Venezuela on the Brink of Major Change

Jan 29, 4:54 PM (ET)
By IAN JAMES

CARACAS, Venezuela (AP) - Hugo Chavez has just about everything a president could want: popular support, a marginalized opposition, congress firmly on his side and a booming economy as he starts his new six-year term.

Now, he's about to become even more powerful - the all-Chavista National Assembly is poised to approve a "mother law" as early as Wednesday enabling him to remake society by presidential decree. In its latest draft, the law would allow Chavez to dictate measures for 18 months in 11 broad areas, from the "economic and social sphere" to the "transformation of state institutions."

Chavez calls it a new era of "maximum revolution," setting the tone for months of upheaval as he plans to nationalize companies, impose new taxes on the rich and reorient schools to teach socialist values. With near-religious fervor and plenty of oil wealth, Chavez is mobilizing millions of Venezuelans, intent on creating a more egalitarian society.