Hugo Chavez faces a crisis of unprecedented power to his Government. Internal rivalries are proliferating, the world economy declines and Venezuelan influence in Latin America begins to wane. Public finances have been hit by the price of oil ($40), $20 lower than expected by the Government. Venezuela proposed a cut in production to raise prices before OPEC, but the idea was quickly dropped. To combat low oil prices, it will increase VAT and will triple its borrowing.
A 20% increase in wages was also planned, but these will be below 30% of inflation that the Venezuelan Government estimates. Finally, instead of adjusting public finance, Chavez has decided to postpone failures prosecutors until absolutely necessary to resolve them. His trips abroad have also alienated it from the international community. Thomas Sannon, the then Assistant Secretary of U.S. State for the region (2008), already stated that does not get a place in the Security Council of the UN, the difficulties through which pass some of their allies, and damage to its credibility which marked the publication of connections of Caracas with FARC guerrillas have weakened it. He even says that if Venezuela seeks to establish links with the United States, it is because it has lost influence in Latin America. Hugo Chavez creates fictitious situations and ignores real-world situations. That has always been part of his game.
But this time has encountered an opponent even more powerful than the Yankees of the North: the reality. And before her, honest, and perhaps painful measures you should take to protect the economy, its citizens and especially its mandate. Is this further evidence to overcome? Or is it the beginning of the end for a decimated Chavez? It is difficult to predict what yet, but it is worth to observe how Venezuela will act before their adversities. I am a student of international relations at the Instituto Tecnologico de Monterrey (ITESM) Campus Guadalajara. Amateur of the economy, finance and politics, seek to explain economic phenomena and political conjuncture. Related blogs big failures travel Final Fantasy XIII Blog day: an expected return Fingerprint incidence democratic: Ministry of public finances. Agreement incidence democratic: public debt increased artificial flowers in failures Flowers and plants: Magazine Spain: the arguments of the employers on wages and the Journalists who call Hugo Chavez a dictator should be El, says Sites to compare wages worldwide creative whims with las Fallas 2010 do dresses Civico Aldo properly: Colombia: Whatas on the Mind of the FARC?