Economy

Jun
9
2010
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editor
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Venezuelan industry shrinks while Chávez reviews Pepsi and Coke´s waters

A few days ago the media reported that the Venezuelan economy has shrunk 7% this year. This is the only case of a major Latin American nation to show contraction this year. While this happens, Chávez focuses on reviewing the water that Pepsi and Coke use for their products. Chavez accused transnational companies of privatizing water, in the latest swipe at businesses that use large quantities of water in their production processes. Last year he penalized many Venezuelan companies that he said were wasting water.

Chavez said all water belonged to the people, calling it a “social property.”

Read more on the challenges that Pepsi and Coke are facing in Venezuela under the government of Chávez.

 
Jun
9
2010
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editor
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18 private companies more expropriated by Venezuelan government

Following our blog post from Monday on Chávez orders 80 more expropriations in Venezuela, threatens Pepsi and Coca-Cola, a news article from AP says that 18 more companies have been expropriated by the Chávez government.

Chavez last week declared “economic war” on business leaders he accuses of driving up prices and hoarding products. The tensions between Chavez and the country’s main business groups have grown as the country suffers a recession and 30 percent inflation that is the highest in Latin America.

Venezuela has seen shortages of some basic foods like milk and sugar in the past three years in part because of price controls and other economic policies implemented by Chávez.

 
Jun
7
2010
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admin
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Chávez orders 80 more expropriations in Venezuela, threatens Pepsi and Coca-Cola

Fresh off a report showing that President Hugo Chávez has expropriated a staggering 762 companies between 2005 and 2009, the Venezuelan strongman appears poised to make a run at more than 800.

During a six-hour long “Aló Presidente” show on Sunday, Mr. Chávez announced plans to forcibly seize and nationalize at least 80 more private companies. This most recent expropriation binge will affect two prominent Venezuelan enterprises – aluminum can producer Alentuy CA and food container producer Envases International SA.

Next on the expropriation chopping block are grocery chain Supermercados Cada and prepared meat producer Verdugo. In explaining his actions, Mr. Chávez again accused the companies of violating price controls and hoarding.

Mr. Chávez went on to issue stark warnings to U.S. giants Pepsi and Coca-Cola, each of whom has long-running operations in Venezuela. He decried their water bottling ventures, declaring that “water is a social property” and that the corporations’ practices would be subject to his review.

Throughout the telecast, Mr. Chávez repeatedly labeled as “the bourgeoisie” anybody taking a stance against his purging of Venezuela’s private sector, a list that includes the likes of the Organization of American States, United Nations, European Parliament, and even his own people. Eighty percent of the Venezuelan population reject his expropriation measures, according to the latest national poll.