Chavez: Will nationalize telecoms, power

[OneBrickOneVoice]

:) yay

Chavez to nationalize electricity and telecommunication. (http://news.yahoo.com/s/ap/20070108/ap_on_re_la_am_ca/venezuela_chavez)

Hopefully this isn't even the tip of the iceberg.

[Dimentio]

Nationalization in itself is not necessarily the best step. For the first, it allows privatization in the future. It would be better if the companies, both private and state-owned where transferred to a foundation owned by the people through a fund, as a first step.

[Severian]

From the article:

"All of that which was privatized, let it be nationalized," Chavez said, referring to "all of those sectors in an area so important and strategic for all of us as is electricity."

"The nation should recover its ownership of strategic sectors," he said.

Apparently a renationalization of something that was public property in the past?

[Nothing Human Is Alien]

CARACAS, Venezuela - President Hugo Chavez announced plans Monday to nationalize Venezuela's electrical and telecommunications companies, pledging to create a socialist state in a bold move with echoes of Fidel Castro's Cuban revolution.

"We're moving toward a socialist republic of Venezuela, and that requires a deep reform of our national constitution," Chavez said in a televised address after swearing in his new Cabinet. "We are in an existential moment of Venezuelan life. We're heading toward socialism, and nothing and no one can prevent it."

Chavez, who will be sworn in Wednesday to a third term that runs through 2013, also said he wanted a constitutional amendment to eliminate the autonomy of the Central Bank and would soon ask the National Assembly, solidly controlled by his allies, to give him greater powers to legislate by presidential decree.

The nationalization appeared likely to affect Electricidad de Caracas, owned by Arlington, Virginia-based AES Corp., and C.A. Nacional Telefonos de Venezuela, known as CANTV, the country's largest publicly traded company.

"All of that which was privatized, let it be nationalized," Chavez said, referring to "all of those sectors in an area so important and strategic for all of us as is electricity."

"The nation should recover its ownership of strategic sectors," he said.

Before Chavez was re-elected by a wide margin last month, he promised to take a more radical turn toward socialism.

Chavez said that lucrative oil projects in the Orinoco River basin involving foreign oil companies should be under national ownership. He didn't spell out whether that meant a complete nationalization, but said any vestiges of private control over the energy sector should be undone.

"I'm referring to how international companies have control and power over all those processes of improving the heavy crudes of the Orinoco belt — no — that should become the property of the nation," Chavez said.

In the oil sector, it didn't appear Chavez was ruling out all private investment. Since last year, his government has sought to form state-controlled "mixed companies" with British Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA and Statoil ASA to upgrade heavy crude in the Orinoco. Such joint ventures have already been formed in other parts of the country.

Chavez threatened last August to nationalize CANTV, a Caracas-based former state firm that was privatized in 1991, unless it adjusted its pension payments to current minimum-wage levels, which have been repeatedly increased by his government.

After Chavez's announcement on Monday, American Depositary Receipts of CANTV immediately plunged 14.2 percent on the
New York Stock Exchange to $16.84 before the exchange halted trading. An NYSE spokesman said it was unknown when trading might resume for CANTV, the only Venezuelan company listed on the Big Board.

Investors with sizable holdings in CANTV's ADRs include some well-known names on Wall Street, including Deutsche Bank Securities Inc., UBS Securities LLC and Morgan Stanley & Co. But the biggest shareholder, according to Thomson Financial, appears to be Brandes Investment Partners LP, an investment advisory company in California. Also holding a noteworthy stake is Julius Baer Investment Management LLC, a Swiss investment manager.

Chavez's nationalization announcement came in his first speech of the year, a fiery address in which he used a vulgar word roughly meaning "idiot" to refer to Organization of American States Secretary-General Jose Miguel Insulza.

Chavez lashed out at Insulza for questioning his government's decision not to renew the license of an opposition-aligned TV station.

"Dr. Insulza is quite an idiot, a true idiot," Chavez said. "The insipid Dr. Insulza should resign from the secretariat of the Organization of American States for daring to play that role."

Cuba nationalized major industries shortly after Castro came to power in 1959, and Bolivia's Evo Morales moved to nationalize key sectors after taking office last year. The two countries are Chavez's closest allies in Latin America, where many leftists have come to power in recent years.

On Wednesday — hours after Chavez is sworn in for another term — former revolutionary Daniel Ortega returns to the presidency in Nicaragua.

In Managua, Venezuelan Ambassador Miguel Gomez indicated Monday that the two countries planned to work closely together, and said Nicaragua could eventually become Venezuela's top aid recipient — getting even more help than Cuba and Bolivia, which benefit heavily from Venezuela's petro-diplomacy.

The United States remains the top buyer of Veneuzelan oil, which provides Chavez billions of dollars for social programs aimed at helping the poor in countries around the region.

Gomez said Chavez and Ortega planned to sign an agreement on Thursday providing Nicaragua with resources — he described them as loans — for infrastructure, health, education, agricultural development and the construction of 200,000 houses, as well as energy and debt forgiveness.

