Mineweb (Dorothy Kosich): Mining and exploration companies hoping to get some relief from the ever-shifting mining policies of Venezuela's President Hugo Chavez will still have Chavez-allied governors to contend with in 17 of 20 states. The result will probably result in another grab for more power by Chavez and his supporter. Nonetheless, the opposition held onto to two states and won control of the heavily populated metropolitan area around Caracas.
The president's older brother, Adán, won a narrow election to be the governor of the state of Barinas. Their father is the outgoing governor. The president's brother Argenis has served as secretary of state for Barinas, while brother Aníbal is mayor of their hometown Sabaneta.
Hugo Chavez, who has been in power for almost a decade, sought a mandate to drive the company toward his "21st Century Socialist Revolution," which includes nationalizing more companies and gaining more political power for himself and his allies so they can rule as they see fit. Much discussion now revolves around whether Chavez will seize gold mining projects Las Cristinas and Las Brisas, and turn them into joint ventures between his government and Rusoro Mining, which claims Russian ties.
In a news conference at his parties headquarters early Monday morning, Chavez proclaimed, "The path of building socialism has been endorsed...and now we will focus on the task of deepening and extending our project." However, the opposition hopes to use its momentum in Caracas to stymie Chavez's hopes to push for constitutional changes to seek yet another six-year term in 2012. Last year voters defeated Chavez's attempt to abolish the constitutional limits on his presidency.
After he lost his bid to amend the constitution, Chavez enacted 26 laws by decree, a number of which had been rejected by voters, including rules that allow the president to supersede state governors and appoint local officials. Cecilia Sosa, former president of the Venezuelan Supreme Court, told Bloomberg, "What's most alarming, aside from what's going to happen with those decreed laws starting November 24th, is the war he's announced between centralization and a federal system."
In a recent speech, Chavez declared, "He that betrays Venezuela will die politically. He who betrays me betrays the people."
The price for Venezuelan oil is near $40 per barrel. A sustained drop in oil prices could add to Chavez's problems, forcing budget cuts on a promised major public works program. However, Chavez has claimed his socialism is the cure for the global economic crisis. Political analysts say Chavez has been putting the focus of the election on himself and away from the country's problems.
Besides the governors, Venezuelan elected 328 mayors Sunday, including an opposition candidate who has now been voted the mayor of the nation's capital. Foreign Policy magazine calls Caracas "the murder capital of the world." The country also has the highest inflation rate in Latin America. Nevertheless, poverty levels in Venezuela have dropped since 1999. This month residents in poor neighbors received free appliances and other household items from the Chavez Government.
Meanwhile, 272 would-be candidates were disqualified from running in Sunday's election by Venezuela's top anti-corruption official, who said they faced corruption accusations. The decision was upheld by the country's Supreme Court.
Venezuela's former ambassador to the United States, Milos Alcalay, told Bloomberg that "Chavez is autocratic and doesn't want to share power. ...He's already said he will try to put new structures above and below opposition governors."
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