Oli
08-17-2007, 03:39 AM
Chavez Seeks New Constitution to Abolish Term Limits
By Matthew Walter
(Bloomberg) -- Venezuelan President Hugo Chavez unveiled a proposed constitution that would allow him to seek re-election indefinitely and deepen the country's socialist transformation.
Chavez, 53, addressed the nation last night from the National Assembly in Caracas, outlining his plan to create new military, municipal and federal districts, nationalize natural gas and coal resources and grant the state increased power to expropriate property, among other measures.
``We have to change the geometry of power,'' Chavez said in comments broadcast by state television, in which he proposed the creation of communes and federally governed cities across the country.
The new constitution marks another step in Chavez's drive to consolidate power in the presidency while dispersing local decisions to popular, grass-roots organizations, said Herbert Koeneke, a political science professor at Simon Bolivar University in Caracas. It would create an ``hourglass'' power structure that undermines existing state and local governments, he said.
"This is a confirmation that Chavez wants to take Venezuela down a totalitarian path,'' said Alvaro Vargas Llosa, a senior fellow in Washington at the Independent Institute. ``He's trying to reform the administrative structure of the nation so that he can control it, and centralize power.''
Foreign Reserves
Chavez also outlined proposals that would affect the economy. The government would assume control of the central bank and its $26 billion in international reserves, he said.
"The history of Latin America tells us that when the presidential palace controls the central bank, the monetary story is a complete disaster,'' Vargas Llosa said.
Venezuela, the sixth biggest oil exporter in the world last year, has the highest inflation rate in South America. Consumer prices rose 17.2 percent in July from a year ago.
The bolivar tied a record low in unregulated trading today. Chavez also said he doesn't plan to eliminate exchange controls put in place in 2003.
``What is the basis of monetary stability? The international reserves,'' said Jose Guerra, former director of economic policy at Venezuela's central bank, in comments broadcast by Globovision. ``If this starts to deteriorate, consumer prices are going to rise.''
Campaign
The currency fell 2.7 percent to 4,550 bolivars per dollar in the parallel market, where Venezuelans turn when they can't get permission from the government to buy dollars at the official exchange rate of 2,150, where it has been pegged since 2005. The bolivar is down 25 percent since the beginning of the year in the parallel market.
The new language in the constitution also recognizes the existence of public, private and ``social'' property, which would belong to the people, Chavez said. Large landholdings, as well as monopolies, would be outlawed.
With last night's ceremony, Chavez kicked off a national political campaign to seek approval of the new constitution in a referendum that may take place as soon as December, even as opposition political parties assemble a counter campaign, calling the initiative a power-grab.
Cilia Flores, president of the Chavez-controlled National Assembly, called on the elections commission to begin organizing a national vote on the draft constitution after the speech.
`Lies'
``He lies, when he talks about `the people','' Manuel Rosales, who lost to Chavez in last December's presidential election, said today in comments broadcast by Globovision. ``What he wants in the end is to concentrate all of the power.''
While the majority of Venezuelans don't support the notion of indefinite re-election, Chavez's constitutional proposal may gain support by bundling together more popular initiatives, such as the ``mission'' programs that provide housing and aid for the poor, Caracas-based pollster Luis Vicente Leon said.
``You're not going to be able to vote for each proposal,'' Vicente Leon said. ``You're going to vote for the entire thing.''
Chavez, elected in 1998 and re-elected in 2000 and 2006, has substantial control already over all branches of government. All but two of Venezuela's 23 state governors belong to his governing coalition. He won approval for a new constitution in 1999 that abolished the lower house of the legislature.
Since his re-election in December, Chavez has nationalized much of Venezuela's energy and telecommunications industries.
Energy Resources
Chavez last night called for the nationalization of natural gas and coal resources. While Venezuela nationalized its oil industry in the 1970s, it has long been possible for private companies to own both production and reserves of gas and coal.
Peabody Energy Corp., the largest U.S. coal producer, has a minority stake in Venezuelan coal company Carbones del Guasare SA. Madrid-based Repsol YPF SA and Norway's biggest oil company, Statoil ASA, are among the companies with natural gas projects in the country.
