"Usually its the opposite. State run oil companies underfund investment because they use the oil wealth as a cash cow, extracting the most they can from it in the short run."
In Venezuela the Oil wealth, land, and natural resources was in the hands of a few elite and wealthy. The vast majority of the population has been without opportunity, and living below the poverty level for some time. Chaves is grabbing the oil wealth, land holdings, and everything that isn't tied down and spending it on Social development, Schools, health care, employment, land is being confiscated and given away for small farm development etc. In a country of illiterates, living below the poverty level, this seems practical. Certainly something needed to be done. In the mean time he is changing the constitution and consolidating the government more and more under his control. He has also moved against the media to censor criticism. He is looking very dictatorial these days. |
