SUHELIS TEJERO PUNTES
MARIELA LEÓN

EL UNIVERSAL

While the Venezuelan government currently has price and exchange controls in force, among others, President Hugo Chávez has recently moved to tighten his grip on economy. The Executive Power last July 31 enacted a set of laws under Chávez's special ruling powers, thus expanding state powers over the economy. Undoubtedly, the final balance of the government intervention in production activities will be negative. 

A group of constitutional lawyers consulted by daily newspaper El Universal came to this conclusion after assessing the scope of the new statutory decrees that were disclosed only this week.

The 26 laws-decrees enacted by Chávez on the final day of the 18-month period of the Enabling Law, impose "more controls and boost increased concentration of government powers" over the economy, trade and finances in the country. 

Gerardo Fernández, a constitutionalist lawyer, said that from the economic point of view, under the new legislations the government plays the major role in decision making. "(The Executive Power) takes increased control of the country's economy and finances."

According to Fernández, the "set of laws" causes "a major disruption" in production. For instance, punishments and sanctions prevail in the newly-enacted Law to Protect People's Access to Good and Services and the Law on Food and Agriculture Security and Sovereignty, and the role of the "police state" is strengthened. "No reference is made to the need to promote and boost local production." 

In these legal instruments, the government requires both businesses and industries "to adapt to a socialist model." Should the government deem that they fail to do so, "the government may proceed to expropriate, halt production and suspend strikes. This is a Sword of Damocles preventing productive sectors from investing and expanding. If there is no production, shortage worsens and consumers can be seriously hit," Fernández said.

The lawyer stressed that the Organic Law on Food and Agriculture Security and Sovereignty provides for possible "militarization of the production, distribution and marketing chain, since it puts the custody of goods and products in the hands of the military reserve in case of any 'national contingency'". According to Fernández, "this creates institutional uncertainty."  

Translated by Gerardo Cárdenas