Production Reform in Venezuela

Head of the Ministry of Basic Industry in the Chavez Administration, Victor Alvarez, has set up procedure for the reform of some state-owned businesses. In an effort to root out corruption and ineffeciency, the managers of some state businesses, such as those at an aluminum processing plant in the southeastern state of Bolivar, are being let go. They are to be replaced with a new mangement program designed by the workers, in which workers are elected to the position of manager. Current plans include a flat salary for workers and managers, in an effort to discourage the kind of corrupt, self-maximizing behavior that plagued the previous management.

From Monthly Review, May 2005, v. 25 no. 1.

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