Economy_of_Venezuela

From Wikipedia, the free encyclopedia Economy of Venezuela Economy of Venezuela Economy of Venezuela Currency Fiscal year Trade organisations Statistics GDP GDP growth GDP per capita GDP by sector $334.600 billion (2007 est.) 4.9% (2008 est.) $12,800 (2007 est.) agriculture: 4%, industry: 41.9%, services: 54.1% (2005 est.) 21.9% (Central bank report for January 2008)[1] 12.3% (2007 est.) [2] Bolívar fuerte (VEF) calendar WTO, OPEC, Unasur, MERCOSUR , ALBA Public finances Public Debt Revenues Expenses $45.44 billion (31 December 2007 est.) $39.63 billion $41.27 billion; including capital expenditures of $2.6 billion (2005 est.) $74 million (2000) Main import partners equipment, construction material US 30.6%, Colombia 10.2%, Brazil 10.1%, Mexico 5.9%, China 4.9%, Panama 4.8% (2006) Economic aid Inflation (CPI) Population below poverty line Labour force Labour force by occupation Unemployment Main industries Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars 12.31 million (2005 est.) agriculture: 13%, industry: 23%, services: 64% (1997 est.) 6.2% (Dec. 2007 est.) petroleum, construction materials, food processing, textiles and apparrel; toys, iron ore mining, steel, aluminum; motor vehicle assembly, aircraft, real state, tourism and ecotourism External Exports Export goods $65.94 billion f.o.b. (2007 est.) petroleum, bauxite and aluminum, steel, chemicals, agricultural products, basic manufactures US 46.2%, Netherlands Antilles 13.5%, China 3.2% (2006) $44.38 billion f.o.b. (2007 est.) raw materials, machinery and equipment, transport Main export partners Imports Import goods The economy of Venezuela is based in large part on petroleum. The petroleum sector dominates the economy, accounting for roughly a third of GDP, around 80% of export earnings, and more than half of government operating revenues. Venezuela is the fifth biggest member of OPEC by production. From the 1950s to the early 1980s the Venezuelan economy was the strongest in South America. The continuous growth during that period attracted many immigrants. During the collapse of oil prices during the 1980s the economy contracted. With the recent rise in oil prices and rising government expenditures, Venezuela’s economy grew by 9% in 2007. However, there is still considerable income inequality. Although often portrayed as a command economy, government spending as a percentage of GDP in Venezuela in 2007 was 30%, smaller than other capitalist countries such as France (49%) and Sweden (52%) [3]. According to official sources, the percentage of people below the national poverty line has decreased significantly during the presidency of Hugo Chavez, from 48.1% in 2002 to 30.2% in 2006.[2] History 1 From Wikipedia, the free encyclopedia Economy of Venezuela Venezuelans. The government sought international assistance to finance reconstruction after massive flooding and landslides in December 1999 caused an estimated US$15 billion to $20 billion in damage. Since then capital flight has driven the bolívar down by more than 70%. From 2002 to 2003 there was a sharp drop in investment and a general recession. Total GDP decreased 18.5% in 2002 and 2003. This was the steepest decline in Venezuela’s history. The hardest hit sectors were construction (-55.9%), petroleum (-26.5%), commerce (-23.6%) and manufacturing (-22.5%). In 2002, the Venezuelan economy, as measured by Gross domestic product (GDP), contracted by 8.9%. The petroleum sector, which contracted by 12.6% in 2002, was adversely affected by a decrease in exports of petroleum products resulting from adherence to an OPEC quota established in 2002 and the virtual cessation of exports as a result of a national strike by forces intending to remove Chavez from power. The non-petroleum sector of the economy contracted by 6.5% in 2002. This situation was accompanied by a significant devaluation of the bolívar during 2002, which resulted in an accelerated inflation rate. The inflation rate, as measured by the CPI, was 31.2% in 2002 compared to 12.3% in 2001. The Macroeconomic Stabilization Fund (FIEM) decreased from US$2.59 billion in January 2003 to US$700 million in October, central bank-held international reserves actually increased from US$11.31 billion in January to US$19.67 billion in October 2003. Despite the slowdown in PDVSA output and resulting royalty payments to the central bank, reserves are currently 31.1% above their levels one year ago, as foreign exchange transactions remain suppressed. The economy recovered and grew by a remarkable 16.8% in 2004, led mostly by nonpetroleum sectors - since the oil industry directly provides only a small percentage of employment in the country. International reserves grew to US$27 billion. Polling firm Datanalysis noted that real income in the poorest sectors of society grew by 33% in 2004. On January 23, 2003, in an attempt to support