Impakter
  • News
    • Culture
      • Art
      • Cinema
      • Entertainment
      • Literature
      • Music
      • Photography
    • Style
      • Architecture
      • Design
      • Fashion
      • Foodscape
      • Lifestyle
    • Society
      • Business
      • Foreign Affairs & Politics
      • Health
      • Tech
      • Science
      • Start-up
    • Impact
      • Environment
      • Eco Life
      • Circular Economy
      • COP26
      • CityLife
        • Copenhagen
        • San Francisco
        • Seattle
        • Sydney
      • Sustainability Series
        • SDGs Series
        • Shape Your Future
        • 2030: Dream or Reality
      • Philanthropy
        • United Nations
        • NGO & Charities
        • Essays
  • Business Hub
  • Sustainability Index
  • Partners
  • About
    • Team
    • Contributors
    • Global Leaders
    • Write for Impakter
      • Republishing Content
      • Permissions and Copyright
      • Privacy Policy
    • Contact
No Result
View All Result
  • News
    • Culture
      • Art
      • Cinema
      • Entertainment
      • Literature
      • Music
      • Photography
    • Style
      • Architecture
      • Design
      • Fashion
      • Foodscape
      • Lifestyle
    • Society
      • Business
      • Foreign Affairs & Politics
      • Health
      • Tech
      • Science
      • Start-up
    • Impact
      • Environment
      • Eco Life
      • Circular Economy
      • COP26
      • CityLife
        • Copenhagen
        • San Francisco
        • Seattle
        • Sydney
      • Sustainability Series
        • SDGs Series
        • Shape Your Future
        • 2030: Dream or Reality
      • Philanthropy
        • United Nations
        • NGO & Charities
        • Essays
  • Business Hub
  • Sustainability Index
  • Partners
  • About
    • Team
    • Contributors
    • Global Leaders
    • Write for Impakter
      • Republishing Content
      • Permissions and Copyright
      • Privacy Policy
    • Contact
No Result
View All Result
Impakter
No Result
View All Result
Home Editor's Pick

Maduro “tries” to heal Venezuela’s economy with new policies

byFrancesco Luise
October 17, 2019
in Editor's Pick
Share on FacebookShare on Twitter

Maduro “tries” to heal Venezuela’s economy: He announces Petro-backed funds and public spending, increases in minimum wage and more local autonomy. He tries but will he make any difference? Venezuela has been suffering  now for years and its economy has collapsed. The convergence of political, economic, and social issues in Venezuela have caused one of the biggest human rights crises in the history of Latin America.

Yet the Venezuelan government has just announced measures to recover the nation’s economic state, including a rise in wages, new resources for local states’ administrative divisions as well as social measures for healthcare, education and public transport.


Related topics:  Amazon Synod | Colombia’s Peace Process | The Example of Venezuela

During a broadcasted meeting, held on October 16, Venezuelan President Nicolas Maduro communicated that he is going to create several governmental funds denominated in the Petro cryptocurrency, hoping to use it for international transactions to offset the block imposed by the US.

https://www.youtube.com/watch?v=ZZ4AFlxeNTs&feature=youtu.be

“I am assigning 1 million bimonthly Petros as of November to all the states and the protectorates as an investment modality for their free use in the attention of their priorities. In concrete terms, this means that we are assigning between 1,354,000 and 3,249,600 euros to governors and protectorates”, Maduro said.

Maduro also declared the creation of various Petro funds for agricultural and industrial developments, as well as for telecommunication and infrastructure sectors. These funds will be mainly used for acquiring supplies and raw materials since traditional methods are unavailable due to the blockage of  Venezuela’s account.

Moreover, hundreds of millions of euros are allocated for the repair of electricity and water supply infrastructure, to boost land production for the upcoming sowing season, to support communal cooperatives and to the CLAP (Local Supply and Production Committees ) food program, which according to government sources benefits 6 million Venezuelan families and was heavily hit by US sanctions.

The resources will be managed directly by Venezuela’s 23 governorships and the Caracas municipality – in the four states governed by the opposition, the resources will be handled by a government-appointed “protector”. In addition – drawing on the world’s second-highest gold reserves – every state is being assigned a gold mine to be employed as a direct source of income for regional budgets without going through Caracas.

Maduro urged governors to improve production at the local level by striking alliances with popular economy or private sector actors and driving away any feeling of government hostility towards private businessmen. “We need to be on top of the regional economy, the engines of the economy exist at the regional level and we need to boost them,” he said.

