Venezuela Economy

8/13/2019 Venezuela Economy

1/8

ENGLISH EDITION/The artillery of ideasINTERNATIOFriday, December 6, 2013|N186 |Caracas|www.correodelorinoco.gob.ve

In a continuation of the national governments push to end corruption and strengthen eco-

nomic growth, Venezuelan President Nicolas Maduro designated personnel to head two

new executive agencies that will work to protect the South American nations foreign ex-

change reserves. The National Center of Exterior Commerce and the Venezuela Corpora-

tion of Exterior Commerce were created by decree and officially inaugurated last Friday

during a cabinet meeting at the Miraflores presidential palace in Caracas.Page 2

2014 Year of growth

Venezuelan Finance

Minister Nelson Merentes

has predicted that 2014

will be a year of increased

growth and reduced

inflation, in part due to

the economic measures

being taken by President

Nicolas Maduro. Merentes

defended the governments

approach to the economy,

arguing that the forcible

reduction of prices had

increased consumer

spending power and would

dent inflation. Pg. 4

Politics

Car sales regulatedto reduce pricedistortionsPresident Maduro issued

a decree to stamp

out usury in the new

and used car markets. P.3

Security

Major achievementsin anti-drug fightVenezuelan authorities

seized over 83 tons of illegal

substances in 2013, mainly

from Colombia. P.5

Social Justice

Food Houses bringhope to communities

A program created

by President Chavez

to guarantee nutrition

has raised communal

spirit.P.6

Opinion

Eleazar Diaz Rangel:The municipal electionspage 8

Analysis

Is Venezuela in crisis?A critical analysispage 7

Measures Continue in Venezuelato Stabilize Economy

Chavez plan now l

On Tuesday, the

lutionary majority i

National Assembly

proved the National

for 2013- 2019, giving

status of a nationa

which was promulga

President Nicolas M

on Wednesday.

The historic obje

outlined in the docu

are: to preserve na

independence, con

building 21st centur

cialism, transform

ezuela into a world p

construct a multi-c

and pluri-polar world

help save life on the p

to ensure the survi

humanity.

The National Plan,

ernment program d

by the late President

Chavez, was designedthe participation of n

ous social movement

answered the Chavez

to join in debates ar

the country.

The document be

Maduros platform f

presidential cam

earlier this year, a

September, he brough

the National Assemb

evaluation and voti

required under artic

of the Constitution.

Witnesses &

internationalaccompaniers willobserve municipalelections

T/ AVN

The president of Venezue-

las National Electoral Coun-

cil (CNE), Tibisay Lucena,

announced this weekend

that 88,416 witnesses from

Venezuelan political parties

have been accredited in mu-nicipal boards to participate

in the upcoming municipal

elections on December 8.

Meanwhile, 50 international

accompaniers will also take

part in the event.

In a press conference in the

CNE building, where the final

audit to guarantee the proper

functioning of the electronic

voting system was held, Lucena

indicated that the number of ac-

credited witnesses was a good

sign and she urged other poten-

tial witnesses to apply quickly so

they can be accredited in time.The CNE president said the

electoral timeline is on sched-

ule and Wednesday, every vot-

ing center had the electoral

materials that are installed on

Friday and Saturday.

Regarding poll workers, Luce-

na reiterated that their partici-

pation in training days is impor-

tant given that this municipal

election has technical details

which must be learned.

Diplomatic representatives

accredited in Venezuela par-

ticipated in the fina

and received a lessothe voting process fr

CNEs director of t

ogy, Carlos Quintero.

Quintero explaine

the final audit was a

tion of the entire voti

cess, including the in

tion of voting booths,

of voting, the transm

of results and the co

of votes.

The elections are se

smoothly on Sunday

good voter turnout ex


2/8

The artillery of ideas2 Impact | Friday, December 6, 2013

T/ COI

P/ Presidential Press

In a continuation of the na-tional governments push toend corruption and strengthen

economic growth, Venezuelan

President Nicolas Maduro des-ignated personnel to head two

new executive agencies that

will work to protect the South

American nations foreign ex-

change reserves.

The National Center of Ex-

terior Commerce and the Ven-

ezuela Corporation of Exterior

Commerce were created by de-

cree and officially inaugurated

last Friday during a cabinet

meeting at the Miraflores presi-

dential palace in Caracas.

According to the head of

state, the first of the new bod-

ies will be charged with or-

dering the administration of

foreign exchange in functionof development and putting

an end to the abuse of the cur-

rent system which offers US

dollars at a preferential rate of

6.3 bolivars.

The existing agency in charge

of administering the allocation

of US dollars, the Foreign Ex-

change Commission (CADIVI)

as well as its sister office, SI-

CAD, will continue to operate

but will now be under the con-

trol of the National Center of

Exterior Commerce.

Alejandro Fleming, current

Commerce Minister and for-

mer Vice Minister for Foreign

Relations, has been designated

to head the new agency. Jose

Kahn, Rodolfo Marcos Torres,

Julio Viloria, and Victor Aul-ar have also been appointed to

the National Centers board of

directors.

Maduro called the creation

of the new agency part of the

new stage of the economic rev-

olution and explained that

among its duties will be main-

taining a registry of those

businesses and individuals

who require foreign exchange

as well as guaranteeing that

money solicited is being used

as it is intended.

The head of state also

stressed the need to streamline

the process of supplying dollars

to those who are carrying out

commercial activities relevant

to the nations social and eco-

nomic development.We have the obligation to

guarantee that our foreign ex-

change is being used in the cor-

rect manner, understanding

that it is a resource for the de-

velopment of our economy and

our country, the Venezuelan

President commented.

