Venezuela To Nationalize French Retail Chain

Venezuelan President Hugo Chavez announced that the Venezuelan government intends to nationalize Almacenes Exito, a retail chain owned by a French corporation, for allegedly raising its prices after Venezuela devalued its currency by 50%.

This is nothing unusual for Chavez who has nationalized huge chunks of businesses and other operations in Venezuela since he came into power 11 years ago. Nationalization for him serves two purposes: to enrich the government and to consolidate his power. Chavez may play up his enmity towards the United States to garner public support, but in reality he aims to bulk up the government and military to defend against both internal rebels and Colombia.