Venezuela The untold consequences of Chavez s revolution

Venezuela The untold consequences of Chavez's revolution

General information Size: 916. 445 km 2 Population: 33, 2 million Capital: Caracas (aprox. 6 million) GDP (nominal): $205. 787 billion Currency: Bolívar fuerte (Bs. F) Largest proven oil reserves in the world President: Nicolás Maduro

A beautiful tourist destination

A beautiful tourist destination

The political rise of Hugo Chávez Career military officer 1980’s: founded Revolutionary Bolivarian Movement-200 (MBR-200) 1992: MBR-200 attempt of coup d’état, Chávez imprisoned 1994: Chávez pardoned by Venezuela’s new president Rafael Caldera 1998: first election victory 1999 -2013: President of Venezuela 2002: attempt of coup to overthrow him. 2009: referendum approves indefinite re-election Famous for social, health and education reforms (Misiones) and anti-imperialist rethoric 2012: promotes Maduro to defend and continue the achievements of Bolivarian Revolution

Nationalization Article 115 of Venezuelan constitution allows nationalization: “Only for reasons of public benefit or social interest by final judgment, with timely payment of fair compensation, the expropriation of any kind of property may be declared. ” Taking advantage of the legal framework: 2000 – 2013 1440 companies and private properties nationalized (source Conindustria), 497 of those in 2012 Biggest by sector: telecomunications (Cantv), energy (Seneca, Electricity of Caracas, PDVSA), construction (Cemex), banking (Banco Venezuela), tourism (Hilton Hotels), metalurgy (Sidetur, Cidor, Matesi), logistics (Aeropostal), agroindustry (Lácteos los Andes, Cargill, Monaca, Agroisleña, Industrias Diana)

Official exchange rates Foreign currency control established in 2003 (Cadivi), now there are 3 Cencoex (ex Cadivi) exchange $1 = 6. 3 Bs. F fixed by law for companies in food and health sector, primal resources Sicad exchange $1 = 13. 5 Bs. F (2015) organized as an auction for other companies. For civilians only when traveling abroad and only twice per year (max. $3000 a year) Simadi exchange $1 = 199 Bs. F (2015) Controled by market (supply/demand). Only for people or companies transferring money between bank accounts through designated banks and exchange offices (max. $300 a day) Parallel exchange rate (unofficial): $1 = 665 Bs. F (06. 10. 2015, calculated using Columbian peso vs. Bs. F exchange rate)

Inflation 2014: 68. 5% (source: Instituto Nacional de Estadistica www. ine. gov. ve) 2015: - Government stopped providing official data. - IMF estimate >100% - private foreign economists estimates (Barclays, JP Morgan, Bank of America …) 100 -200% - Fedeagro report (based on anonymus source in Banco Central de. Venezuela): august 2015 – 150. 4%

8000. 00 Minimum salary Bsf 7000. 00 6000. 00 5000. 00 4000. 00 3000. 00 2000. 00 1000. 00 2008 2009 2010 2011 2012 Source: Wikipedia, original sources stated there 2013 2014 2015

Recent prices current min. salary 7422 Bs. F full grocery (2009) = 1 soft drink (2015)

Recent prices current min. salary 7422 Bs. F 360 g of butter = 8% of min. salary 525 g of lentiles = 12% of min. salary

Recent prices current min. salary 7422 1 L of milk = 2% of min. salary Bs. F 1 kg of tuna = 80% of min. salary

Recent prices current min. salary 7422 Bs. F Basic basket (august 2015): 78, 611. 65 Bs. F = 10. 6 min. salaries

Shortage of products Even if you have money, there are queues for supermarkets, that last hours. Line to buy groceries: https: //www. youtube. com/watch? v=v. MG 3 Zh 3 ajl. U

Shortage of products Even if you get inside, the shelves are very empty and guarded by National Guard.

Shortage of products You are allowed to buy products with low regulated prices (by law) only once per week - they scan your fingerprint to keep track on a national scale.

Shortage of products Even if there are products you can buy only a limited amount. It is not allowed to take photos or record the situation in the supermarket. Arrival of food 2013: https: //www. youtube. com/watch? v=tdr 9 XNxd 2 d. E Arrival of food 2015: https: //www. youtube. com/watch? v=OM 15 Zg. RNe 4 k

Health system crisis Survey conducted in 130 public hospitals in 19 states in March 2015 (source: Médicos por la Salud): 44% of operation rooms are not functioning 94% of laboratories have broken equipment or are missing materials 60% of medicines and basic materials which is normaly in stock has been used up and majority of those items also cannot be bought in pharmacies Critical treatments: cancer, dialisis, diabetes, HIV, heart diseases

Health system crisis

Criminality – murder rates 30000. 00 Crime related murders 25000. 00 20000. 00 15000. 00 10000. 00 5000. 00 1998 2000 2002 2004 2006 2008 2010 2012 2014 Source: Observatorio Venezolano de Violencia Murders per 100, 000 inhabitants: Venezuela (2014, official) = 62 Venezuela (2014, NGO) = 82 1 murder every 21 minutes 24 governmental plans to tackle violence

Protests of 2014 9, 286 protests (source: Observatorio Venezolano de Violencia ) Majority February – June Amnesty International and Human Rights Watch reports: - armed civilian groups (colectivos) worked alongside governmental forces - abuse and torture of detained protesters - threaths to journalists and widespread censorship - 4000 people detained 12. February Residence area Barquisimento https: //www. youtube. com/watch? v=w. B 8 bse 28 ACo https: //www. youtube. com/watch? v=e 5 Jp. Jvr. MEW 8 https: //www. youtube. com/watch? v=jk. Zc_Y 2 FO 8 w

The case of HSBC leaks – march 2015 (The International Consortium of Investigative Journalists ) Alejandro Andrade holds a secret bank account with $11. 2 billion Alejandro Andrade: Chávez’s ex-bodyguard 2007 - 2010 national treasurer 2008 - 2010 president of Economic and Social Development Bank of Venezuela (Bandes) Corruption Perception Index rank (source: Transparency International): 161 out of 173

“economical war” official explanation Paramilitary financed by extreme right (fascist) groups Capitalist speculants holding back products on purpose Bourgeois defending their positions in the society International right-wing groups trying to destabilize the peace Imperial forces trying to get their hands on Venezuelas resources Oligarchy strives to end the independance of the country (which is the Bolivarian Revolution) Media which criticizes is manipulating information and wants to generate fear Speech of Maduro: https: //www. youtube. com/watch? v=Y 9 s. W 5 HZ_TZ 8

Summary The start of Bolívarian Revolution by Hugo Chávez The state takes control over key sectors of economy The collapse of the financial system - high inflation - shortage of products Official explanation is a conspiracy theory Widespread protests, mainly because of the ever increasing crime and low quality of life in this beautiful touristic destination rich with resources