What is Venezuela’s Constitutional Reform Really About?

 Much controversy surrounds the
 recent proposal to reform 69 articles of Venezuela's national constitution.
 Both national and international media have focused their attention on the reform
 proposal and the opposition protests against it. But, as usual, mainstream
 media have failed to provide the context and analysis necessary to actually
 understand the meaning and purpose of the reform, instead focusing mostly on
 some of the smaller and less significant parts, such as the elimination of
 presidential term limits.
 The central focus of Venezuela's
 constitutional reform and how it fits into the larger picture of the political
 process being carried out in the country has been entirely absent from
 mainstream accounts. By leaving out the larger context in which this reform
 lies and how it plays an essential part of the political program of the Chavez
 government, the major media have created the image that the central purpose of
 the reform is to concentrate power in the hands of the presidency. Once again, Venezuela's
 Hugo Chavez appears as a power-hungry autocrat, a tin-pot dictator sitting on
 massive oil wealth, this time reforming the constitution as a means to install
 himself as president for life.
 But what is Venezuelan's
 proposed constitutional reform really about? Is it simply an ill-conceived
 power grab on the part of Venezuela's popular president? Or is there something
 deeper and more important to this wide range of constitutional changes? Only an
 understanding of the political project that Chavez plans to develop in the
 country, and the specific political, economic, and social structure that it
 entails, allows us to fit the constitutional reform into the larger context and
 understand the real role it plays in laying the groundwork for the future plans
 of the Chavez government.
Setting the Stage for 21st Century Socialism
 Long before his reelection in
 December of 2006, President Chavez had announced his intentions to lead Venezuela towards
 socialism. Convinced that the problems that plague Venezuela and much of the
 world could not be resolved within capitalism, Chavez proposed a new kind of
 socialism: Socialism for the 21st Century. This new form of
 socialism, which emphasizes not repeating the same errors of previous socialist
 states, was never explained in detail and is still a project in design. But
 Chavez made it clear before last year's elections that those who voted for him
 were voting for the socialist path and Venezuela overwhelmingly gave
 Chavez the go-ahead on his 21st century project.
 In January of 2007, during his
 inaugural speech before the National Assembly and the nation, Chavez explained
 the future changes that would need to take place in order to implement the new
 socialist system. These changes were laid out in five steps, the five "motors"
 of the revolution, as Chavez called them. These "motors" would set the
 framework for a new social, economic, and political organization of the
 country.[1]
 And although the Chavez government
 has put forth many plans for economic development, before these could be put in
 place it would have to be established how the economy would be organized and
 under what form of control. This is the key way in which the five motors of the
 revolution would set the stage in which 21st Century Socialism could
 be built.
 "The first of the five motors
 that I am referring to is the mother of all laws: the Enabling Law," announced
 Chavez at his inaugural speech in January.
 The Enabling Law was the first
 motor to be put in place, and consisted of giving the president the power to
 decree laws in certain areas for a period of 18 months. The law was passed in
 early 2007, and was used to nationalize some strategic sectors of the economy,
 such as telecommunications, electricity, and oil operations in the Orinoco
 River Delta.
 Chavez explained that certain
 adjustments to the nation's laws, as well as articles of the national
 constitution, would not only be necessary, but would need to happen all
 together at the same time. For that reason, the first motor would have to work
 in conjunction with the second motor, the Constitutional Reform, in order for
 all the new laws to be put in place.
 "The Enabling Law and the
 Constitutional Reform are like two sister motors, two motors of the same
 machine," explained Chavez. "It is required that we coordinate the two quickly
 because there are laws that we have in mind that will only be possible when the
 reform is done, when part of the constitution is reformed, because [the constitution]
 is the law of all laws, we can't pass over it, it's impossible."[2]
 The remaining motors of the
 revolution would depend upon the legal changes in the Enabling Law and the
 Constitutional Reform. Motor number three is a national educational campaign
 known as "Lights and Morals."  Number
 four is "The New Geometry of Power," and consists of a reorganization of the
 nation's political structure. And the last of the five motors is "the Explosion
 of Communal Power."
 Each of these motors plays a
 specific role in setting the country on the path towards a new model of
 economic development under a new structure of social and political
 organization. But what exactly is this new model, and how will these changes
 play a role? Although 21st Century Socialism is still a project in
 development and has not been clearly defined, fortunately there are some
 indicators that give us an idea as to what this new model might look like.
