Tag Archives: Law Against Monopolies and Other Similar Practices

Apr
12
2013
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In Case You Missed It… Articles Roundup Week of 4/12/13

i6QvFtK66Hb8 e1365799638594 In Case You Missed It… Articles Roundup Week of 4/12/13

Courtesy of: Agence France Presse

This week: Interim president Nicolás Maduro, once ahead by double digits, takes a quickly narrowing lead into the presidential election weekend in Venezuela; though many thought he was a long shot, opposition candidate Henrique Capriles may indeed have what it takes to defeat Venezuela’s socialist establishment; this election presents the ultimate test for the late Hugo Chávez’s 21st century socialism, something that not lived up to its leaders’ promises; if elected, Capriles wants to improve ties with the United States and other nations. The campaign between Capriles and Maduro has been anything but boring; Maduro continues to churn out ridiculous conspiracy theories, in hopes they will deter attention away from the real issues Venezuela has faced under his and his predecessor’s leadership; Willie Colón, a Bronx-born salsa performer with Puerto Rico ties, releases a new song targeting Maduro; 40 student protestors participating in a hunger strike to promote a fair election were attacked by radical Chávez and Maduro supporters; to combat the increase of kidnapping cases, Venezuelans are banding together to create informal insurance societies to pay off ransoms; Capriles and Maduro end a hotly-contested yet short campaign season each with large rallies; a “reckoning” approaches for Venezuela, as the economy is set to suffer even more in the coming year; despite being one of the most oil rich countries on the planet, Venezuelans still struggle to find the most basic necessities; power shortages also remain a focus for Venezuelan voters, as many blame the current government for ignoring the problem and not taking the necessary steps to deal with the issue. Meanwhile, Maduro is poised to go after Venezuela’s most successful private company, Polar; the Venezuelan government continues to struggle against the inflation and shortages its economic policies have created; meanwhile, a new bill under consideration may increase expropriations and further marginalize Venezuela’s dwindling private sector.

Maduro Takes Narrowing Lead Into Sunday Vote, The Associated Press

Red-shirted backers of Hugo Chavez’s chosen heir transformed downtown Caracas into a raucous festival on the final day of campaigning for the weekend presidential election, flooding the streets Thursday in the hundreds of thousands to dance, drink beer and set off ear-splitting fireworks.

Can Henrique Capriles Defeat Venezuela’s Socialist Establishment?, ABC News

His presidential campaign has been viewed by many as a long shot, or described as an impossible dream. But on Sunday, as hundreds of thousands of people jammed the streets of Caracas to hear him speak, Venezuelan opposition candidate Henrique Capriles assured his ecstatic supporters that he would win the country’s upcoming election.

Venezuela election to test Chavez’s socialist legacy, Reuters

The late Hugo Chavez’s self-declared socialist revolution will be put to the test at a presidential election on Sunday that pits his chosen successor against a younger rival promising change in the nation he polarized.

Venezuela’s Capriles Wants Better Ties With U.S. If Elected President, Fox News Latino

Cutting off subsidized oil to Cuba, distancing his country from nations that disrespect human rights and shoring up the South American country’s own troubled economy with the billions it now sends abroad to socialist friends are some of the thing that Venezuelan presidential candidate Henrique Capriles has promised if elected.

Say again? Venezuela’s presidential candidates trade barbs, zingers in animated campaign, Fox News

Venezuela’s animated campaign ahead of its April 14 presidential election has seen its share of shake-your-head remarks by both candidates: Interim President Nicolas Maduro of the ruling party, and opposition candidate Henrique Capriles.

Plots and sabotage: Chavez candidate spins conspiracy theories ahead of Venezuelan election, The Washington Post

Salvadoran mercenaries are plotting with Venezuela’s opposition candidate to assassinate interim President Nicolas Maduro.

Star Hurls Musical Barbs Before Venezuela’s Vote, The New York Times

Political campaigns in Venezuela often can seem like a battle of the bands. Songs written for the campaigns blast from huge speakers at rallies and from the backs of trucks that drive around cities where candidates appear.

Radical Socialists Attack Student Protesters in Venezuela, ABC News

A group of 40 students that is currently on hunger strike to demand fair elections in Venezuela was attacked on Monday night by alleged supporters of Venezuelan interim president, Nicolas Maduro.

Venezuelan Ransom Funds Hedge Against Kidnaps as Candidates Spar, Bloomberg Businessweek

Venezuelans are banding together to create informal insurance societies to pay off criminals in case of kidnapping as violence soars and moves to the forefront of voters’ priorities before the April 14 presidential election.

Venezuela’s bitter campaign ends with big rallies, Global Post

Venezuela’s acting President Nicolas Maduro tearfully vowed to complete Hugo Chavez’s socialist revolution Thursday while rival Henrique Capriles promised change at emotional rallies to close their bitter campaign.

The reckoning after Venezuela’s election, The Washington Post

AN INTREPID Venezuelan tweeter has been keeping track of the number of times that Nicolas Maduro, the country’s interim president, has mentioned Hugo Chavez on television or radio since the caudillo’s death on March 5.

In Venezuelan election, food security – or lack thereof – can turn votes, USA Today

Venezuelans complain that what goes into their Sunday dinner plate comes from abroad: Steak, from Brazil; plantains, the Dominican Republic; rice, South Africa; Parmesan cheese, Uruguay; oats, Chile. Even coffee, in a country famed for it, often is Colombian.

