The IMF and the World Bank are viewed by most Latin American governments as instruments of US influence in the region. Loans have tended to be regarded as Faustian deals that come with a price. Even as the loans help to bring about needed changes, recipients frequently complain that they are being co-opted as part of an economic game orchestrated by the US. The chief complaint most often is that the IMF and WB won't dole out the cash unless countries agree to reform along free market lines.

Not surprisingly, Hugo Chavez leads the pack when it comes to a revolt against the influence of the IMF and the WB in Latin America. However the hype provoked by his anti-American posturing frequently gets overblown.

He called Bush "the devil" at the UN, but that was political theater. Even his chummy relationship with Iran's Ahmadinejad is more of the same nose thumbing at the US. As a type of of neo-Che, Chavez isn't very convincing. He's a capitalist enabler despite his Marxist posturing. The deal he cut with mega wealthy media boss Gustavo Cisneros to get the Venevision TV channel up and running is just one example of his deal making with the private sector . There was even an agreement with Cisneros that Venevision refrain from dissing the great man who, as we know, has grown increasingly prickly when it comes to negative profiling on the tube.

The most obvious threat he poses to the US is through his declared readiness to challenge American interests via economic initiatives. One such initiative is his much vaunted plan to set up a Banco del Sur (Bank of the South). This is a proposed development bank, funded and operated by Latin American governments. The other anti-American strategy may involve using his influence in OPEC to adversely effect US interests.

You might think that given the resentment toward the IMF and the WB, Latin American governments would be rushing to jump aboard Hugo's Banco express. Not so. There is in fact a growing resentment toward Chavez. A poll in Peru indicates that his populism doesn't cross borders easily - 70% of the respondents expressed dislike and distrust for the man. In the run-up to elections in Peru, when candidate Alan Garcia criticized Chavez publicly as part of a platform strategy, his poll numbers showed significant improvement. He had this to say after his win ...

"They (Peruvians) have defeated the efforts by Mr Hugo Chavez to integrate us into his militaristic and backwards expansion project he intends to impose over South America. Today, Peru has said no."

The other reason that Chavez has whipped up regional animosity is because he insists on meddling in other nation's affairs. His Bolivarian vision of Latin American integration promotes a rather grandiose view of himself as the great unifier. Ironically enough Chavez has indeed succeeded in unifying a number of S. American governments, but not exactly along the lines he intended. He has unified them in their determination to rein him in. Some of the countries lately that have directed criticism at him include Mexico, El Salvador, Guatemala, Peru and Brazil. Let's face it, personality cult politics isn't the style of all leftist Latin American nations, a number actually see themselves as closer to Eurozone style social democracy than to Chavez' neo-Marxist revivalism.

As far as the Banco del Sur project goes, the major players don't share Chavez' radical vision. Brazil and Argentina have shown no inclination to withdraw from the IMF. Chavez' does have a supporter in Rafael Correa of Ecuador who has a similar Latin American vision for the role of the bank. However Correa's proposals were rejected at a meeting of finance ministers in Quito in early May of this year.

Brazil's president, Lula da Silva, has been walking a fine line between Bush on the one hand and Chavez on the other. He has refrained from overt criticism of Chavez. However there are issues he simply can't ignore. The Brazilian company Petrobras was adversely effected by Bolivia's move to nationalize the energy sector. The warnings issued by Brazil about damage to relations were indirect criticisms of Chavez also since the Bolivian initiative on the energy front was to a large extent Chavez' inspired.

Meanwhile in the socialist utopia, Venezuelans have been having difficulty finding basic grocery items such as meat, milk and sugar. The inflation rate is one of the highest around with food prices fluctuating alarmingly, despite price controls. Predictably Chavez blames capitalism and its cabal of "hoarders and speculators". There is a risk for retailers if they decide to hike prices. They could well face fines or even a jail sentence - despite the fact that many are forced to sell at a loss.

The people of Venezuela deserve a break. At this stage it's unclear if Hugo Chavez is capable of delivering at home given the numerous irons he has in the fire - not to mention his many photo ops.

About the Author

Aidan Maconachy is a freelance writer and artist based in Ontario. You can visit his blog at http://aidanmaconachyblog.blogspot.com/