the bolívar and bolster the government’s declining level of international reserves, as well as to mitigate the adverse impact from the oil industry work stoppage on the Economy 1922 - 1964 When oil was discovered at the Maracaibo strike in 1922, Venezuela’s dictator, Juan Vicente Gómez, allowed US oil companies to write Venezuela’s petroleum law (Daniel Yergin, The Prize: The Epic Quest for Oil, Money, and Power [Simon and Schuster, 1990], pp. 233-36; 432). But oil history was made in 1943 when Standard Oil of New Jersey accepted a new agreement in Venezuela based on the 50-50 principle, "a landmark event" (ibid., p. 435). Terms even more favorable to Venezuela were negotiated in 1945, after a coup brought to power a left-leaning government that included Juan Pablo Pérez Alfonso. In 1958 a new government again included Pérez Alfonso, who devised a plan for the international oil cartel that would become OPEC (ibid., pp. 510-13). In 1973 Venezuela voted to nationalize its oil industry outright, effective Jan. 1, 1976, with Petróleos de Venezuela (PDVSA) taking over and presiding over a number of holding companies; in subsequent years, Venezuela built a vast refining and marketing system in the US and Europe (ibid., p. 767). During Jimenez’ dictatorship from 1952 to 1958, Venezuela enjoyed remarkably high GDP growth, so that in the late 1950s Venezuela’s real GDP per capita almost reached West Germany’s. However, from 1958/1959 onward, Romulo Betancourt (president from 1959 to 1964) inherited an enormous internal and external debt caused by rampant public spending during the dictatorship. Nevertheless, he managed to balance Venezuela’s public budget and initiate a successful agrarian reform. 1999 - present At the end of 1999, Venezuelan officials stated that the economy contracted by 7.2%. A steep downturn in international petroleum prices in 1998 triggered the recession, and spurred the administration to abide by OPECled production cuts in an effort to raise world petroleum prices. Rising petroleum prices in 2000 took some pressure off the budget and currency. With the president’s economic cabinet attempting to reconcile with a wide range of views, the country’s economic reform program had largely stalled. The reforms were mainly in microeconomics such as the reduction or abolition of education, healthcare and nutrition fees to millions of 2 From Wikipedia, the free encyclopedia Economy of Venezuela exchange rate for purchase operations weakened by 11% to Bs. 2,150 = US $1.00. On the black market the bolívar fell 28% in 2007 to Bs. 4,750 per US$,[4] and declined to around VEF 5.5 (Bs 5500) per US$ in early 2009.[5] Economic policy of Hugo Chavez government (1999 - present) At the beginning of Chávez’s presidency, from 1999 to 2004, per-capita gross domestic product (GDP) dropped 1–2%,[6] but with the help of rising oil prices, the end of the oil strike, and strong consumption growth, recent economic activity under Chávez has been robust. GDP growth rates were 18% in 2004,[7] 9% in 2005,[8] and 9.6% in the first half of 2006, with the private sector growing at a 10.3% clip.[9] From 2004 to the first half of 2006, non-petroleum sectors of the economy showed growth rates greater than 10%.[10] Datos reports real income grew by 137% between 2003 and Q1 2006.[11] Official poverty figures dropped by 10%.[12][13] Some economists argue that this subsidized growth could stop if oil prices decline,[14] but the government argues its budget uses US$29 a barrel and 60 billion dollars in reserves as a cushion for a sudden drop.[15] Some social scientists and economists claim that the government’s reported poverty figures have not fallen in proportion to the country’s vast oil revenues in the last two years.[7] The president of Datos said that, although his surveys showed rising incomes because of subsidies and grants, the number of people in the worst living conditions has grown. "The poor of Venezuela are living much better lately and have increased their purchasing power... [but] without being able to improve their housing, education level, and social mobility," he said. "Rather than help [the poor] become stakeholders in the economic system, what [the government has] done is distribute as much oil wealth as possible in missions and social programs."[16] According to government figures, unemployment has dropped by 7.7% since the start of Chávez’s presidency.[17][18] It dropped to 10% in February 2006, from the 20% high in 2003 during a two-month strike and business lockout that shut down the country’s oil * Sources: WDI/World Bank. GDP and GDP per capita is in year 2000 VEB, adjusted for inflation. Unemployment data for 2005 is the CIA World Factbook estimate. 