Venezuela: a minefield
Venezuela: a minefield
[02-13-11] The New Year has found Venezuela rife with problems. Complaints, exasperation and overall inconformity with how things stand have become compounded by unsatisfied expectations. Not a single area in the life of the country has been spared. Productivity is at its lowest and unemployment at its highest. The economy as a whole, but in particular the agriculture and industry sectors, as well as social services such as health and education, judicial services and personal safety, housing and transportation, are all in crisis due to current government policies.
Workers and Trade Unions, including those sympathetic to the government, are demanding respect for unfulfilled labor agreements. The oil industry, unable to cope with the government’s many demands, has resorted to increase its debt and to future sales contracts at prices well below the market. Electricity is rationed. During the dry season there is no water, and during the rainy season, when there is water in excess, there is no way to mitigate its damages. The hailed increased gas production never materialized and Venezuela has even had to import. Non-traditional exports have declined alarmingly and dependence on imports increased exponentially. In 2010, for the second time in a row, Venezuela’s BOP closes with a deficit above US$ 10 billion.
With risky brinkmanship tactics, the ‘revolution’ seems to be purposefully creating an atmosphere of anarchy in selected sectors of economic and social development. Not even culture has been spared. In a situation reminiscent of a "Maoist cultural revolution" of sorts, a revolutionary dogma has been imposed on the cultural establishment. Museums are accused of being "elitist spaces" and the national heritage they safeguarded left unattended, dispersed, or lost. In early 2011, the internationally-recognized ‘Jacobo Borges’ and ‘Alejandro Otero’ Museums were turned into shelters for the homeless since the homeless and displaced, in the words of the Minister of Culture, are in and by themselves "a work of art".
The government’s total incompetence during the twelve years it has held absolute power is clearly revealed by the inexplicable and unacceptable housing deficit, which now serves the President for his absolutely unconstitutional seizures of private property. After twelve years of smoke and mirrors, housing has now become the focus of the government’s concern, in a belated attempt to amend its negligence in this sector, as in many others. Housing developments plans in urban and rural areas were abandoned as a whole. The systematic, unjustifiable and at times violent expropriation of productive land, homes and businesses has left Venezuela paralyzed and bewildered.
Although the opposition’s current participation in the National Assembly has brought some fresh air into politics, efforts are however made by the government to restrict the exercise of the parliament’s oversight responsibilities and keep the "circus" going on. Universities has been systematically sabotaged by budgets cuts, while the appointment of a new Minister of Higher Education – who although a career educator is totally committed to the leader of the revolution’s designs like the rest of her predecessors - intends to mitigate the government’s previous mishaps in trying to reduce or eliminate the universities independence.
Time bombs are ticking all over Venezuela and the outlook for 2011 is not flattering. A forecasted 38% rate of inflation, among the highest in the world, will seriously further reduce Venezuelans’ purchasing power. The basic “Food Basket” is officially estimated at Bs. 3,600, while the “Basic Basket”, which includes other than food basics, at Bs 8,000, with annual increases of 30% and 43%. Unemployment is expected to be greater than 14%.
Over and above the unpromising omens that the current government's mismanagement announces for this year, the lack of civility in the country and among its citizens is particularly disturbing. Anxiety, restlessness and unease among Venezuelans have become pervasive. Violence, linked to un-satisfied daily basic needs, reduced purchasing power and unemployment, creates an implosive environment. Fortunately, polls show that Venezuelans’ most important wish is still to enjoy peace and unity through tolerance and respect.
[02-13-11] The New Year has found Venezuela rife with problems. Complaints, exasperation and overall inconformity with how things stand have become compounded by unsatisfied expectations. Not a single area in the life of the country has been spared. Productivity is at its lowest and unemployment at its highest. The economy as a whole, but in particular the agriculture and industry sectors, as well as social services such as health and education, judicial services and personal safety, housing and transportation, are all in crisis due to current government policies.
Workers and Trade Unions, including those sympathetic to the government, are demanding respect for unfulfilled labor agreements. The oil industry, unable to cope with the government’s many demands, has resorted to increase its debt and to future sales contracts at prices well below the market. Electricity is rationed. During the dry season there is no water, and during the rainy season, when there is water in excess, there is no way to mitigate its damages. The hailed increased gas production never materialized and Venezuela has even had to import. Non-traditional exports have declined alarmingly and dependence on imports increased exponentially. In 2010, for the second time in a row, Venezuela’s BOP closes with a deficit above US$ 10 billion.
With risky brinkmanship tactics, the ‘revolution’ seems to be purposefully creating an atmosphere of anarchy in selected sectors of economic and social development. Not even culture has been spared. In a situation reminiscent of a "Maoist cultural revolution" of sorts, a revolutionary dogma has been imposed on the cultural establishment. Museums are accused of being "elitist spaces" and the national heritage they safeguarded left unattended, dispersed, or lost. In early 2011, the internationally-recognized ‘Jacobo Borges’ and ‘Alejandro Otero’ Museums were turned into shelters for the homeless since the homeless and displaced, in the words of the Minister of Culture, are in and by themselves "a work of art".
The government’s total incompetence during the twelve years it has held absolute power is clearly revealed by the inexplicable and unacceptable housing deficit, which now serves the President for his absolutely unconstitutional seizures of private property. After twelve years of smoke and mirrors, housing has now become the focus of the government’s concern, in a belated attempt to amend its negligence in this sector, as in many others. Housing developments plans in urban and rural areas were abandoned as a whole. The systematic, unjustifiable and at times violent expropriation of productive land, homes and businesses has left Venezuela paralyzed and bewildered.
Although the opposition’s current participation in the National Assembly has brought some fresh air into politics, efforts are however made by the government to restrict the exercise of the parliament’s oversight responsibilities and keep the "circus" going on. Universities has been systematically sabotaged by budgets cuts, while the appointment of a new Minister of Higher Education – who although a career educator is totally committed to the leader of the revolution’s designs like the rest of her predecessors - intends to mitigate the government’s previous mishaps in trying to reduce or eliminate the universities independence.
Time bombs are ticking all over Venezuela and the outlook for 2011 is not flattering. A forecasted 38% rate of inflation, among the highest in the world, will seriously further reduce Venezuelans’ purchasing power. The basic “Food Basket” is officially estimated at Bs. 3,600, while the “Basic Basket”, which includes other than food basics, at Bs 8,000, with annual increases of 30% and 43%. Unemployment is expected to be greater than 14%.
Over and above the unpromising omens that the current government's mismanagement announces for this year, the lack of civility in the country and among its citizens is particularly disturbing. Anxiety, restlessness and unease among Venezuelans have become pervasive. Violence, linked to un-satisfied daily basic needs, reduced purchasing power and unemployment, creates an implosive environment. Fortunately, polls show that Venezuelans’ most important wish is still to enjoy peace and unity through tolerance and respect.
Labels: Economics, Poverty, Venezuela crisis
posted by vdebate reporter at
10:25 PM
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