Parallel to the National Cen-

ter, the new Venezuelan Corpo-

ration of Exterior Commerce

(CORPOEX) will focus on orga-

nizing the nations imports as

well as fomenting new sources

Venezuela: Two new state agenciesto regulate international commerce

of foreign exchange originating

from non-oil exports.

CORPOEX will be comprised

of various state companies

working in sectors as diverse

as agriculture and oil to home

appliances and vehicles. It will

have the legal right to engage

in importations either at the

behest of a third party or under

its own volition depending on

the needs of any particular na-

tional industry.

Ramon Gordilis, current

President of Venezuelas Ex-

terior Commerce Bank (BAN-

COEX) has been appointed tohead the new institution and

will be joined by Owen Man-

rique, Felix Osorio, Alexander

Sarmiento, Jose Cabello, and

Jesus Guarco on the board of

directors.

This is a corporation that is

going to direct a conglomerate

of very powerful state business-

es and which is going to create

alliances with specific private

firms, Maduro said.

The time has come for a

great productive, economic

revolution that can diver-

sify [our economy] and cre-

ate wealth for Venezuela. [It

must be] a great economicrevolution that will solidify

the new social system that

has been created during the

Revolution and that includes

the social missions and con-

solidates our democratic rev-

olution while creating a solid

base for a productive econo-

my, he added.

PROTECTING THE MIDDLE CLASS

The two new state offices form

part of the Maduro administra-

tions recent fight against specu-

lation, price gouging an

ing in the OPEC memb

Since early Novem

socialist government h

on the nations ineffi

corrupt distribution

which have led to e

profit margins for m

and wholesalers whi

ishing the purchasing

ordinary citizens.

By forcing firms toproducts at prices on

acquisition costs, Ma

been able to boast the fi

ering of prices in the

history of the country

While many of the

are directed at shiel

economically vulnera

speculative attacks,

ezuelan President has

ally been aware of th

encourage entrepre

and assist those wo

small businesses.

Although he is refer

the working-class p

for his roots as a bus d

union leader, the 51

has made clear his inte

strengthen the middle

I want to become,

ready feel that I am, the

who protects the midd

Maduro asserted on Fr

To this end, the he

United Socialist Party

ezuela announced a

measures designed

small and medium-si

ness owners who face

rents on storefronts.

The rent control me

tablishes a limit on le

to exceed 250 bolivars

square meter and wforced through the C

Ministry which will

complaints related to

tenancy contracts.

We are going to ta

streets to guarantee

our economic grow

duro said.

During his address,

term president reiter

the governments

against speculation a

ket distortions is direc

large firms that move

share of imports in the

Local business, on

hand, need to be ass

provided with opportuexpand and create me

employment for reside

We want to extend

to those suppliers who

est, with financing a

and with products to

ute in the country or w

brought from the exte

the countrys dollars.

our objective: that in

ela the small and medi

businesses become

Here is our hand so tha

together, Maduro affi


3/8

The artillery of ideas Friday, December, 2013 | Polit

T/ COI


Venezuelan President NicolasMaduro took his offensiveagainst speculation in the na-

tions economy to the automotivesector last Monday, announcing

the creation of a new law that

seeks to stamp out usury in the

new and used car markets.

Referring to the measure

as a healing of the car in-

dustry, Maduro explained

that the new law would limit

the price of used vehicles and

provide incentives for greater

automobile production i n the

South American nation.

The point, he informed, is to

regularize and strengthen the

President Maduro decrees law to correctdistortions in automotive sector

production of vehicles in Vene-

zuela, lower the prices of new au-

tomobiles produced in Venezue-

la as well as those imported, and

lower the price of used cars.

For years, Venezuela has suf-

fered from a shortage of newautomobiles and has endured

a rising trend of over-charging

for used vehicles owing to the

lack of oversight of the market,

high inflation, and low domes-

tic production.

Venezuela is the only coun-

try in the world where a used

car costs more than a new car.

This is going to end. Its a ques-

tion of hours. Were going to

normalize and heal the produc-

tion of vehicles as well as their

distribution, he said.

Among the measures to be

taken will be the overhauling of

the system of importation that

permits dealers to access US

dollars at a preferential rate.

This includes allowing indi-

vidual citizens who hold for-eign currencies in Venezuelan

banks accounts the opportuni-

ty to apply for an importation li-

cense to acquire a new vehicle.

The Venezuelan President

also expressed his administra-

tions aim to dedicate greater at-

tention to domestic automotive

production in order to better

resolve the problems currently

afflicting the industry.

We are going to control the

process from the factory gate to

the point of sale. The assembly

plants will report their produc-

tion as well as the inputs that

they need to the Commerce

Ministry, Maduro said.

The head of state described

the new law as something that

will favor the working and

middle classes and re-iterated

the countrys need for a holistic

and concerted effort to boost

car manufacturing.

Venezuela has a gr

pacity to manufactu

hicles. Were ready w

investments that wer

ing so that we can du

our production in the

to 4 years. Well carry

actions that we need to

through in the product

regulation of the enti

cess, he affirmed.

T/ COI


Venezuelan President Ni-

colas Maduro visited the

Midwest state of Lara last

weekend and approved the dis-

bursement of 100 million boli-

vars for community projects

under the governments urban

renewal program, Mission New

Barrio, Tricolor Barrio.