1 trillion = 1,000,000,000,000. The vertical scales do not start at 0 to make more details visible. Oil production figures from IEA in millions of barrels per day financial system, the Ministry of Finance and the central bank suspended foreign exchange trading. On February 6, 2003, the government created CADIVI, a currency control board charged with handling foreign exchange procedures. The new exchange control board pegged the US dollar exchange rate at Bs. 1,596 = U.S. $1.00 for purchase operations, and Bs. 1,600 = US $1.00 for sale operations, and established the compulsory purchase and sale of foreign currency through the central bank. In 2005, the 3 From Wikipedia, the free encyclopedia industry. According to the government, an unemployed person is a citizen above the age of 15 who has been seeking employment for more than one week.[19] But, according to The Boston Globe, critics say that the government defines "informal workers, such as street vendors, as employed, and exclud[es] adults who are studying in missions from unemployment numbers." Critics also point to figures released by the president of the Venezuelan National Statistics Institute, Elías Eljuri, which showed that poverty had risen by more than 10% under Chávez (to 53% in 2004). Chávez called for a new measure of poverty, a "social well-being index". Under this new definition, poverty registers at 40%.[16] Eljuri denies changing the statistic and claims it is entirely income excluding social programs.[20] The World Bank calculated a 10% drop in poverty.[21][22] While the Venezuelan Government enjoys a windfall of oil profits, the business environment is risky and discourages investment, according to El Universal. As measured by prices on local stock exchanges, investors are willing to pay on average 16.3 years worth of earnings to invest in Colombian companies, 15.9 in Chile, 11.1 in Mexico, and 10.7 in Brazil, but only 5.8 in Venezuela. The World Economic Forum ranked Venezuela as 82 out of 102 countries on a measure of how favorable investment is for institutions. In Venezuela, an investor needs an average of 119 days and must complete 14 different proceedings to organize a business, while the average in OECD countries is 30 days and six proceedings.[23] Chávez announced Venezuela’s withdrawal from the IMF and World Bank after paying back all his country’s debts to both institutions; he charged them with being an imperial tool that aims to exploit poor countries, news sources reported. But as of March 2008, Venezuela is still a member of both institutions.[24][25] In June 2007, the Bank for International Settlements forecast an economic growth of 7% and a 18.9% inflation rate for Venezuela.[26] In January 2008, Hugo Chávez stated that Latin American countries needed to begin their withdrawal of money from United States-based banks. His statement went on to say, "We should start to bring our reserves here," Chávez said. "Why does that money have to be in the north? You can’t put all your eggs in one basket." and "imperialism is Economy of Venezuela entering into a crisis that can affect all of us" and said Latin America "will save itself alone."[27] Consumer prices Price controls Since 2003, the Venezuelan government has set price controls on around 400 basic foods;[28] it is reported that these price controls have caused "sporadic food shortages"[29] due to the regulated prices not keeping pace with inflation so that producers are faced with either selling their goods at 30-60% above the regulated price, or with hoarding in hope of government action.[30][28] The measures have also caused problems with smuggling, with products being bought at regulated prices in Venezuela and smuggled across the border into Colombia, leading the Venezuelan government to strengthen border security in early 2008 with an additional 1200 troops.[31] Similarly, the price controls have, according to the government, led Venezuelan food producers to try to evade them, for example by focussing on non-regulated foods, or by cutting back production. As a result, in February 2009 Chavez ordered the military to temporarily seize control of all the rice processing plants in the country and force them to produce at full capacity, and with a high proportion of regulated foods.[32] The country’s largest food processor, Empresas Polar, said that the regulated price of (plain) rice was well below the cost of production, and as a result 90% of its rice output was flavoured rice not subject to price controls. It also said that its plant was operating at 50% capacity due to raw material shortages; the government however claimed to have found 2 months’ worth of raw rice in storage at the plant.[33] In March 2009, the BBC reported that Chavez had set minimum production quotas for 12 basic foods that were subject to price controls, including white rice, cooking oil, coffee, sugar, powdered milk, cheese, and tomato sauce. Business leaders and food producers claimed that the government was forcing them to produce this food at a loss.