By Z.C. Dutka- Various- venezuelanalysis.com, Aug 26th 2014
As international media plays its favorite old game of lambasting the Venezuelan government, long-time observers of the Bolivarian process may be wondering how much truth lies in the prime-time reports depicting empty shelves, long lines and charts showing catastrophic inflation. How precarious is Venezuela’s current economy and, more importantly, how much are the effects of this felt by the Venezuelan people?
Yesterday Venezuelan Air and Maritime Transport Minister, Herbet Garcia Plaza, announced the government had reached an agreement with representatives of leading international airlines to regulate the cost of air travel to and from the country.
It took a lot of prodding but I finally got the UK Guardian to correct an error in an article about Venezuela by Virginia Lopez. She had written that anti-government protesters were venting their rage at, among other things, “hyperinflation”.
Venezuela's central bank has reported a slowdown in inflation, while vice-president of the economy Rafael Ramirez has claimed the country's latest currency exchange system has already decreased the value of the dollar on the black market – before it's even operational.
A third currency exchange system has been introduced in Venezuela in efforts to stabilise the value of the bolivar, called Sicad II, which will facilitate daily currency auctions at prices determined by “supply and demand”, according to Vice President for the Economic Area Rafael Ramirez.
By Oliver Levingston – Links International Journal of Socialist Renewal , Feb 10th 2014
This paper adopts a Marxian class analysis to dispute the orthodox critique of high inflation in contemporary Venezuela. It draws a parallel between the 2002-03 oil industry lock-out and the capital strike in the Venezuelan foodstuffs industry today. In each case, capital has suspended production to bid up the price of basic goods and create widespread shortages.