The money will be used to

fund initiatives proposed by

the residents of the three geo-

graphic zones, called corridors,

that have been devised by the

program in the capital area of

Barquisimeto.

These corridors have be-

gun to work and are setting

the example. They are the

first to solicit resources with

which to immediately start

the projects, Maduro said

during a live broadcast of an

assembly with activists and

community leaders.

Included in the projects will

be the construction of new

sports complexes, affordable

housing, and improvements

in water services for the vari-

ous sectors that comprise the

programs three corridors in

the state.

On Saturday, President Ma-duro made a call for the benefi-

ciaries of the missions financ-

ing to continue proposing new

President Maduro promotesfar-reaching urban renewal program

projects that can aid in improv-

ing security and employment

opportunities for citizens.

We need peace to reign here.

There needs to be projects of

different scales and different

types: those that produce cloth-

ing, computers and anything

that has to do with production

in order to generate income,

the head of state commented.

Mission New Barrio, Tri-

color Barrio was launched by

the Maduro administration in

early November with the in-tention of transforming run-

down urban environments,

referred to as barrios in Span-

ish, into healthy and thriving

neighborhoods.

The program has been

linked to other initiatives of

the Venezuelan government

that have provided subsi-

dized housing to low income

residents and have strength-

ened political participation

through the nations grass-

roots community councils.

More than 50,000 families

will reportedly benefit from the

missions projects in the state

of Lara, while a host of otherprojects have also been put into

motion. In the city of Carora, the

government inaugurated a lamb

and goat meat processing plant

that will expand production of

traditional foods in the area.

More than 113 million boli-

vars ($17.9 million) in addition

to a further $10 million have

been invested in the facility

which has been erected with

the assistance of Argentine

technology and expertise.

The leather that will be gen-

erated by the factory, officials

inform, will have the capacity

to supply a full 20 percent of the

raw materials needed for shoeproduction in the country.

In downtown Barquisimeto, a

design for a new residential com-

plex that will carry the

former Venezuelan P

Hugo Chavez has been

to provide new homes f

than 1,500 people.

The series of buildin

structed on 4,300 squa

ters, has been laid o

the intention of pro

communal living as

providing public spa

productive enterpriseture and entertainmen

Later on Saturday,

Plains state of Barina

ident Maduro activa

additional three co

of the New Barrio M

that encompass 66 ne

hoods and more than

families.

Were going to se

months how this enti

is going to become an

example with all ne

services, the comman

chief noted.

Visualize the kind o

ments that can be mad

community and lets

that communal econom

maximum level, he add

While addressing the

in Barinas, Maduro als

a call for supporters

United Socialist Party

ezuela to turn out en

for Sundays local elec

which more than 300 m

races will be decided.

Next Sunday, we ha

nicipal elections and i

important that we finish

for the new stage [of the

tion]. The mayors that

elected are those who a

to be working together wBolivarian governmen

coming years, the Ven

President affirmed.


4/8

The artillery of ideas4 Economy | Friday, December 6, 2013

T/ Ewan Robertson

www.venezuelanalysis.com

The president of VenezuelasCentral Bank (BCV) has re-jected negative forecasts of Ven-

ezuelas ability to meet foreign

currency obligations, arguingthat operational international

dollar reserves are in normal

conditions.

The comments come after

several financial press outlets

speculated as to whether Ven-

ezuela could have problems

meeting international and

internal foreign currency ob-

ligations, based on an alleged

shortage of dollars available to

the government.

Venezuelas international

reserves have fallen 29% this

Venezuelan authorities rejectpredictions of dollar shortage

year from US $29.9 billion

in January to US $21.2 bil-

lion currently, reports local

newspaper El Universal. The

reserves are made up of gold

deposits, bonds, and dollar

current accounts. When for-

mer President Hugo Chavezcame to power in 1999, inter-

national reserves were below

US $15 billion, according to

AVN news agency.

Further, Venezuelas crude

oil price has fallen to a sixteen

month low, at US $93.98 per bar-

rel. State oil company PDVSA

states that a drop in the price of

a barrel of oil by $1 costs Ven-

ezuela about $700 million per

year. 95% of Venezuelas foreign

currency earnings come from

oil sales.

Oil prices in the low $90s

would leave Venezuela with

a current account deficit,

Ben Ramsey, an economist at

JPMorgan Chase & Co. told

Bloomberg on Monday.

Other observers disagree

with such negative forecasts.

Washington-based economist

Mark Weisbrot recently point-

ed out that Venezuela has far

higher oil revenue than import

or debt repayment costs.

How can a government withmore than $90 billion in oil

revenue end up with a balance-

of-payments crisis? Well, the

answer is: it cant, and wont,

wrote Weisbrot.

Meanwhile, local business

groups accuse the government

of dipping into reserves to cov-

er foreign currency demand,

and complain that insufficient

dollars are being pumped into

the domestic economy.

Jorge Roig, the head of

business federation Fedeca-

maras, recently claimed that

the state has granted 54% less

dollars to the private sec-

tor this year compared with

2012. Official sources say that

2.6% more dollars have been

distributed to the economy

this year overall.

Since 2003 the Venezuelan

government has maintained

currency controls to avoid

capital flight, and allocated

dollars to companies for the

importation of goods neces-sary for production and con-

sumption.

Critics blame insufficient

dollar allocations for the

shortages in some food and

consumer products the coun-

try has faced this year, as

well as inflation of 54% and a

black market dollar worth 10

times the official rate of 6.3

BsF to the dollar.

