The New York Times
December 9, 1998

          Venezuelan Pulls Off Revolution at the Polls

          By DIANA JEAN SCHEMO

               ARACAS, Venezuela -- With his landslide victory Sunday securing his place as the next
               president of Venezuela, Hugo Chavez Frias might have been expected to smooth over the
          tracks of his first attempt to storm the presidential palace here, in 1992, in case other revolutionaries
          got the same idea.

          Instead, he highlighted the failed coup, along with the day he left prison two years later. "What we're
          living through in Venezuela is the continuation of February 4, 1992," Chavez told crowds of euphoric
          supporters, many sporting his trademark military-style red beret, who had turned out to revel in the
          triumph of the man they call "El Commandante."

          There was good reason for Chavez to celebrate the doomed revolt. For the 44-year-old former
          paratrooper, the coup forged his credentials as the undeniable outsider, whose day would come as
          Venezuela's economy sank deeper and its people grew more doubtful of the traditional ruling class.

          Chavez's victory has opened not so much a new page, as a new tome, in Venezuelan politics. At a
          time when the rest of Latin America has been moving largely toward streamlining the role of
          government and selling off state assets, Chavez speaks of subordinating the state oil company,
          Petroleos de Venezuela, to domestic priorities, and asks whether $9 billion earmarked for
          operations and investment by the oil company should not go to shore up decaying schools and
          hospitals instead.

          Chavez soared to victory on fiery rhetoric that promised fry the heads of traditional political bosses
          but he immediately soften his message upon victory to persuade investors that Venezuela was still
          safe for them.

          On Tuesday, in the first day of trading after the election, the tiny Caracas stock exchange jumped a
          record 22 percent and the currency strengthened against the dollar after a long slide.

          Though Chavez failed to overthrow former President Carlos Andres Perez, the coup succeeded in
          other ways: it took the place of party machinery and war chests, celebrity endorsements and hours
          of campaign ads.

          Even as he languished in prison, the mystique grew of the restless lieutenant colonel condemned for
          trying to destroy a system that many Venezuelans recognized as rotted but felt powerless to remedy.

          "He was seen as someone who told the truth about the system," said one diplomatic analyst.

          In 1994, after President Rafael Caldera freed Chavez -- in a bid to deflate the commandante's
          swelling popularity -- Chavez created his Fifth Bolivarian Movement and began taking his war on
          corruption to the hinterlands.

          The son of school teachers who grew up poor in the state of Barinas, he surrounded himself with a
          contradictory klatch of right-wing nationalists from the military and other figures hailing from the left.

          With such an odd mix, some political analysts thought he would go nowhere. Last December,
          opinion polls showed him with less than 12 percent support among likely voters. But slowly, perhaps
          even unconsciously, his red-bereted image was moving in from the fringes, to dominate the political
          scene.

          "What people hadn't counted on was the real depth of disgust Venezuelans had for traditional
          politics," said the diplomat.

          The colonel also benefited from a souring economy and a beauty queen's mistakes. Until last spring,
          Irene Saez, a former Miss Universe, had been leading in voter surveys, peaking at 35.7 percent to
          Chavez's 20.6 percent. Then the price of oil, which underpins Venezuela's entire economy, fell
          steeply.

          "We went from an optimistic country to a pessimistic one, with expectations that things will get
          worse," said Luis Vicente Leon, director of the Datanalysis polling agency. The following month,
          Miss Saez accepted a luke warm endorsement from one of the two traditional parties. The backing
          compromised her claims to being an outsider and her popularity ratings slid into the single digits.

          Next, it was the turn of Henrique Salas Roemer, a former governor of Carabobo State, educated at
          Yale. Salas, 62, climbed aboard a white horse, called Frijolito, or Little Bean, for campaign rallies.
          But his claims to being a warrior for the people also weakened with a last-minute endorsement from
          the major parties. Salas rode Frijolito through the streets of Caracas for his final rally.

          Indeed, in the final vote, Chavez, who was frequently criticized for altering his positions depending
          on his audiences, succeeded in capturing some 40 percent of the upper and middle-class vote, on
          top of his bedrock support among the poor, said Leon.

          Chavez plans to hold a referendum Feb. 15 to rewrite the Constitution, which some political
          opponents fear could be a mechanism for concentrating power in his office.

          While Chavez gives voice -- and a roaring one at that -- to Venezuela's downtrodden, some fear
          that populist economic policies will set the clock back here.

          Chavez spoke out against privatizing health care, which he called "the right of all Venezuelans," and
          has raised the prospect of a debt moratorium or a grace period for foreign debt, which he said
          amounts to 40 percent of the national budget. He has vowed to raise the minimum wage of just
          under $200 a month, which covers only half the cost of the standard food basket for a family's
          minimal nutritional needs.

          "As president, he's going to try to deliver on his campaign promises," said Robert Bottome, a
          publisher of VenEconomy newsletters, "The economy will go into a big tailspin and then the question
          is, what does he do?"