"Those who want to go directly to hell, they can follow capitalism," Mr Chavez said in the town of Trinidad in Bolivia

"And those of us who want to build heaven here on earth, we will follow socialism," he added.

Recent floods in the town left thousands of homeless and their livestock drowned.

Venezuela's aid package of $15m (11.4m euros) outweighed the sum offered by the US tenfold.

The country also sent in aid workers who attended their president's speech on the airport runway.

During his visit, Mr Chavez also pledged more than $1bn (£0.5bn; 0.76bn euros) for oil projects and community radio stations in the country.

Mr Bush spent Saturday in Uruguay where he spoke of the US care for the "human condition" and its "quiet, effective diplomacy".

Rural retreat

He defended capitalism, saying one way to lift people out of poverty was to encourage investment.

"I would call our diplomacy quiet and effective...aimed at helping people, elevating the human condition, aimed at expressing the great compassion of the American people," he said.

The US president has pointedly refused to directly respond to Mr Chavez's comments as they make parallel tours of the region.

Mr Bush's presence in Latin American states has been met with protests and marches, some of which have turned violent.