However the administra-

tion of Nicolas Maduro has

argued that product hoard-

ing, grotesque o

ing and speculation

dollar as causes of e

difficulties. Officials

business groups alig

the conservative op

of waging an econom

against the governm

This week Venezue

tral Banks (BCV)

Eudomar Tovar ass

public that the count

erational foreign

reserves are in normtions and dismissed

forecasts on Venezuel

national reserves.

The BCV presid

plained that the econ

growing and the cou

fulfilling its debt ob

as normal.

This year PDVSA

it will have given th

total of US $47.3 billio

tribution in the econom

is sufficient for the e

said Tovar.

T/ Ewan Robertson

P/ Agencies

Venezueltan Finance Min-

ister Nelson Merentes has

predicted that 2014 will

be a year of increased growth

and reduced inflation, in part

due to the economic measures

being taken by President Nico-

las Maduro.

The minister said Tuesday

that the Venezuelan CentralBank (BCV) and the National

Institute of Statistics (INE)

Venezuelan Finance Minister:2014 will Be year of growth

were analyzing the possible

effects of Maduros strategy

to deal with the countrys eco-

nomic difficulties.

This year Venezuela has

faced shortages in some basic

foodstuffs, annual inflation of

54% and a black market dollar

worth ten times the official

rate. The government says

that the situation is the result

of an economic war being

waged by business sectorsaligned with the conservative

opposition.

The opposition denies the

accusations, and blames the

government for the situation

instead.

The Maduro administration

has characterized its response to

these problems as an economic

offensive, which has included

cracking down on abuse of cur-

rency controls, forcibly reducing

grotesque overpricing in some

sectors, and ensuring that food

products reach supermarketsrather than being hoarded or di-

verted as contraband.

We are sure that this well-

directed offensive by Maduro

against the economic war,

where businesses had been

marking up prices irrationally

for nine months, will bear its

fruits in the economy, said Me-

rentes on state channel VTV.

The finance minster added,

Were still going to end the

year with high inflation lev-

els but Venezuelans should beaware that 2014 will be very dif-

ferent from 2013 for economic

development and job creation.

The BCV predicts the economy

to grow by 2.5% by the end of

this year.

Merentes defended the govern-

ments approach to the economy,

arguing that the forcible reduc-

tion of prices had increased

consumer spending power and

would dent inflation.

The government is also look-

ing to strengthen the bolivar

currency to help maintain eco-

nomic stability and weaken the

value of the black market dollar.

Recent measures include

increasing interest rates on

savings accounts from 12.5

to 16% to encourage citizens

to hold more savings in boli-

vars. Fu rther, from 2014 Ven-

ezuelans will be able to buy

government bonds in bolivars

or dollars.

Commenting on the latter

policy, Merentes said, This

is important because they

[government bonds] have

good performance and are

zero risk. If something has

characterized Venezuela it

is the payment of her [finan-

cial] obligations, internal asmuch as external, without

any difficulty.

FINANCES IN GOOD SHA

The statements co

some international

press outlets specula

whether Venezuela wo

liquidity crisis due to i

demands for foreign

and a falling oil price

the countrys foreign

earnings come from o

However Venezue

thorities and US ecsuch as Mark Weisb

dismissed this, pointi

countrys large cur

count surplus from oi

and the high levels of

and credits that the

ment has at its dispos

Further, the price of

elan crude has risen

past three weeks an

rently sells at $94.69 p

below the governmen

level of $100 per barrel

above the price needed

tain a current account

As such, in his inter

rentes was upbeat ab

ezuelas future econo

formance. He mentio

extreme poverty was

6 - 7% and unemploym

down from 17% and 15

tively when the Boliva

ernment assumed pow

We would like po

be zero and unemplo

decrease, and this ca

achieved by increas

ductive capacity, soc

being and inclusion,

ister said.

He also pledged t

those who havent vote

project we say that we

to favor those who stibeen included, because

have any type of distin


5/8

The artillery of ideas Friday, December 6, 2013 | Secur

T/ Tamara Pearson

www.venezuelanalysis.com

P/ Agencies

On Monday night a blackoutwhich affected the majorityof the country saw the national

government accuse the right-

wing of sabotage.

The blackout affected cen-

tral and western Venezuela,

where the largest cities are. It

began at 8pm and electricity

returned to Caracas at around

9.30pm, while it returned to

Merida at 2am.

Electricity minister Jesse

Chacon alleged that the black-

out was intentional. He said a

Venezuelan President blamesopposition sabotage for blackout

special commission was inves-

tigating the failure, which he

said originated in the substa-

tion La Arenosa, between Cara-

bobo and Aragua states, in thecentral north of Venezuela.

Chacon said that authorities

had found a 3.3cm diameter

electrical conductor that had

split in one of the towers of the

national grid, causing a short

circuit. Chacon said such a

problem hadnt occured before

in the thirty year life of the

electricity system.

President Nicolas Maduro

also alleged that the black-

out was intentional. He said

Venezuelas intelligence agen-

cies revealed that a series

of actions were planned for

yesterday, In three different

places they had organised dis-

turbances. Immediately after

the blackout, they went out

into the street to burn tires.

He accused the rightwing of

taking electricity away from

the people in order to provokea state of irritation and dis-

content with the government...

they are desperate because

they know they face a big defeat

on December 8th... they see the

polls and the support for us in

the street.

President of the national as-

sembly, Diosdado Cabello also

said that the electricity black-

out smelled of sabotage.

