Venezuelans fear radical economic changes if Chavez fulfills pledge to begin socialist revolution

CBS | Nov 29, 2006

Chavez insists he’s a friend of the private sector, but his government has taken actions that rattle investors, including seizing ranch lands

Venezuelans are swilling aged whiskey, snapping up luxury cars and treating themselves to plastic surgery in an oil-fueled spending spree worthy of one of the fastest-growing economies in Latin America.

The bonanza belies fears of radical economic changes if President Hugo Chavez wins another six-year term in elections Sunday and fulfills his pledge to begin a new, more profound phase of his self-styled socialist revolution.

Chavez has promised a sharper break with Venezuela’s capitalist past and more drastic steps to help the poor. Clothing factory owner Noel Alvarez fears that could mean workers suddenly taking over his plant with the government’s blessing.

“Investors are nervous and uneasy,” said Alvarez, who heads the Consecomercio chamber representing some 200,000 small and medium-sized businesses.

A survey of those businesses last month showed that despite soaring sales, most are not hiring, expanding their businesses or making long-term investments. Alvarez said the reasons include high crime, a lack of confidence in the legal system, and an anti-private sector “bias” in the Chavez government.

Chavez insists he’s a friend of the private sector, but his government has taken actions that rattle investors, including seizing ranch lands it deems idle. In recent weeks, he has threatened to nationalize Venezuela’s largest telecommunications company for failing to pay out court-ordered pensions.