Rejecting Hugo reforms

8226;The changes would have created new forms of communal property, let Chavez handpick local leaders under a redrawn political map, permit civil liberties to be suspended under states of emergency and allow him to seek re-election indefinitely. Now, Chavez will be barred from running again in 2012

8226;Other changes would have shortened the workday from eight hours to six, created a social security fund for millions of informal labourers and promoted communal councils where residents decide how to spend Government funds. The reforms also would have granted Chavez control over the Central Bank and extended presidential terms from six to seven years

THE CONTROVERSY

8226;The most controversial element of the reforms would have extended presidential terms to seven from six years and allowed the President to run for re-election indefinitely

8226;Currently, the President can be re-elected only once. Chavez raised the prospect of perpetual power in a closing campaign speech on Friday to tens of thousands of supporters wearing red shirts on Avenida Bolivar, saying he would remain in office until 2050 or age 95 8220;if the Venezuelan people ordain it8221;.

8226;But critics also were concerned about changes that would have expanded the President8217;s discretionary powers, giving him control of billions of dollars in central bank reserves and enabling him to create new regional and municipal entities ruled by vice-presidents whom he would name and whose powers would take precedence over that of elected governors and mayors.

SCEPTICISM

8226;Even Venezuelans living below the poverty line had grown increasingly sceptical about the reforms and disenchanted with Chavez. Ill feeling was being driven by higher prices and scarcities of basic foods, including milk, chicken and beans. Last week, people waited three hours in lines to purchase staples at some Government-run Mercal grocery stores.