Opposition governor, Hen-

rique Capriles alleged that

Monday nights blackout is

what the greater part of the

country experiences every-

day and the opposition co-

alition, the MUD, said the

governments accusations of

sabotage were politically and

electorally motivated.

Maduro also said the

out occurred in the sam

as the large blackout

tember this year. At the

argued that the blackou

rehearsal for the De

8th municipal elections

T/ Ryan Mallett-Outtrim

P/ Agencies

Venezuelan security forces

have seized 83 tons of nar-

cotics and arrested 110

drug lords this year, according

to head of the National Anti-

Drug Office (ONA) Alejandro

Keleris Bucarito.

Keleris stated that the Ven-

ezuelan government remains

committed to stamping out

narcotics traffickers, and

pledged to deepen anti-drug ef-

forts in 2014.

Thanks to intelligence work

and international cooperation

we have managed to destroy 141

narcotics laboratories over the

past five years, most of which

were located in border areas in

order to access raw materials,

he stated last Thursday.

Keleris also affirmed that 43

laboratories were shut down

in 2013 alone and Venezuela

remains free of drug crops. Ac-

cording to the United Nations

Office on Drugs and Crime,

while Venezuela is not a major

drug producing country it is

used by international narcotics

traffickers as a transit route be-

tween the Andean region and

intercontinental markets.

The coca leaf, from whichcocaine is derived, is mostly

grown in countries like Co-

lombia, Peru and Bolivia. Ven-

ezuelas geographic position

makes it a convenient step-

ping-stone for Andean narcot-

Venezuela seized a totalof 83 tons of narcotics in 2013

ics bound for North American

and European markets, ac-

cording to some analysts.

We are confident that we

will continue making prog-

ress in this important work

to ensure that our country

is free from drug cultivation

and trafficking, although geo-

graphically we are the bridge

between the largest producingcountry and the largest drug

consumer, he stated.

Keleris credited joint efforts

between the armed forces, the

national and states govern-

ments and the public for Ven-

ezuelas progress on tackling

drugs. Between 2006 and 2013

the heads of more than 100 nar-

cotics organizations have been

apprehended by Venezuelan au-

thorities, according to figures

from ONA.

Keleris also pointed to Ven-

ezuelas appointment to head

the Union of South American

Nations (UNASUR) regionalcouncil on anti-drug efforts

in October as evidence of in-

ternational recognition of

the countrys anti-narcotics

efforts. The UNASUR mem-

ber countries unanimously

decided to appoint our coun-

try to pro tempore presidency

against the global drug prob-

lem in South America, which

is a demonstration of the ef-

forts we have made in this

area, he stated.

However, he also called for

more public awareness of the

problem of drug trafficking.

We should all join the fight...against this scourge so that it

doesnt affect our children, who

are the next generation, he said.

Keleris made the announce-

ment the same day Venezu-

elan authorities charged four

more people in relati

record cocaine haul m

French authorities i

tember. The three m

one woman were char

allegedly cooperatin

an operation to smugg

ton shipment of cocai

an Air France flight fr

racas to Paris.

When 31 suitcases

with cocaine were disby French authorities a

plane landed in Paris

De Gaulle Airport in S

ber, French Interior M

Manuel Valls describ

haul as the biggest

of cocaine ever made i

land France.

Venezuela has so far

ed 25 people in conne

the case.

An Air France m

and five military pe

including a lieutenant

who was responsible f

rity at Maiquetia Inter

al Airport are amon

facing charges.

French authorities a

rested several mem

a criminal organi

While acknowledging

two countries have bee

erating in relation to th

last month Keleris que

French handling of the

During an intervie

private broadcaster T

Keleris questioned the

of time taken for Fre

thorities to announce

covery of the haul, a

the cocaine went und

by Air France.

It is very strange, said.

Air France has ple

improve its own che

baggage on departur

certain sensitive destin

since the incident.


6/8

The artillery of ideas6 Social Justice | Friday, December 6, 2013

T/ Mariana SerranoAVN

P/ Agencies

Ahumble house located on

the second street of the

La Cortada sector in Ca-

tia, Sucre parish [Caracas],

offers the country one of the

most important contributions

to the social sphere in Ven-

ezuela; the country in Latin

America with the third low-

est rate of poverty, achieved

through reducing hunger.

Although 18 people are living

in the house, 100 plates of food

are served daily at lunch. The

house number is 83, which is

barely enough to identify itself

in the middle of a row of homes

that line the street of the first al-

leyway in the area. The house

has been converted to guarantee

that one hundred people receive

a plate of hot and very tasty

food, prepared by the hands of

women of the house who com-

prise the Liendo family.

The alarm sounds at 4:00 in

the morning. Mrs Zaida Liendo

is up first and her colleagues

follow behind her: her daugh-

ters and granddaughters. Sea-

sonings, vegetables and meats

are chopped, and the assembled

food is a balanced diet with a

nutritional content equal to al-

most 50% of the caloric require-ment of a person for a day. Its

work that occupies at least sev-

en hours a day.

From Monday to Friday,

the women of the Liendo fam-

ily prepare an amount of food

equivalent to 100 plates of food

a day, for a total of 500 servings

per week and 2,000 per month.

Its not an easy job, theres a

lot to do, and sometimes youre

provoked to throw in the towel

because you have to know how

to deal with people, but we al-

ways keep going because we

help people who really need

it. Now I can help, but when I

had my eight children nobodyhelped me, said Mrs Zaida

Liendo, who is the owner and

proprietor of house number 83,

that was volunteered by her to

become one of the 6,000 food

houses of the country.

