the entire productive chain”. Plans for the industrial complex had to be “nourished with the ideas of the working class”.
Throughout the day, workers from local steel, aluminum and iron companies raised demands for greater worker participation in managing production, more nationalisations, and the need to sack corrupt and counterrevolutionary managers."
"Chavez said he would approve a new law to allow workers to elect state company managers.
“Every factory should be a school, in order, as Che said, to create not only briquettes and sheets and steel and aluminium, but also, above all, new men and women, a new society, a socialist society”, he said.
Chavez also called for workers to organise an armed militia. Worker battalions in each factory should be equipped with weapons “in case anyone makes the mistake of messing with us”."
“During a recent surge in land reform measures, Venezuela’s National Institute of Lands (INTI) [took] public ownership of more than 5000 hectares of land claimed by wealthy families and multi-national corporations.”
INTI said it would review tens of thousands more hectares as part of its drive to ensure fertile land is directed towards food production for social needs, rather than corporate profits."
http://www.globalresearch.ca/index.php?context=va&aid=13789
Viva La Revolucion
Excellent! Even Eric Parecon-purity Patton would agree with these moves.
Thanks for posting that!
wow,
What a post solrey. This is what we should do. Overthrow the Fortune 500 and seize all their assets. Then break them up into a million little local co-ops owned by the people.
I like it.
TJ
"All tyranny needs to gain a foothold is for people of good conscience to remain silent." - Thomas Jefferson
This article is crap... oh, it's from Rueters... to be expected, i guess.
"Chavez, who has a taste for fiery rhetoric and military uniforms, first tried to take office in a 1992 coup, but he denies he is power hungry."
I couldn't help but notice that the author of the article is doing his best to paint Chavez as the next Stalin-type-dictator... the quoted sentence says it all.
I have met two different Venezuelan people in the past year. I asked both of them what they thought about Chavez. One said she hated him, and the other said he thought he was doing good. After further questions I found out that the girl who hated Chavez was from a wealthy Venezuelan family, and the guy who liked Chavez was not wealthy and was working as a lift ticket scanner for a ski resort in CO for the winter.
I don't recall Chavez ever wearing a uniform...
You have never seen Chavez. He is a Lt.Colonel, retired. And he is proud to wear his army fatigues.
I am really offended by Common Dreams' continued re-printing of anti-Chavez rants from the MSM.
Just one example of rightwing rhetoric in this article:
"In separate moves that erode democratic credentials earned with a string of election victories since he first won office a decade ago, Chavez has also stripped power from opposition mayors and governors this year and harassed an opposition TV station."
Wrong. The opposition t.v. station, Globovision, which took over the ankle-biter and inciter to murder the president role of RCTV when its license was not renewed, has continued to harrass Chavez--with irresponsible fear-mongering and threats against his life.
It is becoming more and more clear, given its constant harrassment and banning of progressive posters and its hate reprints against Chavez, that Common Dreams is just another rightwing site funded to serve as a safety valve for discontent.
I think they're just picking up news stories based on the topic, not the slant.
But I agree, Reuters is crap, and it bothers me.
Although sometimes Reuters is OK:
http://www.reuters.com/article/artsNews/idUSTRE49F5MX20081016
:)
Thank you, solrey. I read a lot of spin in the Reuters article. They're managing to hint that he's grabbing private property when he's actually purchasing them. I think the US should take his buying a bank to make loans to farmers and the poor as a model. But I thought all along we should do that for small farms and businesses. Now more than ever.
The TV station Chavez shut down had been fomenting treason. And the US under Bush, up to it's usual tricks, had been supplying insurrectionists. I'm assuming that Obama isn't shaking hands with Chavez while knifing him in the back.
When the people fear their government there is tyranny,
when the government fears the people there is liberty.
~ Thomas Jefferson
I wouldn't be too sure. Empire is very insistent.
I like the guy, he has delivered heating oil to some villages in Alaska that are forced to pay exhorbitant prices, and even as an oil state, do you think our government or corporate leaders would mandate some reasonable cost? No way...and Exxon still got away with destroying the environment and thousands of lives here after the oil spill with a veritable slap on the wrist and the Supreme Court on their side. If we are to survive as a species, we will have to work together, and NOT for profit driven destruction for earth and it's creatures, including us.(Wow, what a concept!)
Amen.
I was living and working as a Public School Teacher in a rural Eskimo village (Yu'pik) in Alaska at that time. Every household received a 55 gallon drum of heating oil - complements from Venuzuela! It is interesting to note that the USA government (or the State of Alaska!), does nothing to provide heating oil in remote Alaskan villages at reasonable cost. Indeed, the people were very grateful.
Viva Chavez!
Michael Edison
http://www.michael-edison.com
Yep, you gotta love the guy. He make fuel available for something like twenty cents/gal to the people. I hope he kicks phucking Haliburton out of there!
TJ
"All tyranny needs to gain a foothold is for people of good conscience to remain silent." - Thomas Jefferson
Well that's fair and balanced news reporting. And that here on CD. The oil companies privatized are the kind of companies that divided profit like this: 90% to the USA and 10% to their own bankaccounts. And that TV station continously sends out propaganda showing you the benefits of slavery and that Chavez is a nazi.
While I am a huge fan of Chavez, I fear that moves such as undermining the independence of the military and the power of duly elected opposition party members in Venezuelan public office may damage the chances of his nation developing into a healthy democratic society. Chavez may himself be a well intended and progressive leader with the best interests of the Venezuelan people in mind, but without strong and stable legal, social, and political institutions of governance in place, the next national leader to step into his place could easily mutate into a less well intended dictator. If I were a Venezuelan, that is something I would be worried about.
But you aren't a Venezuelan, now, are you?
Those of us who live in Latin America are pretty darn tired of gratuitous concern from folks in the US.
Well said, although in his defense, we (the posters here) are not a bourgeois mouthpiece like CNN, expressing its gratuitous "concern" over Venezuelan "democracy"; we are a discussion board for at least moderately progressive people. If we can't critically discuss Chavez here, there aren't a lot of places we can.
But I agree that it smells funny given the long history of U.S. military and covert imperialist crimes against Latin America. I would be a lot more comfortable with the criticism taking place if there wasn't such a large majority of Americans posting here--it is easy to get into groupthink and let the MSM line go unchallenged. I have indeed seen some truly disgusting lies about Venezuela made by CD posters in the past.
I believe military is supposed to be subordinate to civilian in a Democracy.
Who wrote this uninformed right-wing garbage?
Maybe it is time that the people took over Reuters and the other propaganda conduits for
the global empire !
I very much appreciate this website and the work done here at Common Dreams. But I share in the puzzlement expressed by many in these comments as to why CD would so consistently post such blatant disinformation about the actions and policies of Chavez.
It would help if the people from CD wrote and posted an explanation in their own words.
They have consistently reprinted anti-Chavez rants--even from the Miami Herald, for God's sake.
And this despite the fact that Venezuelanalysis.com publishes reasoned analyses on a daily basis--in English--many from on the ground in Venezuela.
I stand by my theory that Common Dreams is dirty.