Interventionism

all the facts and news in Venezuela on Interventionism of government of hugo chavez and how it influences Venezuelan people

Jul
19
2011
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Rice expropriations to be followed by…water?

There is one thing President Chávez did not forget to do before leaving for Cuba to receive chemotherapy treatment for cancer: he delegated the power of expropriation to his Vice-President Elias Jaua.  And, why not? Expropriating private companies is about the only thing the government appears to be efficient at executing.

Last week,  among the other decrees signed by Chávez was the expropriation of a rice processing plant in central Guarico state, which he said had been violating labor laws and other requirements.  He made this announcement via his Twitter account. The process came to its expected conclusion after first being seized by government officials a year ago. The government’s intervention with the rice industry, a very important staple in Venezuela’s consumer market, started in 2009. Since then, the government has seized a variety of privately owned rice processing plants, twelve to be exact. This translates to 48 percent of the rice industry in the country at the hands of the government, ironically since it is against “capitalist monopolies.”  Venezuelans soon learn that when the government takes over these industries, it is not capable of producing the products. The scarcity of basic goods in Venezuela is well documented. Just last week, the Venezuelan daily El Universal reported that its own survey of six supermarkets and government-owned food outlets found that out of 16 price-regulated staples, at least 10 were scarce.

But the expropriations do not stop there. On Saturday, during a typical-style TV marathon appearance, Chávez raised the specter of expropriating water-bottling companies in Venezuela. In his usual bombastic style, Chávez alleged that private companies “own the water” in Venezuela.  This is not the case. The fact is that water in Venezuela is completely managed by the State. The State then provides concessions to private companies to bottle water and sell it throughout the country. In a country were water is not potable in many areas, the ability to distribute and purchase drinking water is a valuable commodity for the Venezuelan people. Yet despite an attempt by his Environmental Minister to correct him, Chávez ignored the facts and continued his rant against water bottling companies. This may be the first case of the government expropriating something and in this case water- that it is already in full control of.

Over the past 12 years that Chávez has been in office, the government has repeatedly attacked private businesses and frequently accuses them of hoarding products, leading to food shortages and contributing to the high inflation rates. Referring to them as speculators, Chávez has also charged them with trying to destabilize the economy in a bid to remove him from office.

This systematic takeover of the food industry is causing catastrophic failure with the country’s food supply. Food shortages are on the rise, inflation is rampant, and meanwhile the Chávez administration’s answer to these problems is to continue to intervene with the country’s food supply.

 
Jul
8
2011
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In Case You Missed It… Articles Roundup Week of 7/8/11

In this week’s round up…In the midst of the veil of secrecy around President Chavez’s condition, reports point to colon cancer. Venezuelan presidential contender Henrique Capriles still hopes he will face Chávez in the 2012 presidential elections. As speculations loom over Chavez’s cancer, the military might play a key role in the country’s future, Venezuela becomes the only oil producing country that has increased its debt, the nationwide consumer price index has jumped 2.5% in the month of June and Venezuela’s telecommunications agency began a new investigation of the TV channel Globovision for its coverage of violence in the Rodeo II riots.

 

Chávez Is Believed to Have Colon Cancer, Wall Street Journal

President Hugo Chávez appears to be suffering from colon cancer, according to two people with direct knowledge of the president’s condition. Mr. Chávez admitted he had cancer last week, but hasn’t disclosed what type.

Challenger for Venezuela Presidency Still Hopes to Face Chávez, Wall Street Journal

A state governor who is a leading contender to challenge the re-election bid of Venezuelan President Hugo Chávez said Wednesday that he hopes the incumbent will remain in the race despite questions about his health.

Venezuela’s military a key player amid uncertainty, AP via Newsday

As Chavez fights cancer, military could be key player in Venezuela’s political future

Venezuela’s military took center stage in the country’s bicentennial celebrations Tuesday, and it likely would be a key player in the country’s political future if Hugo Chavez were to be forced out of the presidency by cancer.

Venezuela is the only oil producer that increases debt, El Universal

Average debt-to-GDP ratio in the Middle East will drop 14.1 percent this year, according to the IMF

After eight years of high oil prices, it has become clear that oil exporters, except for Venezuela, have a consistent policy to save a part of revenues and reduce debt.

Data and projections from the International Monetary Fund (IMF) show that the Middle East and Central Asia petro-states have realized that oil does not escape the law of gravity. Therefore, they avoid the lack of fiscal control during times of booming oil prices.

UPDATE: Venezuela June Consumer Prices Up 2.5% On Month, Dow Jones Newswires via WSJ

Venezuela’s nationwide consumer price index jumped 2.5% in June, the central bank said Thursday, maintaining a quicker pace of inflation after three months of tamer increases.

Government officials have said they were making progress at slowing the country’s inflation rate, which is perpetually among the highest in the world. But many analysts believe consumer prices will likely increase even faster amid the uncertainty surrounding President Hugo Chavez’s illness.

Venezuela launches probe of TV channel’s coverage, Associated Press

Venezuela’s telecommunications agency began a new investigation of the TV channel Globovision on Thursday, this time for its coverage of violence at two prisons where inmates have battled troops.

Globovision takes a strident stance against President Hugo Chavez’s government. It has been the subject of six prior probes, including allegations of tax evasion and investigations of its coverage of protests, an earthquake and on-air remarks about Chavez.

 
May
20
2011
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In Case You Missed It… Articles Roundup Week of 5/20/11

In this week’s News Roundup…A German newspaper reports on the alleged construction of Iranian missile bases in Venezuela; suspected drug lord Walid Makled reveals deals with several Venezuelan government subsidiaries; and Mr. Chávez is forced to implement energy rationing measures in an attempt to combat rolling blackouts, while the opposition gains momentum.

‘Die Welt’: Iran Building Rocket Bases in Venezuela, Jerusalem Post
German newspaper says Iranians paid cash to build mid-range missile launch pads on Paraguana Peninsula in Venezuela. According to the daily, Iranian engineers visited the site in February.

Makled had Deals with PDVAL and CASA, El Universal
The relationship between the Makled Group – the economic empire led by alleged drug kingpin Walid Makled – and state-run oil holding Petróleos de Venezuela (PDVSA) was not limited to Venezuelan Petrochemical Corporation (Pequiven). It also made business in the food sector.

The FARC Enablers, Foreign Policy
When the Colombian military raided a camp of the narco-terrorist group FARC (Fuerzas Armadas Revolucionarias de Colombia) across the border in Ecuador in 2008, the resulting intelligence haul from computers belonging to FARC capo Raúl Reyes revealed the shocking extent to which the group conspired and colluded with the radical populist governments of Hugo Chávez in Venezuela and Rafael Correa in Ecuador.

Venezuela adopts electricity rationing measures in response to blackouts, The Washington Post
Venezuela’s government is urging people to save energy and has begun rolling blackouts in some parts of the country after two major power outages in the past month. Some units at thermoelectric plants have not been operating, and the government is taking steps to bring them back on line, Electrical Energy Ministry official Igor Gavidia said Thursday. Speaking to reporters, he acknowledged there are “weaknesses” in the country’s power plants. Vice President Elias Jaua urged Venezuelans to save energy, saying demand has been growing and at certain times of day power usage “reaches the electrical generation capacity.”

Venezuela: Chávez Trying to Eliminate Opponent, Hudson New York
The race for Venezuela’s presidential election has already started. Given the fact that Chávez controls the main media outlets, opposition candidates know that the competition will be very stiff and very unfair.