Last Friday, recognition

from the United Nations Food

and Agricultural Organisation

(FAO is its English abbrevia-

tion) reached the house of Mrs

Liendo. This year the same or-

ganization awarded Venezuela

for its fight against hunger. For

Mrs Liendo, having assumed

the responsibility to help with

her seasoning and dedication,

theres a personal sense of sat-

isfaction and a commitment

to the leader of the Bolivarian

Revolution, Hugo Chavez.After my comandante died,

I felt a greater commitment to

this. Because he was a humani-

tarian, because he wouldnt al-

low his people to starve, because

he, out of his heart would have

given me and my family one or

one hundred plates of food, she

said with the same certainty

that her tears came with.

When she first opened the

doors of her home to feed those

most in need, there were about

150 people who came every af-

ternoon. Today, that number

has been reduced to one hun-

dred neighbors; mostly chil-

dren and the disabled.

When we started in 2004

we had 150 people, but many

of them grew up; they beganto work and have already left,

others left after the tragedy of

the floods (in 2010) and now we

serve only 100 people.

Mrs. Liendo considers the

work done by the national

government through the Food

Houses program (Casas de

Alimentacin) to be compre-

hensive, and it has served as a

connection between the needy

and public institutions in order

to attend to chronic and struc-

tural problems.

As an example, she mentioned

the case of a boy who was fed

at the house who had recently

had a kidney operation. The

mother of the boy, who also has

a few [other] kids, handed a re-quest for help for the child to

the president of the Foundation

of the Strategic Foods Program

(Fundaproal) and they are look-

ing for ways to help her.

Another specific case is that

of a man of advanced age who

lives alone, has no known fami-

ly, and recently suffered a para-

lyzing disability that made him

unable to work.

Through the program and

the foundation he is going to get

a pension, she said.

Mrs. Zaida said that these

contributions and solutions

stimulate her to continue writ-

ing her own history as ownerand proprietor of one of the food

houses that has allowed for re-

duced rates of extreme poverty,

poverty, child malnutrition and

hunger in the country.

According to a recent report

by the Economic Commission for

Latin America and the Caribbe-

an (ECLAC), in Venezuelas case

between 2002 and 2010 poverty

decreased by 20.8 %; from 48.6 %

to 27.8 %, while extreme poverty

went from 22.2% to 10.7%, result-

ing in a decrease of 11.5%.

More than a plate of food: Food Housesserve examples and hopes of life

She also argued th

1999 to 2010 Venezuel

enced the second highe

tion in poverty levels

from 49.4 % to 27.8 %. T

est was Ecuador, whi

reduction of 26.4 %,

this indicator from 6

37.1 % in the same peri

This data is consist

the figures publishe

Venezuelan Nationtute of Statistics (IN E

show that poverty

21.6% between 1998

first half of 2011, from

27.4 %.

The INE reported

that the Bolivarian gov

has reduced structura

from 16.7% to 6.9 % a

of the fairer distributi

countrys wealth.

A PLATE OF FOOD: 941 C

The ideal daily ca

take for a Venezuela

tween 2000 and 2500

Nonetheless, the aver

ezuelan consumes

3000 calories, eating

more meals per day.

Through the Food

program, 50% of this i

teed, with an average o

ories being provided

of food at lunchtime.

According to Dougl

lo, Fundaproal nutritio

dinator, the program p

free meal based on a nu

study of the populatio

also promotes the con

of local produce.

Trujillo stated that

programs inception

3,334,000 free meabeen provided throu

homes that now exi

the country.

Regarding the prio

of the consumption of

cal to each region of t

try, in 2014 a restruc

the menu will be ach

offer regionalized men

food houses.

He explained that th

to promote food prod

these regions, for our c

tion, and make the me

fer closer to the food o

ple. All of this is in th

of the objectives of th

National Plan [of the2013 - 2019].

Trujillo noted that

program was devise

mandante Hugo Cha

now is also a form of

clusion, productive act

social development fo

tire population.

The food houses a

to move on to be a pr

training and nutrition

sion, without losing

son dtre: to be homes

tional care, he said.


7/8

The artillery of ideas Friday, December 6, 2013 | Analy

T/ Ewa Sapiezynska & Hassan Akram

Bleak media reports about

the countrys polity and

economy are exagger-

ated.

Alvaro Vargas Llosa wants

us to believe that Venezuela

is an example of a new Latin-

American dictatorship. He

even goes so far as to claimthat President Nicolas Ma-

duro rigged last presidential

election (in spite of Venezue-

las electoral system that Jim-

my Carter called the best in

the world). Does the poetic

license of his father, Mario

Vargas Llosa, one of the great-

est Latin American novelists,

extend to Alvaro?

He is certainly not alone in

his opinions. The Washington

Post writes in its editorial last

week about the sickening

spectacle of the unravelling

of Venezuelas economy and

political system and the re-

gimes self-destruction. The

new scare-story from those

proclaiming disaster is about

the new powers granted to

Maduro by the National As-

sembly on November 21 in or-

der to fight corruption, specu-

lation and usury. For one year

the Venezuelan President will

be able to make some laws by

decree, which analysts in Mi-

ami have denounced as un-

democratic.

In fact, these Enabling Laws

are nothing new in Venezuela.

Similar powers were granted

to Hugo Chavez (during his

13 years in office they weregranted four times). Moreover

these decree-powers were

granted to Venezuelan presi-

dents before Chavez: in fact,

Enabling Laws were used six

times before he came to power

in 1999. It is a constitutional

authority granted by the

elected legislature and can

be overruled by that legisla-

ture. It is difficult to criticize

the objective of streamlining

administrative procedures on

an issue as important as cor-

ruption; declaring that such a

move puts democracy at risk

is clearly an exaggeration.

