On Sunday, November 23, voters swarmed to the polling stations in Venezuela to cast their ballots in the mayoral elections. Even though president Hugo Chávez wasn’t on the ballot sheet, the results say a lot about the president and his future. The success of his candidates reflects not only his popularity but also considerations of the continuation of his high-spending, socialist political agenda.
Ever since last December, when the president’s referendum that would have allowed for continuous re-election was defeated, Chávez has wanted to prove that his people still support him. His supporters now say the election satisfies this wish. Chávez’s ruling party, the United Socialist Party (PSUV), claimed 17 out of 23 states. But this isn’t the whole story. The states that Chávez’s party lost convey an interesting story and explain why investors reacted positively to the election results....