A New Model of Development
 There are several possible
 models of economic development that any given country could choose to adopt
 upon building national productive capacity. The most common model is, of
 course, the development of industry under the ownership of private capital,
 creating the fundamental problems of the concentration of wealth and power that
 ultimately compromise democracy, as is well known in the capitalist world.
 Other obvious alternatives to
 this model include the development of the national economy under the ownership
 and control of the state or worker councils and cooperatives, also with their
 own issues of inefficiency and bureaucracy.
 It was last June when President
 Chavez announced an important part of his own "Bolivarian" project for national
 development. In order to build productive capacity and the beginnings of national
 industries, Chavez announced the creation of more than 200 "socialist" factories
 over the next two years.[3]
 More recently, Chavez stated that the first 66 factories would be installed and
 inaugurated around the country by mid-2008.[4] Many
 of these will be joint projects with various other countries to bring in
 foreign technology from places like Iran,
 China, Brazil, and
 others.[5]
 But before the new factories
 can be installed in different parts of the country, their organization and
 control would have to be established under new definitions of property and
 management. Under the Bolivarian model, the means of production will apparently
 not be solely under the control of the state, the private sector, or the
 workers, but rather a mixture of many kinds of ownership and control. The text
 of the proposed constitutional reform describes it in the following:
 "The state will foment and develop different forms of
 production and economic units of social property, from direct or
 communal-controlled, to indirect or state-controlled, as well as productive
 economic units for social production and/or distribution."[6]
 President Chavez explained this
 during his presentation of the reform proposal before the National Assembly
 last August:
 "You see that here is the basic economic triangle: property,
 production and distribution. We are entering in all three elements, and it is
 necessary that we do it with success in the movement towards, and the
 construction of the socialist model… The economic units could be mixed
 arrangements between the state, the private sector, and the communal power. You
 see, businessmen of the private sectors, private sector producers, you are not
 being excluded. We need you to work with us, to ally with us. Together we will
 make the great nation that Venezuela
 is beginning to be, inside of the great South American nation."[7]
 Therefore, it is under these
 kinds of property relations that the constitutional reform proposes for the
 means of production in the Bolivarian model. The reform arranges the framework
 for an economy under the control of organized communities, the state, and
 private groups, as well as any number of mixtures of these forms. And in 2008,
 as the government begins to install "socialist" factories in the country, they
 can be set up under this framework.
 Last September, the government
 gave an indication as to how these factories might be organized in the future
 with the inauguration of a new corn processing plant in the western state of
 Yaracuy and announcements about these new economic units in general.
 The Central Planning Committee
 discussed the construction of this new type of economic structure, starting
 with the inauguration of the first of ten corn processing plants around the
 country. The corn processing plants, as is planned with other types of
 factories, are operated by the local communities organized into Communal
 Councils.[8]
 Chavez has also recently mentioned the possibility of putting the thousands of
 PDVSA gas stations across the country under the control of the organized
 communities in which they are located.[9]
 The Central Planning Committee
 discussed the creation of the "socialist" factories under the control of
 "communes" as a way of developing a new form of socialist economy. President
 Chavez stated that the new factories could eventually be put under the control
 of communes as a form of "communal" property or "social" property, as is also
 laid out in the constitutional reform.
 "These are the means for the
 participation and central role of the people in the direct practice of their
 sovereignty and for the construction of socialism," said Chavez upon presenting
 his reform proposal. "And for the democratic management by the workers of any
 enterprise of "social" property. This is a term that starts here, social
 property. This is new, totally new in our constitution."[10]
 Thus, the constitutional reform
 is also an attempt to establish the new social and political organization of
 the country into "communes" as a new power structure. Organized communities, currently
 in a process of forming and operating Communal Councils around the country,
 will unite with neighboring communities to form the communes, and groups of
 communes will unite to form cities. The text of the reform says the following:
 "The primary political unit of the national territorial
 organization will be the City, understood as the population base inside a
 municipality and made up of areas or geographic extensions denominated as
 Communes. The Communes will be the geo-human cells of the territory and will be
 made up by communities, each one constituting the basic indivisible nuclei of
 the Venezuelan Socialist State
 where the citizens will have the power to construct their own geography and
 history."[11]
 Chavez has said that in the
 whole country there will be around 60,000 communal councils, organized into
 10,000 communes, 3,000 cities, and 200 federal districts.
