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April 1 (Reuters) – Venezuela’s opposition presidential

candidate Henrique Capriles defines himself as a center-left

“progressive” follower of the business-friendly but

socially-conscious Brazilian economic model.

He faces President Hugo Chavez in an Oct. 7 election.

Here are some of his main policy positions:

OIL

* Capriles denies the opposition wants to privatize state

oil company PDVSA as some “Chavista” officials have alleged. He

insists the vast energy enterprise will remain in government

hands if he wins power. He has, however, vowed that PDVSA will

be “de-politicized” with the replacement of politically-aligned

managers by the best professionals available.

* Like the government, Capriles wants the OPEC nation to

hike oil production to fund development. But beyond talking

about wooing more foreign investment and accelerating projects

in the huge Orinoco Belt, he is vague about how to achieve that.

He frequently cites Norway as an example of a nation that has

used its oil riches properly to diversify the economy.

* Capriles opposes Chavez’s decision to pull Venezuela out

of the World Bank’s ICSID arbitration court where U.S. oil

giants Exxon Mobil Corp and ConocoPhillips are

seeking billions in compensation for 2007 nationalizations.

* Capriles says he would not immediately raise the price of

gasoline, which for years has been the cheapest in the world due

to big government subsidies. The subject is a touchy one for

Venezuelans who remember deadly riots over price hikes in 1989.

Capriles has said he would start a debate about the issue with

an eye to eventually increasing fuel costs.

NATIONALIZATIONS

* Capriles opposes more nationalizations, but said sweeping

takeovers carried out by the Chavez government since 1999 cannot

be undone overnight. Rather, he has said each of the hundreds of

companies and projects taken over should be studied case-by-case

to see if there is justification for returning businesses to

private hands or setting up some form of joint ownership with

workers.

* Development of the economy, Capriles says, can only be

done when the fear of nationalizations has gone. He cites the

failure to develop tourism in Venezuela – despite its

extraordinary natural beauty from Caribbean coastlines to Amazon

jungle and Andean mountains – as a classic example of the

deterrent effect of takeovers. “No one here even wants to build

a hostel for tourists … The owners are scared that a minister

will go one day, and he won’t like the coffee, and they’ll be

expropriated.”

CURRENCY

* Capriles says the two-tier currency controls in existence

– three-tier if the black market is included – have not achieved

their aim of slowing inflation or preventing capital flight.

Their removal, however, cannot be rapid and depends on the

creation of investor confidence and economic stability under a

post-Chavez government, he said.

* All pre-Chavez and Chavez-era debt, whether in local

bolivars or foreign currency, would be respected, Capriles says,

even though he criticizes the current government for borrowing

far more than he says the nation needs.

SOCIAL POLICIES

* While most opposition candidates have made a point of

highlighting crime as Venezuela’s main problem, Capriles has

made education his flagship policy, pointing to a strong record

of opening new schools in Miranda state. “Proper education is

the long-term solution to our crime phenomenon,” he said.

* He does, however, also lambaste the government’s failure

to stem violent crime levels that terrify Venezuelans and

visitors alike, leaving statistics on a par with some war zones.

“The central government has delivered 18 security plans – all of

them have failed. Pure politicking,” he scoffs.

* He applauds Chavez’s commitment to building clinics and

schools in low-income areas to offer free services, but says the

programs have been chaotically and often corruptly administered.

He proposes keeping the best of Chavez’s much-vaunted “Missions”

for the poor, while administering them better to ensure they

really benefit the most needy.

* Capriles’ camp plans to eliminate off-budget funds, such

as Fonden, used to finance state welfare policies.

FOREIGN RELATIONS

* Capriles vows to prioritize relationships with countries

in the Americas and “democratic” nations, as opposed to Chavez’s

ties with politically-allied governments often far away and with

questionable rights records such as Iran or Belarus.

* Despite that, China will remain an essential partner of

Venezuela, he says. “No one in the world can do without China.”

* Capriles sees no need to cut relations with Cuba, where

Chavez has had a particularly close relationship with the

communist government, but he says ties must be put on a

transparent footing. He has implied that the thousands of Cubans

in Venezuela – from shantytown doctors to intelligence and

security advisers – should be replaced by Venezuelans, and said

the country should revise its agreement to supply oil to Cuba on

preferential terms. “We will not give away oil to anyone, but

neither will we stop selling to anyone.”

* During the campaign, he plans to visit Brazil, Colombia,

Spain and Brussels.

ARMED FORCES

* Capriles has been guarded on the delicate topic of

Venezuela’s armed forces. Chavez is a former soldier and has

packed the senior ranks with his supporters, especially after a

brief, military-led coup against him in 2002.

* Capriles said the vast majority of soldiers simply want a

stable, democratic Venezuela, and he believes the armed forces

will stand by the result of the Oct. 7 vote, whichever way it

goes.

(Reporting by Andrew Cawthorne; Editing by Daniel Wallis and

Kieran Murray)