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DE RUEHCV #2396/01 3602032
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R 262032Z DEC 07
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 0353
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEBAAA/DEPT OF ENERGY
RUEATRS/DEPT OF TREASURY
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UNCLAS SECTION 01 OF 02 CARACAS 002396 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV VE
SUBJECT: ASSEMBLY APPROVES 2007-2013 ECONOMIC AND SOCIAL 
DEVELOPMENT PLAN 
 
REF: A. CARACAS 2207 
 
     ¶B. CARACAS 2363 
 
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Summary 
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¶1.  (SBU) On December 13 the National Assembly approved the 
BRV's "Guidelines for the 2007-2013 Economic and Social 
Development Plan for the Nation."  The two page introduction 
of the 51 page document outlines President Chavez' vision to 
further develop "21st Century Socialism."  Themes include 
"rebirth of the Venezuelan people with Socialist values," and 
increasing social and economic ties within Latin America, 
Europe, the Middle East, Russia, Syria and Iran.  The plan 
acknowledges the importance of the US oil market to the BRV 
but advocates diversifying its customer base.  Closely 
related to the rejected December 2 Constitutional Referendum 
reforms, the plan, attempts to provide a framework to 
accomplish "21st Century Socialism."  End summary. 
 
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The Plan 
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¶2.  (U) The plan, "Guidelines for the 2007-2013 Economic and 
Social Development Plan for the Nation" dated September, 
2007" is found on the Ministry of Popular Power for 
Communication and Information website (www.minci.gob.ve). 
Ricardo Sanchez, President of the National Assembly's 
Permanent Commission for Finances claimed the plan, 
envisioned as a compliment to the defeated Constitutions' 
reform, conforms to the principles of the current 
Constitution.  The plan is a follow up to the 2001-2007 plan 
of the same name and contains seven sections.  Each section 
presents a discussion titled "focus" which provides the 
background and motivation for achieving the goal of the 
section.  Following each discussion is an outline of specific 
objectives.  After the objectives, again in outline form, 
follows a list of strategies and policies to pursue to 
achieve these objectives.  The seven sections are: 
¶I.   New Socialist Ethics 
II.  Supreme Social Happiness 
III. Leading Revolutionary Democracy 
IV.  Productive Socialist Model 
¶V.   New National Geopolitics 
VI.  Venezuela: World Energy Power 
VII. New International Geopolitics 
 
¶3.  (U) New Socialist Ethics: The first section contrasts 
capitalism with socialism.  Capitalism is condemned as being 
based on an individuals' ego and socialism is praised for its 
"ethical values and human solidarity."  An extensive 
discussion on "socialist ethics" outlines the qualities 
needed to attain the goals outlined in the document. 
Education is strongly emphasized.  It also stresses human 
rights and the elimination of corruption. 
 
¶4.  (U) Supreme Social Happiness: This section, which cites 
Simon Bolivar as the originator of the phrase "Supreme Social 
Happiness," focuses on advancement through socialism.  It 
references the Constitution as the basis for the policies for 
the new socialist political and economic structures.  (Note: 
The language would have made sense only if the proposed 
changes to the Constitution had been approved.  End note.) 
It emphasizes the missions, funded by petroleum, as a vehicle 
to achieve the goals of universal identity, nutrition, 
health, education, life and work.  It also recognizes global 
warming and the need to protect the natural environment. 
 
¶5.  (U) Leading Revolutionary Democracy: This section 
discusses the collective strength of the group in contrast to 
individual weaknesses.  It advocates cooperative 
associations, the total involvement of the people, and 
development of mass communications. 
 
¶6.  (U) Productive Socialist Model: This section proposes the 
elimination of social divisions of work, the elimination of 
hierarchal structures and the elimination of "the disunity 
between satisfying necessities and the production of wealth, 
via the Productive Socialist Model."  Under the model, the 
State would maintain total control of all production 
activities that are of strategic value.  Social Production 
Businesses (EPSs: Spanish acronym) are mentioned as the "seed 
and the path to 21st Century Socialism."  (Note: EPSs are 
defined as economic units dedicated to the production of 
goods and services, based on participatory planning without 
 
CARACAS 00002396  002 OF 002 
 
 
discrimination to workers and without hierarchal privileges. 
End Note.)  PDVSA is identified as a source of support for 
EPSs. 
 
¶7.  (U) New National Geopolitics: This section emphasizes the 
development of a more diverse economy and a wider system of 
regional transportation through development of sparsely 
populated areas.  A key goal is the redistribution of the 
population and activities from urban areas to rural regions. 
It cites the export hub for petroleum in the north central 
and coastal areas of Venezuela as a system which concentrates 
wealth distribution in an unequal and unbalanced manner.  It 
also advocates additional axes of regional integration and 
development from the central plains to the north, western 
areas, eastern areas and the Apure-Orinoco area.  These axes 
are called the "strategic hinge" for the regional integration 
of South America.  It proposes a national railway system to 
connect these axes. 
 
¶8.  (U) Venezuela: World Energy Power: The plan recognizes 
the importance of petroleum in the national development 
strategy for Venezuela.  The section discusses the worldwide 
increase in demand for oil, particularly in India and China 
as well as South America, but states that the United States 
will continue being a major purchaser of Venezuelan oil.  It 
promotes development of additional refining capacity and 
petrol-chemical production.  Aside from petroleum, the 
section advocates the development of hydroelectric and 
thermoelectric energy as well as the increased distribution 
of hydroelectric energy.  Reference is made also to the use 
of petroleum income to support environmental protection and 
community quality of life.  Finally it discusses the use of 
Venezuelan oil as a tool for strengthening multi-polar 
integration with Latin American and the Caribbean. 
 
¶9.  (U) New International Geopolitics: The final section of 
the document comments on the BRV efforts to create a "multi 
polar world and the breaking of the hegemony of imperialist 
North America."  It outlines goals such as creating a "new 
matrix of world power in the fields of finance, media, 
politics and the military."  It cites large energy reserves 
as a means of forming strategic alliances to aid in the 
development of a diverse economy for Venezuela.  It lists 
several examples including the development of the "Faja" in 
the Orinoco region, the joint refinery project Abreu de Lima 
in Northeast Brazil between Brazil and the BRV, as well as 
joint businesses between China and the BRV and the gas 
pipeline of the south (Refs A and B).  The section advocates 
the development of a "new" MERCOSUR based on the concept of 
the South American Community of Nations (a European Union 
patterned trade organization) and consolidating Venezuelan 
leadership of the Bolivarian Alternative for the Americas 
(ALBA) as an alternative to the Free Trade Agreement Area of 
the Americas (FTAA) and other Free Trade Agreements (FTA). 
Other goals include strengthened ties with South America and 
the Caribbean, strengthening alternative movements in Central 
America and Mexico, as well as improved cooperation with 
Iran, Syria, Russia and Belorussia.  The section also 
encourages closer relations with Spain, Great Britain, 
Portugal, the Middle East, China, Viet Nam and Malaysia. 
 
¶10.  (SBU) Comment: The document, which was written in 
September 2007, represents a detailed discussion of Chavez' 
vision for achieving "21st Century Socialism" in Venezuela. 
How the plan will be implemented in the wake of the defeat of 
Chavez' Constitutional reform proposals is not clear.  In 
approving the plan, the National Assembly seems to have 
wanted to establish that Chavez' supporters have not 
abandoned the goals of the defeated Constitutional reforms. 
 
DUDDY