Follow Us:
Tuesday, August 16, 2022

Venezuela’s ‘economic war’

Managers arrested,troops sent into shops as President Nicolas Maduro’s government cracks down on ‘bourgeois parasites’ to check prices. But few are convinced it’s more than dangerous populism

Written by Reuters |
November 12, 2013 1:29:48 am

President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an “economic war” in Venezuela between the socialist state and unscrupulous businessmen.

In a major pre-Christmas campaign reminiscent of the late President Hugo Chavez’s dramatic style,Maduro sent soldiers to “occupy” one chain of electronics stores and inspectors into scores of others to check for price-gouging.Thousands of Venezuelans have been flocking to electronics stores,hoping to take advantage of the new “fair prices” the government is imposing,sometimes half the previous cost.

However,scenes of looting on Saturday at a store belonging to the occupied electronics chain,Daka,have left many Venezuelans ashamed and fueled opposition claims that Maduro is stirring chaos rather than defending the poor.

Authorities announced that five managers,from the local Daka,JVG and Krash companies,would be prosecuted on charges of unjustified price increases after importing products with dollars obtained at the official exchange rate of 6.3 bolivars. Officials displayed for cameras televisions,washing-machines and air-conditioning units whose prices they say have been jacked up 1,000 per cent or more by get-rich-quick businessmen.

Subscriber Only Stories
The rise of the worker productivity scorePremium
Delhi Confidential: Tiranga selfies campaign a big hit on Independence DayPremium
Bihar berozgari refrain makes way into CM’s job promisePremium
Collegium led by CJI Ramana cleared over 250 for HCs; vacancies now lowes...Premium

Five people accused of looting Daka’s store in the central city of Valencia have also been arrested,the Attorney General’s office said in a statement.

Many shop owners justify this year’s spiralling prices — annual inflation has hit 54 per cent — saying they are forced to buy greenbacks for imports on an illegal black market at nearly 10 times the official rate.

Some Twitter users circulated more images on Sunday of crowds and jostling outside some shops around Venezuela. But there appeared to be no more outright looting as in Valencia,where dozens of people were caught on camera running out of the Daka outlet with flat-screen TVs and boxes.


In a speech to the nation late on Sunday,Maduro promised there would be no let-up in what he called an ‘economic offensive’against Venezuela’s “bourgeois parasites”. Maduro said he would use decree powers that Congress is expected to grant him this week to set legal limits on businesses’ profit-margins.

“Zero tolerance with speculators,” he thundered,flanked by most of his Cabinet and quoting biblical,Koranic and Taoist exhortations against usury and materialism. Food,textile,footwear,hardware,toy and vehicle businesses would be targeted this week to check for price-gouging,Maduro said in the latest of his lengthy daily speeches,this one winding up just before midnight.

Seven months after Maduro narrowly beat opposition leader Henrique Capriles to replace his mentor Chavez,Venezuela is once again consumed by bitter politicking ahead of local municipal elections next month. At the heart of the campaign is who takes the blame for the economic problems: price rises that are hitting the poor majority despite the government’s oil-fuelled subsidies and welfare programmes,shortages of basic products from toilet paper to milk,and a convoluted currency market.


Former bus-driver Maduro,50,is calculating that his attacks on private businessmen will appeal to his working-class support base. But critics say the government has only itself to blame for the problems due to excessive state controls,persecution of the private sector,corruption,failed nationalisations and lack of foreign currency for importers.

Capriles,the governor of Miranda state,and other opposition leaders are urging Venezuelans to punish Maduro’s mayoral candidates at the December 8 nationwide vote.They hope that may be a prelude to his exit from power. “It’s clearer and clearer every day that Maduro is a failed puppet of the Cuban government,” Capriles fumed on Sunday. “Every time he opens his mouth,he scares away the investments that create employment and he worsens the crisis.”

While plenty of economists believe Venezuela is in a mess,with foreign exchange reforms urgently overdue,they also point out that the South American nation has the world’s largest oil reserves. An increasing number of Venezuelans of all political persuasions are fed up with the continued polarisation of their nation after 14 years of aggressive confrontations under Chavez. “I’m past caring if we have a socialist,capitalist or Martian in power. He can be a bus-driver or a bourgeois. I just want competence and calm,” said Andreina Gonzalez,a 41-year-old housewife,while leaving a Roman Catholic church in Caracas. “This is one of the most beautiful and resource-rich countries on earth. Why are we all messing it up?”

Illustrating that disenchantment,ratings for both Maduro and Capriles have fallen since the April poll,when just 1.5 percentage points or about 210,000 votes,separated them. Among the raft of new government measures announced in the last few days,Venezuela’s telecoms regulator Conatel said it would require eight local internet providers to block websites publishing black market currency prices.

📣 Join our Telegram channel (The Indian Express) for the latest news and updates

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
First published on: 12-11-2013 at 01:29:48 am

Featured Stories