In April 2006 the Government of Venezuela passed The Law of Communal Councils (consejos comunales) which empowers local citizens to form neighbourhood-based elected councils that initiate and oversee local policies and projects towards community development. Communal councils convene and coordinate existing community organizations as well as promote the creation of new work committees, cooperatives and projects as needed in defence of collective interests and the integral development of the community.
The jurisdiction of each council is limited to a self-defined geography housing under 400 families, but unlimited in scope of activities within the community. All key council decisions are made via discussion and majority vote within a citizens' assembly with at least 30% of the adult community present. Councils are highly autonomous although they are often required to coordinate with municipal administrations and receive funds from various levels of government.
Over 19,500 councils have already been registered throughout the country and billions of dollars have been distributed to support their efforts.
The law of Communal Councils was reaffirmed and updated in November 2009.
Communal councils are a group of elected persons from a self-defined residential neighbourhood of about 150 to 400 families in urban areas, or closer to 20 families in rural areas, and potentially 10 in indigenous communities. The principal decision making body of a communal council is the citizens' assembly. The formal functioning committee is composed of the following five units:
All council persons are people within the community elected by the citizens' assembly for a period of 2 years. No person can occupy positions in more than one unit at time.
The Unit of Social Oversight is a group of five community members elected by the Citizens' Assembly. They are an independent group who monitor and report on the application of council resources and activities towards the community development plan. They are also known as the Anti-corruption Unit.
The Community Coordination Collective (composed of one elected spokesperson from the Executive Body, Financial Management Unit & Anti-Corruption Unit respectively) is charged with galvanizing community organization, informing and training community members, and coordinating with the local militia reserves.
Eight months after the law was passed, over 16,000 councils had already formed throughout the country. 12,000 of them had received funding for community projects – $1 billion total, out of a national budget of $53 billion. The councils had established nearly 300 communal banks, which have received $70 million for micro-loans.
As of March 2007 19,500 councils were registered.