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June 1, 2014

Galeano Repudiates His Chávez-Endorsed Latin Leftist Classic



HillaryObamaChavezAndOpenVeinsBook2014-05-25.jpg "Hugo Chávez, president of Venezuela, handing President Obama a copy of Eduardo Galeano's "The Open Veins of Latin America" in 2009." Source of caption and photo: online version of the NYT article quoted and cited below.



(p. C1) For more than 40 years, Eduardo Galeano's "The Open Veins of Latin America" has been the canonical anti-colonialist, anti-capitalist and anti-American text in that region. Hugo Chávez, Venezuela's populist president, even put a copy of the book, which he had called "a monument in our Latin American history," in President Obama's hands the first time they met. But now Mr. Galeano, a 73-year-old Uruguayan writer, has disavowed the book, saying that he was not qualified to tackle the subject and that it was badly written. . . .

" 'Open Veins' tried to be a book of political economy, but I didn't yet have the necessary training or preparation," Mr. Galeano said last month while answering questions at a book fair in Brazil, where he was being honored on the 43rd anniversary of the book's publication. He added: "I wouldn't be capable of reading this book again; I'd keel over. For me, this prose of the traditional left is extremely leaden, and my physique can't tolerate it."


. . .


(p. C6) In the United States, "Open Veins" has been widely taught on university campuses since the 1970s, in courses ranging from history and anthropology to economics and geography. But Mr. Galeano's unexpected takedown of his own work has left scholars wondering how to deal with the book in class.


. . .


In the mid-1990s, three advocates of free-market policies -- the Colombian writer and diplomat Plinio Apuleyo Mendoza, the exiled Cuban author Carlos Alberto Montaner and the Peruvian journalist and author Álvaro Vargas Llosa -- reacted to Mr. Galeano with a polemic of their own, "Guide to the Perfect Latin American Idiot." They dismissed "Open Veins" as "the idiot's bible," and reduced its thesis to a single sentence: "We're poor; it's their fault."

Mr. Montaner responded to Mr. Galeano's recent remarks with a blog post titled "Galeano Corrects Himself and the Idiots Lose Their Bible." In Brazil, Rodrigo Constantino, the author of "The Caviar Left," took an even harsher tone, blaming Mr. Galeano's analysis and prescription for many of Latin America's ills. "He should feel really guilty for the damage he caused," he wrote on his blog.



For the full story, see:

LARRY ROHTER. "Author Changes His Mind on '70s Manifesto." The New York Times (Sat., MAY 24, 2014): C1 & C6..

(Note: ellipses added.)

(Note: the online version of the story has the date MAY 23, 2014.)


The Vargas Llosa book mentioned above is:

Mendoza, Plinio Apuleyo, Carlos Alberto Montaner, and Alvaro Vargas Llosa. Guide to the Perfect Latin American Idiot. Lanham, Maryland: Madison Books, 2000.



GuideToThePerfectLatinAmericanIdiotBK2014-05-26.JPG

















Source of book image:
http://img2.imagesbn.com/p/9781568332369_p0_v1_s260x420.JPG






March 19, 2014

As Venezuelan Economy Collapses, Socialists Urge Citizens to Hit the Beach and Party



VenezuelaProtestersBeachScene2014-03-06.jpg "Antigovernment protesters blocking a street in San Cristóbal, in western Venezuela, decorated their barrier like a beach scene." Source of caption and photo: online version of WILLIAM NEUMAN. "Slum Dwellers in Caracas Ask, What Protests?" The New York Times (Sat., March 1, 2014): A1 & A8.



(p. A6) CARACAS, Venezuela--President Nicolás Maduro declared an extended Carnival holiday season, betting that sun, sand and rum will help calm the worst civil unrest to sweep the oil-rich nation in more than a decade.

As some opposition leaders called to cancel the celebrations to mourn those who died in recent weeks during protests, Mr. Maduro's ministers publicly encouraged Venezuelans to hit the beach for the pre-Lent festivities.


. . .


Among those officials most visible to the public these days has been Tourism Minister Andres Izarra, who has been hitting tourist hot spots with a campaign called "Carnival 2014--The Coolest Holiday."

