Hugo Chavez Deepens Venezuela's Social and Economic Transformation

Interview with Steve Ellner, professor of economic history at the Universidad de Oriente in Venezuela, conducted by Scott Harris

Venezuelan President Hugo Chavez was sworn into office on Jan. 10 after winning a landslide, re-election victory by more than 62 percent on Dec. 3. As he began his third term, Chavez announced the nationalization of the country's electricity and telecommunication industries and his intention to seek greater state control over energy projects. He also asked for a constitutional amendment to eliminate the Central Bank's autonomy and increased power to legislate by presidential decree. In December, Chavez called for the merger of various political parties that have supported him to form a new United Socialist Party of Venezuela in order to "construct socialism from below."

In 2004, Chavez and Fidel Castro proposed the formation of a new Latin American economic bloc, called the Bolivarian Alternative for the Americas, or ALBA, as a counterweight to Washington's proposed Free Trade Area of the Americas. Newly-elected Nicaraguan president Daniel Ortega and Bolivian President Evo Morales signed onto the pact with Venezuela and Cuba in January, strengthening Hugo Chavez's influence around the hemisphere.

The Bush administration's support for, and likely involvement in a failed military coup against Chavez in 2002, escalated hostility between the two nations. After his declaration on nationalization, U.S. politicians and commentators have increased their condemnation of the popular Venezuelan leader, some comparing him to Hitler and Mussolini. Between The Lines' Scott Harris spoke with Steve Ellner, professor of economic history at the Universidad de Oriente in Venezuela. He discusses Chavez' new policy pronouncements and his oil rich nation's role in influencing Latin American politics.

Steve Ellner is co-editor of the new book, "Venezuela: Hugo Chávez and the Decline of an "Exceptional Democracy," published by Rowman and Littlefield.

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