Chavez said the constitution would also merge the different branches of the armed forces to consolidate control.
http://www.bloomberg.com/apps/news?pid=20601086&sid=a7HcgdNBYyPw&refer=latin_america
By Matthew Walter
(Bloomberg) -- Venezuelan President Hugo Chavez unveiled a proposed constitution that would allow him to seek re-election indefinitely and deepen the country's socialist transformation.
Chavez, 53, addressed the nation last night from the National Assembly in Caracas, outlining his plan to create new military, municipal and federal districts, nationalize natural gas and coal resources and grant the state increased power to expropriate property, among other measures.
``We have to change the geometry of power,'' Chavez said in comments broadcast by state television, in which he proposed the creation of communes and federally governed cities across the country.
The new constitution marks another step in Chavez's drive to consolidate power in the presidency while dispersing local decisions to popular, grass-roots organizations, said Herbert Koeneke, a political science professor at Simon Bolivar University in Caracas. It would create an ``hourglass'' power structure that undermines existing state and local governments, he said.
"This is a confirmation that Chavez wants to take Venezuela down a totalitarian path,'' said Alvaro Vargas Llosa, a senior fellow in Washington at the Independent Institute. ``He's trying to reform the administrative structure of the nation so that he can control it, and centralize power.''
Foreign Reserves
Chavez also outlined proposals that would affect the economy. The government would assume control of the central bank and its $26 billion in international reserves, he said.
"The history of Latin America tells us that when the presidential palace controls the central bank, the monetary story is a complete disaster,'' Vargas Llosa said.
Venezuela, the sixth biggest oil exporter in the world last year, has the highest inflation rate in South America. Consumer prices rose 17.2 percent in July from a year ago.
The bolivar tied a record low in unregulated trading today. Chavez also said he doesn't plan to eliminate exchange controls put in place in 2003.
``What is the basis of monetary stability? The international reserves,'' said Jose Guerra, former director of economic policy at Venezuela's central bank, in comments broadcast by Globovision. ``If this starts to deteriorate, consumer prices are going to rise.''
Campaign
The currency fell 2.7 percent to 4,550 bolivars per dollar in the parallel market, where Venezuelans turn when they can't get permission from the government to buy dollars at the official exchange rate of 2,150, where it has been pegged since 2005. The bolivar is down 25 percent since the beginning of the year in the parallel market.
The new language in the constitution also recognizes the existence of public, private and ``social'' property, which would belong to the people, Chavez said. Large landholdings, as well as monopolies, would be outlawed.
With last night's ceremony, Chavez kicked off a national political campaign to seek approval of the new constitution in a referendum that may take place as soon as December, even as opposition political parties assemble a counter campaign, calling the initiative a power-grab.
Cilia Flores, president of the Chavez-controlled National Assembly, called on the elections commission to begin organizing a national vote on the draft constitution after the speech.
`Lies'
``He lies, when he talks about `the people','' Manuel Rosales, who lost to Chavez in last December's presidential election, said today in comments broadcast by Globovision. ``What he wants in the end is to concentrate all of the power.''
While the majority of Venezuelans don't support the notion of indefinite re-election, Chavez's constitutional proposal may gain support by bundling together more popular initiatives, such as the ``mission'' programs that provide housing and aid for the poor, Caracas-based pollster Luis Vicente Leon said.
``You're not going to be able to vote for each proposal,'' Vicente Leon said. ``You're going to vote for the entire thing.''
Chavez, elected in 1998 and re-elected in 2000 and 2006, has substantial control already over all branches of government. All but two of Venezuela's 23 state governors belong to his governing coalition. He won approval for a new constitution in 1999 that abolished the lower house of the legislature.
Since his re-election in December, Chavez has nationalized much of Venezuela's energy and telecommunications industries.
Energy Resources
Chavez last night called for the nationalization of natural gas and coal resources. While Venezuela nationalized its oil industry in the 1970s, it has long been possible for private companies to own both production and reserves of gas and coal.
Peabody Energy Corp., the largest U.S. coal producer, has a minority stake in Venezuelan coal company Carbones del Guasare SA. Madrid-based Repsol YPF SA and Norway's biggest oil company, Statoil ASA, are among the companies with natural gas projects in the country.
Chavez said the constitution would also merge the different branches of the armed forces to consolidate control.
http://www.bloomberg.com/apps/news?pid=20601086&sid=a7HcgdNBYyPw&refer=latin_america