Columbia International Affairs Online: Working Papers

CIAO DATE: 08/2008

Venezuela: Political Reform or Regime Demise?

July 2008

International Crisis Group

Abstract

President Hugo Chávez faces mounting difficulties at home and abroad. The defeat of constitutional reforms in a December 2007 referendum, a year after re-election, was his worst setback since winning the presidency in 1998. It was not primarily the divided opposition, which lacks a broad social base, that dealt this blow but the abstention of three million Venezuelans, including many former government supporters. There is growing disenchantment over food shortages, rising inflation, public insecurity and corruption, as well as resistance to Chávez's push to merge his coalition's parties into a new United Socialist Party of Venezuela (PSUV), and concern about further concentration of power in the president's hands and his foreign policy, including disputes with Colombia. Only by ending attempts to drastically alter the 1999 constitution is Chávez likely to return Venezuela to democratic stability. If he fails to compromise and govern more transparently and inclusively, November municipal and regional elections could produce a dramatic new setback for his increasingly autocratic "Bolivarian revolution".