VIO News Blog

March 2, 2009

Venezuela has taken Unprecedented Steps to Boost Agricultural Productivity

On Thursday, the representative of the United Nations Food and Agriculture Organization in Venezuela, Francisco Arias Milla, said that “there is a group of countries, including Venezuela, that is better prepared to confront this crisis and whatever other crisis that may come,” adding that “this is due to the institutionalization of food security in the region.” The Chavez government has taken unprecedented steps to boost agricultural productivity in Venezuela, resulting in the country’s corn production increasing by 205%, rice by 94%, sugar by 13%, and milk by 11% over the last decade, according to figures provided by the Ministry of Agriculture.

President Chavez on Saturday rejected a U.S. State Department report that alleges that drug trafficking is soaring in Venezuela, the AP reports. The report, which covers global anti-drug efforts in 2008, was prepared during the final months of the Bush presidency, but was approved and presented by the Clinton State Department. “Is there really a new government in the United States, or is Bush still in charge?” Chavez told supporters in a poor Caracas neighborhood. Although not reflected in the State Department report, Venezuela’s anti-drug efforts have been widely documented. Venezuela is now the country with the fourth largest seizures of cocaine in the world, and in 2008, Venezuelan authorities destroyed over 220 illicit landing strips used by suspected drug runners.

The AFP reports that President Chavez stated he will be attending the April 17-19th Summit of the Americas to “defend the integration of the Caribbean and Latin America and demand that the empire Obama leads lift its blockade of Cuba, abide by UN resolutions and condemns Israel.” Chavez said he was unconcerned with whether he would meet Obama there or not.

Bloomberg reports that on Saturday, President Chavez ordered troops to occupy some rice processing facilities in the country due to their failure to market rice at the regulated price set by the government. The seizure of Arroz Primor rice mill, owned by Empresas Polar SA, will last three months according to El Nacional. Chavez said that rice processors have been buying crops from local farmers but have refused to sell white rice at the controlled price. Instead, they have added colors and artificial flavors to evade these controls. “They’ve refused 100 times to process the typical rice that Venezuelans eat,” Chavez said yesterday during his “Alo Presidente” program on state television. “I’m tired of it and if they don’t take me seriously I’ll expropriate the plants and turn them into social property from private property.”  Chavez also announced that if the companies processing rice followed through with their threat to paralyze production, they could end up facing nationalization.

An article in the Miami Herald, argues that Venezuela faces many problems which are only growing. The article discusses the current financial crisis and the impact of continued low oil prices on government expenditures and debt payments. While Venezuela’s Finance Minister Ali Rodriguez has acknowledged the difficult economic outlook, it should be noted that Venezuela has over $70 billion in reserves which can help buffer the economy in the event of a protracted global economic crisis.

Meanwhile, the Wall Street Journal argues that the collapse of a Venezuelan bank owned by R. Allen Stanford is causing concern that the economy could be threatened if other banks in the country also experience massive capital flight. However, there is no evidence that the failure of Stanford’s bank (that represents only a small proportion of total deposits in Venezuela) has generated uncertainty in the Venezuelan banking system as a whole, and the speculation is largely based on rumors. The Venezuelan government has guaranteed the deposits of Stanford Bank and says it will sell the bank.

Finally, on Friday, President Chavez said Venezuela should bring to justice those responsible in the brutal repression of the Caracazo riots that took place in major urban centers throughout the country 20 years ago. Chavez blamed the government in power at the time and said Venezuela “should make greater efforts to search for justice.” It is believed that anywhere from a few hundred to a few thousand people were killed in the riots. “I’m asking them to review the whole thing.” President Chavez also urged the U.S. to extradite former president Carlos Andres Perez in order for him to be brought to justice for his role in the repression.

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