Venezuela: Proposal For Constitutional Reform

The President of the Republic in his official address to the Nation on August 15, 2007, presented his proposal for the reform of 33 articles of the Constitution of the Bolivarian Republic of Venezuela. Following are the main aspects of the constitutional reform:

New Political-Territorial Division of the Republic

It is proposed that the national territory be made up of a Federal District (where the capital of the Republic will be located), the States, the Maritime Regions, the Federal Territories, the Federal Municipalities and the Insular Districts. Referendums will be held for the approval of Federal Territories and Federal Municipalities in the respective areas.

The States will continue to be organized into Municipalities, but it is proposed that the primary political unit of the national territorial organization be the City, defined as all settlements of the population within the Municipality, and made up of geographical areas or extensions named Communes. The Communes shall be the geo-human cells of the territory and will be made up of the Communities, each of which will constitute "the basic and indivisible spatial core of the Venezuelan Socialist State, where the common citizens will have the power to build their own geography and their own history."

The Communal City is formed when the organized Communities, the communes and the Communal Self-Governments have been established throughout, its creation being subject to a people’s referendum to be called by the President of the Republic in Council of Ministers.

It is provided that all the citizens, without discrimination based on gender, age, ethnicity, political or religious orientation or social condition, "shall enjoy and be the holders of the Right to the City," which is understood as the equitable benefit that each of the inhabitants receives, according to the strategic role articulated by the city, both within the urban regional context and within the "National System of Cities."

Modification of Political Rights and the Methods for the People’s Participation and Protagonism

The proposal for constitutional reform eliminates the prohibition existing for the State under the current Constitution, to fund associations that have political purposes, expressly setting forth that "The State may finance electoral activities."

Financing political associations or persons who participate in electoral processes on their own initiative with funds or resources coming from foreign governments or public or private entities is prohibited.

The following are included as means for the people’s participation and protagonism for "the construction of socialism": (i) the People’s Power Councils (communal councils, workers’ councils, students’ councils, peasants’ councils, among others), (ii) the democratic management by the workers of any enterprise of direct or indirect social ownership, (iii) communal self-management, (iv) the communal financial and micro-financial organizations, (v) communal property cooperatives, (vi) communal savings associations, (vii) free associate producers’ networks and (viii) voluntary work.

The Communal Council is the executing body of the decisions adopted by the Citizens’ Assemblies, organizing and integrating the various communal organizations and social groups. The Communal Councils will assume the duties of Justice of the Peace and neighborhood prevention and protection.

Social Rights

The reduction of the daytime workday to a maximum of six hours per day and thirty-six hours per week is proposed, and night work is reduced to a maximum of six hours per day and thirty-four hours per week.

Also proposed is the creation of a "Social Stability Fund for workers who are self-employed" in order to guarantee the exercise of the labor rights of nondependent workers, such as taxi drivers, truck drivers, merchants, artisans, professionals and all those who exercise any productive activity in order to support themselves and their families, so that with the contribution of the State and the workers, the latter may enjoy the fundamental work rights, such as retirement, pensions, vacations, maternity leaves, and others provided by law.

The current Constitution guarantees the right to economic freedom in the following terms: "Any person may freely engage in the economic activity he/she prefers, with no further limitations than those provided in this Constitution and those set by the laws, for reasons of human development, security, health, environmental protection or social interest. The State will promote private initiative, guaranteeing the creation and fair distribution of wealth, and the production of goods and services that satisfy the needs of the population, freedom of work, enterprise, trade, industry, without impairment to its power to issue measures for planning, rationalizing and regulating the economy and impelling the integral development of the country."

The project for constitutional reform proposes replacing the previous wording with the following: "The State will promote the development of a Productive Economic Model, intermediate, diversified and independent, based on the humanistic values of cooperation and preponderance of the common interest over individual interests, that guarantees the satisfaction of the social and material needs of the people, the greatest amount of political and social stability and the greatest level of happiness.

The prohibition of monopolies is ratified, but it further prohibits activities, agreements, practices, acts and omissions by private persons that impair the methods and the system of social and collective productive systems and which affect collective and social property or prevent or hinder the fair and equitable competition of goods and services.

Property Rights

The Constitutional Reform recognizes and guaranties various forms of property: (i) public property, that which belongs to the State entities; (ii) social property, which is the property that belongs to the people as a whole and future generations, and may be of two kinds: indirect social property, when the ownership is exercised by the State in the name of the community, and direct social property, when the State assigns it, by various means and in defined territorial areas, to one or several communities, or to one or several communes, thus becoming communal property, to one or several cities, thus becoming citizen property; (iii) collective property, which is that belonging to social groups or persons, for their joint benefit, use or enjoyment, and may be of social or private origin; (iv) mixed property, formed by the public sector, the social sector, the collective sector and the private sector, in different combinations, for the use of resources or performance of activities, always subject to the absolute respect of the Nation’s economic and social sovereignty; and (v) private property, that which belongs to individuals or legal entities and is recognized with regard to property of use and consumption, and means of production legitimately acquired.

In the current Constitution, the property right is sanctioned in the following terms: "The property right is guaranteed. All persons are entitled to use, benefit, enjoy and dispose of their property. The property will be subject to the contributions, restrictions and obligations set by the law for public or general interest purposes. Only by reason of public or social interest, by means of a firm and timely payment of a fair indemnity, may the expropriation of any kind of property be declared."

Territorial Distribution of Public Power

The distribution of the Public Power is proposed as follows: (i) The People’s Power, (ii) the Municipal Power, (ii) the State Power and (iv) the National Power.

A new power, the "People’s Power" is recognized, consisting of the communities, communes and the self-government of the cities, through the communal councils, workers’ councils, peasants’ councils, students’ councils and other entities set forth by law.

Powers of the President and Presidential Term in Office

It is proposed to expand the powers of the President of the Republic, increase the presidential term in office to seven years and the immediate re-election of the President of the Republic for a new period.

Food Sovereignty

In order to guarantee food sovereignty, the constitutional reform provides that the Republic may assume sectors of agricultural, cattle raising, fishery and aquiculture production indispensable for such purpose, and may transfer the exercise thereof to autonomous entities, public enterprises and social, cooperative or communitarian organizations. It may also use all the powers of expropriation and occupation upon the terms set forth in the Constitution and the Law.

Prohibition of Latifundium

The prohibition against latifundium is maintained, adding the possibility for the State to confiscate large farms whose owners cause irreparable damage to the environment, use their lands for the production of psychotropic or narcotic substances or people trafficking, or use them or allow them to be used as spaces for perpetrating crimes against the security and defense of the Nation.

National Monetary System and the Central Bank of Venezuela

According to the proposed constitutional reform, the National Power’s jurisdiction over monetary matters will no longer be exercised exclusively by the Central Bank of Venezuela, but jointly with the Executive Branch of Government, under "strict and mandatory coordination."

It proposes the elimination of the Central Bank’s autonomy to formulate and exercise monetary policies and it provides that its duties will be subject to the general economic policies and the National Plan for Development, in order to "reach the highest goals of the Socialist State and the greatest level of happiness for all".

It expressly provides that the international reserves of the Republic will be managed by the Central Bank of Venezuela under the administration and direction of the President of the Republic, as administrator of the National Public Treasury.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.