Chavez aims to deepen revolution in Venezuela vote

CARACAS (Reuters) - Still popular after a decade in power, President Hugo Chavez aims to consolidate his hold on Venezuela in tight state elections on Sunday that may give him a platform to speed up his socialist "revolution."

The burly former soldier famed for roaring criticism of the U.S. "empire" and loved by the majority poor faces tough races in several states against a fragmented opposition that beat him last year in a referendum to allow him to run for re-election.

In a mainly mixed-race country long ruled by white elites, Chavez's humble roots, dark skin and often ribald speech endear him to a working class constituency grateful for him spending oil income on health and education since he took office in 1999. He has approval ratings of about 60 percent.

While his candidates face voter discontent with the OPEC nation's corruption, violent crime and trash-strewn streets, polls show his party will likely hold onto a large majority of states even though the opposition could make some gains.

Such a result in a vote that also includes races for city halls would likely embolden him to try again to change the constitution to allow him to run for re-election in 2012 and keep him in the vanguard of Latin America's leftists.

Unless he loses key, symbolic votes such as Caracas or big states his allies have controlled for years, the man who calls Fidel Castro his father appears set to launch a left-wing policy drive in the next few months.

"We have just one priority, to deepen the revolution in a comprehensive way," Chavez told Reuters at a rally to support a candidate for mayor in a Caracas slum. "That's the priority, to destroy the effects of capitalism."

His normally booming voice is hoarse after weeks of aggressive country-wide campaigning. He has branded critics in his movement as traitors, vowed to jail the opposition's leader and threatened to order tanks onto the streets in one state.

"Chavez might be in for a surprise, I think we could win a few states and a few mayors," opposition leader Manuel Rosales told Reuters.

Chavez won all but two states in the last election four years ago after opposition boycott calls. Pollsters predict he is now likely to lose three to five states, of a total of 22.

Any more than that could be called an opposition victory, create a bulwark to block Chavez's plan for re-election and give Chavez's rivals momentum as he faces falling income from oil, whose price has dived since July.

"The stakes are high on both sides. If Chavez does well, it opens the path to a referendum on his running for office again," said political historian Steve Ellner.

'EL COMANDANTE'

Chavez, or el Comandante to his fans, is relying on his new Socialist Party to mobilize voters. Founded last year, it is Venezuela's strongest with thousands of fired-up activists.

"Comrade, in the words of el Comandante, you only win fights by fighting," said Ines Moron, a resident of the tiny Caribbean fishing village of Chuspa and member of a party "patrol" dedicated to daily door-knocking to get out the vote.

Chavez's project to bring socialism to shopping and baseball-mad Venezuela took a blow with the referendum loss.

This year he slowed reforms to focus on foreign policy and fix problems like milk shortages that hurt his popularity.

He is now itching to speed things up again.

Collapsing oil prices threaten his pricey plans to overhaul the police, nationalize companies and give money to community groups. But Chavez is using the crisis to promote banks and funds across Latin America and with Russia and China, alternatives to "failed" U.S. capitalism.

Days after the elections, Chavez will shore up an alliance aimed at weakening U.S. economic power in Latin America, hosting a visit from Russian President Dimitry Medvedev, accompanied by his biggest warship.

On the domestic front, Chavez has promised to direct billions more dollars to community-run banks next year, a vote-winning project that bypasses sluggish ministries.

"We have to inject a new rhythm, new vigor to the socialist revolution," Chavez said.

(Additional reporting by Fabian Cambero, Patricia Rondon and Enrique Andres Pretel; Editing by Saul Hudson and Eric Beech)