Skip to main content

10 years under Chavez (a mainstream economic report card)

While I am of the opinion the revolution in Venezuela must continue to move forward and end current property relations or it is doomed to fail; I'm certainly not against enacting progressive reforms along the way. The following report gives an idea of what has been accomplished so far. (Obviously, at least from my point of view, not everything is positive. Many of these programs show their limitations within the confines of a capitalist system.) It was done by the Center for Economic and Policy Research, a research institute with Nobel laureates Joe Stiglitz and Robert Solow, among others, on its advisory board.

http://www.cepr.net/documents/publications/venezuela-2009-02.pdf


Key points (as taken from the report):

* The current economic expansion began when the government got control over the national oil company in the first quarter of 2003. Since then, real (inflation-adjusted) GDP has nearly doubled, growing by 94.7 percent in 5.25 years, or 13.5 percent annually.

* Most of this growth has been in the non-oil sector of the economy, and the private sector has grown faster than the public sector.

* During the current economic expansion, the poverty rate has been cut by more than half, from 54 percent of households in the first half of 2003 to 26 percent at the end of 2008. Extreme poverty has fallen even more, by 72 percent. These poverty rates measure only cash income, and does not take into account increased access to health care or education.

* Over the entire decade, the percentage of households in poverty has been reduced by 39 percent, and extreme poverty by more than half.

* Inequality, as measured by the Gini index, has also fallen substantially. The index has fallen to 41 in 2008, from 48.1 in 2003 and 47 in 1999. This represents a large reduction in inequality.

* Real (inflation-adjusted) social spending per person more than tripled from 1998-2006.

* From 1998-2006, infant mortality has fallen by more than one third. The number of primary care physicians in the public sector increased 12-fold from 1999-2007, providing health care to millions of Venezuelans who previously did not have access.

* There have been substantial gains in education, especially higher education, where gross enrollment rates more than doubled from 1999/2000 to 2007/2008.

* The labor market also improved substantially over the last decade, with unemployment dropping from 11.3 percent to 7.8 percent. During the current expansion it has fallen by more than half. Other labor market indicators also show substantial gains.

* Over the past decade, the number of social security beneficiaries has more than
doubled.

* Over the decade, the government's total public debt has fallen from 30.7 to 14.3 percent of GDP. The foreign public debt has fallen even more, from 25.6 to 9.8 percent of GDP.

* Inflation is about where it was 10 years ago, ending the year at 31.4 percent. However it has been falling over the last half year (as measured by three-month averages) and is likely to continue declining this year in the face of strong deflationary pressures worldwide.

Comments

Popular posts from this blog

Hanging from a cliff

The day after Obama won his second term the markets took a bit of a tumble. The Dow dipped below 13,000 for the first time in a few months. US Congressional gridlock and the ongoing crisis in Europe are mostly to blame. What is more interesting, even if it's unsurprising, is the rush to bonds- US government bonds to be exact. Indeed, the yield on ten-year treasury notes dipped as low as it has since May. Even with our ratings downgrade (which no one now cares about in the slightest) and huge debt, it is cheaper than ever for us to borrow money. We are still the safest piggy bank out there. 

With the "fiscal cliff" of expiring tax cuts and automatic spending cuts looming, the spirit of compromise is being sprayed into the air like a bottle of Glade mountain berry. Democrats are fond of saying we need a "balanced" approach to reducing the deficit. Nominally this means some tax increases along with spending cuts. Republicans are now, apparently, open to some sort…

Austerity Ecology and The Collapse-Porn Addicts

I just finished Leigh Phillip’s left defense of humanity, “Austerity Ecology And The Collapse-Porn Addicts.” I think it’s important to frame it that way, as one of the main point he makes (and I fully agree) is that the earth doesn’t need us to survive. What we should focus on is our species. And not just surviving, but prospering, even conquering (I know people don’t like that word, but we ought not be scared of power). Phillips goes through every argument that I grew up with, from green austerity to that overpopulation nonsense, and convincingly does away with them. (I read Derrick Jensen was I was younger and had completely spaced out how truly terrible his arguments are. Embarrassingly bad. When I tried John Bellamy Foster I luckily found him too dense to get through. Just like George Ciccariello-Maher is a caricature of your “edgy” left wing professor, Foster is a caricature of what a Marxist is, tough to understand but you should know what he’s saying is super important!) 

Phill…

Hollywood Award Shows are Basically Advertisements for Trump

Given the “resistance” has grounded itself in moralism, it’s perfect Oprah Winfrey is the latest hope. She has trash politics, but gave a speech that sounded wonderful but would have only really mattered before #metoo had “startup” potential. Oprah Winfrey is a retired billionaire in charge of a media empire. She surely could have revealed that Weinstein was a predator, an open secret within Hollywood, without losing her livelihood. Instead she was giving him kisses on another one of those fancy Trump ads. Do we still wonder why calling Trump a hypocrite isn’t the devastating political argument many liberals imagine it to be?