[34] Inflation According to the Banco Central de Venezuela, inflation dropped from 29.9% in 1998 to 14.4% in 2005.[8][35] During 2005, imported goods were cheaper than commodities made in Venezuela; variability in the 4 From Wikipedia, the free encyclopedia price of goods was linked to import performance and exchange stability.[8] In the second quarter of 2006, gross fixed investment was the highest ever recorded by the Banco Central de Venezuela since it started tracking the statistic in 1997.[9] However, the BBC reported on February 15, 2007 that Venezuela’s inflation rate rose to a two-year high in January, with consumer prices rising 18.4% in 12 months.[36] Public spending in Venezuela has reached unprecedented highs, as measured by local currency Central Bank debt, which could increase inflation.[37] In 2007, while Venezuela earned record proceeds from oil exports, consumers faced at times shortages of foodstuffs, since the companies refuse to sell at a loss, a consequence of the consumer prices set by the government which are lower than the production costs. The price for a liter of gas in Venezuela is 3 cents, the cheapest in the world. The East African nation of Eritrea is home to the most expensive, gas there costs $2.50 per liter. The government has responded by giving importers more dollars at the official exchange rate. Imports soared 43% in 2007 after tripling from 2004 to 2007. The account surplus fell almost in half to $8.8 billion even as near record high oil prices buoyed exports. The Annual inflation has risen to 16%, the highest in the Americas, as President Chavez tripled government spending from 2003 to 2007. The Venezuelan government announced on March 7, 2007 that the Venezuelan bolívar will be redenominated at a ratio of 1 to 1000 on January 1, 2008 and renamed the bolívar fuerte (ISO 4217 code: VEF), in an effort to facilitate the ease of transactioning and accounting, in addition to a 14% devaluation of the bolivar in the first quarter of 2008. The strong bolivar has an exchange rate of 2.15 per US$. It was predicted that the official rate will decline 13% by the end of 2008. [38] Economy of Venezuela in order to receive prices above those which it was allowed to obtain within the country.[40] In mid-2008 the Venezuelan government announced agreements to buy large majority stakes in two of the three largest cement-makers, which produce 50% of Venezuela’s cement, for a total of $819m.[41] It also took over the Venezuelan operations of Mexico’s Cemex, the largest Venezuelan producer; a deal on compensation was still to be reached in March 2009.[42] Chavez has nationalized Venezuela’s main telephone company (CANTV) and the electric utility for Caracas (Electricidad de Caracas). In 2008 he ordered the halting of the construction of a shopping mall, and said the land would be nationalized and turned into a hospital or university. [43] In 2008 the Venezuelan government also nationalized the leading steel company, Sidor.[44] Petroleum and other resources See also: Energy policy of Venezuela Venezuela is a major producer of oil products, which remains the keystone of the Venezuelan economy. Chávez has gained a reputation as a price hawk in OPEC, pushing for stringent enforcement of production quotas and higher target oil prices. At a June 2006 meeting, Venezuela was the only OPEC country calling for lowered production to drive oil prices higher. Chávez has attempted to broaden Venezuela’s customer base, striking joint exploration deals with other developing countries, including Argentina, Brazil, China and Russia. Record oil prices have meant more funding for social programs, but have left the economy increasingly dependent on both the Chávez government and the oil sector; the private sector’s role has correspondingly diminished. Chávez has redirected the focus of PDVSA by bringing it more closely under the direction of the Ministry of Energy and Petroleum. He has also attempted to repatriate more oil funds to Venezuela by raising royalty percentages on joint extraction contracts that are payable to Venezuela. Chávez has also explored the liquidation of some or all of the assets belonging to PDVSA’s US-based subsidiary, Citgo. Citgo, whose profitability made many Venezuelans skeptical, has been paying record dividends to the government of Nationalisations A January 3, 2007 article in the International Herald Tribune reported that Chavez’s price controls were causing shortages of materials used in the construction industry. [39] According to an April 4, 2008 article from CBS News, Chavez ordered the nationalization of the cement industry, in response to the fact that the industry was exporting its products 5 From Wikipedia, the free encyclopedia Venezuela.[45] Chávez said that "Venezuela had not received a penny from this enterprise for 20 years".