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To: miamimark
Well, Miamimark, I have been to Venezuela. Many times. I have seen the hillsides covered with shacks. They didn't just spring up over the last 40 years.

Your populist rhetoric is fundamentally flawed. Why do I say that? Chavez was democratically elected, he used that type of rhetoric, and look where it got him. He failed. You seem to be quoting verbatim from the Chavez speech book.

Just because a leader is elected democratically does not make them good and infallible. How do they handle the power once it is in their hands? We know what Hitler did, he abused it. We know what Chavez did, he tried to copy Castro's example.

Three years ago, after he was elected, his administration identified areas where they wanted to promote economic development by attracting foreign investment. It seemed like a positive move, something that would provide jobs for some of those people living in shacks on those hillsides. One of these areas was oil production. Venezuela allowed all of the multinational oil companies to bid on certain properties. These leases were in places where the oil was not easy get at -- Venezuela did not have the technology. What happened after the foreign oil companies came in, invested their money to put in the technologically advanced wells, and began production? Chavez "passed" 47 new laws without the consent of the legislature. One of these laws called for an increase in royalties from 15% to 30% on this production. His scheme to attract foreign investment into this sector was fraudulent from day one.

Another sector that was identified as an area to attract foreign investment (and thereby increase job opportunities) was the petrochemical sector. I looked into this opportunity myself but it never got past the first discussion. Why? On the surface it all looked very attractive, but the Chavez administration had a guideline composed of 10 or 12 points. They all sounded very good and reasonable until we reached point #7, which stated "if we decide to nationalize the petrochemical industry we will pay you a fair price." Yessiree, that'll really encourage someone to spend time and sweat to develop technology, invest megabucks, build a plant, and develop the sales base -- just to have a foreign country confiscate your business and facilities. The result was that many companies looked into this "opportunity," but all of them were scared away and invested their money elsewhere. The jobs went somewhere else.

So if you want to know why poverty INCREASED during the failed Chavez administration, you can't blame the rich. You have only Chavez himself to blame. His policies chased off investors and caused massive flight of capital from the country.

I monitor the Vheadline website on a daily basis just for laughs. They are nothing but a mouthpiece for Chavez Roy Carson is an idiot. Their propaganda is not credible.

36 posted on 04/12/2002 8:52:02 AM PDT by RedWhiteBlue
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To: RedWhiteBlue
They all sounded very good and reasonable until we reached point #7, which stated "if we decide to nationalize the petrochemical industry we will pay you a fair price." Yessiree, that'll really encourage someone to spend time and sweat to develop technology, invest megabucks, build a plant, and develop the sales base -- just to have a foreign country confiscate your business and facilities.

How is this any different than Pemex in Mexico?

So because Chavez tried to protect the number #1 asset of the Venezuelan people, rather than give it away you're pissed? I don't blame you-I'd be pissed too. Now, you've got your chance. Good luck.

38 posted on 04/12/2002 9:27:09 AM PDT by miamimark
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