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Dr. Armand Hammer e-mail me




Capitalism & Venezuelan Regional Elections


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During November 2008 the population of the four most populous and industrial states of Venezuela elected new governors and mayors affiliated with opposition parties. Their victory is considered as an expression of the public yearn for a legal framework that will enable returning to a competition between the public and private sectors for meeting the population's needs, in contrast of the current local governments led by the socialist party which is striving for state control of most human activities.

The case of the capital city of Caracas and its neighboring state of Miranda stands out as a return to plurality and diversity, as various ideologies are now represented in government. While the federal government and Western Caracas remain in socialist hands, Eastern Caracas, Miranda state and the Metropolitan District now have the responsibility of respecting many requests from their voters; among them, providing incentives to private businesses to take over a huge amount of failed government solutions to crime, road works, hospitals and education. The populous oil-rich state of Zulia and Margarita island will remain in the opposition as their populations have always embraced free markets more dearly than elsewhere in the country. The border state of Táchira, having witnessed first hand the progress in neighboring Uribe's Colombia, also chose a new governor from the opposition. The industrial heartland of Carabobo state wishes to revert its recent decline, restore its factories to capacity and improve facilities at the port of Puerto Cabello with the help of a market friendly governor.

Some red supporters of the incumbent party are not happy with changes that are coming and have already rioted in a few jurisdictions, despite President Chávez calls for accepting their partial defeat. This is a natural reaction of grief, which is also evident even at educated internet fora such as Mises.org, where opinions diverging from the status quo perpetuated by the most active posters are at times dismissed as crap and threatened to be censored, despite the administrators' effort to ensure that liberty and private expression are protected. Perhaps the extreme left and the extreme right are connected at the same point because they form part of a circle, not a straight line.

This shift in the balance of power is just at its earliest stages. A huge contrast remains in light of rural Venezuela's confirmation of socialist ideals and leaders. They have become progressively disillusioned due to corruption and poverty, but are still faithful in the socialist ideology imposed to them. If the work performed by the new blue opposition majors and governors turns out to actually fulfill expectations, it is likely that red rural Venezuela would follow this new lead in the forthcoming elections for Congress in 2009 and for President in 2012. Many sections from the map of the country would revert from red back to blue, similarly as it is already happening in the United States.

Rivero&Cooper, Inc.