Cato Institute Issues Statement on the Defeat of Hugo Chavez

On Monday, the non-partisan public policy research group the Cato Institute issued a statement concerning the results of the Venezuelan election that took place on December 2nd.

Writes Ian Vasquez, director of Institute's Center for Global Liberty and Prosperity, "The rejection by a majority of Venezuelan voters of Hugo Chavez's proposal to turn their country into a socialist state is a signal to all of Latin America that the leftist leader does not in fact embody the aspirations of his people. Ordinary citizens from a broad ideological spectrum and from all classes voted against Chavez's attempted concentration of power, making it harder for him to credibly make populist claims either in Venezuela or the region...[however], the institutions of a free society, such as the media or private property, are still under assault. The victory of the 'No' vote was critical in limiting Chavez's power for the moment, but by no means guarantees that democracy will prevail in Venezuela."

Chavez had introduced a referendum into the Venezuelan constitution that would have permitted him to run for re-election for decades.

Furthermore, he would have taken control of foreign currency reserves and received increased powers for taking over private property.

Business groups, human rights activists, the Catholic Church, ex-political allies, and even his own former wife, who is usually still loyal to his ideals, all made clear their opposition to "El Comandante's" referendums before the vote was cast on Saturday.

The president of the South American OPEC member nation constantly praises Cuban dictator Fidel Castro, calls capitalism a scourge of mankind, and lambastes the United States. He has said that he wishes to rule until his death.

With his referendum's defeat, he will be forced to step down from power in 2013.

Chavez rose to power in Venezuela in 1998 on a champion-of-the-poor platform after a failed coup attempt in 1992. However, Saturday's vote marks his first major defeat since then, and signals to many that his openly socialist policies are not working.

The Venezuelan economy, despite its oil wealth, is suffering from high inflation and economic instability sparked by business owners' concerns that their businesses may be taken over by the state at any moment. Earlier this year, oil giants ExxonMobile and Conoco Phillips have ceased doing business in that nation because of Chavez' encroachments upon the oil business which give the government the majority control over local operations in international oil companies doing business there.

In the aftermath, Chavez has told the press that the vote is not a defeat, but only a temporary setback that the 53-year-old vows he will overcome someday.

Despite growing discontent with him, Chavez still remains quite popular, and his referendums were defeated by less than 1% of the vote.

Original Newswire Source:
http://prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/12-03-2007/0004715619&EDATE=