Small business woes in Venezuela

news.bbc.co.uk The Coca-Cola bottler in Venezuela has closed its doors Sunday, 12 January, 2003, 00:15 GMT

By Adam Easton BBC correspondent in Caracas

Venezuela's 41-day-old general strike has crippled the country's oil-rich economy and is threatening to bankrupt thousands of small and medium businesses.

I've been getting up at two o'clock in the morning for the last three days to stand in line waiting for gas Caracas housewife

Opposition leaders called the strike, saying president Hugo Chavez has mismanaged the economy and is trying to impose a left-wing dictatorship.

They want him to resign and call elections.

Mr Chavez is refusing to do so, even though his government is losing billions of dollars as oil production has virtually ground to a halt.

He says the strike leaders are "traitors" who are trying to overthrow a democratically-elected leader.

But it is not just the government that is losing. Many striking businesses can no longer afford to pay their bills or employees.

Venezuelans can wait for hours to get petrol and cooking gas. Queuing up

Nancy Aranguren stands in a queue in the working-class neighbourhood of Catia in the capital Caracas. Petrol is hard to find

"I've been getting up at two o'clock in the morning for the last three days to stand in line waiting for gas.

"Yesterday, we were here until two o'clock in the afternoon. I'm having to use a small electric cooker," Ms Aranguren says.

In Catia, most of the shops and businesses have remained open throughout the strike. People cannot afford to close.

Outside a nearby bakery, a street vendor shouts, "Yes, we have flour."

Inside, manager Javier Alexander says some basic products are no longer available.

At the beginning of the strike people stockpiled food in anticipation of a long walkout and truck drivers who deliver food joined the stoppage.

"We've been affected most by the lack of flour, sugar, milk and juices. Soft drinks as well, you can't get any of them."

Lost business

Mr Alexander says the strike does not solve anything.

"Many people here need to work. There are lots of unemployed," he says.

The protestors say Chavez is starving the people

Thousands of businesses that have remained closed during the strike are in danger of going under.

Self-made businessman Carlos Avila owns a chain of Subway sandwich shops.

Sitting inside one of them in the leafy Santa Eduvigis neighbourhood - where most businesses support the opposition - he says he has lost more than $200,000 since the strike began.

He says he will not reopen until President Chavez calls elections.

"We know there will come a point in time when we will not have any money to pay our employees or to buy food for our families," he says.

"We definitely do not want the totalitarian government that we have and all we're doing is calling for early elections."

Working overtime

The strike, which is being supported by state company oil managers and workers, has seriously disrupted operations in what is normally the world's fifth largest oil exporter.

When you put your own ambition or your own political question over the interests of your country, you become a traitor

Antonio Valladares

For the first time in 40 years Venezuela has been forced to import fuel.

At one of the country's main oil export terminals in Puerto La Cruz, more than 300km to the east of Caracas, there are few workers to be seen.

Its manager, Antonio Valladares, says striking oil workers have devastated the industry.

"When you put your own ambition or your own political question over the interests of your country, you become a traitor," he says.

Shops are struggling to stay open

"I've been working overtime, I have a few hours with my family, but you must put all your heart and soul and strength for your country."

Back in Caracas street vendors line both sides of one of the city's busiest shopping streets. They have carried on working throughout the strike.

Iviys Chauran sells t-shirts in the colours of the Venezuelan flag. In this political dispute, everybody wants to display their national pride, she says.

"While they're killing each other we're working. Both Chavez supporters and his opponents want to buy the t-shirts with the Venezuelan flag on them. That suits me."

While both sides feel patriotic, this strike has deepened divisions within the country.

The longer it goes on, the harder it will be for Venezuela to get its economy back to normal.