As recession deepens, Chavez sees transition

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Jacob Richter
As recession deepens, Chavez sees transition


Before opponents start screaming about equal poverty, may I ask why they ignore the similarities between this transition and IMF-dictated structural reforms?


ha! Good for him! I used to wonder how far Chavez was willing to go and if he really had the "stomach" for it. But I have fewer doubts these days. He's going to have to have good propaganda, though. Because the other side's propaganda is everywhere. And it's slick. 

epaulo13 epaulo13's picture

Venezuela's Economic Woes?
By Frederico Fuentes

Workers’ control

Using its strong economic position, the government borrowed $20 billion from China in April as advanced payment for future oil deliveries. This is helping fund an increase in public investment.

To tackle decades of disinvestment, the government plans to spend $6 billion on the state electricity sector — strengthened by the nationalisation of six private companies in 2007.

It has initiated a process of workers’ control in the sector. Workers are organising committees to help reorganise the industry. Workers have also elected representatives to management boards.

The government has also increased the minimum wage by 25% this year and raised pensions for widows and widowers.

On April 30, Chavez announced a $1.168 billion investment package for the state-owned iron, steel and aluminium companies in Guayana. The package will fund projects discussed and approved by workers in the relevant companies.

On May 16, Chavez swore in new presidents in eight out of the 15 state-owned basic industry factories in Guayana that had been chosen by the workers.

Chavez also ordered the nationalisation of transport companies related to the industrial complex and Venezuelan chemical company Norpro....



Firstly, the IMF always advocates free trade and open markets. Chavez clearly does not.
So, perhaps you are referring to the increase in the cost of some goods, as that is something that can happen under IMF changes as well.

At least until recently, the IMF always advocated for cutting social programs, education etc, and focusing on increasing trade, lessening trade restrictions. Chavez is doing the opposite. He is increasing social programs and doing his beat to make staple goods affordable.

Venezuela has invested a lot to ensure that they can produce many of the goods needed by the country themselves. During the period of transition, there will be some goods that are unavailable. But, if it is a critical good, then Venezuela will eventually produce it themselves, and not be beholden to MNC's who constantly demand unregulated profits, and the unrestricted access to take Venezuelan resources while giving very little in return.

So, other than some goods going up in price, what other similiarties do you see?