[46] According to Finance minister Nelson Merentes, the Venezuelan 2006 budget would get more income from taxation than from the oil industry, unlike [47] A key non-oil related poverty reformerly. duction policy has been the application of the concept of the microcredit pioneered by Nobel peace prize laureate Muhammad Yunus of the Grameen Bank.[48] Economic prospects remain highly dependent on oil prices and the export of petroleum. A founding member of the Organization of Petroleum Exporting Countries (OPEC), Venezuela reasserted its leadership within the organization during its year as OPEC’s president, hosting the organization’s Second Leadership Conference in 40 years, as well as having its former Minister of Energy, Alvaro Silva Calderon, appointed as Secretary General. The collapse of oil prices in 1997-98 prompted the Rodriguez administration to expand OPEC-inspired production cuts in an effort to raise world oil prices. In 2002, this sector accounted for roughly a quarter of GDP, 73% of export earnings, and about half of central government’s operating revenues. Venezuela is the fourth-leading supplier of imported crude and refined petroleum products to the United States. The Government of Venezuela has opened up much of the hydrocarbon sector to foreign investment, promoting multi-billion dollar investment in heavy oil production, reactivation of old fields, and investment in several petrochemical joint ventures. Almost 60 foreign companies representing 14 different countries participate in one or more aspects of Venezuela’s oil sector. The Venezuelan national oil company Petroleos de Venezuela, S.A. (PDVSA) and foreign oil companies have signed 33 operating contracts for marginal fields in three bidding rounds. New legislation dealing with natural gas and petrochemicals is further opening the sector. A new domestic retail competition law, however, disappointed investors who had been promised market-determined prices. On November 13, 2001, under the enabling law authorized by the National Assembly, President Chávez enacted the new Hydrocarbons Law, which came into effect in January 2002. This law replaced the Hydrocarbons Law of 1943 and the Nationalization Law of 1975. Among other things, the new Economy of Venezuela law provided that all oil production and distribution activities were to be the domain of the Venezuelan state, with the exception of joint ventures targeting extra-heavy crude oil production. Under the new Hydrocarbons Law, private investors can own up to 49% of the capital stock in joint ventures involved in upstream activities. The new law also provides that private investors may own up to 100% of the capital stock in ventures concerning downstream activities, in addition to the 100% already allowed for private investors with respect to gas production ventures, as previously promulgated by the National Assembly. During the December 2002-February 2003 lock-out where managers and skilled highlypaid technicians of PDVSA locked out PDVSA and sabotaged the industry, petroleum production and refining by PDVSA almost ceased. This oil sabotage was politically motivated; at the same time, many business owners across Venezuela closed down their stores in order to create instabilitiy within Venezuela. Despite the lock-out, these activities eventually were substantially restarted when the rank-and-file oil workers restarted PDVSA without the managers. Out of a total of 45,000 PDVSA management and workers, 19,000 were subsequently dismissed; many of which are managers and highly paid technicians. Venezuela’s oil production has fallen by a quarter since Mr. Chávez took office and falling oil prices may affect the government budget severely.[49] A range of other natural resources, including iron ore, coal, bauxite, gold, nickel, and diamonds are in various stages of development and production. In April 2000, Venezuela’s President decreed a new mining law, and regulations were adopted to encourage greater private sector participation in mineral extraction. Venezuela utilizes vast hydropower resources to supply power to the nation’s industries. The national electricity law is designed to provide a legal framework and to encourage competition and new investment in the sector. After a 2-year delay, the government is proceeding with plans to privatize the various state-owned electricity systems under a different scheme than previously envisioned. 