Venezuelan President Hugo Chavez announced on Thursday that his government would move toward nationalizing major parts of the country’s oil industry. The announcement came just one day after the Venezuelan National Assembly agreed to Chavez’s request that he be allowed to rule by decree for the next 18 months. Since being re-elected in December with 63 percent of the vote, Chavez has put forward a series of sweeping reforms that will lay the groundwork for what he describes as “Bolivarian socialism.” Critics of this measure say it gives Chavez far too much authority. We host a debate. [includes rush transcript]

Venezuelan President Hugo Chavez announced on Thursday that his government would move toward nationalizing major parts of the country’s oil industry. Beginning on May 1, Chavez said the government will take majority control of oil projects in the Orinoco River basin. The move will affect several international oil companies including Chevron, Exxon Mobil, Conoco Phillips and BP. The announcement came just one day after the Venezuelan National Assembly agreed to Chavez’s request that he be allowed to rule by decree for the next 18 months. The legislation will allow Chavez to transform eleven areas, including the economy and defense.

Since being re-elected in December with 63 percent of the vote, Chavez has put forward a series of sweeping reforms that will lay the groundwork for what he describes as “Bolivarian socialism.” Chavez says that with this added authority he also plans to nationalize Venezuela’s largest telecommunications company and the electricity sector.

Critics of this measure say it gives Chavez far too much authority. They predict that nationalizing Venezuela’s industries will ultimately stunt Venezuela’s economic growth. President Bush told Fox News earlier this week: “I am concerned about the undermining of democratic institutions. And we’re working to help prevent that from happening.”

To discuss the situation in Venezuela, we turn to two guests:

• Francisco Rodríguez. Assistant professor of economics and Latin American studies at Wesleyan University and the and former chief economist of the Venezuelan National Assembly.
• James Petras. Author and journalist. He is professor Emeritus of sociology and Latin America studies at SUNY Binghamton and author of the book, “Social Movements and State Power.”