[Nothing Human Is Alien]

CARACAS (Reuters) - Venezuelan President Hugo Chavez accelerated his socialist revolution on Monday by seeking increased powers from Congress, nationalizing utilities and telecommunications companies and promising to strip the central bank of its autonomy.

The anti-U.S. leader, who was re-elected by a landslide last month, launched his bold new policy drive in a fiery speech likely to stir up opposition charges that he is seeking a centralized, Cuban-style system.

Chavez said he would submit a "revolutionary enabling law" to legislators through which he would be able to pass bills by decree to rush through socialist economic packages. The measure should sail through Congress, dominated by Chavez loyalists.

"Nothing or no-one will be able to push us off course us in our pursuit of ... Venezuelan socialism, our socialism," he said at the swearing-in of the
OPEC heavyweight's cabinet ministers.

Chavez, in power since 1999, said he would nationalize Venezuela's largest telecommunications firm CANTV and unspecified power companies in the fourth biggest oil exporter to the United States.

Chavez skirmished with CANTV earlier this year, saying he would nationalize the firm unless it adjusted its pension payments to match the minimum wage.

Venezuelan bonds fell by more than 1 percent after Chavez's speech.

"These disconcerting policy announcements represent a clear turn into deeper nationalist and interventionist policies, which can lead to further erosion of business confidence and the country's macro and institutional fundamentals," economist Alberto Ramos said in a Goldman Sachs research note.

Chavez's confiscations in the past have focused on land, distributing private estates, sometimes foreign-owned, to poor farmers.

CASTRO PROTEGE IN CARACAS

Chavez is pulling the disparate parties that make up his government into a single one, sparking accusations that he is seeking a Communist-style system. He denies the accusation, saying he will always allow opposition.

"He runs the risk - maybe it is what he wants -- of presenting himself as a first cousin of Cuban President
Fidel Castro rather than part of the reformist left tradition," said Boston University Latin American expert David Scott (news, bio, voting record) Palmer.

But, giving ammunition to those who say he is centralizing the state, he has said only those loyal to his movement can serve in the army or work at the giant state oil company.

Chavez's decision last month not to renew the license of an opposition television channel has also drawn widespread international condemnation that he should not muzzle voices that speak out against his reforms.

In Monday's speech, Chavez called Jose Miguel Insulza, secretary-general of the Organization of American States, an "asshole" and called on him to resign for condemning his decision not to renew the channel's license.

Further describing his reforms, Chavez said central bank autonomy could not continue and called the institution's independence "disastrous."

"The central bank must not be autonomous, that is a neoliberal idea," he said.

Chavez has met resistance from central bank directors who object to the leftist president dipping into state coffers for lavish social spending of oil wealth, which wins him supporters but stokes rampant inflation.

Chavez also said foreign-run projects that convert the tarry, heavy crude of the Orinoco Belt in eastern Venezuelan into fuel would pass into state control, keeping up the pressure in along-running dispute.

[Tatarin]

I heard Chavez also has plans for renaming Venezuela to "Socialist Republic of Venezuela". Is that true?

[ComradeR]

I heard Chavez also has plans for renaming Venezuela to "Socialist Republic of Venezuela". Is that true?
Yeah it is, he announced it along with his plan to change Venezuela from a capitalist into a socialist society within the next 14 years called "The Simon Bolivar National Plan".

[Ander]

I'm really starting to fall in love with Chavez and Venezuela. He appears committed enough, he just needs time and support to clean up his country. How is the Venezuelan economy doing though?

[bloody_capitalist_sham]

This is really great news.

Lets all just pray there are no mass famines or human rights abuses.

This ones got to be cool all the way

[bolshevik butcher]

This is fantastics news, there's a good article here; http://www.venezuelanalysis.com/news.php?newsno=2187

Particularly worth noting this;
5. Explosion of communal power, said Chavez, is the most powerful motor of this next phase. According to Chavez, this refers to giving more power to the recently created communal councils of 200 to 400 families, which would eventually eclipse the existing power structures, so as to create a “communal state.” What is needed, said Chavez, is to “dismantle the bourgeois state” because all states “were born to prevent revolutions.” Instead, the old state would have to be turned into a “revolutionary state.”

[Delta]

Originally posted by bolshevik [email protected] 09, 2007 10:25 am
This is fantastics news, there's a good article here; http://www.venezuelanalysis.com/news.php?newsno=2187

Particularly worth noting this;
5. Explosion of communal power, said Chavez, is the most powerful motor of this next phase. According to Chavez, this refers to giving more power to the recently created communal councils of 200 to 400 families, which would eventually eclipse the existing power structures, so as to create a “communal state.” What is needed, said Chavez, is to “dismantle the bourgeois state” because all states “were born to prevent revolutions.” Instead, the old state would have to be turned into a “revolutionary state.”
I will certainly warmly welcome that action if it comes.

