Chavez Speaks Out Against “Neoliberalism”

Venezuelan President Hugo Chavez called the U.S. financial crisis a failure of free-market capitalism that could cause as much damage as "a hundred hurricanes," driving down prices for oil and other commodities and harming economies worldwide.

As he arrived for talks with the leaders of Brazil, Bolivia and Ecuador, Chavez said Venezuela's economy remains on strong footing despite its dependence on oil sales to the United States.

He said the leaders will accelerate economic integration efforts including the Bank of the South, a regional state development bank he said has been held up for "bureaucratic reasons."

Chavez used the crash in America as an opportunity to reinforce his disaproval of
the U.S.-style free market capitalism he derides as "neoliberalism." He argued that the best response to the financial crisis was to go on the offensive and pushing alternative approaches.

"It's also important that every country review its situation and the risks we run because no one knows how far this crash is going to reach," Chavez said. "I'm among those who believe this crash of capitalism, of neoliberalism is going to be worse than the one in 1929 and is going to affect the entire world."

Developing countries also should be included in talks on how to resolve the crisis — not "just the G-8, cloistered away somewhere," Chavez said, referring to the Group of Eight leading industrialized nations.

The Venezuelan leader predicted that his and some other Latin American countries will persevere because they have been increasingly independent from lending institutions including the U.S.-based World Bank and International Monetary Fund.

"What's to blame? Imperialism, the United States, the irresponsibility of the United States government," he said. "From this crisis, a new world has to emerge, and it's a multi-polar world."

Author: Jo Amey