Buoyed by his resounding re-election victory, Hugo Chávez vowed yesterday to complete Venezuela’s “socialist revolution” and taunted President Bush, signalling his intent to form a broader international front against the US.

“This is another defeat for the empire of Mr Danger,” he said, using one of his favourite names for the US President.

Mr Chávez dedicated his win to Fidel Castro, Cuba’s ailing President. Mr Chávez is preparing to take over as the torchbearer for Latin American socialism now that Mr Castro appears to have left power for good.

Iran hailed Mr Chávez’s re-election as a rejection of Washington’s “arrogant” policies. Praising him as a “freedom-seeker”, it said that it would deepen its relationship with Venezuela. Washington is viewing the growing friendship between two of its most outspoken antagonists — both key oil exporters, with concern.

Mr Chávez secured a new six-year term by a wide margin on Sunday, defeating his opponent in every state in the country. With nearly 80 per cent of the votes counted, Mr Chávez had 61 per cent of the vote, while his challenger Manuel Rosales had 38 per cent.

Flush with petrodollars, Mr Chávez has pumped huge sums of money into Venezuela’s poorest areas, winning favour with millions. As his opponent gained in the final weeks of the campaign, Mr Chávez toned down his socialist rhetoric and denied that he wanted to emulate Cuba.

After his victory, however, Mr Chávez promised a new leftward lurch to complete his grand plan to transform Venezuela into a fully socialist nation.

Despite the revolutionary rhetoric of the past eight years, Venezuela remains a largely capitalist economy with the US as its largest trading partner. But Mr Chávez has said that this “transition phase” will now end and Venezuela will move to a fully socialist economy.

The President has already said that he may withdraw the broadcasting licences of private television stations not sympathetic to his Government.

He is also poised to impose tough controls on non-governmental organisations, such as Aids charities and human rights groups. He has also promised to change the constitution to allow indefinite re-election and vowed to remain in power until at least 2021.

Mr Rosales warned Mr Chávez not to misinterpret the results of the election, saying that he should govern for all Venezuelans. “The Government should read these results well. There were not 10 million votes,” he said, referring to the number of votes Mr Chávez had hoped to capture. “There are 26 million Venezuelans.”

• Rafael Caldera Rodriguez, a right-leaning President, was beaten by Hugo Chávez in 1998
  
  
• In 1998 GDP was $185 billion (£93 billion); in 2006 it is $162 billion
  
  
• Inflation: 38 per cent (1998); 16 per cent (2006)
  
  
• Proportion in poverty: 44 per cent (1998); 34 per cent (2006)
  
  
• External debt: $27 billion (1998); $34 billion (2006)

  Source: CIA, Venezuelan Government, The Times archieve

• The US on Chavez: “A demagogue awash in oil money is undermining democracy and seeking to destabilise the region”

  Source: US National Security Strategy

Times Recommends

• The Japanese Prime Minister is doomed: or is he?
• Brighton company 'involved in cyber attack'
• The art of survival: it's all in the mind