Chávez announces renationalization of public enterprises

Venezuelan President Hugo Chávez began a new six-year term on Jan. 10, after announcing that the renationalization of public enterprises would be the first "line of attack" to promote socialism in Venezuela. In front of a packed national assembly he accepted the presidential sash, raised his right hand and declared: "Fatherland. Socialism–or death! I swear it." After a pause, he added: "I swear by Christ–the greatest socialist in history." Chávez said that the past eight years of his rule laid the groundwork for what will henceforth be accelerating radicalization on the principles of Trotsky's permanent revolution. He said: "We have hardly begun. It will be permanent." Chávez is planning to carry out rapid social and economic reforms, and will ask Venezuelan Congress for special powers for one year for this purpose. All 167 members of the legislature belong to government coalition parties, as the opposition boycotted the 2005 parliamentary elections. The first companies that will return to state hands are the electric utilities the largest telecommunications firm, and some oil partnerships, according to Chávez, although he did not give details, which has caused jitters among investors. The Caracas stock market plummeted on Jan. 9, falling 18.66 percent on the Caracas share price index which dropped from 62.012 to 50.438 points. At that stage, trading in National Telephone Company (CANTV) and Caracas Electricity (EDC) shares was stopped. "Everything that was privatized will be nationalized," said Chávez in a fiery speech after swearing in the new Vice President Jorge Rodríguez and 27 ministers on Jan. 8. There are about 10 new faces in the cabinet, which is characterized as "hardline" and committed to state-directed reforms. According to Chávez, this is about "regaining control of strategic sectors, such as communications, water and electricity." He said that when CANTV was privatized in 1991, the officers who later joined him in his aborted 1992 military coup already took a poor view of the measure. He also said that he would regain state control of deals with US oil companies ExxonMobil, Chevron-Texaco and Conoco-Phillips, French oil firm Total, British Petroleum and the Norwegian Statoil. He announced that the Central Bank's autonomy would be revoked, and on the political front said he wanted to reform the constitution "to make faster progress" towards socialism, increase the powers of local councils and review laws to seek more balanced development for different regions of the country. There will be legal reforms in education, Chávez said, "to demolish the old values of egotism, individualism and capitalism." As well as announcing these measures, the president took issue with the secretary general of the Organization of American States, José Miguel Insulza, after he criticized the Venezuelan government's decision not to renew the broadcasting license held since 1953 by the private channel Radio Caracas Televisión, which takes a staunchly opposition line. Insulza "is a 'pendejo' [idiot], from the P to the O, to behave as though he were a viceroy for the empire. He should be ashamed of himself and resign," Chávez declared. Chávez also took up cudgels with the Catholic hierarchy. His answer to Catholic bishops demanding explanations about the government's proposals for "21st century socialism" was: "Do you want me to explain it to you? Go and study for yourselves, monsignors, look it up in the books of Marx and Lenin; read the Bible."