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Social Reforms
After the recuperation of the control of the national petroleum
company PDVSA and nationalization of foreign-held petroleum
deposits and drilling sites, the resulting vast increase in governmental
revenue began to be allocated towards critical achievements in living
conditions for Venezuela’s poorest citizens, through public health,
education, and job training programs. Initiatives such as the “Mission
Vuelta al Campo” permitted the funding, construction, expansion and
refurbishment of healthcare facilities nationwide that ultimately
benefited tens of thousands of ordinary Venezuelans. Free medical
care allowed nearly two hundred thousand surgeries for cataracts and
other ocular diseases that were performed nation-wide.
Economic Reforms
Even though Chávez has been mainly successful in aiding the poor of
Venezuela while decreasing the overall poverty rate to less than one
third of the population, he has been aggressively criticized for his
inability to significantly reduce the country’s reliance on oil revenue
and faulted for the nationalization of numerous private businesses,
which seemed to be not worth the effort. Venezuelans have seen the
governmental takeover, or partial takeover, of major electricity and
telephone companies, reversing much of the privatization that
occurred in the 1990s. Chávez bought an 82.14% stake in Electricidad
de Caracas (AES Corp.) and a 28.5% stake in CANTV (Verizon
Communications) back in 2007. Such takeovers – some dating back as
early as 2003, and with the real GDP nearly doubling (growing an
astronomical 95 percent in about six years) – were wildly popular and
appreciated. On the other hand, foreign investments have plummeted
in Venezuela while sky rocketing in many other Latin American
countries. Peru, comparable in population to Venezuela, had an intake
of nearly US$5.4 billion, with Venezuela taking in a meager US$500
million. Such down plunges have angered Chávez opponents who
claim that his socialized businesses and government-subsidized
products have hurt their small businesses. A Venezuelan native and
Chávez adversary reported to the BBC that a newly opened and
government-subsidized Mercal supermarket will put her modest food
shop out of business.
Presidential Challenges
Although the anti-American leader and close friend of Fidel Castro,
has maintained the longest running presidential term since the
country restored democracy over four decades ago, numerous
beneficial changes have been generated. But Chávez’s presidency
has not gone unchallenged. Chávez, who had first led a failed coup
before being elected at the polls, faced a military coup of his own in
2002. Against the backdrop of Chávez supporters clashing with anti-
Chávez protestors, he was forced to resign his power and was
detained at a Venezuelan military base, while business leader Pedro
Carmona was being introduced as the country’s interim president.
Venezuelan soldiers loyal to Chávez, and of course those from the
shanty towns who had been deprived of much information about what
was happening downtown by the chicanery of the anti-Chávez
television channel RCTV, succeeded in mounting a counter-coup that
returned Chávez to power. Later, Chávez adamantly insisted, with
objective evidence to support him, that the U.S. was involved in the
attempt to overthrow him.
In regards to ties with the United States, Chávez has had a rocky
history with his Northern neighbor. In an appearance before the
United Nations, Chávez dubbed President George W, Bush “the devil.”
With such saucy language in the background leaving a troubled
legacy, interactions with the U.S. since President Obama’s
inauguration have failed to improve. While Obama offered to open
talks with Venezuela to foster better relations, Chávez seemed almost
uninterested to the U.S. leader’s previous green light for diplomatic
talks, perhaps due to Obama’s perception of Chávez as a destructive
force. Specifically, Obama has recognized him as “being a force that
has interrupted progress in the region.” Chávez responded, arguing
that Obama had the “same stench” as Bush. The prospect of Obama
and Chávez conversing and forging the beginnings of a diplomatic
relationship is encouraged by the fact that the U.S. leader has
promised to no longer ignore Latin America and its multiple plights.
Obama has already met with Mexican President Felipe Calderon and
speaks publicly about engaging in talks with longtime U.S. adversary
Cuba. Hugo Chávez’s ten year legacy culminates with the February 15
vote on a re-election referendum, which to an extent will decide the
future course of himself and his Revolution.