Yes, Chavez should focus on the private sector. People tend to have very little faith in government in general, especially with worldwide economic crises. With a larger private sector, government is kept out of the picture and there's more incentive to succeed because failure is not an option for local businesses trying to eke out an existence. And this may be beside the point, but isn't Hugo Chavez deceased now?
No, Hugo Chavez should not focus more on the private sector than social spending, because nothing is more important than the welfare of his people. Hugo Chavez cares deeply about the welfare of his people, and he knows how to put the needs of a large amount of people above the luxury of a few people. Social spending is critical to Chavez's administration