Stayin' Alive in Venezuela

The January 5th edition of the Wall Street Journal pays attention to some of Chavez's more pragmatic, post-referendum moves. I love the fact that, in addition to lifting some price controls, they're also busy importing food from the U.S. to make up for shortages (last para below):

"We have decided to open ourselves up to attend to street-level problems, like garbage and shortages, because we believe that you can't theorize about socialism if the people don't see government in action," said Jesse Chacon, the new government spokesman, during a press conference Friday to announce the cabinet changes.

Most observers believe Mr. Chávez's new strategy doesn't mean an end to his grand ambitions to remake Venezuela into a utopian society as well as stay in power for good to make that vision a reality. Instead, the moves signal that his own political survival may be more important to Mr. Chávez than any ideological blueprint.

"Chavez is not rigid ideologically," says Gilbert Merkx, a Latin American specialist and director at Duke University's Center for International Studies. "He is very improvisational and has a floating ideology that allows him to reinvent himself."

Not that anyone believes Mr. Chávez is about to become a believer in free markets. In a research note, the investment bank Goldman Sachs said it had "yet to detect signs that going forward the heterodox policy orientation will be reverted or moderated."

It is also far from clear that Mr. Chávez's new team is up to the task of rectifying Venezuela's growing list of economic problems. For one, many of the new cabinet members are recycled from previous posts or other spots in the government and don't bring fresh ideas. The new finance minister, Rafael Isea, was previously vice finance minister for endogenous development. The newly named planning minister wrote a book called "Capitalism is Bad Business: Principles for Socialists."

In attacking the problem of food shortages, Mr. Chávez eased a price control on one kind of milk, but most of his solutions involve greater government intervention. Houston-based logistics managers for state oil company Petroleos de Venezuela SA were diverted from their usual jobs in recent months and charged with buying up tons of food from the U.S. for delivery to Caracas, where they are offered to the poor at one-day outdoor markets run by the government. "We're learning on the fly," a PDVSA worker reached by telephone said of his new mission.