| 21st Century socialism |
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| Written by Hannah Stone | |
| Monday, 05 February 2007 | |
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Venezuela's president Hugo Chavez moved further this week in autocratic socialist rule. He has begun to describe himself as a communist since his December re-election, and aims to institute "21st century socialism"; a system involving barter and workers' co-operatives. Chavez's moves to limit private enterprise and to nationalise industries, as well as his wide-ranging welfare programmes, are accompanied by the dramatic centralisation of power in his own hands. Chavez has the power to legislate by decree for the next 18 months, and is preparing a constitutional reform which will allow him to stand for election indefinitely. The planned reform will also remove the remnants of the central bank autonomy, and limit the power of state mayors and governors. Potential sources of opposition have been removed, with the dismissal of the powerful vice president José Vicente Rangel, and the imminent closure of the largest opposition television channel RCTV. Chavez's popularity depends, however, on the continued success of his welfare programmes, which provide health care and low-priced food to Venezuela's poor. This is in turn dependent on the high oil prices, revenue from which provides around half of government income. The oil boom has financed the current high level of public spending, leaving the government vulnerable to a drop in prices. Chavez's threats to seize control of Venezuela's oilfields from multi-national companies seems designed to discourage foreign investment in the country. Far from capitalising on the fortunate oil boom, Chavez is using it to fund unsustainable and inefficient public spending to boost his own popularity. It will all end in tears. |
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