Collapsing Venezuela

By Richard W. Rahn
The Washington Times | January 24, 2007

If Venezuelan President Hugo Chavez deliberately intended to sabotage his nation's economy, he would be hard-pressed to do anything different from what he is now doing to his country.

It has been widely reported that Mr. Chavez has been increasingly taking control of the oil, telecommunications and energy sectors, as well as the media. What has not been reported is the full extent of the corruption in Venezuela and how this ultimately will destroy the economy.

The financial scandal taking place is far bigger than Enron, and may ultimately even exceed the U.N. "oil-for-food" scandal, the biggest financial disgrace of all time. Venezuela has had a rapidly growing economy for the last few years, due to high oil prices, but the house of cards is about to collapse. The former Venezuelan representative to Transparency International, Gustavo Coronel, has documented how much of this corruption has taken place in a report published by the Cato Institute's Center for Global Liberty and Prosperity.

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Throngs in Venezuela Protest Chavez Plan

Jan 23, 8:16 PM (ET)
By FABIOLA SANCHEZ

CARACAS, Venezuela (AP) - Blowing whistles and waving flags, hundreds of Venezuelans protested Tuesday against a congressional measure that would grant President Hugo Chavez the power to pass laws by decree in areas from the economy to defense.

Some 400 to 500 protesters stood in a Caracas plaza and shouted in unison: "Faced with authoritarianism, more democracy!"

The protest came as lawmakers in the entirely pro-Chavez National Assembly announced they would postpone until next Tuesday a session to grant final approval of a so-called "enabling law" allowing Chavez to enact laws by decree during an 18-month period. Chavez is seeking special powers to quickly push through changes from nationalizing electrical companies to imposing new taxes on the rich.