The government also raised the minimum wage by 275% on Monday. The new minimum wage was set at 150,000 sovereign bolivars (BsS), around $7.5 at the current exchange rate (BsS is now selling at 0,00005 USD), up from 40,000 BsS. The measure follows the previous adjustment of May – when salaries were brought up from 18,000 BsS – and applies retroactively to the month of October. Public sector pay scales, pensions and food bonus have been increased by a similar factor.

Venezuelan wages have been severely eroded by inflation and hyperinflation amid the country’s crisis. In recent months, the government has opted to tackle the inflationary spiral by liberalizing exchange controls, reducing the number of bolivars in circulation and holding back on salary increases. Analysts credit these measures for the slowdown of inflation in 2019, though identify a side effect in a severe contraction of aggregate demand generated by the loss of purchasing power.

According to the finance committee of the opposition-controlled National Assembly, prices rose by 23.5% last month (the lowest month-on-month inflation since March), leading accumulated inflation in the past 12 months to 50,100%. The figure marks a steep decline from August, which saw inflation registered at 65,2%. Venezuela had previously suffered 16 consecutive months of hyperinflation (above the 50% threshold).

The announcement followed news of Venezuela developing a payment method based on Bitcoin. It is also speculated that the country holds an undisclosed amount of Bitcoin and Ethereum as international reserves as insurance against the impact of new US sanctions.

Whether all this can make any difference remains to be seen. But there is no doubt that Maduro has been playing the populist tune, bringing it to an extreme, including reliance on cryptocurrencies.


Editor’s Note: The opinions expressed here by Impakter.com columnists are their own, not those of Impakter.com
Tags: America LatinaMaduroPetroVenezuela
Previous Post

Shape Your Future with Katherine Richardson, Leader of the Sustainability Science Centre at the University of Copenhagen

Next Post

Plastic vs Aluminum: an all out war

Francesco Luise

Francesco Luise

Francesco is News Editor at Impakter. As an Economics graduate with a specialization in Energy Management, he has moved towards the international energy sector maintaining a focus on sustainability and inclusion, and is currently cooperating with the Global Solar Council. He has conducted research in the areas of socio-economic development, inequalities and energy poverty. He has been a field researcher concerning the microeconomic profiling of rural communities in Africa and Latin America.

Related Posts

The Unintentional Eco-friendly Moments of Netflix’s “Wednesday”
Eco Life

The Unintentional Eco-friendly Moments of Netflix’s “Wednesday”

December 27, 2022
The Problems With Christmas Trees
Eco Life

The Problems With Christmas Trees

December 14, 2022
zero waste Christmas decorations
Beauty

Zero-Waste Christmas Hacks

December 5, 2022
Next Post
Plastic vs Aluminum: an all out war

Plastic vs Aluminum: an all out war

Recent News

Climate Homicide

Could US Oil Companies Be Tried for ‘Climate Homicide’?

March 24, 2023
carbon capture

Promising New Carbon Capture Method: Climate Fix or False Hope?

March 24, 2023
LGBT bill

From ‘Don’t Say Gay’ to ‘Don’t Be Gay’: New LGBTQ Policies Threaten Human Rights

March 23, 2023
impakter-logo-light

Impakter informs you through the eco news site and empowers your sustainable lifestyle with its eco products marketplace.

Visit here IMPAKTER ECO for your eco products needs.

Registered Office Address

32 Lots Road, London
SW10 0QJ, United Kingdom


IMPAKTER Limited

Company number: 10806931

Impakter is a publication that is identified by the following International Standard Serial Number (ISSN) is the following 2515-9569 (Printed) and 2515-9577 (online – Website).


Office Hours - Monday to Friday

9.30am - 5.00pm CEST


Email

stories [at] impakter.com

About Us

  • Team
  • Contributors
  • Privacy Policy
  • Contact
  • Partners

By Audience

  • Lifestyle
  • Green Finance
  • Culture
  • Society
  • Style
  • Impact

Impakter Platforms

  • Media
  • Index

© 2023 IMPAKTER. All rights reserved.

No Result
View All Result
  • News
    • Culture
    • Style
    • Society
    • Impact
  • Business Hub
  • Sustainability Index
  • About
    • Team
    • Partners
    • Contact
    • Privacy Policy

© 2023 IMPAKTER. All rights reserved.

Impakter.com uses cookies to enhance your experience when visiting the website and to serve you with advertisements that might interest you. By continuing to use this site, you agree to our use of cookies. Visit our Privacy and Cookie Policy.