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Date: Fri, 19 Jan 2007 15:28:23 -0500 (EST)<br>
From: VIO Venezuela News and Action
<newsandaction@veninfo.org><br><br>
<br>
<b>IN 2007 VENEZUELA USHERS IN NEW PLANS FOR THE NATION<br>
</b>Venezuelan President Hugo Chavez was sworn in for his third time last
week as the democratically elected President of the Bolivarian Republic
of Venezuela. Elected with an overwhelming majority in December,
President Chavez recently announced some new and interesting plans for
the country. Coined the Simon Bolivar National Plan, Chavez plans to
nationalize sectors of the nation's electrical and telecommunications
companies. Like other governments in Latin America, Venezuela has
committed itself to natural resource nationalism, or the control of key
industries whose record of privatization has led to diminished growth
over the years. Towards this end, the National Assembly gave its
preliminary approval to the "ley habilitante" or enabling law
yesterday, which if passed next week, will enable the President to pass
through economic reforms by decree.<br><br>
<b>NATIONALIZATION THROUGH COMPENSATION<br>
</b>Although financial markets were caught a bit off guard by the
nationalization news, they reacted as many economists predicted with
associated stocks dropping. Unfortunately, most news outlets omitted the
fact that in the past the Venezuelan state has paid for all the companies
it has aqcuired and will continue to do so at fair market value. In fact,
Ricardo Sanguino, head of the National Assembly Finance Committee, stated
that the nationalization plan will involve compensation rather than
expropriation."
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=1&url=http://www.rethinkvenezuela.com/news/01-10-07bl.html">
Read more news</a> on this. <br><br>
<b>POLL SHOWS VENEZUELAN'S ARE HAPPY WITH THE DIRECTION THEIR COUNTRY IS
HEADED<br>
</b>Despite the press' adamant claims to the contrary, the most recent
annual poll carried out by the Chilean polling firm, Latinobarometro,
found that Venezuelans are more optimistic about the economic outlook in
the year ahead than any other country in the region, they are less likely
than most Latinos to worry about unemployment, and are far less likely
than any other country in the region to blame unemployment on
"inadequate government policies".
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=2&url=http://www.veninfo.org/downloads/Latinobarometro2006.htm">
View the full poll results.</a> <br><br>
<b>DEFAMATION CAMPAIGN CONTINUES<br>
</b>Despite this, many media outlets including the Washington Post,
Washington Times, and Wall Street Journal have amped up their attacks
against Venezuela and President Chavez, branding him a "menace"
and even a possible threat to the security of the United States.
<br><br>
<b><u>What You Can Do:<br><br>
</u></b>Review the press coverage and talking points below and write a
letter to the editor. <br><br>
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=3&url=http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR2007011702063.html">
Victim of His Power</a> Grab by Steven Mufson, Washington Post, January
18, 2007.
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=4&url=http://www.washingtonpost.com/wp-srv/edit/letters/letterform.htm">
Write and send your letter</a>.<br><br>
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=5&url=http://washingtontimes.com/commentary/20070116-085701-9269r.htm">
Chavez's Holy War</a> by Samuel Gregg, Washington Times, January 17,
2007.
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=6&url=http://www.washtimes.com/contact-us/index.php?Department=LetterToTheEditor">
Write and send your letter.</a><br><br>
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=7&url=http://users2.wsj.com/lmda/do/checkLogin?mg=wsj-users2&url=http%3A%2F%2Fonline.wsj.com%2Farticle_print%2FSB116900692534678621.html">
Hugo and Mahmoud</a> by the Wall Street Journal, January 17,
2007<br><br>
<br>
<b>Important Points to Note:<br><br></b>
<ul>
<li>According to Ricardo Sanguino, the head of the National Assembly
Finance Committe, the nationalization plan will involve compensation
rather than expropration. ``Confiscation, expropriation are banned words
in our dictionary,'' said Sanguino. ``We will be tough but fair
negotiators. There are legal mechanisms in the Constitution that give
support to our plan." Some American companies including Verizon and
AES hold stakes in the affected Venezuelan electrical and communication
companies. Although Washington seems concerned, as evident from White
House press secretary Tony Snow's remarks that Venezuela is making a
mistake, average Venezuelans appear to think differently according to the
Associated Press.
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=8&url=http://www.rethinkvenezuela.com/news/01-10-07ap.html">
Read the full story</a>.
</ul>
<ul>
<li>An Associated Press-Ipsos poll conducted three weeks before Chavez
was re-elected on Dec. 3 found that 62 percent of those asked supported
nationalizing companies when in the national interest.
</ul><br><br>
<ul>
<li>A recently released annual poll, carried out by the Chilean polling
firm Latinobarometro and based on 20,000 face-to-face interviews in 18
Latin American countries, found that Venezuelans tend to be far more
optimistic about their economy than other nations, participate more in
the political process, and are more likely than most other Latin
Americans to be happy with the direction their country is headed.
<a href="http://www.democracyinaction.org/dia/track.jsp?key=268864822&url_num=9&url=http://www.veninfo.org/downloads/Latinobarometro2006.htm">
Read the poll.</a>
</ul><br><br>
<ul>
<li>Last Saturday President Chavez announced that private oil companies
would be able to own a minority stake in the Orinoco region's oil
projects. While speaking to the National Assembly he said that British
Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co.,
Total SA and Statoil ASA would all be able to keep a stake in the
projects as partners. Since last year the joint ventures have saved the
state $6 billion, said Chavez.
</ul><br><br>
<ul>
<li>Chavez' use of oil revenue to fund his government's social programs
has not come at the expense of investment in oil exploration and
development. In fact, on top of its programs for the poor, which have
directly benefited more than half of the population, Venezuela's state
owned oil company-PDVSA last year committed 48% of its budget to
exploration and production (E&P). In fact, PDVSA has put aside nearly
$60 billion over the next 5 years for investment, which includes refining
and exploration. Venezuela continues to be more open to private
exploration and technology investment and development than other states
with nationalized oil companies such as Mexico and Saudi Arabia.
</ul><b>If you submit a letter please reply to this email and send us a
copy. Your support is appreciated!<br>
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