Chavez Nationalizes the Venezuelan Cement Industry

(Caracas, Venezuela) At midnight on Monday of this week, Energy and Oil Minister Rafael Ramirez led workers in a symbolic takeover of a cement plant in the eastern part of the country which signified the nationalization of virtually all cement production in Venezuela.

"From this moment a decree of expropriation is in effect and the job stability of workers is guaranteed by the Venezuelan state," Ramirez announced.

"The interest of Venezuelans is placed above business interests."

So, in addition to telecommunications, oil and gas, iron and steel industries, President Hugo Chavez has nationalized the cement industry, reportedly to boost housing construction. However, according to economic researcher Jose Guerra, the general trend toward nationalizing the entire economy, despite all the promises of a socialist utopia, hasn't gone well.

He pointed out that in other state takeovers, such as for iron and steel processor Orinoco Ternium-Sidor in May 2008, or for the foreign operators in the oil-rich Orinoco Belt region, output fell after the state claimed control.

"At Sidor production has fallen some 25 percent. Neither has there been progress in the Belt."

"The nationalizations are a bad business for the Venezuelans," he added.

Heh.