The anti-American

Embattled Venezuelan President Hugo Chávez is cracking down on dissent, and ramping up his hostility to the U.S.

Venezuelan President Hugo Chavez reportedly looks for opportunities to challenge the U.S.
(Image credit: Corbis)

How popular is Chávez at home?

Hard economic times and repressive policies have worn at his appeal as the socialist liberator of the poor. The global recession of the past two years hit Venezuela particularly hard. The country relies on oil for 90 percent of its export earnings and nearly one third of its gross domestic product, so the effects are severe when demand and prices drop. With Chávez’s nationalization of oil companies chilling foreign and corporate investment, Venezuela’s economy has stagnated in recent years, and inflation has soared above 25 percent; a brutal currency devaluation last year drastically undercut spending power for imported goods. These events stirred public anger, as did reports of growing wealth among Chávez’s family members. In September, Chávez suffered a serious blow when his opposition won about half of the popular vote in legislative elections and secured nearly 40 percent of the seats in the National Assembly. The vote, said one opposition leader, marked “the beginning of the end for President Chávez.”

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