VIO News Blog

March 24, 2009

Venezuelan Economy Adjusts to Oil Prices

After President Chavez on Saturday announced a series of economic measures to adjust for lowered oil prices, the Associated Press reports that on Monday several analysts warned that the steps would not be enough to tackle the more serious economic problems of inflation and slowed growth. Reuters quotes a Morgan Stanley analyst as saying that, after several years of record economic growth, Venezuela’s economy will likely contract by 4% this year.  However, with over $70 billion in foreign currency reserves, Venezuela is sticking to its plan to invest $20 billion in non-oil sector development projects this year.

Meanwhile, Bloomberg reports that Venezuela’s Bolivar strengthened on Monday in the parallel market after Chavez ruled out a currency devaluation.

The AFP reports that President Chavez denied rumors of a rift between Raul Castro and himself, and described such talk as “a little campaign.” The rumor of such a rift was promoted by former Mexican foreign minister, Jorge Castaneda, who later signaled that he has absolutely no evidence to back up his claim.

Honduran president Manuel Zelaya has proposed that the nation’s charter be re-drafted in order to adapt to the “substantial and significant changes” that have occurred since the adoption of the current constitution in 1982. Zelaya wants voters to decide by June 24th whether a constitutional assembly should be convoked. The move would follow in the footsteps of other countries in the region such as Venezuela, Bolivia, and Ecuador.

In an op-ed distributed by the Jewish Telegraph Agency, Angelo Rivero Santos, the charge d’affaires of the Venezuelan embassy in Washington, responds to allegations of anti-Semitism directed at the government of Venezuela.   Rivero states that “Venezuela’s Jewish community is an integral and essential part of our country’s singularly diverse society.” Given President Chavez’s efforts to fight racism and discrimination,  accusations of anti-Semitism have been “especially painful for the government of Venezuela.”  But Rivero signals that these accusations have been made primarily by organizations based outside of Venezuela and that an organization representing Venezuelan Jews has rejected the claims and expressed disappointment at not having been consulted beforehand.

Finally in an interview by Fareed Zakaria, President Lula da Silva of Brazil was questioned about why his government does not speak out against how Hugo Chavez has “destroyed democracy in Venezuela.” Da Silva responded by stating that “…no one can say that there is no democracy in Venezuela. He (Chavez) has been through five, six elections. I’ve only had two.”  There have in fact been fourteen national elections in Venezuela since Chavez first came to power in 1998, all of which have been characterized as free and fair by independent electoral monitoring groups.

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