He said that officials were opening 180 tourist information centers for the long holiday weekend and increasing maintenance and trash pickup at beaches that are often covered with empty alcohol containers. Meanwhile, the transportation minister, Haiman El Troudi, said new bus routes would be added to get Venezuelans to the beach.



For the full story, see:

KEJAL VYAS and JUAN FORERO. "Venezuela Leader Fights Unrest With Fiesta; President Maduro Extends Carnival Celebration After Opposition Call For Mourning, More Protests." The Wall Street Journal (Fri., FEB. 28, 2014): A6.

(Note: ellipsis added.)

(Note: the online version of the story has the date Feb. 27, 2014.)



VenezuelaSupermarketLine2014-03-06.jpg "PARTY LINE: Venezuela President Nicolás Maduro, reeling from weeks of protests, called for Carnival season to begin early, and his ministers urged Venezuelans to hit the beach. But the crumbling economy and food shortages created scenes such as the lines at a supermarket." Source of caption and photo: online version of the WSJ article quoted and cited above.


VenezuelaProtestersWearingCarnivalMasks2014-03-06.jpg "Opposition demonstrators wearing Carnival masks take part in a women's rally against Nicolás Maduro's government in Caracas on Wednesday." Source of caption and photo: online version of the WSJ article quoted and cited above.






September 5, 2013

Venezuelan Socialists Seize Private Toilet Paper



(p. A6) CARACAS, Venezuela (AP) -- Police in Venezuela say they have seized nearly 2,500 rolls of toilet paper in an overnight raid of a clandestine warehouse storing scarce goods.


. . .


The socialist government says the shortages are part of a plot by opponents to destabilize the country. Economists blame the government's price and currency controls.



For the full story, see:

AP. "World; Police Seize 2,500 Rolls of Toilet Paper." Omaha World-Herald (Fri., May 31, 2013): 6A.

(Note: ellipsis added.)





January 4, 2013

How Chavez Punished Those Who Opposed Him



(p. 196) In 2004, the Hugo Chávez regime in Venezuela distributed the list of several million voters who had attempted to remove him from office throughout the government bureaucracy, allegedly to identify and punish these voters. We match the list of petition signers distributed by the government to household survey respondents to measure the economic effects of being identified as a Chávez political opponent. We find that voters who were identified as Chávez opponents experienced a 5 percent drop in earnings and a 1.3 percentage point drop in employment rates after the voter list was released.


Source:

Hsieh, Chang-Tai, Edward Miguel, Daniel Ortega, and Francisco Rodriguez. "The Price of Political Opposition: Evidence from Venezuela's Maisanta." American Economic Journal: Applied Economics 3, no. 2 (2011): 196-214.







November 30, 2011

Venezuelans Flee Chávez's Socialism



VenezuelanHomicide2011-11-10.jpg"Street crime, such as a man's killing in Caracas last year, is high." Note the big-brother-sized image of Chávez surveying what his socialism has wrought. Source of quoted part of caption and photo: online version of the WSJ article quoted and cited below.



Those who favor socialism should observe Venezuela carefully and ponder whether they like what they see.



(p. A13) Gerardo Urdaneta moved to Houston from Venezuela for a job in 1998, the same year Hugo Chávez was first elected president. Mr. Urdaneta, an energy-shipping specialist, planned for a temporary stop and wouldn't even buy a house.

Thirteen years later, Mr. Chávez is still in power, Mr. Urdaneta is still here. He has been joined by thousands of other Venezuelans, and Houston shops now stock native delicacies like Pampero aged rum and guayanés cheese.

"There are Venezuelans everywhere," Mr. Urdaneta, 50 years old, said. "Before we were passing through. That's not the case anymore."

Waves of white-collar Venezuelans have fled the country's high crime rates, soaring inflation and expanding statist controls, for destinations ranging from Canada to Qatar. The top U.S. destinations are Miami, a traditional shopping mecca for Venezuelans, and Houston, which has long-standing energy ties to Venezuela, a major oil exporter.

