[R-G] Chavez: Reform Strengthens Venezuelan State in Fight against Neo-Liberalism

[Anthony Fenton]

Chavez: Reform Strengthens Venezuelan State in Fight against Neo- 
Liberalism
November 14th 2007, by Kiraz Janicke - Venezuelanalysis.com
Chavez speaking at press conference in Miraflores Presidential Palace  
(Alex Guzman/ABN)
http://www.venezuelanalysis.com/news/2837

Caracas, November 14 2007 (venezuelanalysis.com) - Speaking to  
national and international media at a press conference at the  
Miraflores Presidential Palace yesterday, Venezuelan President Hugo  
Chavez denied opposition claims that proposed constitutional reforms  
are aimed at increasing personal power, rather, he explained, they  
are necessary to strengthen the independence of the Venezuelan state  
and transfer power to the people.

"For many years in Venezuela they weakened the powers of the state,"  
Chavez explained, "as part of the neoliberal imperial plan that aimed  
to weaken the economies of countries to insure domination."

"While we remained weak, imperialism was strengthened," he added.

As an example Chavez pointed to a proposal in the constitutional  
reform that would remove the autonomy of the Central Bank, and place  
it under the control of the executive. This would strengthen  
Venezuelan independence and could be used to transfer power to the  
people he argued.

The idea of the autonomy of the Central Bank and control of  
international reserves, applied to the majority of poor countries  
including Venezuela, Chavez explained, "Is part of the imperialist  
project, how the global capitalist dictatorship managed to impose its  
norms, its laws, on almost the whole world."

In the United States, China and some European countries the reserves  
are not managed in total isolation from the state Chavez argued.

The neoliberal idea of autonomy of the Central Bank was imposed in  
Venezuela, Chavez said. He pointed out that although the Central Bank  
is formally constituted as a public institution, it is not  
accountable to the any of the constitutional public powers including  
the legislature, the judiciary, the electoral power, the citizen  
power or the executive.

"Who is it accountable to then?" Chavez asked.

In reality, Chavez continued, the Central Bank in Venezuela has never  
been autonomous; "rather it was managed from Washington, through the  
International Monetary Fund as the financial and political arm of  
North American imperialism."

However, Chavez declared, "The reserves of the country do not belong  
to the Central Bank, they belong to the people of Venezuela."

"We have 30 billion in reserves, we will finish [the year] with 32  
billion; I at least consider, based on studies, that Venezuela does  
not need 32 billion dollars in reserves, this figure places us [on  
the same level] as one of the developed countries in Europe, now it  
won't be the Central Bank that decides over these reserves."

The reserves would be used to giver power to the people, through  
social and economic development projects Chavez said.

However, the most important aspect of the reforms Chavez stressed,  
"is the transfer of power to the people," vested in the communal  
councils, workers councils, student councils and campesino councils,  
regional and national federations of these councils, as well as the  
formation of "communes" which will "constitute the basic nucleus of  
the socialist state."

If approved, the reforms require five percent of the national budget  
to be given to the grass roots communal councils.

On Monday Minister of Energy and president of the state owned oil  
company, PDVSA, Rafael Ramirez, affirmed that all PDVSA owned gas  
stations were ready to be handed over to the communal councils after  
Chavez argued last week that democratizing the economy, "is the only  
way to defeat poverty, to defeat misery and achieve the largest sum  
of happiness for the people."

Recently returned from the Ibero-American Summit in Chile where  
"social cohesion" was the key issue under discussion, the Venezuelan  
president also assured that "true social transformation is necessary  
in the whole world before one can begin to think of social cohesion."

The situation of inequality and social and economic differences that  
still exists in Latin America as a result of the capitalist and neo- 
liberal policies of the developed countries is the principle obstacle  
to achieving social cohesion, Chavez concluded.

Chavez also denied opposition claims that those who don't agree with  
socialism will be excluded if the reforms are passed, "This is a lie,  
it's totally false."

The opposition has also criticised another proposed change, which  
would remove limits on presidential terms and allow Chavez to stand  
for re-election in 2013, claiming that Chavez "wants to be in power  
for life," however this would not effect the electoral process in  
Venezuela, and still allows for a presidential mandate to be revoked  
half way through the presidential term through a recall referendum.  
Government supporters say this is really an admission by the  
opposition that they don't have a candidate as popular as Chavez.

Chavez has also pointed out that more than 170 countries around the  
world do not place limits on re-election, including France,  
Australia, the United Kingdom and others.
Similarly, contrary to many claims in the international media, a  
‘state of emergency' clause would not remove an individual's right to  
due process, and is entirely consistent with international law, with  
many countries such as Australia and the United States, among others  
possessing similar laws.