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Venezuela: boligarchs, the new elite

They shop in Miami, sip whisky on rooftop bars, drive new 4x4s and wear red T-shirts to government rallies: meet the boligarchs.”

Venezuela’s Bolivarian socialist revolution, named after the 19th century liberation hero Simon Bolivar, has smiled on a politically connected new elite.

Years of record oil revenues poured petro-dollars into the pockets of those who knew how to play the system, including, it is alleged, relatives of government ministers.

President Hugo Chavez has railed against the conspicuous consumption as the antithesis of Che Guevara’s ascetic ideals. “What kind of revolution is this? The whisky revolution? The Hummer revolution? No! This is a real revolution!”

Yet imports of luxury goods have soared in recent years, notably Scotch and fancy cars. Caracas property prices have rocketed. “My best customers are chavistas. They pick the apartment they want and they pay cash,” said one estate agent.

In addition to oil deals the nationalisation of big companies, government building contracts and exchange rate controls have created opportunities for “commissions” and arbitrage. Luis Tascon, a pro-Chavez national assembly member, named and shamed alleged sleaze merchants close to the president. He found himself expelled from the party and labelled a “counter-revolutionary” by state media.

The president has not been accused of personal enrichment. But opponents claim his parents and five brothers have snapped up vast tracts of land in their home state of Barinas. — © Guardian Newspapers Limited, 2009

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