There were some 215,000 Venezuelans in the U.S. in 2010, up from about 91,500 in 2000, according to the U.S. Census Bureau. The number of Venezuelans living in Spain has quintupled in the same period to more than 40,000, and the number of Venezuelan-born Spaniards has more than doubled to 90,000.



For the full story, see:

ÁNGEL GONZÁLEZ and EZEQUIEL MINAYA. "Venezuelan Diaspora Booms Under Chávez." The Wall Street Journal (Mon., October 17, 2011): A13.

(Note: ellipsis added.)

(Note: the following phrase, at the end of the quoted portion above, is in the online, but not the print, version of the article: "and the number of Venezuelan-born Spaniards has more than doubled to 90,000."



ZulianStafanoHoustonChocolateShop2011-11-10.jpg "Venezuelan exile Stefano Zullian owns a Houston chocolate shop." Source of caption and photo: online version of the WSJ article quoted and cited above.



VenezuelanHomicideEmigrationGraph2011-11-10.jpgSource of graph: online version of the WSJ article quoted and cited above.






February 8, 2011

Socialism Cut Venezuelan GDP, So Chavez Rejected GDP



VenezuelaGDPgraph2011-02-05.gif
















Source of graph: online version of the WSJ article quoted and cited below.



(p. A15) President Hugo Chávez wasn't pleased with data . . . that showed the Venezuelan economy tumbling into a recession. So the populist leader came up with a solution: Forget traditional measures of economic growth, and find a new, "Socialist-friendly" gauge.

"We simply can't permit that they continue calculating GDP with the old capitalist method," President Chávez said in a televised speech before members of his Socialist party . . . . "It's harmful."

Mr. Chávez's comments came shortly after data showed Venezuela's gross domestic product -- a broad measure of annual economic output -- fell 4.5% in the third quarter from the year-earlier period. It was the second consecutive quarterly decline, and observers have questioned how Mr. Chávez will be able to generate growth without high oil prices.


. . .


"It's hard to say if [Mr. Chávez] is serious or not," said Robert Bottome of publisher VenEconomía. "They've already tampered with the way they compute unemployment and how they determine how much oil [state oil company] PdVSA exports. So why not tamper with the economy figures as well."



For the full story, see:

DAN MOLINSKI and DAVID LUHNOW. "Chávez Discounts Accuracy of GDP." The Wall Street Journal (Fri., NOVEMBER 20, 2009): A15.

(Note: ellipses added.)





April 17, 2010

Web Site Dares to Satarize Chávez



RavellGrazianiVenezuelaSatire2010-04-17.jpg"Juan Andrés Ravell and Oswaldo Graziani two of the creators of the Web site El Chigüire Bipolar, or Bipolar Capybara, at their office in Caracas, Venezuela. They drew inspiration from American shows like "The Colbert Report" and Web sites like The Onion." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 8) CARACAS, Venezuela -- This may be a perilous time to operate a Web site focused on politics here, given President Hugo Chávez's recent push for new controls of Internet content. But one plucky Venezuelan satirical site is emerging as a runaway success in Latin America as it repeatedly skewers Mr. Chávez and a host of other leaders.

Named in honor of the capybara, the Labrador retriever-sized rodent that Venezuelans are fond of hunting and eating, the 2-year-old Web site, El Chigüire Bipolar, or Bipolar Capybara, is rivaling or surpassing in page views leading Venezuelan newspapers like the Caracas daily El Nacional.

The rise of Chigüire Bipolar, which has already drawn the wrath of state-controlled media here, and a handful of other popular Venezuelan sites focused on politics is taking place within a journalistic atmosphere here that international press groups say is marked increasingly by fear, intimidation and self-censorship.


. . .


Mr. Ravell and Mr. Graziani, who earn a living as freelance television producers and scriptwriters, finance Chigüire Bipolar out of their own pockets and with a meager revenue stream from advertising and sale of T-shirts printed with their logo.

They produce the site with a third Venezuelan partner based in Miami, Elio Casale, in a chaotic flurry of e-mail, instant-messaging and BlackBerry text messages.

