MAYELA ARMAS H.
EL UNIVERSAL

Developing a social production model in which the State is entitled to the largest share, creating communes and encumbering profits were some of the actions conceived in the constitutional reform, and even though that project failed to garner voters' support, the government still intends to propel the system envisioned in its botched proposal.

These plans are aimed at furthering the socialist project, which President Hugo Chávez said on December 3rd would be applied "one way or another, even if it takes longer". This promise is beginning to materialize.

In that proposal, the socialist model required changes to territorial structures to include communes, communities and territories, in addition to states and municipalities. Aimed at consolidating social ownership of land, these modifications would affect production since communes would basically be in charge of managing social property. Furthermore, other forms of ownership (public, mixed, collective and private) would be instituted, with the government holding a stake in three of them.

The reform contemplated government intervention in strategic areas, such as food production. The system, as a whole, would be supported by expenditures and excess reserves.

Resuming plans
Some of the original plans are already being applied. In March, the president announced the creation of a new mission comprised of socialist communes and said that "we are going to build a territory delimited by commune councils, and in a year communes will be established".

Commune governments, according to the foiled reform proposal, would implement an integral production plan in line with the domestic economy and based on the socialist production model, in which communes would monitor social production. The 2007-2013 Economic and Social Development Plan (grounded on the same principles as the reform) supports the domestic production system by enabling incorporation of social-production enterprises.

This program defines social-production enterprises as entities whose purpose is the production of goods and services, in which work is attributed a meaning of its own, and employees and workers are entitled to economic surplus.

Though emphasis is placed on social production, the remaining forms of ownership are also developed. The annual report of state-run oil holding Petróleos de Venezuela (Pdvsa) establishes plans to create companies owned by both the state and communes to manufacture goods for the industrial and service divisions of Pdvsa.

The model will be funded by domestic expenditures and the National Development Fund (Fonden), as well as other special projects. Fonden's plans for this year include funding of projects related to the "geometry of power" (commune power). Its Annual Financial Report evidences plans for "furthering the model of a socialist state" in 2008. Moreover, the efforts of the Economic and Social Development Bank are aimed at making special services available to organizations taking part in these new projects.

Implementation of this plan requires changes to current legal provisions, and new laws are already being drafted. The government's economic cabinet has said that laws must adapt to development programs; therefore, changes to the Code of Commerce are being prepared. These amendments will include those new forms of property, emphasizing social property.

Actions underway
In addition to the adjustments being made, several laws already adopt the nature of the amendment. The government passed changes to the Fishing Law, banning trawl fishing, expanding popular powers and allocating 5% of fishers' production to the State. Many of these changes are included in the defeated reform. In fact, one of its articles established that socio-economic structure must be based on socialist and humanist values, fostering cooperation, environmental protection and solidarity and was complemented by another article setting forth that food sovereignty could be secured by taking over sectors of agricultural, farming and aquatic production.

These principles are also evidenced in the Socialist Agrarian Development Fund, created to promote institutions "supported by socialist values". Any entity funded by this organization must allocate at least 20% of its production to local markets and hand over 5% of its production to the State, free of charge.

These provisions not only affect production, but also extend to profits.

Under the reform proposal, business operations involving goods would be regulated by the State, which would determine production systems, methods and social encumbrances on profits. The intent of this provision is mirrored in the tax on excess oil prices, which establishes that companies must pay an additional fee in the event that oil prices are greater than 70 dollars per barrel and that "social charges" may also be imposed upon other activities. The minister of Planning and Development has already announced that, even though the profits of the financial sector are recognized at present by the State, "the time has come for them to be told that they will be earning less, and those amounts will be redistributed among the masses".

marmas@eluniversal.com

Translated by Félix Rojas