New report confirms over 760 expropriations in Venezuela despite public repudiation for Chávez’s measures

May 28, 2010

A report released this week by a Venezuelan civil leadership group shows the Chávez government has expropriated 762 companies between 2005 and 2009. Last year alone, 374 expropriation cases were documented. The report confirms a disturbing trend of increased government hostility towards the private sector in Venezuela.

President Chávez’s war against private property intensifies the pressure on an already ailing Venezuelan economy. Also this week, Venezuela’s Central Bank announced a 5.8% decline in the country’s GDP during the first quarter of 2010. President Chávez’s anti-private property measures are “seriously affecting the production capacity and the ability to meet consumers’ needs,” according to Venezuela’s Confederation of Industries President Carlos Larrazábal.

The release of the expropriation data coincided with the release of a new poll showing widespread repudiation by Venezuelans for Mr. Chávez’s measures. The survey, conducted by Alfredo Keller & Associates, reveals that 80% of Venezuelans reject Mr. Chávez’s expropriation measures. The poll also shows that 61% of Venezuelans believe there should be a change in government in their country.

While the majority of Mr. Chávez’s expropriations have been suffered by Venezuelan companies and private property owners, foreign companies also have been impacted by his arbitrary actions. Some of the U.S. companies affected include Cargill, Hilton Hotels, Verizon, AES, Wendy’s and McDonald’s.