Chavista Socialism Has Destroyed 570,000 Businesses in Venezuela

By: Sabrina Martín - @SabrinaMartinR - Jan 11, 2017, 10:56 am
Chavista Socialism
All signs point to the need for a change to Venezuela’s economic model. (El venezolano)

EspañolOnly 230,000 companies remain of the 800,000 that opened in Venezuela during Hugo Chavez’s regime, meaning 570,000 have shut down.

Price controls, labor laws and threats are the main reasons that experts think caused Venezuela’s industrial collapse, and which left the business sector in ruins.

According to unofficial and preliminary figures from the Central Bank of Venezuela, the 2016 inflation was 830 percent and the Gross Domestic Product fell 23 percent.

There will be no end to Venezuela’s crisis as long as President Nicolás Maduro insists on state control of the economy, first Vice President of the National Council of Commerce and Services Alfonso Riera said.

“That only 230,000 operating companies currently exist out of the 800,000 registered in 1998 should be a call for reflection, and guarantee private companies the space to recover domestic production,” he said. “No matter how many times the wage is increased, inflation will continue to surpass the depth of Venezuelans’ pockets.”

He also said constant and unexpected salary increases implemented by the government don’t help either.


“By increasing costs to companies without creating conditions in which they are able to honor them, businesses are doomed to close and put workers into unemployment, he said.

with the closure of more than 500,000 companies over the last decade, the immigration of at least two million Venezuelans and the loss of one million jobs, it’s clear that changing the economic model is a necessity.

Source: El Carabobeño; La Patilla

Sabrina Martín Sabrina Martín

Sabrina Martín is a Venezuelan journalist, commentator, and editor based in Valencia with experience in corporate communication. Follow @SabrinaMartinR.

Mexican Governors Meet for Anti-Trump Contingency Plan

By: Elena Toledo - @NenaToledo - Jan 11, 2017, 10:36 am

EspañolThe National Conference of Governors in Mexico is working on a strategy to address measures that could be put in place by President-elect Donald Trump regarding trade. President of the Conference, Governor of Morelos, Graco Ramirez said Donald Trump's attitude is an opportunity for the Mexican government as well as for the Mexican people to extend their vision and look for opportunities in other parts of the world. Officials are reportedly planning a trip to China and Japan in hopes of bringing in new investment deals to protect the economy of various regions of the country should relations with the US falter. Read More: Argentina Reaches Deal to Tap into Massive Vaca Muerta Oil and Gas Read More: Argentina Still Won’t See Investment Boom in 2017, Expert Says "This is an opportunity," he said at an event called the Dialogue and Agreement to Strengthen the Morelos Economy. "While Donald Trump wants to close the border, we are going to open new borders and have the Chinese here with us." According to Ramírez, in the state of Morelos, officials are looking for ways to generate more jobs through an investment of around US $36 million, and by trying to attract entrepreneurs with fiscal stimulus deals. Next Monday, the governors of states along the northern border with the US will meet to create a plan to respond to Donald Trump's potential impact on the economy. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); }); As for the investments of national entrepreneurs, the governor said the National Finance for Agricultural and Rural Development can fund up to US $19 million worth of projects. They also have access to US $900,000 to carry out projects by young entrepreneurs focused on business incubation, among other plans. Ramirez said that in Morelos, there will be facilities for all entrepreneurs to use to carry out their projects, as well as subsidies and other economic, financial and fiscal benefits. Source: Milenio

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