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GUEST: Dan Beeton, International Communications Coordinator with Center for Economic and Policy Research

President Hugo Chavez recently announced his intention to withdraw Venezuela from both the International Monetary Fund and the World Bank. Hugo Chavez has continually blamed the two financial institutions and their austerity policies for perpetuating poverty in Latin America. The move might also be influenced by the fact that the IMF quickly voiced its support for the brief Coup government in 2002. The IMF, much to the dismay of the Venezuelan government, continually issues low projections for the strength of the nation’s economy. In addition to the break with the IMF and World Bank, President Chavez has also announced other populist moves to accelerate the Bolivarian Revolution. A twenty percent increase in the minimum wage will accompany plans to gradually reduce the legal work day to six hours according to Chavez. Lastly, in a May Day move, the Venezuelan government has gained control of the Orinoco Belt oil projects. At least 60% of the four Orinoco Belt’s four projects will be under state control.

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