According to economists in Venezuela, the South American nation has had the most equal income distribution in recovery of the recession. This should come as not surprise to anyone, the Bolivarian participatory democracy is predicated on equality for the poor and working class.
According to the Venezuela Central bank, the decrease in the Venezuelan GDP was 0.4% more this year than it was last year at the same time. Overall demand grew by 4.1% and overall supply grew by 1.5%.
The private sector that grew was communications (9.4%). Government services like education, health care, administration and defence (3.2%).
The food sector grew by 15.6%, especially in the production of bread, oil, and dairy products.
This small victory over the US led capitalist global economic recession has been partially due to the government’s System of Foreign Currency Transactions. It was created earlier this year to control inflation in the foreign currency bond market. They also make importing essentials easier by making a special exchange rate of 2.6 bolivars to the dollar instead of the usual 4.3.
What pleases me the most about this and proves us right is that the International Monetary Fund said that these and other measures by the Venezuela government would not work. They said that these measures would only allow the economy to grow at the most 1.4% in the next five years. It has already grown 5.2% in the second quarter of this year alone. They were absolutely wrong, the Bolivarian socialist path was right.
At the end of this year Venezuela’s accumulated inflation will be about 26%. Before his first election in 1998 it was as much as 60% to 100%.
According to the National Statistics Institute, Venezuela has had no increase in poverty during the recession. It has remained at 26% and an extreme poverty rate of 7%. Back in 1996 before his election the poverty rate was 70% and extreme was 39.5%.
This is the result of revolution; this is the victory of socialism. The world’s cheerleader of capitalism, the global superpower America has been devastated by the recession. Venezuela is living proof that the International Monetary Fund and the World Bank is full of garbage when they demand austerity measures.
In the truest sense… Socialism for the win!
One thought on “Venezuelan Crisis Policy Proves IMF Wrong”
I would like to congratulate the Venezuelan people for being able to achieve what the Capitalist world could never achieve: economic growth. It’s good to see that Chavez cares about his people.
If Capitalists or Westerners want to whine about “Oh, he’s an authoritarian leftist dictator,” I say let them. But they should at LEAST take a good look at the successes of the Bolivarian Revolution.
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