"We don't actually talk to each other that much," Mr. Ravell said.

In an interview, Mr. Ravell said he remained hopeful that Chigüire Bipolar was opening the way for more multifaceted debate in Venezuela instead of representing a final burst of expressive ebullience online in a scenario in which Mr. Chávez might succeed in exerting control over a medium that until now has largely escaped his sway.

"Satire," he said, "always evolves to resist the attempts to extinguish it."




For the full story, see:

SIMON ROMERO. "A Satirical Site Skewers Chávez and Politics." The New York Times, First Section (Sun., March 21, 2010): 8.

(Note: ellipsis added.)

(Note: the online version is dated March 20, 2010 and has the title "A Satirical Site Skewers Chávez and Politics.")





February 18, 2010

Socialist Chavez's Thugs Destroy Venezuelans' Economic Freedom



VenezuelanNationalGuardPriceInspection2010-01-24.jpg "A member of the National Guard stands guard during a inspection of prices at a store in La Guaira outside Caracas Jan. 12." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A8) CARACAS -- President Hugo Chávez's decision to devalue Venezuela's currency in order to shore up government finances could backfire on the populist leader if the move leads to substantially higher prices and extends an economic downturn.

Just days after Mr. Chávez cut the value of the "strong bolivar" currency, some businesses were marking up prices. Shoppers jammed stores to stock up on goods before the increases took hold.

Amelia Soto, a 52-year-old housewife waited in line at a Caracas drugstore to buy 23 tubes of toothpaste. "Everywhere I hear that prices are going to skyrocket so I want to buy as much as I can now," she said.

Airlines have doubled fares; government officials said they were looking into reports that large retail chains were also increasing prices.


. . .


The price increases are setting the stage for confrontations with authorities following Mr. Chávez's orders to shut down retailers that raise prices.


. . .


The higher prices for consumer goods represent a huge liability for a country facing 27% inflation, one of the highest levels in the world.




For the full story, see:

DARCY CROWE and DAN MOLINSKI. "Prices in Venezuela Surge After Devaluation." The Wall Street Journal (Weds., JANUARY 13, 2010): A8.

(Note: the online version of the article has the title "Venezuelans Rush to Shop as Stores Increase Prices.")

(Note: ellipses added.)





February 17, 2010

Socialist Chávez Quashes Free Speech in Venezuela



Here is evidence of the continuing relevance of Hayek's The Road to Serfdom:


(p. A5) CARACAS, Venezuela (AP) -- A cable television channel that has been critical of President Hugo Chávez was taken off the air on Sunday after defying new government regulations requiring it to televise some of Mr. Chávez's speeches.

Venezuelan cable and satellite television providers stopped transmitting the channel, Radio Caracas Television, after it did not broadcast a speech by Mr. Chávez on Saturday at a rally of political supporters.


. . .


. . . the cable channel, known as RCTV, said the telecommunications agency "doesn't have any authority to give the cable service providers this order." It said in a statement, "The government is inappropriately pressuring them to make decisions beyond their responsibilities."

The channel switched to cable in 2007 after the government refused to renew its license to broadcast on the regular airwaves.



For the full story, see:

THE ASSOCIATED PRESS. "Cable TV Station Critical of Chávez Is Shut Down." The New York Times (Mon., January 25, 2010): A5.

(Note: the online version of the article has the date January 24, 2010.)

(Note: ellipses added.)


Reference for Hayek book:

Hayek, Friedrich A. Von. The Road to Serfdom. Chicago: Univ of Chicago Press, 1944.





January 15, 2010

The Decline of Motive Power in Socialist Venezuela



VenezuelaEnergy2010-01-10.jpg"In Venezuela, which faces power shortages, blackouts have spurred protests like this demonstration in Caracas." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A11) CARACAS -- Venezuela, a country with vast reserves of oil and natural gas, as well as massive rushing waterways that cut through its immense rain forests, strangely finds itself teetering on the verge of an energy crisis.


. . .


The government has forced draconian electricity rationing on certain sectors, which could make matters worse for an economy already racked by recession. Critics say the socialist government is trying to snuff out capitalist-driven sectors with the rationing, while allowing government-favored industries in good standing to continue with business as usual.

