Chavez Restyles Venezuela With '21st-Century Socialism'

CARACAS, Venezuela - Firmly in power and his revolution now in overdrive, President Hugo Chavez is moving fast to transform Venezuela's economy by bucking free-market planning with what he calls 21st-century socialism: founding state companies, seizing abandoned private factories and establishing thousands of cooperatives and worker-run businesses.

The populist government is reorganizing the country's colossal oil industry, taking a bigger share from private multinationals. Planners are reorganizing the banking system, placing stringent restrictions on lending while creating state banks. Venezuela is also developing a state-to-state barter system to trade items as varied as cattle, oil and cement as far away as Argentina and as near as Cuba, its closest ally.

"It's impossible for capitalism to achieve our goals, nor is it possible to search for an intermediate way," Mr. Chavez said a few months ago, laying out his plans. "I invite all Venezuelans to march together on the path of socialism of the new century."