Hurricane Hugo: Venezuela's populist President, Hugo Chavez, has begun to back up his anti-American and socialist bluster with action. Is he turning into an old-style Latin American strongman?

• Author: Romero, Simon
• Position: INTERNATIONAL

BACKGROUND

President Hugo Chavez has moved Venezuela further toward socialism, with heated anti-U.S. rhetoric, plans to nationalize Large foreign companies, and rule by decree. Washington sees Chavez's anti-democratic moves as potential threats to peace and stability in the Americas.

When Venezuelan President Hugo Chavez was sworn in to his second six-year term last month, the ceremony included a lot of the fiery pronouncements for which the controversial leader has become famous: He called Jesus Christ "the greatest socialist in history" and he promised to transform Venezuela into a Socialist state.

During the January 10 ceremony Chavez shouted, "Fatherland! Socialism or death, I swear it!"

A few days earlier, Chavez announced plans to nationalize companies in the telecommunications and electricity industries, and called for greater government control over natural-gas projects and the media.

For years, Chavez has been known around the world for his anti-American and socialist bluster, but until now it's been mostly talk. While Chavez made headlines last September by calling President Bush "the devil" during a speech at the United Nations, until now he has generally let most of Venezuela's private companies go about their business. But his plans to nationalize key industries--both of which happen to be controlled by American companies--seem to signal Chavez's intention to follow through on his promises of socialism.

"Chavez is to be taken seriously in what he says, and he's been explicit in talking about 21st-century socialism for a long time," says Ian Vasquez of the Cato Institute, a Washington think tank.

Since he was re-elected in December by a wide margin, Chavez's policies have turned sharply to the left. In the tradition of many Latin American strongmen before him, he seems to be consolidating his power and moving to suppress any opposition, including refusing to renew the license of a TV station that has criticized him.

This shift, which Chavez is calling the "new era," has alarmed American officials and some of Venezuela's neighbors. (Only 28 percent of Latin Americans have a positive image of Chavez, according to a 2006 poll of 18 countries; President Bush had a 30 percent positive rating.)

Chavez intensified worries by persuading Venezuela's Congress to give him vastly enhanced authority. He now has the power (for 18 months) to make laws by decree, bypassing any debate in the legislature. He is also seeking to abolish the...