Venezuelan politics, economy on the brink of change

CARACAS, Venezuela -- Hugo Chavez has just about everything a president could want: popular support, a marginalized opposition, congress firmly on his side and a booming economy as he starts his new six-year term.\nNow, he's about to become even more powerful -- the all-Chavista National Assembly is poised to approve a "mother law" as early as Wednesday enabling him to remake society by presidential decree. In its latest draft, the law would allow Chavez to dictate measures for 18 months in 11 broad areas, from the "economic and social sphere" to the "transformation of state institutions."\nChavez calls it a new era of "maximum revolution," setting the tone for months of upheaval as he plans to nationalize companies, impose new taxes on the rich and reorient schools to teach socialist values. With near-religious fervor and plenty of oil wealth, Chavez is mobilizing millions of Venezuelans, intent on creating a more egalitarian society.\nAlready, profound changes can be seen throughout Venezuela. Those who felt left out of the old system are thrilled at the prospect of having a voice in politics. Others are horrified, predicting that doors will close on their personal freedoms under one-man rule, although exactly what Chavez will do with his power remains unclear.\nOn a floodlit playground, neighbors meeting to discuss the new mechanics of power are feeling empowered by Chavez. As participants in a new Communal Council, they will get a direct say in spending on projects from public housing to better electricity to fixing potholes -- decisions previously made by local governments.\n"The country is headed for transformation, linked directly to all of us," Freddy Alvarez says into the microphone, describing the coming presidential decrees as a crucial step that will bring new "power to communities."\nEach local council will get up to $56,000 in spending money this year, for a total of about $1.8 billion nationwide.\nNot everyone in the crowd is a Chavez supporter, and the gathering in the working-class mountain town of El Junquito has the feel of a town hall meeting. But Chavez has publicly compared the councils to the people's assemblies or "soviets" formed during the Russian revolution.\n"All of the power to the Communal Councils, power to the people," Chavez said in a recent speech. "It is the power of the revolution."\nOutside the Spanish Embassy, dozens line up with documents in hand. Many plan trips for tourism or study, but Henry Krakower is thinking darker thoughts. He wants a passport for his 10-year-old son in case they need to leave for good.