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Chávez
receives decree authority.
In early November, a National Assembly approved the so-called Enabling Law
(Ley Habilitante). The legislation grants Chávez ‘fast-track’
authority to adopt by decree important legislation necessary to ensure
consistency of the current legal framework with new constitutional
requirements. Key reforms related to the economy include the
implementation of a:
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Public bidding law.
The new law is expected to create an autonomous national contract service,
a national registration system for contractors and outlined new bidding
procedures and requirements on public contracts for national and
multilateral development projects.
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Customs reform law.
The new customs framework would strive to raise customs revenues by
improving collection and creating a new autonomous national Customs
Service Administration (SAA, Servicio de Administración Aduanera),
accountable to the Finance Ministry instead of the Integrated National Tax
Services Administration (SENIAT, Servicio Nacional Integrado de
Administración Tributaria).
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Law for the development of small and medium-sized industry (SME).
The new framework would seek to establish a National System of Reciprocal
Guarantees for SME’s; provide a regulatory scheme for the development of
industry and the promotion of exports; establish safeguard clauses; and
lay down rules for the protection and promotion of foreign and national
investment.
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Public administration law.
Specific reforms may include the further reduction and merging existing
ministries, autonomous institutes and state corporations; reforms to the
Administrative Career Law; and reducing state contributions to private
institutions.
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Land and Rural Development law.
The most controversial issue concerning the new law is the possibility for
inclusion of a clause permitting government expropriation of
non-productive private property for redistribution and agricultural
development.
Note:
The above text is an abridged version of the LatinFocus Consensus Forecast
briefing on Venezuela. For more details please click here.
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