Shopping malls, which analysts say use less than 1% of the power consumed in Venezuela, have nonetheless been a main focus for the government.

Malls have been told most stores can only be open between 11 a.m. and 9 p.m.

"In a certain way, Chávez is attacking capitalism with the orders on shopping malls," said Emilio Grateron, mayor of Caracas's Chacao municipality, a bastion of those opposed to Mr. Chávez. "By limiting the hours we can go to malls, he is trying to slowly take away liberties, to create absolute control over things such as shopping."

In Venezuela, whose capital Caracas is consistently ranked among the world's most dangerous cities, residents see shopping malls as one of few havens in the country.

The government's rationing efforts are also hitting metal producers. Their production has already been cut as much as 40%. Mr. Rodriguez, the electricity minister, said they may have to be completely closed to save more electricity.




For the full story, see:

DAN MOLINSKI. "Energy-Rich Venezuela Faces Power Crisis." The Wall Street Journal (Fri., JANUARY 8, 2009): A11.

(Note: ellipsis added.)





December 21, 2008

James Burke (and Art Diamond) on the Importance of Serendipity


PinballEffectBK.jpg







Source of book image: http://www.hachettebookgroup.com/_images/ISBNCovers/Covers_Enlarged/9780316116107_388X586.jpg

Like other James Burke books, The Pinball Effect is a good source of interesting and thought-provoking stories and examples, usually related to science and technology. One of his themes in the book is the importance of serendipity in making unanticipated connections.


My (and not Burkes') musings on serendipity:

Serendipity might be an example of Hayek's local knowledge, that the free market encourages the entrepreneur to take advantage of. Serendipity is an occurrence of one person in a particular time and place, with a mind prepared to be alert for it. As such it could not be planned by a central authority, and would usually be vetoed by a committee decision process. To maximally benefit from serendipity, we need a system that allows the motivated individual to pursue their discoveries.


Burke's musings on serendipity:

(p. 3) In every case, the journeys presented here follow unexpected paths, because that's how life happens. We strike out on a course only to find it altered by the action of another person, somewhere else in time and space. As a result, the world in which we live today is the end-product of millions of these kinds of serendipitous interactions, happening over thousands of years.


Source:

Burke, James. The Pinball Effect: How Renaissance Water Gardens Made the Carburetor Possible - and Other Journeys. Boston: Back Bay Books, 1997.




January 31, 2008

"Liberty and Life"

  

(p. 8)  At the time of last month's referendum on Mr. Chávez's efforts to remake the Constitution to his liking, I got to know some of the "chamos," as the student activists are known. What struck me was not only how effective they were, but how different their movement was from almost all its many antecedents in the region.

Most important, the Venezuelans are not calling for socialist revolution, but for liberal democracy. Instead of vindicating the statist ideologies of the 20th century or the romantic passions of the 19th, they have embraced classic 18th-century humanism.

. . .

Will they make up a new political party? Can they remain united? Their enemy is formidable, and the chances of a violent or even tragic conclusion are very likely. But against the Chávez slogan, "Socialism or Death," they have their own: "Liberty and Life." In the battle of words they might have the upper hand. Perhaps they can take hope from a line by the Mexican poet-diplomat Octavio Paz: "We must give back transparency to words." 

 

For the full commentary, see: 

ENRIQUE KRAUZE.  "Humanizing the Revolution."  The New York Times, Week in Review section (Sun., December 30, 2007):  8. 

(Note:  ellipsis added.)

 




November 12, 2007

Strong Global Support for Free Markets

 

FreeMarketsPositiveViewTable.gif   Source of table:  "World Publics Welcome Global Trade -- But Not Immigration." Pew Global Attitudes Project, a project of the PewResearchCenter. Released: 10.04.07 dowloaded from: http://pewglobal.org/reports/display.php?ReportID=258

 

(p. A10) WASHINGTON, Oct. 4 — Buoyed and battered by globalization, people around the world strongly view international trade as a good thing but harbor growing concerns about its side effects: threats to their cultures, damage to the environment and the challenges posed by immigration, a new survey indicates.

