January 16, 2021

The economic "recovery" of Maduro is two months without resolving the crisis

The economic "recovery" of Maduro is two months without resolving the crisis



The "economic miracle" promised by the Venezuelan president, Nicolás Maduro, on August 20 continues without materializing and the oil country continues today plunged into a deep crisis with some indicators worsened.

After weeks of anticipation, Chavismo launched two months ago its so-called "economic recovery and prosperity plan", Maduro's largest package of economic adjustments since he took office in 2013 and with which he seeks to solve several problems, including shortage and hyperinflation.

Today the shortage of food persists, some almost impossible to obtain for millions of Venezuelans, and prices rise slightly more than 4% every day, according to estimates of the Parliament, of opposition majority, which has rejected the measures of the Executive.

The government's first decision was to convert the local currency, the bolívar, to which it removed five zeros to simplify the transactions and deal with the inflation that, according to estimations of the International Monetary Fund, will close the year at 1,350,000% and It projects 10,000,000 by 2019.

This measure was accompanied by the putting into circulation of a new family of notes with denominations more adjusted to the high cost of living, and aimed at satisfying the demand for physical money, a good that came to be commercialized in the oil-price country. far superior to those written in them.

The most visible success of the Government lies in having simplified the commercial operations with the monetary reconversion and in having diminished the queues in the banking entities that today offer money almost without reserves to the citizens, every poorer days.

Of the rest, about half of the working class that earns the minimum wage continues to live in misery because they receive less than $ 1.25 a day, the threshold established by the United Nations to make these measurements.

Although the economic "paquetazo" started with a salary increase of 3,500%, in practice the basic salary of a whole month is enough to buy two kilos of detergent or about five chickens.

Faced with this, human rights organizations and political parties have warned of the increase in malnutrition that can not be resolved in decaying hospitals, whose workers have been protesting for more than 100 days to denounce the "health emergency".

On the other hand, the Bolivarian revolution issued new measures to maintain controls on the prices of products, currency traffic, banking operations and other edges of the financial field that, according to experts, have worsened the situation.

Maduro has said that he will apply a "hard hand" to those who do not abide by these decisions and in that sense the Justice has prosecuted a score of business managers for alleged economic crimes.

Meanwhile, the Central Bank continues to lose the battle against the parallel and illegal dollar, which is priced at a much higher price than that established in the incipient official auction market that satisfies few demands, usually from businessmen.

Although the so-called recovery plan began with a devaluation of 95.8%, only in the official market the bolivar has depreciated 1 percentage point each month, on average, while in the parallel market, which governs almost all commercial activities , the picture is much more negative.

All in all, Chavismo remains committed to its plan as a "magic formula" that received, according to the same executive, the approval and financial support of China, a country that Maduro said yesterday will send 1 million barrels of oil " whatever".

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