Power Shortages Become a Hot Topic in Venezuela’s Presidential Race, ABC News

Venezuela’s interim president Nicolas Maduro launched his presidential campaign in Hugo Chavez’s home state of Barinas hoping that when voters head to the polls this Sunday they will identify him with the deceased socialist leader.

Venezuela goes after Polar, Financial Times

The Hugo Chávez years went well for Polar, Venezuela’s biggest privately owned company, which did solid business despite all the president’s radical socialist rhetoric.

Venezuela to Hold New Dollar Auction After Election This Month, Bloomberg

Venezuela will hold a second dollar auction on a complementary currency system created last month after presidential elections are held on April 14, Oil Minister Rafael Ramirez told reporters yesterday during an interview.

Draft Law in Venezuela Is the Private Sector’s Death Knell, The Huffington Post

On April 4, acting Venezuelan President Nicolas Maduro announced he had uncovered a “conspiracy” to destabilize the government in order to lend support to his opponent in the upcoming elections, Miranda Governor Henrique Capriles Radonski.

 
Apr
10
2013
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ICYMI: Draft Law in Venezuela Is the Private Sector’s Death Knell

Joel Hirst is a democracy activist and a Principal at Cordoba Group International. He is a regular What’s Next Venezuela contributor.

741686 525 380 w e1365617072329 ICYMI: Draft Law in Venezuela Is the Private Sectors Death Knell

Courtesy of: The New York Times

The Huffington Post
April 8, 2013
By Joel Hirst

On April 4, acting Venezuelan President Nicolas Maduro announced he had uncovered a “conspiracy” to destabilize the government in order to lend support to his opponent in the upcoming elections, Miranda Governor Henrique Capriles Radonski.

Maduro told supporters the plot was undertaken by Empresas Polar, a global food and beverage manufacturer and processor that happens to be one of the largest and best known brands in Venezuela. Maduro alleged that Polar has plotted to create a situation of “unrest, shortages, hoarding and speculation.”

He ended his comments with an overt threat, telling Polar that “everything in life has its time.”

For Venezuelans, this is just a typical day of anti-capitalist bombast from a leader working hard to channel recently deceased President Chávez. But a new legislative proposal quickly moving through that country’s National Assembly gives new force to that country’s ‘socialist’ government’s war on the private sector.

Venezuela’s proposed Law Against Monopolies and Other Similar Practices grants the government the broad discretion and unchecked power to single out and nationalize the few remaining large companies in the country — a sanction for what the Venezuelan government calls anti-competitive behavior. Assembly leaders have announced the law will move through the assembly with “parliamentary urgency.” A procedural vote was already held and the common committee review will be expedited.

While the world remains fixated on President Hugo Chávez’s recent death, and the upcoming presidential election to chose his successor, this so-called monopoly law continues to progress slowly through the Assembly. Passage would legitimize the government’s extensive and arbitrary power over the Venezuelan private sector.

The bill departs from internationally accepted terms for anti-competitive behavior focused on market share, instead calling for a vague definition of an entity’s “economic space,” an amorphous term whose meaning the government will then define according to their own agenda. If passed, Chávez’s successor will be granted unprecedented power over the private sector — even more than was wielded by President Chavez and his arbitrary nationalizations.

The proposed law creates a new commission, the National Superintendent Against Monopolies and Similar Practices (SUNAM), to be chaired by a presidential appointee. SUNAM would have the power to confiscate resources and materials at will. Moreover, it states that any company in violation of the new law can be expropriated. Because the SUNAM would lack oversight, this law would subject so-called “illegal” businesses to an arbitrary state takeover with no chance for appeal or independent review. Any attempt to challenge expropriations would die inside Venezuela’s judiciary, which is completely controlled by the executive.

Though the bill has progressed largely under the radar, experts and the political opposition have taken notice and are denouncing the law. Vestalia Sampedro, a Deputy in the Venezuelan National Assembly,states that the law will only further extend the government’s control over the economy, extending the socialism that has not worked. Jorge Botti, the President of the Venezuelan Federation of Chambers of Commerce notes that the bill’s broad language means that even small businesses who succeeded by developing quality products and successful marketing strategies may not escape the government’s reach.

And all the while, the Venezuelan economy continues to worsen. The number of private companies in Venezuela has already declined by 36 percent from 1998. Price controls and the recent currency devaluation have worsened already-high unemployment, crippled Venezuelans’ purchasing power and exacerbated the shortages that now plague the country. Venezuelans already struggle to find basic necessities like chicken and corn. These economic policies have crippled vital industries like medical care as well. As of January, pharmaceutical shortages stood at 40 percent — a number which will only rise if the government acts on proposals to enforce price controls on medications as well. And with legislation like this monopoly law in the pipeline, few private investors would even consider bringing their capital to Venezuela.

While expropriations in Venezuela have become so common that they rarely even make news, in point of fact they are still illegal and unconstitutional. With the passage of this legislation, while remaining unconstitutional they would become ‘legal’ (a paradox that only those who follow Venezuela closely understand). Should acting President Maduro win, this would leave the country’s private sector in danger of extinction. Venezuela’s companies are already needlessly harassed and intimidated by the government, and the country’s economy has suffered as a result. This law, which the Assembly hopes to pass while the world looks the other way, would make matters far worse.

To read this article at the Huffington Post, please click here.