Venezuela’s Interim President Suggests Privatizations, Cementing Break With Socialism and Close U.S. Ties

Interim Venezuelan President Delcy Rodríguez announced a raft of new policies designed to liberalize the Venezuelan economy, further distancing the South American country from the tenure of Nicolás Maduro, who was removed from office by the U.S. in January.

"I have ordered an assessment of non-essential assets held by the State that could be offered to the private sector or returned to their former owners. This process is already well underway. Private property is a right protected and guaranteed by our constitution," the Venezuelan leader said in an address on Thursday.

Rodriguez also pledged that there would be four quarterly increases of the national minimum wage in 2027, promising that none of the raises would be lower in value than the economic growth of the preceding quarter.

Since the election of left-wing populist Hugo Chávez to power in 1999, Venezuela has witnessed a period of increased state intervention; both Chávez and Maduro expanded state control over virtually every major sector of the Venezuelan economy, including oil, telecommunications, mining, agriculture, finance and tourism.

The Chávez and Maduro governments conducted large-scale seizures of assets of major foreign multinational corporations, especially those in the oil sector, as well as domestic firms and private landowners.

Rodríguez has significantly improved relations with Washington since being recognized as president following Maduro's capture.

Venezuela has the largest proven oil reserves of any country in the world, and in August Caracas and Washington signed a consequential oil agreement which would grant a U.S.-led consortium long-term access to Venezuelan oilfields though to hold approximately 65 billion barrels of proven crude reserves.

However, Thursday's announcements pointed to a more fundamental domestic shift. By suggesting that assets would be returned to their "previous owners," Rodríguez was implying the injustice of the previous administrations' seizures of Venezuelans' private assets.

As Venezuelan political power under Maduro became more centralized, the state's ability to seize private assets was expanded; in April 2023 the Maduro government passed a law that allowed the state to confiscate private property linked to "anti-government activities" without a formal criminal conviction.

Despite Maduro's forced extradition to the U.S. in January, reports from as late as August indicated that Venezuelans attempting to reclaim properties continued to face significant obstacles in their pursuit of regaining ownership of their confiscated houses.

Rodríguez's speech did not just cover changes in the economic landscape of the country; she also pledged that elections would be held and run by a new National Electoral Council; the existing council was deemed by many international and independent observers to have fraudulently declared Maduro the victor of the 2024 Venezuelan elections.

Rodríguez also promised in her speech that the Venezuelan government would guarantee the right to peaceful protest, abolish detentions without a warrant, seek criminal justice reform and welcome the return of members of the Venezuelans diaspora, millions of whom fled the country during Maduro's time in office.

However, some Venezuelans are skeptical about the veracity of Rodríguez's promises.

Julio Blanca, a Venezuelan journalist based in Caracas, spoke to International Business Times about the credibility of Rodríguez's promises.

On several occasions, Blanca claimed, the government has made promises of change but "when it comes to implementation, these actions fall short."

"The same thing happened regarding the release of political prisoners. Back in February, it was announced that the prisons would be opened and everyone detained for ideological reasons would be released.That did not happen. Organizations like the Foro Penal report that at least 300 people remain in detention."

"So, there is a series of situations that demonstrate that these projections or proposals are, in fact, nothing more than empty rhetoric," the journalist continued.

Rodríguez made her speech just hours before María Corina Machado, a prominent opposition politician who faced persecution at the hands of the Maduro regime, gave a press conference following a highly-publicized return to Venezuela after months of exile.

In the context of Machado's return and potential upcoming elections, Blanca speculated that Rodríguez's economic pledges have an electoral purpose.

"As for economic matters, these appear to be one of the primary draws for winning over the electorate, given that for years there have been demands not only for wage increases but also for the restoration of labor rights—the erosion of which has led to a decline in workers' earnings," Blanca argued.