Venezuela’s Problem is Capitalism

No matter what people are saying, the economic crisis in Venezuela is clearly rooted in capitalism, not socialism. Anyone who wants to say that this crisis is strictly a result of the social-democratic policies of the Venezuelan government is manipulating the facts.

The most obvious fact dispelling this is the other left social-democratic economy: Bolivia. At the moment, Bolivia’s economy is thriving, due to a boom in the demand for minerals.

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Evo’s little secret

As the price of minerals has shot up, the price of oil has plummeted. Oil, of course, has been the primary mover in making the social programs in Venezuela possible. The collapse of oil prices was not because of Venezuela’s social system, but rather because of the world market and geopolitics.

The policy crystallizes when we take a look at the words of Ali al-Naimi, who was the Minister for Petroleum and Mineral Resources in Saudi Arabia: “As a policy for Opec – and I convinced Opec of this, even Mr al-Badri [Opec secretary general] is now convinced – it is not in the interest of Opec producers to cut their production, whatever the price is.”

If you refer to the above links (both of which are BBC, hardly a leftist news outlet), we can see that the levels of production maintained by OPEC are entirely intentional. Oil prices are artificial, as OPEC countries over-produce. The rationale for such a move is, according to the BBC, the Gulf states’ attempt to keep their market-share.

However, that article also clearly demonstrates who the losers are when over-production happens: Russia, Iran, and Venezuela are at the top of the list.

Where does that leave us? Is it reasonable to assume that the drop in oil prices is entirely manufactured in order to not only maintain Gulf states’ market-share but also to destabilize countries that don’t nicely fit into U.S. global hegemony?

We shouldn’t take the right-wing baiting that Hugo Chavez’s mistake was nationalizing industries – Chavez’s mistake was rather assuming that the global powers weren’t intent on destroying his gains.

Chavez’s mistake was that he didn’t completely do away with capitalism in Venezuela.

Since the beginning of the social programs instituted by the Bolivarian government under Chavez, the West sought to undermine ever step of progress – even to the point of attempting to overthrow him in 2002.

Remember that throughout all of this:

The U.$. doesn’t hate Venezuela for the bad things it has done, but for the good things it has done.

Obama Legacy in Latin America

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