Abstract

Hugo Chávez and Petro Populism

The article looks at political and economic conditions in Venezuela under President Hugo Chávez. Illiteracy, violence, disease and the listlessness of endemic unemployment have shaped the life of Venezuelans. But much of that could be changing. Like two generations of Venezuelan politicians before him, President Chávez has pledged to invest its oil profits in a way that transforms the very structure of Venezuela's economy. Chávez has been talking about "transcending capitalism" and about "building a socialism for the twenty-first century." A look at Venezuela reveals just how vexing and complicated a political and economic turn to the left can be, even in a country that is rich with oil and not deeply indebted. The government has spent billions on new social programs. To boost agricultural production in a country that imports 80 percent of what it consumes, Chávez has created a land-reform program that rewards private farmers who increase productivity. The Venezuelan battle against poverty is possible only because oil prices have been at record highs for several years, and the state owns most of the petroleum industry.