 Therefore, as can be seen, the
 central thrust of Venezuela's
 constitutional reform proposal is to set the legal framework for the political
 and social reorganization of the country, giving direct power to organized
 communities as a prerequisite for the development of a new economic system: a
 socialist system with the means of production under communal control.
 The text of the reform states
 that national laws will be passed to transfer control of public services, state
 companies, and productive units to the communes, with the objective of
 constructing a socialist economy.
 These changes in the
 constitution, and in the nation's laws, are essential to the other
 revolutionary motors, such as the reorganization of the political geography of
 the country (motor 4) and the increased role of communal power (motor 5). The
 changes in the constitution will allow the Venezuelan government to move forward
 with the reorganization of the country into the basic units of communes, and
 later promote the power and influence of these structures.
 Another important reform in the
 proposal would allow the federal government to designate different regions of
 the country as federal districts to focus on and accelerate their
 socio-economic development. In a post-colonial country with very uneven
 development in different regions of the country, the reason for this addition
 makes sense as the government wants to intensify their focus on certain regions
 of the country to ensure their quick and balanced economic and social
 development.
 "These changes are going to
 allow us to free ourselves from a territory that is chained by a structure of
 political and territorial division that goes back centuries," said Chavez. "We
 are going to break the chains of the old conservative, imperial, and colonial
 geography."
 While the reform also includes
 many other secondary changes, some very progressive but also a few regressive
 ones, the clear focus of the reform is the economic and political
 reorganization of the country along the lines explained above.
A clear majority of the Venezuelan people understand
 that the heart of this reform is simply a continuation of the Chavez project; a
 process of wealth redistribution, national development, and expansion of
 popular power that has made significant gains in recent years. Chavez' proposal
 plans to make advances in all of these areas, expanding on the current
 initiatives to develop national productive capacity and increasing communal
 power; something that the Venezuelan people are seeing with their own eyes in
 their own communities. It is for these reasons, as well as the high level of
 confidence that they have in President Hugo Chavez, that the majority of
 Venezuelans will come out for December's national referendum to vote "Si."
 [1] President
 Chavez explained the "motors" of the revolution for the first time in his
 inaugural speech on January 10th, 2007. The full text translated to
 English can be seen here: http://archivos.minci.gob.ve/doc/nada_detendrainglesweb.pdf
 [2] Translated
 from the original Spanish text of the inaugural speech: http://archivos.minci.gob.ve/doc/folleto_jurametacion_presidente.pdf
 [3] Prensa Presidencial / Prensa Web YVKE, "Gobierno Nacional proyecta construir 208 fábricas
 socialistas nuevas," Wednesday, September 5th, 2007. http://www.radiomundial.com.ve/yvke/noticia.php?102
 [4] Agencia Bolivariana de Noticias (ABN), "Primeras 66 fábricas socialistas
 estarán funcionando en julio de 2008," October 5th, 2007. http://portal.gobiernoenlinea.ve/noticias-view/ver_detalles.pag?idNoticia=72965
 [5] For more
 on the many different joint projects to bring in foreign technology, see my
 last article, "The Struggle To Industrialize Venezuela": http://www.venezuelanalysis.com/analysis/2689
 [6] Translated
 from the final text of the reform proposal: http://www.asambleanacional.gov.ve/uploads/biblio/Reforma-%20Constitucional-%20final.doc
 [7] From President Chavez' speech during the presentation of
 his reform proposal, August 15, 2007: http://www.abn.info.ve/reforma_constitucional.php
 [8] Prensa Web RNV / Prensa Presidencial, "Comisión
 Central de Planificación evaluó el plan estratégico
 de desarrollo," September
 5th, 2007. http://www.rnv.gov.ve/noticias/index.php?act=ST&f=4&t=52455
 [9] President
 Chavez explained this idea in detail in an interview on live television last
 week during a "Yes" campaign in the state of Carabobo.
 [10] From President Chavez' speech during the presentation of
 his reform proposal, August 15, 2007: http://www.abn.info.ve/reforma_constitucional.php
 [11] Translated
 from the final text of the reform proposal: http://www.asambleanacional.gov.ve/uploads/biblio/Reforma-%20Constitucional-%20final.doc
