The New Venezuela of President Hugo Chávez: Ten Years of Bolivarian Revolution

[Judi Lynn]

The New Venezuela of President Hugo Chávez
Ten Years of Bolivarian Revolution
January 31, 2009 By Salim Lamrani

Another clear victory scored by President Hugo Chávez in the regional and municipal elections past November 23. His political formation, the United Socialist Party of Venezuela (Partido Socialista Unido de Venezuela (PSUV)), emerged victorious in 233 municipalities (80%) and in 17 states (70%). In terms of the number of votes, he obtained 53,45% compared to 41,65% of the votes cast for the diverse opposition candidates. Furthermore, the latter (opposition) lost 555,442 votes compared to the December 2007 referendum whereas the PSUV wins 694,342.

Since his election ten years ago, Hugo Chávez set about an ample transformation of Venezuela. His main objective consisted in improving the living standards of 70% of the population who lived below the Poverty Line. On the occasion of this tenth anniversary, we offer a first record of the main reforms.

Hugo Chávez is a President who is held in high esteem by his people. In a survey conducted in September 2008 he obtained 69% of favorable opinions. Chávez is also the President who can credit himself for having the strongest democratic legitimacy on the continent. In fact, he won ample victories in three successive presidential elections in 1998, 2000 and 2006 with more than 60% of the vote, and in a recall referendum in 2004 with 59,1% of the votes cast. The most eminent international institutions welcomed the transparency of the electoral processes. The only shadow in this picture: the defeat of the constitutional reforms in the referendum of December 2007 that ended twelve consecutive electorate victories obtained since 1998. (1)

The popularity of the Venezuelan leader becomes evident given the spectacular economic and social reforms that resulted in improvement of the living standards of the population. Nevertheless, things were not easy for Chávez. Being victim, in April 2002, of a coup d'état orchestrated by Washington, he was saved by an extraordinary popular mobilization. Later on, in 2003, he had to confront the sabotage of the petroleum infrastructure that cost the national economy $10,000 million, and he still continues to confront multiple destabilization attempts. (2)

Nationalizations

In 2003, the Bolivarian government managed to regain control of the state-owned oil company Petróleos de Venezuela S.A. (PDVSA), back then in the hands of the oligarchy, and the country's energy supplies, by nationalizing the hydrocarbons. PDVSA is now owner of at least 60% of the new mixed-companies. On the other hand, in May 2007, the Venezuelan government proceeded with the nationalization of the Orinoco oil belt that is economically very lucrative and comprises the world's most significant oil reserves. (3)

Prior to that, the multinational oil companies were drilling for a barrel of oil at the production costs of $4 and sold it back to the Venezuelan state for $25 for its commercialization, thus making substantial profits. The new system allows the state to save $3,000 million for the production of 500,000 barrels per day through the oil concessions in the Orinoco oil belt. These nationalizations allow the country to have at its disposal currently additional revenues for more than 400,000 barrels of oil per day. (4)

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