In the Pew Global Attitudes Project survey of people in 46 countries and the Palestinian territories, large majorities everywhere said that trade was a good thing. In countries like Argentina, which recently experienced trade-based growth, the attitude toward trade has become more positive.

But support for trade has decreased in recent years in advanced Western countries, including Germany, Britain, France and Italy — and most sharply in the United States. The number of Americans saying trade is good for the country has dropped by 19 percentage points since 2002, to 59 percent.

“G.D.P. growth hasn’t been as dramatic in these places as in Latin America or Eastern Europe,” said Andrew Kohut, president of the Pew Research Center, referring to gross domestic product, the total value of the goods and services produced in a country. “But worldwide, even though some people are rich and some are poor, support for the basic tenet of capitalism is pretty strong.”

 

For the full story, see: 

BRIAN KNOWLTON. "Globalization, According to the World, Is a Good Thing. Sort Of."  The New York Times   (Fri., October 5, 2007):  A10. 

 




June 2, 2007

Communist Dictator Chavez Destroys Freedom of the Press in Venezuela

 

   Supporters of freedom in Venezuela protesting communist dictator Chavez's shutting down the television network that dared to criticize him.  Source of photo:  online version of the NYT article that is quoted and cited below. 

 

My Wabash College economics professor, Ben Rogge, used to say that political freedom ultimately depended on economic freedom:  how could you depend on a socialist government to provide a printing press to those who seek to undermine socialism?

(In his article "The Case for Economic Freedom" published in his Can Capitalism Survive? Rogge gives credit for the argument to his friend Milton Friedman in his Capitalism and Freedom, which was based on lectures given at Wabash.)

Well, if there is a heaven, I can imagine Rogge there, reading the following passages, and reacting with his sad, knowing, half-smile.

 

(p. A3)  CARACAS, Venezuela, May 27 — With little more than an hour to go late Sunday until this country’s oldest television network was to be taken off the air after 53 years of broadcasting, the police dispersed thousands of protesters by firing tear gas into demonstrations against the measure.

. . .

The president has defended the RCTV decision, saying that the network supported a coup that briefly removed him from office in 2002.

RCTV’s news programs regularly deride Mr. Chávez’s Socialist-inspired transformation of Venezuelan society. “RCTV lacks respect for the Venezuelan people,” said Onán Mauricio Aristigueta, 46, a messenger at the National Assembly who showed up to support the president.

Mr. Chávez has left untouched the operations of other private broadcasters who were also critical of him at the time of the 2002 coup but who have changed editorial policies to stop criticizing his government. That has led Mr. Chávez’s critics to claim that the move to allow RCTV’s license to expire amounts to a stifling of dissent in the news media.

“The other channels don’t say anything,” said Elisa Parejo, 69, an actress who was one of RCTV’s first soap opera stars. “What we’re living in Venezuela is a monstrosity,” she said at RCTV’s headquarters on Sunday, as employees gathered for an on-air remembrance of the network’s history. “It is a dictatorship.”

 

For the full story, see: 

SIMON ROMERO.  "Dueling Protests Over Shutdown of Venezuela TV Station."  The New York Times  (Mon., May 28, 2007):  A3.

(Note: the excerpts above are from the updated online version of the article that appeared online under the title: "Venezuela Police Repel Protests Over TV Network’s Closing.")

(Note:  ellipsis added.)

 

On 5/28/07 CNN broadcast a Harris Whitbeck report on students protesting the Chavez censorship under the title "Hear No Evil, See No Evil."

 

   Monica Herrero protests Chavez closing down the television network that dared to criticize his government.  Source of photo:  screen capture from the CNN report at http://www.cnn.com/video/partners/clickability/index.html?url=/video/world/2007/05/28/whitbeck.chavez.tv.affl

 




May 10, 2007

Communist Hugo Chávez: Is He Loco to Fight Inflation with the Locha?

