Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Trends Worth Watching -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (814)	11/27/2006 11:07:09 AM
From: richardred	Respond to of 3363

Venezuela government payroll balloons, giving Chavez key electoral force. By Jorge Rueda ASSOCIATED PRESS 6:18 a.m. November 27, 2006 CARACAS, Venezuela – President Hugo Chavez is a believer in big government, and it shows in a state work force that has nearly doubled in the eight years since he took office promising to do away with patronage. Critics of the leftist leader say the swelling government payrolls feed a system that is propelling the Chavez re-election campaign ahead of a Dec. 3 vote. There are now about 2 million government employees in the oil-endowed country of 26 million people. “I'm committed to President Chavez in body and soul,” said Lina Torres, a state oil company worker at a recent Chavez rally as she held a sign reading “Chavez is Love.” The president's campaign stops are heavily attended by bureaucrats swathed in the ruling party's color red. At a gathering that amassed hundreds of thousands in Caracas Sunday, many sported crimson T-shirts identifying them as employees of the state-run airline, ministries and other government agencies. Opposition politicians say some public employees appear to be under pressure to support Chavez. They point to a scandal that erupted earlier this month when Oil Minister Rafael Ramirez was caught on videotape telling state oil company workers they must back Chavez or give up their jobs. After the video was released by the opposition, Chavez stood behind Ramirez, saying there's no question oil workers must be solidly “with this revolution” and that any who aren't should pack up and go to Miami. Chavez, who is seeking another six-year term, says his administration is focused on the needs of Venezuelans and has reasserted national authority in areas from the oil industry to tax collection. He accuses past governments of bowing to the cost-cutting dictates of the World Bank and International Monetary Fund while practically giving away the country's oil and shortchanging the poor. Chavez's supporters say the government become much more responsive to the needs of the poor. Chavez opponents, who are backing veteran politician Manuel Rosales as their presidential candidate, accuse the government of making support for Chavez a litmus test in hiring as payrolls are expanded in an oil-funded spending spree. “The government isn't willing to reduce the number of bureaucrats because it's afraid of losing political support,” said Luis Vicente Leon, a pollster and political analyst. For decades before Chavez was elected in 1998, Venezuela's traditional parties sought votes by doling out public jobs and benefits. When Chavez took office in 1999, he promised to do away with the patronage and clean up corruption widely attributed to the traditional political elite. At the time, there were 17 government ministries. Today there are 27 ministries, overseeing more than 360 agencies and foundations, about 400 state businesses, television stations, banks and hundreds of radio stations. The public sector, including the national and local governments, is by far the country's largest employer, and many offices are held by Chavez allies. The government expansion began in earnest after Chavez survived a brief 2002 coup and a crippling anti-government strike by oil workers that he stamped out in early 2003 by replacing thousands of strikers. Having more public employees hasn't necessarily improved efficiency. Government offices still are plagued by long lines of people, and some critics say there is more red tape nowadays than in the past. Economist Maxim Ross said Venezuela's economy suffers from a “tremendous inefficiency of public administration and excessive bureaucracy.” Some critics say bureaucracy breeds corruption. The president's opponents say an early payment of Christmas bonuses to public workers this year was a clear attempt at vote-buying. The bonuses – equivalent to three months' salary – were paid out on Nov. 1 instead of the usual mid-December. Vice President Jose Vicente Rangel strongly denied those accusations, saying the bonuses were simply “an act of love, of recognition of what you represent in public administration.” Chavez says increased public-sector employment is necessary to reverse the past privatization of state agencies, which he says was disastrous for the country. And at the Chavez election rallies, government employees consistently say no one is putting pressure on them to support the campaign. Government office worker Humberto Acevedo, who joined one Chavez campaign caravan, said he and his co-workers came voluntarily. “We're here because we want to be, not because anyone forces us to,” he said. signonsandiego.com