Venezuela has been a democracy since 1958, when a courageous leader, Rómulo Betancourt established representative government following a dictatorship. In the early 1960s Betancourt beat back Castro's efforts to overthrow Venezuela's democracy. Now Chávez wants to turn back the clock. He's cozied up to terrorist groups around the world, including those waging a murderous guerrilla war in neighboring Colombia.
Venezuelans of all classes and occupations have taken to the streets to protest Chávez's actions. He was thrown out briefly in a coup last year, but the coup collapsed when it became clear that the old corrupt elites were going to return to their money-grabbing ways and would take their time restoring democracy. Chávez's smile, however, was soon wiped off his face as spontaneous protests continued. There was a general strike a few months ago, the effects of which sharply reduced Venezuela's oil production. But Chávez has clung to power.
Whether Chávez's rule should continue is supposed to be the subject of a referendum in August, but this Castro wannabe has made it clear he won't leave office voluntarily. He will either try to postpone the election or use his armed thugs to rig the results.
The U.S. has reacted gingerly lest Chávez play the anti-U.S. card--always an option in Latin America--to shore up his sagging popularity. The U.S. should make clear that a clean August vote must take place--that Chávez must not be allowed to set up a virtual dictatorship, even if that means oil prices go up because we embargo Venezuela's oil exports. When Venezuelans see that we're serious about Chávez, perhaps their army will do what it should have done a long time ago--send Chávez to Havana on a permanent vacation--and then promptly return to the barracks. [End]
Unpromising as it may seem, the government store in the capital is the model to be replicated across Venezuela under a plan fathered by populist President Hugo Chávez and overseen by the military. The plan's goal: to feed Venezuela's growing number of poor and to counter shortages from the private sector. "Prices are cheaper than elsewhere, and for those of us with low incomes, any difference is important," says Viviana Trillo, a Caricuao housewife. "I thank President Chávez for this."
Paradoxically, the food security programme is being prioritised just as the Chávez government is blocking dollar sales to businesses, including soft commodity importers and food processors, curtailing supplies.
Currency trading was suspended in January during the strike at Petróleos de Venezuela, the state oil company that is the government's main source of export revenue. Four months later, international reserves have recovered and oil exports have resumed.
But Cadivi, the foreign exchange control agency, has yet to disburse any dollars and business leaders are convinced that Mr Chávez intends to bring the business sector - which fiercely opposes his government - to its knees.
"This a specific retaliation against all those seen as not being in favour of the regime," says Rafael Alfonzo, president of Cavidea, the food industry chamber.
The non-functional currency controls are not only affecting domestic companies, many of which are closing and laying off employees. Multinationals with subsidiaries in Venezuela, such as Cargill, the US agricultural conglomerate, say they will be forced to shut down operations within the next few weeks unless hard currency is made available.
"A lot of US companies thought that this would be a temporary situation and they got money from their home offices to maintain market share," says Antonio Herrera, vice-president of the Venezuelan-American Chamber of Commerce.
"But now they are being told: 'no longer', so they are exhausting inventories," Mr Herrera says. "This is an economic atrocity against the Venezuelan people."***