 

   Hugo Chávez expects to end inflation by bringing back the "locha" 12 ½-cent coin (held in this picture by coin dealer Antonio Allesandrini).  Source of photo:  online version of the NYT article quoted and cited below.   

 

(p. 8)  CARACAS, Venezuela, March 17 — Of all the startling measures announced by President Hugo Chávez this year, from the nationalization of major utilities to threats of imprisonment for violators of price controls, none have baffled economists quite like his venture into monetary reform.

First, Mr. Chávez said the authorities would remove three zeroes from the denomination of the currency, the bolívar. Then he said the new bolívar, worth 1,000 old bolívars, would be renamed the “bolívar fuerte,” or strong bolívar.

Finally, at the behest of Mr. Chávez, the central bank said this week that it would reintroduce a 12.5-cent coin, a symbol of Venezuela’s prosperity in the 1960s and 1970s before freewheeling oil booms ended in abrupt devaluations, after three decades out of circulation.

Mr. Chávez champions these ideas, which will take effect in January, as ways to combat inflation, which in recent weeks crept up to 20 percent, the highest in Latin America.  . . .

. . .

“We’re witnessing policy in the form of window dressing, all carried out at the whim of one man whose strong point is not economics,” said Hugo Faría, an economist at the Institute of Higher Management Studies, a private business school here. “Anyone who sees a 12 ½-cent coin as a remedy for this country’s problems isn’t thinking too clearly.”

 

For the full story, see: 

SIMON ROMERO.  "Venezuelan Lender Sets Siights on Currency Valuation."  The New York Times, Section 1  (Sun., March 18, 2007):  8.

(Note:  ellipses added.)

(Note:  the online version of the title is the slightly different, "Venezuela to Give Currency New Name and Numbers.")

 




March 25, 2007

Instead of Shrugging, Atlas Sometimes Moves to the United States

 

VenezuelaProfessionalsExitGraph.gif   Source of graphic:  online version of the WSJ article quoted and cited below.

 

(p. A10)  CARACAS, Venezuela -- Oil-rich Venezuela has experienced the kind of economic boom in recent years that should be flush with job opportunities. But an increasing number of professionals, many of them from the oil industry, are looking abroad for work, driven away by President Hugo Chávez's effort to extend state control over the economy, and by inflation verging on 20%.

Since his re-election in December, Mr. Chávez has pursued an agenda of "21st Century Socialism," painting a future of "communal cities" and state-run cooperatives dedicated to production, not profit.

. . .

Still, at the U.S. Embassy call center for visas in Caracas, the lines have been jammed since Mr. Chávez announced in early January the nationalization of the electricity industry and Venezuela's largest telecommunications firm. "It doubled practically overnight," said a U.S. diplomat.

The number of Venezuelans receiving U.S. legal permanent residence more than doubled from 2000 to 2005, when 10,870 got their green cards. In that period the overall number of green cards increased by a third. During that period the number of Venezuelan-born U.S. residents increased 42%, to 151,743, according to the U.S. Census Bureau.

. . .

Any opposition-minded oil workers still left at PdVSA face a difficult environment. During the presidential campaign last year, PdVSA President Rafael Ramirez told company executives to join Mr. Chávez's political movement or hit the road. In 2003, Mr. Chávez sacked around 20,000 PdVSA staffers -- about half the company's work force -- for walking off the job, calling them "terrorists." A majority of them were the managers, accountants and field engineers who turned the state oil venture into a world-class oil company during a period of robust expansion in the 1990s.

Many found work elsewhere, including in Mexico, Canada and Saudi Arabia, at a time of high demand for experienced oil workers.

The lost expertise has taken a toll on PdVSA, the country's largest single employer. Its share of the global market for crude oil supply is shrinking, and accidents and outages are on the rise. Analysts say the cost to PdVSA of producing a barrel of oil has nearly doubled in the past five years to more than $4.50.

 

For the full story, see: 

PETER MILLARD.  "Professionals Exit Venezuela; Chávez's Grip on Power Drives Out Oil Experts; Support Hugo or You Go."  The Wall Street Journal  (Thurs., February 15, 2007):  A10.

(Note:  ellipses added.)

 




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