When Venezuela’s President Hugo Chavez faces the electorate in 2012, the stiffest challenge to his 13-year hold on power is likely to come from the private sector.
Under the presidency of the former army colonel the economic muscle of the state now far exceeds that of the private sector. Two things, primarily, have been responsible for this. Firstly, Chavez has systematically removed most of the country’s oil industry from private hands. Secondly, the oil industry apart, the Venezuelan President has simply miniaturized the private sector and reduced the clout of its once powerful umbrella organizations.
Oil is central to the Venezuelan economy. Chavez’s critics say that oil is also central to his political longevity. Last month the Energy and Petroleum Ministry in Caracas announced that the country had ‘cashed in’ significantly on the recent sharp spike in oil prices. Over the Easter