VENEZUELAS STABLE

ECONOMY

Of course, the request of

decree powers on economic

issues is due to the recogni-

tion that Venezuela is facing

problems in this area. But

contrary to the myth peddled

by the media and many ana-

lysts, especially those close to

the US government, Venezu-

ela is not nearing economic

collapse. The economy, as has

always been the case, is largely

dominated by the extraction of

oil which the country uses to

purchase food and consumer

goods. The earnings from oil

exports are comfortably above

spending on imports, so Ven-

ezuela is not facing anything

like a debt crisis.

In fact in 2012 oil exports

brought in $94 billion, whileimports (at historically high

levels) were just $59.3 billion.

Today there are some $22 bil-

lion in reserves at the Venezu-

elan Central Bank. There is

also an account surplus that is

currently at 2.9 percent of GDP.

Given these very positive in-

dicators, US-based economist

Mark Weisbrot is quite certain

that Venezuela will not face

a future balance of payments

(debt) crisis. His confidence is

shared by US banking multi-

national Wells Fargo, which

recently produced a report de-

claring Venezuela one of the

emerging economies most pro-tected against the possibility of

a financial crisis and by Bank of

America Merrill Lynch which

has recommended investors

purchase Venezuelan govern-

ment bonds.

POLITICAL ROOTS

OF ECONOMIC WOES

Although the economy does

not suffer from any balance

of payments or fiscal crisis,

Venezuela is facing significant

problems in the form of short-

ages of specific consumer goods

and lengthy queues for some of

what is available. But this is not

so much an economic problem

as a political one. Following the

death of immensely charismatic

Hugo Chavez (electorally one of

the worlds most popular politi-

cians), there followed a highly

polarizing election in whichChavezs chosen successor for-

mer Vice President Nicolas Ma-

duro was elected with a narrow

margin. As George Ciccariello-

Maher, Venezuela specialist at

the University of Drexel, told us

in a private conversation, the

tensions and destabilization fol-

lowing the April elections result

from the fact that Venezuelas

empresarios think they have

a chance to get rid of the new

government. Specifically, the

Venezuelan business elite has

responded to the uncertainty

surrounding the new govern-

ment by taking money out of the

country (capital flight) and de-liberately creating chaos.

Currently the government

earns Venezuelas dollars

through oil exports and then

distributes them to importers

at a controlled rate in a system

not very different from that

applied during the economic

miracle in South Korea which

moved that country from

third world to first (Korean

capital controls were actually

much more stringent than Ven-

Is Venezuela in crisis?ezuelas). This system of foreign

exchange rationing should en-

sure that foreign currency is

used to satisfy the needs of or-

dinary citizens and develop the

countrys productive capacity.

The difficultly for Venezuela is

that business-people are using

the dollars that are allocated to

them for the purchase of vital

imports to engage in specula-tive activities on the black mar-

ket, and to swell their foreign

bank accounts. And of course,

this means that essential goods

are not imported.

At the beginning of the year,

the government responded

to misuse of the foreign ex-

change which it provides by

partially reducing the levels of

dollars it makes available, but

this has had the effect of exac-

erbating shortages and driving

up the black market value of the

dollar. Prices have also shot up

in the last months because Ven-

ezuelan businesses have made

use of their oligopolistic controlover distribution networks to

massively increase prices,as

part of a campaign to reduce

the governments popularity

in the run-up to the municipal

elections in December.

In response to the problem of

price increases, shortages, and

the dollar black market, Ma-

duro has now introduced a new

strict system of price controls.

The new measures place a 30

percent limit on mark-up levels.

Nevertheless, the proble

not be resolved while th

ernment relies on the

sector to import and dis

consumption goods, an

private sector is commi

a political conflict with t

ernment despite their s

profit margins. Bringin

tion under control will r

complementing price cwith measures to shri

black market (i.e. an ov

of the way the exchange

managed to make it mo

ible along the lines of t

rales governments appr

Bolivia). Such measures

reduce speculation and

flight, and thus push t

vate sector into using do

make necessary import

UPCOMING MUNICIPAL

ELECTIONS

Only five thousand

participated in the

march against the gover

called by the opposition

Henrique Capriles in C

last Saturday, the fir

since the presidential e

in April. It is not a goo

for the opposition that it

rently trying to portr

upcoming municipal ele

as a plebiscite on Ma

government. A poor sh

for Maduros supporters

be used by the opposi

claim that the gover

lacks legitimacy. Howev

opposition suffered a gr

feat in the state-governo

tions last December w

3 out of 23 governorshiaccording to a poll by H

laces, the government a

is likely to win the majo

municipalities once aga

same source shows a

Maduros popularity to

cent after the latest eco

measures.

The achievements of

livarian Revolution are

erable. Poverty was r

by more than 50 perc

the last decade and ther

been enormous improv

in access to health and

tion. The FAO (Food a

riculture Organization

United Nations) awardgovernment special r

tion this year for its s

in reducing hunger amo

countrys poor. Nevert

continued political s

will require bolstering s

among the middle class

this means streamlini

economy, something th

only be possible, if the g

ment is able to rein in th

ulative and rentier elem

the business elites.


