The Skyscraper Slums of Caracas / Peter Wilson

There is perhaps no better symbol of "the depths to which Venezuela has sunk under President Hugo Chávez than Centro Comercial Sambil La Candelaria," according to Peter Wilson's article published in Foreign Policy earlier this month.

Chávez ordered the takeover of Sambil mall in 2008, calling the building a "monster of capitalism." Some people call it a "nightmare," while others view it as a roof over their head.

For the past 11 months, hundreds of rain victims have been living in a small wooden cubicle carved out of one of the mall's aboveground parking levels, highlights Wilson in his article.

"The government provides us everything we need," says Marta Navarro, one of the 4,000 people that are "crammed in the parking levels of the mall," according to Wilson.

"They deliver three meals a day to our cubicle, and they provided beds and furniture when we moved in. My children attend school here." Navarro sighs and looks around. "I can't complain but it's not home."

The shopping mall "also symbolizes the battle over the future of private property in the country."

Venezuela, a country of about 28 million people, faces a housing deficit of about 2 million units, analysts say.

The mall was weeks away from opening when Chávez abruptly ordered its expropriation. It had been expected to create 4,000 jobs and boost tax revenue for the city.

"La Candelaria neighborhood has become a battleground between the haves and have-nots. Within a 1 square-kilometer zone of the neighborhood, 24 buildings have been expropriated by the government or invaded by the country's homeless," says Wilson.

Among the latter is Edificio Confinanzas, or as it is better known, David's Tower.

The 45-story skyscraper, which is a stone's throw from the headquarters of two of Venezuela's largest banks, Banco Mercantil and Banco Provincial, was originally supposed to house offices, shops, and commercial space. But the owner -- David Brillembourg -- died in 1993 before the building was completed, and it passed to his banks. One year later, the government seized the tower when the banks went bust in a financial crisis. It was invaded by 200 families in October 2007 when it was 60 percent complete. Today, it's home to nearly 3,000 people living in makeshift housing on the first 27 floors.

"The tower, from a distance, cuts the sky with its sharp lines -in bold contrast with the squat profiles of its neighboring skyscrapers, which date from the 1970s. Up close, a different picture emerges. Many of the tower's bottom floors have been closed in with brick-red cinder blocks as residents have sought to carve out makeshift homes, while protecting their children from falling to their deaths. TV satellite dishes stud the walls, giving the building a surreal appearance.

"They may have cable, but basic services, such as elevators, are lacking. Neighbors say the building houses drug dealers and prostitutes. Thugs take shelter there after committing crimes, and the police refuse to follow them. Security is provided by the residents themselves, who man the doors. I entered the building but was immediately asked to leave by one guard," continues Wilson.

"You just can't walk in here like that. This is private property," the guard told Wilson, ignoring the irony in his statement.

The government has said little about the building and whether it will seek to evict the squatters. While they dither, neighbors fear that the situation will only worsen and that the "vertical slum" -- as they call it -- will become permanent.

Chávez, who is running for reelection next year, has always made solving the country's housing shortage a priority, Carlos Genatios, an engineer and professor at the Central University of Venezuela who also once served as a minister in Chávez's cabinet says.

Caracas is particularly rife with problems due to its topography.

The city, which is built along a narrow valley, has little space for new housing, leading the poor to construct their makeshift homes on the slopes of the hills. When heavy rains occur, mudslides invariably happen. In 1999, thousands were killed when heavy rains ripped through the capital and surrounding region.

Some government decisions actually exacerbate the crisis, Genatios admitted. "You can't make housing decisions based on political considerations," says Genatios. "You have to take into account other factors such as the services and the overall community picture." The government has also refused to allow municipalities to participate in the planning, especially when they are controlled by members of the opposition.

The government's own policies have made it difficult to close the gap. In 2008, Chávez nationalized the country's steel and cement industries, and production has subsequently fallen, creating shortages of the very products needed for construction. New laws governing rental properties and undermining the rights of owners have ensured that private contractors have remained on the sidelines. Expropriations have further stunted private-sector interest, claims Wilson.