[Dimentio]

Originally posted by Delta+January 09, 2007 05:33 pm--> (Delta @ January 09, 2007 05:33 pm)
bolshevik [email protected] 09, 2007 10:25 am
This is fantastics news, there's a good article here; http://www.venezuelanalysis.com/news.php?newsno=2187

Particularly worth noting this;
5. Explosion of communal power, said Chavez, is the most powerful motor of this next phase. According to Chavez, this refers to giving more power to the recently created communal councils of 200 to 400 families, which would eventually eclipse the existing power structures, so as to create a “communal state.” What is needed, said Chavez, is to “dismantle the bourgeois state” because all states “were born to prevent revolutions.” Instead, the old state would have to be turned into a “revolutionary state.”
I will certainly warmly welcome that action if it comes. [/b]
That is indeed interesting.

[Seven Stars]

This is nice and all but Chavez isn't going to be the one who makes Venezuela a Socialist state, the Venezuelian Working Class will have to do that.

[Spirit of Spartacus]

Things appear to be moving in the right direction in Venezuela.

[Tatarin]

Things appear to be moving in the right direction in Venezuela.

No they are not. They're moving in the left direction :D ....

[bolshevik butcher]

Originally posted by [email protected] 09, 2007 09:28 pm
This is nice and all but Chavez isn't going to be the one who makes Venezuela a Socialist state, the Venezuelian Working Class will have to do that.
For sure this is true. Chavez hasn't been radiclaised by thing air, he's not talking about socialism for nothing.. The bolivarian movement is increasingly beocming a mass socialist movement. The UNT is a huge left wing trade union confederation and there are elements of workers control in Venezuela.

[Edelweiss]

It should be noted that Chavez was openly referring himself to communism in that recent speech where he announced the nationalizations, he said that he sees the Bolivarian revolution "in the tradition of Karl Marx, Vladimir Lenin and Leo Trotzky".

German source (http://www.jungewelt.de/2007/01-10/062.php)

Does anyone know if the speech is anywhere available in full on the Net BTW?

[Louis Pio]

You can see the whole speech here. It's in spanish, no subtitles unfortunately
Chavez speech (http://www.aporrea.org/ideologia/n88913.html)
Just go to the bottom of the page

[Coggeh]

I agree with Irish republican ,Before Chavez does anything drastic he should go back and read about what socialism means ... when the last of privatised companies and bourgeois landowners are run off their land , power should be handed over to the workers , this will be the last test of Chavez to which it will prove does he believe in socialism or not , a test which Fidel Castro has in the past failed .

[Nothing Human Is Alien]

So get rid of the Che avatar then.. because Che and Fidel were comrades in arms that fought for the same thing. It's not a matter of "believing in" socialism, as it were some spiritual being. Socialism is a mode of organization of society in which the working class rules. Cuba is a.. presently THE.. socialist society.


It should be noted that Chavez was openly referring himself to communism in that recent speech where he announced the nationalizations, he said that he sees the Bolivarian revolution "in the tradition of Karl Marx, Vladimir Lenin and Leo Trotzky".

Nothing new there.. in the past he said he stood in the traditions of Mao, Che, Don Quixote and.... Jesus Christ.

He alludes to Jesus more than anyone else though.. and that's really what I think "should be noted."

[CheRev]

This article is pretty interesting as well:

http://www.venezuelanalysis.com/news.php?newsno=2188


Especially this piece IMO:

'In a speech on Monday Venezuelan President Hugo Chavez suggested that as the Communal Councils spread they will also deepen and will become the new Venezuelan state taking over what he described as the old “bourgeois state”.'

[McLeft]

Originally posted by [email protected] 09, 2007 09:28 pm
This is nice and all but Chavez isn't going to be the one who makes Venezuela a Socialist state, the Venezuelian Working Class will have to do that.
But Chavez is certainly the catalyst.

[Severian]

Originally posted by [email protected] 11, 2007 01:15 am
It should be noted that Chavez was openly referring himself to communism in that recent speech where he announced the nationalizations, he said that he sees the Bolivarian revolution "in the tradition of Karl Marx, Vladimir Lenin and Leo Trotzky".
Actions speak louder. And the actions of workers are the really important thing to follow in Venezuela...

[Luís Henrique]

Originally posted by [email protected] 11, 2007 10:48 pm
And the actions of workers are the really important thing to follow in Venezuela...
Ditto.

The worshipping of Chávez by a part of the left is properly matched by his demonisation by another part. Both coincide in making Chávez the key (pun intended) to the political situation in Venezuela.

He isn't.

To paraphrase some class enemy of ours,

"It's the working class, stupid".

Luís Henrique

[Keyser]

What are the details of these proposed nationalisations?

Are they to be put under state control, worker's control or a mixture of both?

[bloody_capitalist_sham]

There are a variety.

Some workplaces, are put into workers management, some are co-management with the state and some are still purely owned by the capitalists.

The co-management, is for the largest industry, which has direct raminifcations on the rest of the working class.

This is so big industry is connected to workers who live far away, through the state representatives.