ICG, 23 Jul 08: Venezuela: Political Reform or Regime Demise?
....President Chávez faces mounting pressure from not only the political opposition and student movement, but also his own support base, including social sectors that had been a fundamental pillar of his regime. Following a landslide re-election in December 2006, he sought to accelerate his “socialism of the XXIst century”, but his government was unable to cope with widening dissatisfaction caused by a project that increased concentration of power in his hands without improving the living standards of a majority of citizens and deteriorating public services, or reducing chronic food shortages, double-digit inflation or crime and government corruption. The result was defeat of the government’s sweeping constitutional reforms in the 2 December 2007 referendum.

The pro-Chávez camp is losing momentum. It has become bureaucratic, corruption is rampant, and its capacity to manage the country is poor. Regional and local grassroots are increasingly disappointed by the top-down style of the new PSUV party, which also is under mounting pressure from the smaller chavista groups. The struggle for political supremacy could further divide the pro-Chávez political and social elements, turning the 23 November 2008 municipal and state elections into a litmus test for the future of Chávez and his movement.....