Crime, inflation erode Chavez govt's popularity

By Frank Jack Daniel

CARACAS, March 19 (Reuters) - Venezuelan President Hugo Chavez is struggling to regain his momentum as inflation, crime and nagging shortages of basic goods cut into his government's popularity before important state elections later this year.

The leftist leader lost a referendum last December on speeding up his socialist reforms -- his first electoral defeat since taking office in 1999 -- reflecting growing discontent with daily problems of violent crime and long lines for basics like milk, which is in short supply.

Chavez's humble rural roots, along with his commitment to high public spending on health centers, education and subsidized food, have made his government hugely popular among Venezuela's majority poor for the best part of a decade.

But a poll published on Tuesday in El Nacional newspaper showed support for the government, although not for Chavez himself, had slumped to 34 percent, down 9 points since December and its lowest since 2003 when the country was hit by opposition protests aimed at cutting short Chavez's term.

"It makes sense," Daniel Hellinger, a Venezuela expert at Webster University in St. Louis, said of the popularity slump. "There is a lot of discontent among core Chavez supporters about corruption and inefficiency in government services."

Chavez is aware of the problems and is pressuring his Cabinet ministers to try to resolve the problems before November elections for state governors and mayors.

He has warned his allies they could lose Caracas and several states in oil-producing regions if they do not get back on track before then.

Problems like corruption are deeply ingrained in Venezuelan society and heavy spending of record oil revenues has spurred inflation. The business sector blames government price controls and over-regulation for the food shortages.