Chavez wins, so far

Guardian Unlimited | The Guardian | Chávez claims victory in Venezuela vote:

Venezuela's leftwing president, Hugo Chávez, claimed victory today in a national referendum on his rule, while his opponents charged him with fraud.

The Venezuelan electoral commission said that, with 94% of ballots counted, Mr Chávez had secured 58% of the vote. His opponents have 42%.

In a speech to thousands of cheering supporters, the president said it was "impossible" that his victory could be now reversed.

"Venezuela has changed forever," Mr Chávez told the crowd from a balcony of the presidential palace in the pre-dawn darkness. "There is no turning back."

Mr Chávez is popular with the poor, but his redirection of oil revenues towards social policies has angered the middle classes, oil producers and some unions.

Greg Palast, an actual journalist, with actual reporting capabilities, has written an important counter-weight to U.S. press coverage of Chavez, found here.
some excerpts:

There's so much BS and baloney thrown around about Venezuela that I may be violating some rule of US journalism by providing some facts. Let's begin with this: 77% of Venezuela's farmland is owned by 3% of the population, the 'hacendados.'


I met one of these farmlords in Caracas at an anti-Chavez protest march. Oddest demonstration I've ever seen: frosted blondes in high heels clutching designer bags, screeching, "Chavez - dic-ta-dor!" The plantation owner griped about the "socialismo" of Chavez, then jumped into his Jaguar convertible.


That week, Chavez himself handed me a copy of the "socialist" manifesto that so rattled the man in the Jag. It was a new law passed by Venezuela's Congress which gave land to the landless. The Chavez law transferred only fields from the giant haciendas which had been left unused and abandoned.


This land reform, by the way, was promoted to Venezuela in the 1960s by that Lefty radical, John F. Kennedy. Venezuela's dictator of the time agreed to hand out land, but forgot to give peasants title to their property.

Maybe it's the oil. Lots of it. Chavez sits atop a reserve of crude that rivals Iraq's. And it's not his presidency of Venezuela that drives the White House bananas, it was his presidency of the Organization of Petroleum Exporting Countries, OPEC. While in control of the OPEC secretariat, Chavez cut a deal with our maximum leader of the time, Bill Clinton, on the price of oil. It was a 'Goldilocks' plan. The price would not be too low, not too high; just right, kept between $20 and $30 a barrel.


But Dick Cheney does not like Clinton nor Chavez nor their band. To him, the oil industry's (and Saudi Arabia's) freedom to set oil prices is as sacred as freedom of speech is to the ACLU. I got this info, by the way, from three top oil industry lobbyists.

Why should Chavez worry about what Dick thinks? Because, said one of the oil men, the Veep in his Bunker, not the pretzel-chewer in the White House, "runs energy policy in the United States."

And what seems to have gotten our Veep's knickers in a twist is not the price of oil, but who keeps the loot from the current band-busting spurt in prices. Chavez had his Congress pass another oil law, the "Law of Hydrocarbons," which changes the split. Right now, the oil majors - like PhillipsConoco - keep 84% of the proceeds of the sale of Venezuela oil; the nation gets only 16%.

Chavez wanted to double his Treasury's take to 30%. And for good reason. Landless, hungry peasants have, over decades, drifted into Caracas and other cities, building million-person ghettos of cardboard shacks and open sewers. Chavez promised to do something about that.

And he did. "Chavez gives them bread and bricks," one Venezuelan TV reporter told me. The blonde TV newscaster, in the middle of a publicity shoot, said the words "pan y ladrillos" with disdain, making it clear that she never touched bricks and certainly never waited in a bread line.


But to feed and house the darker folk in those bread and brick lines, Chavez would need funds, and the 16% slice of the oil pie wouldn't do it. So the President of Venezuela demanded 30%, leaving Big Oil only 70%. Suddenly, Bill Clinton's ally in Caracas became Mr. Cheney's -- and therefore, Mr. Bush's -- enemy.