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#1342443
Venezuela: Revolution brings massive social gains
Stuart Munckton
Green Left Weekly

“The Venezuelan economy in the Chavez years”, a study released in July by the Centre for Economic and Policy Research, reveals massive social gains for the poor and working people in Venezuela as a result of the pro-people polices promoted by the government of socialist President Hugo Chavez. The study, by Mark Weisbrot and Luis Sandoval, also provides a detailed look at the state of the Venezuelan economy, which has experienced significant economic growth. The authors argue that, contrary to suggestions widely made in the corporate media (which the authors refer to as “conventional wisdom”), this growth is unlikely to end any time soon.

A key component of the Bolivarian revolution — as the process of change led by the Chavez government is known — is the redistribution of wealth to tackle the problems of the poor via the implementation of “social missions”, government-funded social programs in a growing range of areas, including health care, education, food provision, employment, land reform, culture and the environment.

The Chavez government inherited a country devastated by neoliberalism, with a significant increase in poverty during the two decades prior to Chavez’s election. The report shows that social spending by the government from 1998 (when Chavez was first elected) to 2006 has increased by 170% per person in real (inflation adjusted) terms. However, this figure excludes social spending directly carried out by the state-owned oil company, PDVSA, some US$13.3 billion in 2006. When this spending is factored in, the increase is 314% per person since 1998. In 1998, social spending was 34.7% of total public expenditure; by 2006 it was 44%.

The report points out that “the most pronounced difference has been in the area of health care”, with an increase of primary care physicians from 1628 in 1998 to 19,571 today. Since 2004, as part of Mission Miracle — a joint program with Cuba that provides free eye operations — just under 400,000 people have had their vision restored. In 1999, there were 335 HIV patients with antiretroviral treatment provided by the government, compared to 18,538 in 2006.

The authors report that the government “has also provided widespread access to subsidized food”. By 2006, there were 15,726 stores offering mainly food items at up to 40% below market prices. Combined with a large number of kitchens providing free food to the very poor, in 2005 67% of the population benefited. This doesn’t include those that benefited from a free school meals program (1.8 million in 2006, up from 252,000 in 1998).

Access to education has also dramatically increased, including more than 1 million people participating in free adult literacy classes, leading to Venezuela eradicating illiteracy by UN standards.

The report also shows significant drops in official levels of poverty, and points out that these figures do not include the benefits associated with provision of free health care and education or subsidised food. Since 2003, when the economy faced a crisis as a result of sabotage by the rich elite as part of their attempt to overthrow Chavez, the percentage of households in poverty has dropped from 55% to 30.6%, and those in extreme poverty from 25% to 9.1%.

These social gains are combined with ongoing attempts to involve the poor and working people in directly participating in the affairs of government and exercising power over decisions that directly affect them through new institutions of popular power, such as the communal councils. This attempt to create a “participatory democracy” is closely linked to the social gains, because the missions, such as Mission Robinson (literacy) and Mission Barrio Adentro (health care), are organised outside the existing state institutions (which are often corrupt and bureaucratic) and involve direct community participation.

Rest of the article...
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By PredatorOC
#1342455
What a wonderfully unbiased article... I lost count how many times I read 'corporate media'.

The article kind of pops its own bubble. Oil is the main reason for this growth, regardless of how the article tries to waltz around it. It uses a 1973-77 GDP growth (31%) figure to prove that the 76% figure (since 2003) is a remarkable victory for socialism and that the growth in some magical way is not related to oil. Of course it fails to note that Venezuela has had leftist policies ever since WWII and that the oil industry was nationalized in 1976...

And the 20% inflation is hardly a good thing and has even risen a bit in the past year.

But what the hell. Hugo Chavez for World President!
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By HoniSoit
#1342465
What a wonderfully unbiased article...I lost count how many times I read 'corporate media'.


This article is so biased that it even dares to present the findings of a study by Centre of Economic and Policy Research.

It uses a 1973-77 GDP growth (31%) figure to prove that the 76% figure (since 2003) is a remarkable victory for socialism and that the growth in some magical way is not related to oil.


Except that is not what the article or the study claims. It never says the growth is not related to oil, but simply suggests that it might not be the only factor.

And the 20% inflation is hardly a good thing and has even risen a bit in the past year.


And no one says it is a good thing but that it is better than having a 120% inflation. At the same time, poverty is reduced, health improved and literacy level raised.
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By PredatorOC
#1342481
This article is so biased that it even dares to present the findings of a study by Centre of Economic and Policy Research.


