The Venezuelan chronic: the economic ties of Chávez’s legacy
Hunger strikes in Venezuela after the death of Hugo Chavez, Bolivian leader of South America Revolution. The country still remains dependent on the oil domestic production and the gasoline importation and surviving without the help of the IMF(International Monetary Funds).
The “radicalization of the revolution,” as it’s called the “Chavista Movement,” gained international prominence through an instrument of struggle against social injustice, caused by the economic elites lurking the citizens and waiting for the best time to put in action their enslavement.
Pragmatism in the international relations against the Venezuelan diplomacy brought greater bargaining power on the commercial partners. However, the economy shows no signs of improving social welfare as in the early years of his government and unpopular measures will be the economic safeguard in an attempt to rebuilt your international credibility.
The reduction of the poverty through social division of oil gains can be a Chavez’s legacy. To be forgotten if the country has problems of domestic food production. There was a time when these country are financed by the current account loss when continually having to import food because they don’t offer the necessary conditions for the agricultural sector to expand its production base.
Consequently, in times of lean of the Venezuelan economy, the natural thing is the consumption of imported food with a social welfare policy supporting the base of the pyramid consumer. Cruelly, the country may have their basic survival resources confiscated by international banks. The Mercosul remodeling will be the last chance of Venezuela to recover some of its lost credibility due to ratings made by the international rating agencies with big power in the international financial market.
Is it possible that a new free trade zone would be the recovery of a country battered by their poverty?
By: Tiago Silveira