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In Which We Discuss How Things Are Going To Get Even Worse For Venezuela

Posted by Pejman Yousefzadeh on Sat Nov 17, 2007 at 05:57:01 PM EST

Hugo Chavez is about to have a referendum in which he will order ask Venezuelans to condemn their country further to poverty and desperation. This report makes for incredibly depressing reading:

In two weeks, Venezuela seems likely to start an extraordinary experiment in centralized, oil-fueled socialism. By law, the workday would be cut to six hours. Street vendors, homemakers and maids would have state-mandated pensions. And President Hugo Chávez would have significantly enhanced powers and be eligible for re-election for the rest of his life.

A sweeping revision of the Constitution, expected to be approved by referendum on Dec. 2, is both bolstering Mr. Chávez's popularity here among people who would benefit and stirring contempt from economists who declare it demagogy. Signaling new instability here, dissent is also emerging among his former lieutenants, one of whom says the president is carrying out a populist coup.

"There is a perverse subversion of our existing Constitution under way," said Gen. Raúl Isaías Baduel, a retired defense minister and former confidant of Mr. Chávez who broke with him in a stunning defection this month to the political opposition. "This is not a reform," General Baduel said in an interview here this week. "I categorize it as a coup d'état."

Chávez loyalists already control the National Assembly, the Supreme Court, almost every state government, the entire federal bureaucracy and newly nationalized companies in the telephone, electricity and oil industries. Soon they could control even more.

Just how bad will things get? Well, take a look and see just how bad they are now:

In comments after a summit of Latin American leaders this month in Chile, Mr. Chávez laid out his project in simple language. "Capitalist Venezuela is entering its grave," he said, "and socialist Venezuela is being born." Indeed, socialist imagery is pervasive throughout this country, from the red shirts worn by Mr. Chávez and his followers to the chant of "Fatherland, socialism or death!" repeated at the end of his rallies.

But walking into a grocery store here offers a different view of the changes washing over Venezuela. Combined with price controls that keep farmers from profitably producing some basic foods, climbing incomes of the poorest Venezuelans have stripped supermarket aisles bare of items like milk and eggs. Meanwhile, foreign exchange controls create bottlenecks for importers seeking to meet rising demand for many products.

Multiply that by a significant factor. There is your Venezuela of tomorrow.

Unless, of course, more Venezuelans stand up and oppose this kind of lunacy.

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