Oh, I noticed it was from a CEPR report (a statism supporting Washington think thank). I didn't read the report, but wanna bet that it didn't have as many mentions of 'corporate media' or 'country devastated by neoliberalism'?

And just to be accurate, Venezuela's problems mainly stem from crappy leftist policies:

"The year 1977 marked the triumph of state capitalism in Venezuela. At this time, the government controlled the commanding positions in the economy and took an active part in managing the global crude oil market as OPEC’s leading member. The “patriotically motivated” economic policy proved devastating as Venezuela slid into its deepest economic crisis. By 2004 its per capita GDP was 37 percent lower than half a century before that. The degrading impact of state command in the economy spread beyond government institutions – it caused the degeneration of Venezuelan society, affecting two generations of people who grew up during state capitalism. Today, Venezuela has no political forces capable of leading it out of the historical deadlock."

Link

It never says the growth is not related to oil, but simply suggests that it might not be the only factor.


"The authors conclude that it “seems likely that the government’s expansionary fiscal and monetary policies, and perhaps other policies (eg: exchange controls … which have kept more capital within the country)” are likely to be key factors in the current expansion."

'Key factor' kind of places the emphasis outside of oil. But even if this is not the case, the argument only concludes that Chavez has better statist policies than past leaders have had. Not exactly a crushing argument against the evils of freedom.

And no one says it is a good thing but that it is better than having a 120% inflation.


Agreed. But it has risen in the past year and if it continues to rise, then you are going to have serious problems. Only time will tell how it pans out.
By fris_ke
#1342522
Surely the best way to approach the situation in Venezuela is to have a more balnced view, sure Chavez has made large improvements since he came to power, especialy in the areas of health, education and social inclusion, it is also true that most of the increases in spending are linked to oil and it's increased price. Chavez has made some of society more democratic, but he has eroded democracy in other areas and is increasingly presenting a statist face, perhaps in part due to fears he has of coups and foreign intervention. However democratisng work and society cannot continue with outdated statist stratagies he seems to have learned from his friends in cuba, one will have to give way.
By Maas
#1343803
the percentage of households in poverty has dropped from 55% to 30.6%, and those in extreme poverty from 25% to 9.1%.

since them poor buggers voted him into office.....
it doesn't look like we have to worry that he is making a coup verry soon. The poor will all keep on voting for Chavez.
By SpiderMonkey
#1344115
Chavez has made some of society more democratic, but he has eroded democracy in other areas and is increasingly presenting a statist face, perhaps in part due to fears he has of coups and foreign intervention. However democratisng work and society cannot continue with outdated statist stratagies he seems to have learned from his friends in cuba, one will have to give way.


There is the problem. Any socialist state that isn't authoritarian and militaristic gets crushed quickly, either by a capitalist power, and imperialist power, or an authoritarian socialist power (the USSR is probably even more guilty of this than the bloody capitalists are). This exerts a selective pressure on socialist states, and helps perpetuate the utterly unrealistic myth that socialism is necessarily authoritarian.

Chavez is walking a fine line, between libertarian socialism and socialism that can defend itself against a vicious and powerful enemy, the United States. He has gone too far sometimes, but most of the alleged violations of freedom in Venezuela have been nothing of the sort. The utterly untrue meme of him 'closing down' a TV station is a prime example.
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By Eauz
#1344132
SpiderMonkey wrote:the USSR is probably even more guilty of this than the bloody capitalists are
Ask some of those in Poland today. I remember a few threads talking about how the once popular workers' movement to destroy the Soviet Block and bring about capitalism are now crying about the realities of capitalism. It's just too funny, that they seriously fought through solidarity for this and are now complaining that this isn't what they wanted. Suck it, Bitches! :muha1:
By fris_ke
#1344687
Any socialist state that isn't authoritarian and militaristic gets crushed quickly, either by a capitalist power, and imperialist power, or an authoritarian socialist power


This unfortunate reality is why true socialism or communism and anarchism can never arise in complete isolation.


It's just too funny, that they seriously fought through solidarity for this and are now complaining that this isn't what they wanted. Suck it, Bitches!


Ahhh, the ramblings of un-reconstructed marxists, yes poland has some economic problems, but not much more than before the collapse of the soviet union and it's dependicies and maybee less people are dissapearing.
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