Poverty in Venezuela fell from 70% in 1996 to 23% in 2009

[polly7]

Bolivarian Republic of Venezuela
Poverty in Venezuela fell from 70% in 1996 to 23% in 2009 ( 0) Print This ShareThisBy Special Report with Editorial Comment by Arturo Rosales
Venezuelan National Statistics Office
Friday, Mar 5, 2010

http://axisoflogic.com/artman/publish/Article_58770.shtml

Editorial comment by Arturo Rosales: The basic information outlined below is what readers abroad will rarely see in the corporate media. From the BBC to CNN, FOX and the floundering big city newspapers. If such media ever did publish this information it would be an admission that Chávez’ economic policies are working for the vast majority of the almost now 29 million Venezuelans. The corporate media will concentrate on GDP declines or growth(see second article below) as being the yardstick by which to measure “economic success”. President Chávez, however, says that GDP figures do not interest him. He is interested in the decline in poverty, unemployment and inequality and these are the measures which the Bolivarian Government strives to improve and are seen from 1996 through 2009. It’s a lesson for us all in Economics 101, involving the measures which the capitalists hate to see thriving.

[protocol rv]

1. Chavez' policies are not working now

Venezuela depends on oil exports for most of the revenue it earns. Prices changed from about $18 per barrel in the three years before Chavez was elected, to about $76 per barrel in the last three years. This represents a four-fold increase in oil prices.

http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WEPCVETIA&f=W

Are Chavez' policies working now? I don't think so. The huge increase in revenue has not been managed well, and we have the following economic consequences:

1. Inflation is about 30 % per year, and is increasing
2. Government external debt is increasing and the bond ratings are very low, which means the interest rate paid for borrowing is about 13-14 %.
3. There is less investment in infrastructure and oil development than required to maintain oil production - this leads to lower oil production
4. The same applies to natural gas - natural gas is not being developed according to plan
5. The lack of investment in the electric energy sector has led to power shortages, which in turn are hurting the economy
6. National food production was down in 2009, as was industrial production.
7. National GDP dropped 3.3 % in 2009, and is likely to drop a lot in the first quarter of 2010, we are in a combination of recession coupled to high inflation (stagflation), which is poison for the economy.

I can list other indicators, but to summarize, the economic management has been inefficient, and the huge windfall from much higher oil prices has been wasted. It's a lesson for all, the measures they have taken are now starting to have a really adverse effect on the economy... and they are not reacting properly to events, which means the economy will do even worse in the near term. I think it's possible to have a policy to reduce poverty and also have a healthy economy, but we are having a crisis of Socialism of the 21st Century, and this crisis isn't going to go away unless the government changes course and starts behaving a bit less erratically.

[Judi Lynn]

2. Beautiful. Thank you, polly7. Kick & rec.

:kick: :kick: :kick: :kick:

[EFerrari]

3. K&R