Chávez's import substitution plans have failed

[Bacchus39]

http://english.eluniversal.com/2011/03/14/chavezs-import-substitution-plans-have-failed.shtml

Venezuelan imports almost increased fourfold between 2003 and 2010

Imports are the Venezuelan government's life jacket to supply the local market, amidst rickety domestic production capacity. Far from diminishing imports, the Executive Office appears willing to invest oil revenues to purchase foreign products. Last week, the government issued a resolution under which over the next 12 months state agencies and public entities will be exempted from the regular procedures set forth for imports.

Although the resolution is intended to ensure "timely supply of goods and merchandises," particularly in sectors such as food, health and housing, the measure encompasses "those areas that serve to improve people's welfare."

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"We cannot continue to rely on an external variable such as the price of oil," Chávez said in his inauguration day on February 2, 1999. So far, the Economic Cabinet has prepared at least five import substitution plans. However, the analysis of official data shows that imports have increased steadily.

[CJvR]

1. Say it isn't so!

Who could have guessed that a cleptocratic goverment might reduce peoples willingness to invest in a country?

[naaman fletcher]

2. turning it into haiti.

people here used to complain that Haiti was brought down by Washington's insistence on trade, so that Haiti wound up importing everything. Chavez is doing all this voluntarily.

[joshcryer]

3. I have been saying for awhile that Chavez is the wests' favorite trader in Latin America.

Just because he nationalized the oil doesn't mean squat. The US gets 20% of its oil from Venezuela. We love Venezuela. Our farmers are likely jumping at the opportunity to sell food to Venezuela (they wish they could sell it to Cuba, but we see where that is).

[joshcryer]

4. I don't understand why Chavez doesn't just decree the investment in to self-sufficiency tech.

You can grow an entire countries food with hydroponics, but it would cost a few billion to do it. Once it's done though you have an entire food industry using vertical gardens, and stuff. w/e maybe I'm expecting too much of Chavez. I know if I had decree powers in a country it'd be the first thing I did.