Venezuelan government wedded to direct social property

Next year, the first Socialist Plan 2007-2013, set to build the 21st Century Socialism, will be completed. While no details have been given on the next country plan, Venezuelan President Hugo Chávez is adamant in going ahead with the model.

In the first Socialist Plan, the production model is intended to meet human needs, which take precedence over capital.

This is based on Social Production Enterprises (SPE), defined as "economic entities engaged with production of goods and services where labor has its own meaning; there are not privileges in labor associated with the hierarchical position, as all its members are substantively equal (...)"

Dairy farming Lácteos Los Andes was christened SPE and it is State-owned; the very government distributes its assets.

Nevertheless, the president's vision goes beyond. In his recent speeches, he has insisted on strengthening the bodies to give more power to communes. Some months ago, the president strongly recommended his government authorities implementing laws, such as the Communes Law and the Communal Economic System Law.

The people's property

During the presentation of the 2011 Annual Report and Accounts, Chávez referred to the kinds of property established in the Communal Economic System Law, quoting Cuba, the Soviet Union and Eastern Europe as examples.

As part of this scheme, the president gave preference to direct social property. "There is something called direct social property. I like it very much, and I am on this with you and let me remind you of it. But not all the social economy should be State-owned (...)" Chávez said and clarified that strategic companies such as state-run oil holding Petróleos de Venezuela (Pdvsa) should anyway belong to the State.

As defined in the law, direct social property is established by the People's Power, to the benefit of its members, the collectivity and the country overall development. It is administered and managed by the People's Power. It differs from indirect social property, because in the latter, the Public Power is responsible for its administration.

In view of a new socialist plan on track, covering the 2013-2019 period, lot of priority is likely to be given to direct social property.
As another piece of evidence of changes, in the 376 edition of his TV and radio show "Aló Presidente" (Hello, President!), Chávez commented with regard to the Cerro Azul SPE, "you still put that SPE over there; this, I have said quite a few times, used to be the case in the past."

Such remarks suggest a new production model advanced by the government, where the company features have been established: labor takes precedence over capital. However, rather than State, it is people's property.

Nonetheless, dependence on the State could remain. Under the Communal Economy Law, in social property the society may own means of production to yield goods or services, "which, because of their condition and own nature, are owned by the State," that is, due to their strategic character either for sovereignty or the people's general wellbeing.

Translated by Conchita Delgado