The Executive branch of government, under the regulations of the Federal Government Council, not only set the guidelines to be followed by state governors, mayors and community councils, but also framed its ideal of socialist production model.

In this way, the government gave expression to the concept of socialism which reduces ownership attributes by removing disposal of goods.

In his speeches, President Hugo Chávez has insisted on saying that ownership is not a commodity, and may not be sold. Now, words have turned into law.

According to the regulation, "Socialism is a form of social relations of production focused on supportive cohabitation and fulfillment of the society material and intangible needs based on recovery of the value of labor as producer of goods and services to meet human needs. Hence, there is the need to develop social ownership of goods based in basic, strategic factors and means of production which enable all families and citizens to own, use and enjoy their individual or family heritage or property."

Article 115 of the Constitution ensures the right to ownership and states that anybody is entitled to use, enjoy and dispose of his/her goods. It is understood that use is the right to own and get all the services related to ownership; enjoyment is the right to get any proceeds and income related to ownership, and disposal is the power to sell, grant gratuitous loans, mortgage or donate.

Under the regulation, citizens may own, use and enjoy their individual property, but may not dispose of it, that is, they cannot sell it.

Attorney-at-law José Vicente Haro explained that as appears from the regulation, people will have an individual or family property. However, such property is in the collective interest; it is used and enjoyed, but communes will resolve its disposal. "Private property runs counter to such collective interests."

Zero profit
The government has proposed under the regulation the development of social property in basic, strategic factors and means of production.

For instance, the lawyer said, if a manufacturing plant is installed in a commune, related earnings go to the commune. "No dividends from the business may be spent because the funds should be invested in the commune to prevent social inequity."

Management of social property is delegated to communes. For this reason, last Sunday, President Chávez talked about "the need to speed up the commune, which is meant to be the territory of socialism."

In his view, "economy should be in the people's hands, not in the capitalists' hands. Trade in the people's hands; products for life should be deprived of their nature of commodity. For instance, a socialist supply system should be created to replace the commercial nature. Speaking of socialist market is a contradiction per se. Why? Now, we must find the contradiction (…) Instead of socialist market let us speak of a supply system of clothes, foodstuffs. Think it over; it must be considered to continue acting, based on contradiction."

In depth
The Regulation of the Federal Government Council introduces the production model proposed in the constitutional reform that was rejected in December 2007.

For President Chávez, changes to the economic model resulted from an adjustment of the land layout and planning. For this reason, there were plans for operational districts that would be organized according to their economic potential. Now, something similar called development driving districts will be created.

Such districts may be decreed by area. Therefore, there may be tourist, agricultural, agro-business, fishery, industrial and mining districts. Last Sunday, President Chávez announced the establishment of a fishing driving district to be developed in a portion of eastern Nueva Esparta state and Sucre state. And he did not rule out a tourist district as well.

The regulation points to the existence of community hubs and development hubs, where production economic systems will be intertwined under socialist production schemes.
marmas@eluniversal.com

Translated by Conchita Delgado