6 From Wikipedia, the free encyclopedia Economy of Venezuela Venezuela Economic Indicators(2003-2007)[50] indicator Real GDP growth Real domestic demand growth Inflation Current-account balance (% of GDP) FDI inflows (% of GDP) Historical averages (%)(2003-2007) 7.6 14.4 20.1 13.7 1.1 Foreign trade[51] Major exports Oil& gas Other % of total 90.4 9.6 Major imports Raw materials&intermediate goods Consumer goods Capital goods Foreign trade[52] Leading markets 2006 United States Netherlands Antilles China % of total 53.5 8.8 3.7 Leading suppliers United States Colombia Brazil % of total 44.5 9.6 7.9 % of total 44.5 24.5 31.0 Manufacturing, agriculture, and trade Manufacturing contributed 17% of GDP in 2006. The manufacturing sector continues to increase dramatically in spite of private under-investment. Venezuela manufactures and exports steel, aluminium, transport equipment, textiles, apparel, beverages, and foodstuffs. It produces cement, tires, paper, fertilizer, and assembles cars both for domestic and export markets. Agriculture accounts for approximately 3% of GDP, 10% of the labor force, and at least one-fourth of Venezuela’s land area. Venezuela exports rice, corn, fish, tropical fruit, coffee, beef, and pork. The country is not self-sufficient in most areas of agriculture. Venezuela imports about two-thirds of its food needs. In 2002, U.S. firms exported $347 million worth of agricultural products, including wheat, corn, soybeans, soybean meal, cotton, animal fats, vegetable oils, and other items to make Venezuela one of the top two U.S. markets in South America. The United States supplies more than one-third of Venezuela’s food imports. Thanks to petroleum exports, Venezuela usually posts a trade surplus. In recent years, nontraditional (i.e., nonpetroleum) exports have been growing rapidly but still constitute only about one-fourth of total exports. The United States is Venezuela’s leading trade partner. During 2002, the United States exported $4.4 billion in goods to Venezuela, making it the 25th-largest market for the U.S. Including petroleum products, Venezuela exported $15.1 billion in goods to the U.S., making it its 14th-largest source of goods. Venezuela opposes the proposed Free Trade Agreement of the Americas. Labor Venezuela has a labor force of about 12.1 million, and in June 2007, official unemployment was 8%. In May 2007, 55.9 percent of Venezuelan workers are included in the formal sector, with 44.1 percent in the informal sector. Chávez has had a combative relationship with the nation’s largest trade union confederation, the Confederación de Trabajadores de Venezuela (CTV), which is historically aligned with the Acción Democrática (AD) party. During the December 2000 local elections, Chávez placed a referendum measure on the ballot that would mandate state-monitored elections within unions. The measure, which was condemned by the International Labour Organization (ILO) and International 7 From Wikipedia, the free encyclopedia Confederation of Free Trade Unions (ICFTU) as undue interference in internal union matters, passed by a large margin on a very low electoral turnout. In the ensuing CTV elections, Carlos Ortega declared his victory and remained in office as CTV president, while chavista (pro-Chávez) candidates declared fraud. The Unión Nacional de Trabajadores (UNT—"National Union of Workers"), a new pro-Chávez union federation, formed in response and has been growing in membership; it seeks to ultimately supplant the CTV. Several chavista unions have withdrawn from the CTV because of their strident anti-Chávez activism, and have instead affiliated with the UNT. In 2003, Chávez chose to send UNT, rather than CTV, representatives to an annual ILO meeting. Further augmenting state involvement in Venezuela’s economy, Chávez nationalized Venepal, a formerly closed paper and cardboard manufacturing firm, on January 19, 2005. Workers had occupied the factory floor and restarted production, but following a failed deal with management and amidst management threats to liquidate the firm’s equipment, Chávez ordered the nationalization, extended a line of credit to the workers, and ordered that the Venezuelan educational missions purchase more paper products from the company. Under Chávez, Venezuela has also instituted worker-run "co-management" initiatives in which workers’ councils play a key role in the management of a plant or factory. In experimental co-managed enterprises, such as the state-owned Alcasa factory, workers develop budgets and elect both managers and departmental delegates who work together with company executives on technical issues related to production.[53] Economy of Venezuela operating), but the IAFE is currently working on several lines, hopefully connecting most of Venezuela via railway by 2020, which, if achieved, would lead to a significant improvement in the countries’ transport infrastructure. At the beginning of August 2008, Venezuelan president Hugo Chavez and his colleagues from Argentina and Brazil spoke about Latin American integration and Chavez threw an ambitious idea out: a train that would connect Venezuela’s capital (Caracas) with Argentina’s (Buenos Aires), and cities in between [54]. The Chavez government has launched a National Railway Development Plan designed to create 15 railway lines across the country, with 8500 miles of track by 2030. The network is being built in cooperation with China Railways, which is also cooperating with Venezuela to create factories for tracks, railway cars and eventually locomotives.