Monthly Archives: April 2011

Apr
18
2011
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Another “Accolade” for the Chávez Government…Dead Last on the 2011 International Property Rights Index

The results of the 2011 International Property Rights Index (IPRI) are in and they are not very complimentary of the Chávez government’s economic policies. The Index is an annual comparative study that aims to quantify the strength of property rights – both physical and intellectual. With a score of 3.4, Venezuela scored the lowest ranking among 129 economies.

The IPRI ranks each country based on 11 factors reflecting the state of its Legal and Political Environment (LP), Physical Property Rights (PPR) and Intellectual Property Rights (IPR). According to the study, countries hungry for foreign investment must demonstrate a healthy economy and a business-friendly environment.  The report points out that there is an important correlation between countries where private property is respected and economic prosperity.

“This reflects that excessive control, constant attacks against private property through expropriations and nationalizations, laws that limit investment freedoms and the highest inflation in Latin America make the Venezuelan economy one of the most repressed economies in the world,” said CEDICE President Rafael Alfonzo Hernández reacting to the report.

The report was published by the Property Rights Alliance (PRA) based in Washington, DC. The PRA has the support of 67 think tanks and policy organizations in 53 countries involved in research, policy development, education, and promotion of property rights in their countries.

 
Apr
15
2011
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In Case You Missed It… Articles Roundup Week of 4/15/11

In case you missed it, here are some of the most relevant stories of the week. Oil reserves in Venezuela are dwindling, while the government ban on currency exchange negatively impacts Venezuelan businessmen. According to the International Monetary Fund, Venezuela has the worst inflation rate in the world. As Colombia reassures its commitment to hand over suspected drug trafficker Walid Makled to Venezuelan authorities, accusations abound that Venezuela itself is becoming a drug state.

 

Venezuela: vanishing foreign reserves, Financial Times

There’s something fishy going on with Venezuela’s public finances. Given that oil prices have doubled in the last two years, and that by law state oil company PDVSA should transfer a portion of its profits to the central bank, one might expect foreign exchange reserves to have strengthened considerably. They haven’t. In fact, they have been on a downward trend. Surprising? Not really. For some time now, the Chavez administration’s economic management has been unorthodox, not to say anarchic.

Chavez Policy Sends Venezuelans on Cross-Border Exodus for Cash, Bloomberg

For Gustavo Posse, the easiest way to get dollars these days involves a 403-mile drive from Valencia, in central Venezuela, to Cucuta in Colombia. Posse, the owner of a medical clinic, made the drive last month to get hard currency to pay for the surgical equipment he was importing from the U.S. The 58-year-old businessman said he asked the Venezuelan government to sell him dollars. The answer was no.

Inflation: Venezuela World’s Worst, Latin Business Chronicle

Venezuela and Argentina have the world’s highest inflation rates. In Latin America, Peru and El Salvador boast the lowest rates. Venezuela posted the world’s highest inflation last year, followed by Argentina, according to a Latin Business Chronicle analysis of data from the International Monetary Fund (IMF) for 186 countries worldwide.

Colombia Will Extradite Drug Kingpin to Venezuela Instead of U.S., The Wall Street Journal

Venezuelan President Hugo Chavez clinched a major diplomatic victory over the U.S. after the Colombian government confirmed that it will extradite Walid Makled to Caracas instead of the U.S. The White House has tagged Mr. Makled, a Venezuelan national now being held in a jailhouse near Bogota, one of the world’s top drug lords. The decision, announced Wednesday by Colombian Interior Minister German Vargas Lleras, could represent a major setback for Washington’s anti-narcotics efforts in the region since U.S. officials are likely to have limited access to a treasure trove of information on suspected drug-running networks in Venezuela.

Venezuela accused of becoming ‘narco state’, Financial Times

Mr. Makled, who claimed in a prison interview last week that he once had 40 Venezuelan army generals in his pay, has said he will reveal “all he knows” if extradited to the US. That would help “dismantle some of the most important drug networks in the world today”, according to Richard Lugar, a Republican senator. Mr. Chávez has, meanwhile, accused the US of wanting to use Mr. Makled to take Venezuela to an international criminal court.

 
Apr
12
2011
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U.S. State Department: Human rights abuses worsened in 2010 in Venezuela

The U.S. State Department’s 2010 Human Rights Report continues to generate public debate around the world. Surprisingly, Venezuela’s government – harshly criticized in the annual report – has remained silent…at least for now. Venezuela and Nicaragua were cited as the two countries were human rights abuses worsened in 2010 in Latin America.

The human rights abuses in Venezuela cited in the report run the gamut:

–Unlawful killings, including summary executions of criminal suspects
–Widespread criminal kidnappings for ransom
–Prison violence and harsh prison conditions
–Inadequate juvenile detention centers
–Arbitrary arrests and detentions
–Corruption and impunity in police forces
–Corruption, inefficiency, and politicization in a judicial system characterized by trial delays and violations of due process
–Political prisoners and selective prosecution for political purposes
–Infringement of citizens’ privacy rights
–Restrictions on freedom of expression
–Government threats to sanction or close television stations and newspapers
–Corruption at all levels of government
–Threats against domestic NGOs
–Violence against women
–Trafficking in persons
–Restrictions on workers’ right of association

“We’ve seen in Venezuela, for example, the government using the courts to intimidate and persecute civil society activists. The Venezuelan government imposed new restrictions on the independent media, the internet, political parties, and NGOs,” said U.S. Secretary of State Hillary Clinton commenting specifically on Venezuela.

This is the third year in a row that Venezuela is cited among the worst offenders in the Americas. In contrast, Colombia was praised for making “significant positive developments” on human rights.