elections and a referendum were held. The referendum, backed by Chávez, also proposed a law that would force Venezuela's labor unions to hold state-monitored elections. The referendum was widely condemned by international labor organisations—including the International Labour Organization—as undue government interference in internal union matters; these organisations threatened to apply sanctions on Venezuela. Enabling act and rule by decree After the May and July 2000 elections, Chávez backed the passage of an enabling act by the National Assembly. This act allowed Chávez to rule by decree for one year. In November 2001, shortly before the Enabling Act was set to expire, Chávez used it to put into place a set of 49 laws central to the implementation of his programs. These included a Hydrocarbons Law, through which it sought to gain greater state control over the oil industry. The law increased the transnational companies taxation in oil extraction activities to 30% and set the minimum state participation in "mixed companies" at 51%, whereby the state-run oil company, Petróleos de Venezuela S.A. (PDVSA), could have joint control with private companies over industry. With large oil incomes in Chávez's first years of presidency, he had successfully initiated a land transfer program and had introduced several reforms aimed at improving the social welfare of the population. These reforms entailed the lowering of infant mortality rates; the implementation of a free, government-funded healthcare system; and free education up to the university level. By December 2001, inflation fell to 12.3% the lowest since 1986, while economic growth was steady at four percent. Chávez's administration also reported an increase in primary school enrollment by one million students. The 49 laws, representing as they did the first major concrete step toward economic redistribution, were received with significant opposition. Chávez's clashes with multiple social groups he supposedly alienated and his close ties with controversial presidents Mohammad Khatami, Sadaam Hussein and Muammar Gaddafi also hurt his approval rating. Nelson then says what hurt Chávez's popularity the most was his relationship with Fidel Castro and Cuba, with Chávez attempting to make Venezuela in Cuba's image. Venezuela became Cuba's largest trade partner while Chávez, following Castro's example, consolidated the country's bicameral legislature into a single National Assembly and created community groups of loyal supporters allegedly trained as paramilitaries. Such actions created great fear among Venezuelans who felt like they were tricked and that Chávez had dictatorial goals. 2001 strikes and growing