Expropriation

all the facts and news in Venezuela on Expropriation and how it influences all decisions made by Hugo Chavez as president implications for Expropriation of the Venezuelan people

Jun
11
2010
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“Love, with hunger, doesn’t last.”

Photo Credit: The EconomistAs the Economist puts it, “there is something rotten in the state of Venezuela”. According to the article Food fight: How to destroy an industry published by the Economist, there are more than 2,300 container-loads of decomposing food, imported by the government last year and never distributed. But Chávez instead of rethinking his position about the food and agriculture policy of Venezuela, he has declared a war against the private sector.

Why? For once, Mr. Chávez  claims that in Venezuela there is “hoarding and smuggling” by the private sector. Since 2003, the government has imposed price controls on many foodstuffs and since then the private sector has since faced mounting harassment.

On top of that, the government is stepping up expropriations of farms, food manufacturers and distributors, in a bid to achieve what it calls state “hegemony” over the food supply. On June 7th it announced the takeover of 18 more food companies accused of violating regulations. Unfortunately, most of the farms and food companies Chávez has expropriated suffer from inflated payrolls, declining productivity and rampant inefficiency. In the meantime, Venezuelans suffer hunger, a hunger that can hopefully crash Chávez´ hopes for the upcoming legislative election.

 
Jun
9
2010
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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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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.