Oct
14
2010
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Venezuela’s state takeovers under Chavez

This article was originally posted by CBNC

Venezuelan President Hugo Chavez has ordered a series of new nationalizations, mostly affecting agricultural companies.

The moves come after the opposition made gains in parliamentary elections last month that gave them 40 percent of National Assembly seats and nearly half the popular vote.

Chavez has said opposition gains pose no obstacle to his legislative agenda and has vowed to accelerate his socialist “revolution.”

Following are some key events in his 12-year push to increase the state’s hand in the economy through takeovers, regulation and taxes:

AGRICULTURE:

* This month, his government announced the nationalization of one of the world’s biggest producers of nitrogen fertilizer, Fertinitro, as well as the takeover of Agroislena, a major local agricultural supply company. It also said it would take control of nearly 200,000 hectares (494,000 acres) of land owned by British meat company Vestey Foods.

* In 2005, Chavez began implementing a 2001 law letting the state expropriate unproductive farms or seize land without proper titles. He has redistributed millions of acres deemed idle in a bid to boost food production and ease rural poverty.

* Vestey Group had already filed for arbitration over the earlier takeover of a ranch. Chavez said the latest deal with Vestey was a “friendly agreement.”

* The government agreed to pay more than $3 million to a group of Spanish farmers for their land.

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