Chavez implementing grassroots democracy!

2007-01-13

Richard Moore

         In a speech on Monday Venezuelan President Hugo Chavez
         suggested that as the Communal Councils spread they will
         also deepen and will become the new Venezuelan state taking
         over what he described as the old "bourgeois state".

         According to President Chavez in an announcement earlier
         this week the BCV [Venezuelan Central Bank] is to be brought
         under the direct control of the government.


Original source URL:
http://www.venezuelanalysis.com/news.php?newsno=2188

Venezuelan Government Announces $5 Billion for Communal Councils in 2007

Wednesday, Jan 10, 2007

By: Steven Mather - Venezuelanalysis.com

Caracas , January 10, 2007 
(venezuelanalysis.com)- The Venezuelan government 
announced Monday that $5 billion dollars will be 
available for the new participatory democratic 
institutions the Communal Councils in 2007. The 
Intergovernmental Fund for Decentralisation 
(Fides) will be responsible for distributing the 
money.

The additional money means the funds available to 
the Communal Councils will more than triple the 
$1.5 billion of 2006. Part of the increase can be 
accounted for due to the expected increase in the 
number of Communal Councils in Venezuela.

At the end of last year there were a reported 
13,000 across the country. This is expected to 
increase to 21,000 by the end of this year.

The Communal Councils came into being in April 
2006 with the passing of the Communal Council Law 
by the National Assembly. They are intended to 
provide a participatory democratic body for 
communities to manage and develop themselves. 
Prior to the law being introduced there were 
separate projects such as the Social Missions and 
the Urban Land Committees.

The new institution is designed to pull these 
distinct programmes together so a strategic view 
can be taken of what the community needs as a 
whole. The funds will be for education, 
construction, transport, health, agriculture and 
housing related projects.

According to the president of Fides Richard Canán 
how much money is made available to specific 
Communal Councils will depend in large part on 
how it performs in managing and planning the 
resources it obtains, "If the projects are cross 
community managed they will be given more and if 
the community uses the funds well there will also 
be more money for new projects", he said.

The idea is that there is a community of around 
200 - 400 families for each Communal Council and 
all members of each community over the age of 15 
can participate in the process and put forward 
ideas for development.

In a speech on Monday Venezuelan President Hugo 
Chavez suggested that as the Communal Councils 
spread they will also deepen and will become the 
new Venezuelan state taking over what he 
described as the old "bourgeois state".

Increased International Reserve Funds Available for Development Projects

As the international reserves continue growing at 
the Venezuelan Central Bank (BCV) an additional 
$7 billion will be designated to the Venezuelan 
National Development Fund (Fonden), President 
Hugo Chávez said last week.

The government requires that the BCV achieves and 
'optimum' level of reserves each year which it 
must accomplish along side setting interests and 
reaching inflation targets. Any surplus is 
transferred to Fonden, which uses it for 
industrial development. The monies can only be 
spent on foreign purchases or the paying off of 
Venezuela's external debt.

According to President Chavez in an announcement 
earlier this week the BCV is to be brought under 
the direct control of the government.
-- 

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