8/8

Editor-in-Chief Graphic DesignPablo Valduciel L. - Aimara Aguilera - Au

INTERNATIONAL Friday, December 6, 2013|N186|Caracas|www.correodel

Opinion

T/ Eleazar Diaz R angel

In the context of nationwide mu-

nicipal elections to be held this

weekend, renowned editor and

journalist Eleazar Diaz Rangel

suggests that the real winner of

Sundays vote will be his coun-

trys burgeoning democracy. In

this piece, the Director of Ven-

ezuelan daily Ultimas Noticias

discusses growing confidence

in the electoral system as well

as the shrinking likelihood that

extremists might successfully

disrupt both the voting process

and its results. Though he is of-

ten cautious in supporting either

side of the political debate, he also

expresses his open support for so-

cialist candidate Ernesto Villegas

in the race for the Metropolitan

District of Caracas.

TRANQUILITY: BY DIAZ RANGEL

The municipal elections set

for this Sunday, December 8th,

are likely to result in greater

peace and tranquility for Vene-

zuela and its people. In part, the

holidays are right around the

corner, with people cashing in

year-end bonuses and thanks

to recent measures taken by

the national government find-

ing more reasonable prices atthe cash register. More impor-

tantly, however, voters in each

of the over 300 municipalities up

for grabs have numerous local

reasons to conduct themselves

in a responsible manner. At the

same time, those who are con-

vinced that they cannot trust

the countrys electoral system

are likely to abstain from par-

ticipating at all.

In a survey carried out by Ulti-

mas Noticias, 2,454 readers were

asked what they expected of the

2013 municipal elections. Half of

the respondents affirmed that

political stability would result,

while an additional set of read-ers said polarization would also

be reduced.

THE QUESTION

What do you expect will oc-

cur after the December 8th

election? Of the 2,454 read-

ers surveyed, 1,222 (49%) an-

swered that they expect more

political stability while only

640 (26%) responded that they

anticipate more uncertainty.

Another 386 respondents (15%)

said they were indifferent to

the results, while 204 (8%) af-

Venezuela: The municipal elections

firmed that polarization will

be reduced.

Simply put, some 57% of vot-

ers (49 + 8) are optimistic. These

people dont believe that the op-

position will occupy mayors of-

fices as has been threatened by

some and they dont believe it

will be necessary to use the state

security mechanisms created to

maintain the peace. These vot-

ers, a majority, are convinced

that the elections will take place

in all normality. In addition,

they are convinced that once the

results are announced, the coun-

trys major political forces will

accept the outcomes. Though

some are expected to accept re-

luctantly, very few are expected

to subvert the established order,

reject the results, and or cause

disturbances. In cases wheresuch illegal conduct does take

place, police and military forces

are expected to react immedi-

ately, reestablishing order.

If we add the 15% of respon-

dents who expressed indiffer-

ence people who are likely to

abstain from participating be-

fore, during, or after the vote

the aforementioned optimists

(57%) are part of 72% of voters

who arent anti-anything. This

figure stands in stark contrast

to the 26% of people who said

they expect greater uncertain-

ty, which does not necessarily

mean they expect violence. In

conclusion, the vast majority of

Venezuelans are inclined to be-

lieve in, contribute to, and await

a peaceful post-election climate.

Naturally, a radical minority

exists and has always existed.

They seek shortcuts, and as

most Venezuelans spend the

week preparing for Sunday the

8th peacefully, these extremists

may very well attempt desperate

acts to disrupt the elections.

THE SPOTLIGHTOf the hundreds of munici-

palities with mayoral elections

this Sunday, two stand out in

the national spotlight: the Met-

ropolitan District of Caracas

(the nations capital, with some

3.5 million inhabitants living in

5 separate municipalities) and

Maracaibo (capital of the oil-

rich state of Zulia). In both these

cases, the opposition looks to

reelect mayors with very little

to show of their time spent in of-

fice. Meanwhile, the candidates

of the ruling United Social-

ist Party of Venezue

are new to the scen

fresh perspective, and

greater willingness t

get things done. The

such, shouldnt surpone. While the recent

in prices may encour

to choose PSUV cand

unresolved shortage

consumer goods may

them to vote the other

SURPRISED

With respect to two

nicipal elections, one

of Meridas Libertado

pality and the other i

Sucre Municipality, i

ing to see the simi

candidates priorities

cases, the opponents

seem to coincide on t

address three main

pretty much in the sa

garbage, insecurity,

vendors. In Meridas L

as in Caracas Sucre,

mayors have all but a

their post, with garba

the streets, insecurit

wild, and street vend

ing around with cit

sion. In the former, t

tion is running a new

who promises to do b

his departing ally. In

right-wing Mayor Car

promises to do more

to resolve peoples

What has he done in fi

RECOMMENDATIONS

Though I dont usu

recommendations in

idential elections,

Id like to make an

For those readers w

in what I write, and

yet to decide how t

the race for the Me

District of Caracas,

name to share. I do

him because he is a

colleague. No, I nam

cause I sincerely bel

the best choice for t

tant task. His name

Villegas, he is younenterprising, and h

support of both the

government and the

tration of Caracas m

lated municipality, L

He is the only candi

ble of managing the

needs of Caracas fiv

pal administration

tador, Sucre, Chaca

and El Hatillo) and

form for the overall M

tan District will sub

improve Greater Car

going to vote for him

The municipal elections

set for Sunday, December

8th, are likely to result

in greater peace and

tranquility for Venezuela

and its people. The

holidays are right around

the corner, with people

cashing in year-end

bonuses and thanks torecent measures taken by

the government finding

more reasonable prices at

the cash register.

Documents

Venezuela Economy