[55] Miscellaneous data Electricity – production by source: fossil fuel: 25.46% nuclear: 0% other: 0% (1998) Electricity Production 110.7 KWh (2007) Electricity – consumption: 83.84 KWh (2006) Electricity – exports: 0.542 kWh (2006 est.) Electricity – imports: 0 kWh (2007) Agriculture – products: maize, sorghum, sugar cane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish Currency: 1 bolívar fuerte (Bs.F.) = 100 centimos (Currency code: VEF) Exchange rates: bolívares fuertes (Bs. F) per US$1: 2,15 (January 2008) bolívares (Bs) per US$1: 2150 (January 2006), 1440 (September 2002), 652,33 (January 2000), 605,71 (1999), 547,55 (1998), 488,63 (1997), 417,33 (1996), 176,84 (1995) Infrastructure Venezuela has an extensive road system. With the exception of air service, transportation has failed to keep pace with the country’s needs. Much of the infrastructure suffers from inadequate maintenance. Caracas has a modern subway system over 31.6 mi (51 km) long. Maracaibo and Valencia (second and third cities) have recently inaugurated metro systems. Rail transport in Venezuela has been practically non-existent since the 1950s (with only one line See also • Banco Central de Venezuela • List of Venezuelan Companies • List of Venezuelan Cooperatives 8 From Wikipedia, the free encyclopedia Economy of Venezuela References [1] "Venezuela’s IPC. February, 2007 January, 2008". Banco Central de Venezuela. 2007-02-01. http://bcv.org.ve/. Retrieved on 2008-01-15. [2] ^ [PEN-L] ECLAC: Venezuela’s poverty & extreme poverty 2002-2006: down 18 [3] http://www.cepr.net/documents/ publications/venezuela_2007_07.pdf [4] Venezuela to Give Currency New Name and Numbers by Simon Romero of The New York Times. [5] Latin American Herald Tribune, 16 March 2009, Molano: Venezuela is Priced for Failure [6] Economist (June 2003). "Country Briefings: Venezuela Factsheet". The Economist. Accessed June 4, 2003. [7] ^ The Economist (February 16, 2006), Venezuela: Mission Impossible, The Economist, Retrieved June 22, 2006. [8] ^ Imported goods are cheaper, BCV acknowledges. El Universal (August 9, 2006). [9] ^ Banco Central de Venezuela (BCV August 15, 2006). Actividad económica crece en 9,6% durante el primer semestre de 2006 Retrieved August 16, 2006 (Spanish) "Este resultado, unido al aumento de 9,9% observado en el primer trimestre, ubica el crecimiento del primer semestre en 9,6%." "Desde el punto de vista institucional, el sector público creció en 4,6% y el privado en 10,3%." ""La inversión bruta fija continuó su ritmo expansivo, alcanzando niveles superiores a los observados en toda la serie desde el año 1997." [10] El Universal (2006) 2006g.jpg Movimiento del producto interno bruto. Retrieved June 25, 2006 [11] Datos, (2006). Perspectivas Sociales 2006 de VenAmCham p.18. Retrieved August 29, 2006. (Spanish) [12] Weisbrot, Mark & Sandoval, Luis & Rosnick, David (CEPR May 2006). Poverty Rates in Venezuela: Getting the Numbers Right Retrieved August 19, 2006 [13] El Universal Más de dos millones de hogares en Venezuela son pobres Retrieved September 23, 2006 (Spanish) "La pobreza se ubicó en 33,9% en el primer semestre del año, lo que representó una disminución de 8,5 puntos porcentuales con respecto an igual período de 2005" [14] Bronstein, H. (June 14, 2006), "Colombians in Venezuela thank Chavez for new life", Washington Post, Accessed June 22, 2006. Also available at boston.com, Accessed May 28, 2007. [15] Marx, Gary(Chicago Tribune November 13, 2006) Venezuela riding wave of prosperity Retrieved November 14, 2006 [16] ^ Lakshmanam, Indira A.R. Critics slam Venezuelan oil windfall spending. Boston.com Boston Globe (August 13, 2006). [17] Instituto Nacional de Estadistica. (INE, January 1999) Globales de Fuerza de Trabajo. Retrieved June 13, 2006."Tasa de Desocupacion 16.6%" (Spanish) [18] Instituto Nacional de Estadistica. (INE, April 2006) Globales de Fuerza de Trabajo. Retrieved November 18, 2006."Tasa de Desocupacion 8.9%" (Spanish) [19] Instituto Nacional de Estadisticas. Tasa de desocupacion Retrieved August 19, 2006 (Spanish) "Personas de 15 años o más, de uno u otro sexo, quienes declararon que durante la semana anterior al día de la entrevista no estaban trabajando y estaban buscando trabajo con remuneración. Asimismo, se incluyen aquellas personas que nunca han trabajado y buscan trabajo por primera vez." [20] El Universal (El Universal October 15, 2005) La pobreza se redujo en 14,6 puntos en un año Retrieved August 19, 2006 (Spanish) "Según explicó Elías Eljuri, las cifras presentadas por el instituto en esta oportunidad miden la pobreza sólo por el nivel de ingreso de los hogares. " "Aclaró que las cifras presentadas no incluyen el efecto que han logrado en el tema la