In this interview, investigator and former Mining and Basic Industries Minister, Victor Alvarez, argues that the government must implement an economic stabilisation plan with social welfare before it is too late.
Acclaimed economist Mark Weisbrot outlines a string of measures to resolve Venezuela's economic crisis, including instituting direct subsidies to poor and working class families, eliminating exchange and price controls, and diversifying the economy.
The economic initiatives include changes to the country’s multi-tiered exchange rate, a rise in the domestic price of gasoline, the implementation of a new tax system, and placing more power over food distribution in the hands of organised communities.
The Venezuelan Central Bank (BCV) opened a lawsuit in a US federal court in Delaware on Friday against the Miami-based currency website Dollar Today, which it accuses of destabilizing the Venezuelan economy by publishing false exchange rate data.
By Steve Ellner - New Left Project , May 22nd 2015
Academic Steve Ellner explores the current political and economic juncture in Venezuela, linking its current difficulties to the tendency to pursue both pragmatic and populist strategies and the failure of the government in certain cases to take advantage of its triumphs over the opposition in order to launch a revolutionary offensive.
The Venezuelan Central Bank has announced the creation of a new currency exchange entity known as SIMADI, which will allow dollars to be sold and purchased legally according to “market rates”. The new mechanism will operate alongside SICAD I and SICAD II, which will continue to sell dollars at an exchange rate set by the government.
Venezuelan President Nicolas Maduro made a point of downplaying his foreign exchange reforms last Wednesday, and good thing he did. The reforms are bound to do little to curb Venezuela's economic problems, despite the fact that genuine changes to the exchange system are urgently needed.
Most people think that the Venezuelan economy is a basket case on the verge of collapse, and that has been a widespread belief for most of the last decade. But the South American nation has only run into serious trouble in the past two years.