aplicación de los programas sociales del actual gobierno y que esto será presentado en otra oportunidad. " [21] Férnandez Urdaneta, Jainelly (2006-05-31). "“Venezuela ha avanzado en la lucha contra la pobreza”". Panorama (available at Boletin Digital Universitario, Universidad de Carabobo). http://boletin.uc.edu.ve/ index.php?option=com_content&task=view&id=823 Retrieved on 2006-12-29. (Spanish) 9 From Wikipedia, the free encyclopedia [22] Panodi(Venezuela Analysis June 3, 2006). World Bank: Venezuela decreased poverty Retrieved August 19, 2006 [23] A dual economy. El Universal (August 17, 2006). [24] Chavez: Venezuela to pull out of IMF, World Bank [25] Chávez: goodbye IMF, WB [26] "Prevén crecimiento económico y alta inflación en el país". El Universal. 2007-06-25. http://www.eluniversal.com/ 2007/06/25/eco_art_preven-crecimientoe_332852.shtml. Retrieved on 2007-06-25. (Spanish) [27] Chávez pushes for withdrawal of international reserves from U.S. banks The International Herald Tribune (January 27, 2008) [28] ^ Washington Post, 8 February 2007, Meat, Sugar Scarce in Venezuela Stores [29] Reuters, 5 March 2009, Food, farms the new target for Venezuela’s Chavez [30] Venezuelan shoppers face food shortages, BBC, January 10, 2006 [31] Reuters, 22 January 2008, Venezuela troops to block food smuggling to Colombia [32] Chavez Seizes Venezuelan Rice Plants, Associated Press, February 28, 2009 [33] Venezuelanalysis, 2 March 2009, Venezuelan Government Takes Control of Rice Plants that Evade Regulated Prices [34] Chavez boosts food price controls, BBC, March 4, 2009 [35] Banco Central de Venezuela. (BCV December 12, 2006). INDICE DE PRECIOS AL CONSUMIDOR DEL ÁREA METROPOLITANA DE CARACAS DICIEMBRE 1998. Retrieved August 11, 2006 (Spanish) "la variación acumulada del IPC para el año 1998, se ubicó en 29,9%" [36] "BBC NEWS". http://news.bbc.co.uk/2/hi/ business/6364515.stm. Retrieved on 2007-12-04. [37] Venezuelan Central Bank debt smashes unprecedented record. El Universal (August 18, 2006). [38] REFILE-Venezuela cuts three zeros off bolivar currency | Markets | Bonds News | Reuters [39] Venezuelan businesses say Chávez’s price controls create shortages International Heralrd Tribune, January 3, 2007 Economy of Venezuela [40] Hugo Chavez Nationalizes Cement Industry, CBS News, April 4, 2008. [41] [1] [42] [2] [43] Outraged Chávez puts stop to nearcomplete shopping mall, The Guardian, December 24, 2008 [44] Venezuela nationalizes steel industry, CNN, May 1, 2008 [45] Romero, Simon (2005-03-05). "Citgo’s Status Is Giving Houston the Jitters". New York Times. http://select.nytimes.com/gst/ abstract.html?res=F50F10FA3A590C768CDDAA0894 Retrieved on 2007-01-03. Available at infovenezuela.org [46] "941 billion bolivars Citgo dividends to fund Misión Ciencia". PDVSA. 2006-02-19. http://www.pdvsa.com/ index.php?tpl=interface.en/design/ salaprensa/ readnew.tpl.html&newsid_obj_id=2292&newsid_tem Retrieved on 2007-01-03. [47] "Congreso aprueba presupuesto". La Prensa. 2005-12-15. http://mensual.prensa.com/mensual/ contenido/2005/12/15/hoy/negocios/ 435668.html. Retrieved on 2006-12-27. (Spanish) [48] Unb, Dhaka (The Daily Star May 2007) Prof Yunus gets highest Venezuelan honour Accessed May 14, 2007. [49] McDermott, Jeremy (2008-10-13). "Venezuela’s oil output slumps under Hugo Chavez". Telegraph. http://www.telegraph.co.uk/news/ worldnews/southamerica/venezuela/ 3183417/Venezuelas-oil-output-slumpsunder-Hugo-Chavez.html. Retrieved on 2008-10-13. [50] "Factsheet". http://www.economist.com/ countries/Venezuela/ profile.cfm?folder=Profile-FactSheet. Retrieved on 2009-02-17. [51] "Factsheet". http://www.economist.com/ countries/Venezuela/ profile.cfm?folder=Profile-FactSheet. Retrieved on 2009-02-17. [52] "Factsheet". http://www.economist.com/ countries/Venezuela/ profile.cfm?folder=Profile-FactSheet. Retrieved on 2009-02-17. [53] Bruce, Iain. Chavez calls for democracy at work. BBC News. (August 17, 2005). Accessed September 22, 2006. 10 From Wikipedia, the free encyclopedia [54] http://www.treehugger.com/files/2008/ 09/train-to-cross-south-americasouthern-train-venezuela-argentina.php [55] Venezuelanalysis, 24 March 2009, Venezuela Inaugurates New Line for Extensive Rail System Project Economy of Venezuela • Venezuela Energy Profile from the Energy Information Administration • Venezuela’s Annual Inflation Rate Highest Since 2004 (Update2) • Venezuela to Give Currency New Name and Numbers • Banco Central de Venezuela • Venezuela’s Economy During the Chavez Years External links • Wilpert, Gregory. Venezeula’s Alternative to Neo-Liberalism IslamOnline.net, retrieved on 19-03-2009. Retrieved from "http://en.wikipedia.org/wiki/Economy_of_Venezuela" Categories: Economy of Venezuela, World Trade Organization member economies, OPEC This page was last modified on 17 May 2009, at 12:51 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers 11