Del Arroyo
02-01-2007, 10:33
From Globovision: http://www.globovision.com/news.php?nid=48108
The Gas Hike
Ramón Guillermo Avelledo
The arguments which the Presidents makes to justify the hike in gas prices are reasonable. Reasonable and, as he himself would say, neo-liberal. We have the cheapest gasoline in the world. The national oil company is losing too much money. We cannot continue subsidizing the most profitable sectors.
However, the economist Jose Guerra has said and this columnist agrees, that this is a question of economic rationality to adjust a price sustained at fantasy levels for too long; and that now the increase will surely have to be even bigger. If all of this is true, and it seems to me that it is, then there is a clear responsibility upon those who kept the price of fuel so low for so long. Demagoguery has its price.
Also, this measure lets us see the truth of various inconsistencies of the regime and their consquences.
The main support for the increase announced and defended by the President is economic; for the supposed political rationale which he puts forth in all other reasoning does not always work. Sooner or later reality catches up to those who deny it.
How can we justify raising the price of gasoline for Venezuelans while we give away fuel to New York, Boston and London? How can we explain that our formidable oil wealth is spent without brakes or controls? How can we justify the prodigious presidential generosity with Cuba, Bolivia, Argentina, Nicaragua, and however many other countries he wishes?
How can we hide now certain uncomfortable realities? The national oil company is losing money, among other things, because we have to import gasoline to supply the internal market. Gasonline which is paid for dearly. This importation is necessary because our production and refining capacity is declining-- the same problem which prevents us from better taking advantage of the high oil prices worldwide.
That the rich will pay for the increase, as the President said to put a fleshy tone on the neo-liberal cheeks of his argument, is yet to be seen. Two prices for one product es a difficult thing to administer in practice and a source of corruption. We all remember the "milk for the masses".
Even if gas for the people did not increase one cent and this cheap gasoline found salvation from contraband and speculation, they would pay the increase in the effect it produced in other costs-- such as the transport of food and of all other things, and the air fares which daily move business executives who will recalculate their operating expenses, and in the adjustment of the prices of goods and services which can come with the mere threat of a rise in costs. Thus neither is it true, because it is not possible, that increasing the price of gasoline will not bring inflation. Here the government, if they don't know, are mistaken, and if they do know, lie.
The Vengeful Truth
Sooner or later reality catches up with those who deny it. We said it before, and we repeat it now. Look at the case of the chain Mercal, propped up with fat subsidies and government imports, as if it were possible to sell cheap because of a political decision, and without producing or generating secure, well-paying jobs.
"The Mercal network lacks chicken, milk and sugar." The managers of various type II establishments told El Universal that they are now recieving one sixth of what they had been getting from CASA, the official supply company.
Products are being sold on the black market. Sugar can sell for up to 4500 Bolivars per kilo. Meat, with a fixed price of little more than 9 thousand Bolivars, can be bought for up to 16 thousand. Deputy Ricardo Gutiérrez admits that there are shortages and attributes this to the fact that imports are down 42%. He says they will increase imports to fill these gaps. And wasn't sugar cane a "banner project"?
But speaking of the real world we must speak of politics also, not just economics. Society is diverse and plural, and this cannot be ignored by the political system, because it will pay for it. Deputy Iris Varela cries for debate in the National Assembly. She says that "parliament dies if there is no discussion". Because parliament has not been representing, controlling, and legislating. If not, what could she be talking about? The General Secretary of the PCV declares that this historical party will "continue existing", because it "does not depend on the will of one man". As of the Partido Unico, "some comrades will migrate, and others will continue the tradition".
Reality also imposes itself on the social sphere. What a raw report from El Universal on Sunday the 21st, which reveals why Venezuelans are emigrating-- poverty, unemployment, political instability, uncertainty. A million and a half have left in these years. A drama.
EDIT: Fixed spoiler tags.
The Gas Hike
Ramón Guillermo Avelledo
The arguments which the Presidents makes to justify the hike in gas prices are reasonable. Reasonable and, as he himself would say, neo-liberal. We have the cheapest gasoline in the world. The national oil company is losing too much money. We cannot continue subsidizing the most profitable sectors.
However, the economist Jose Guerra has said and this columnist agrees, that this is a question of economic rationality to adjust a price sustained at fantasy levels for too long; and that now the increase will surely have to be even bigger. If all of this is true, and it seems to me that it is, then there is a clear responsibility upon those who kept the price of fuel so low for so long. Demagoguery has its price.
Also, this measure lets us see the truth of various inconsistencies of the regime and their consquences.
The main support for the increase announced and defended by the President is economic; for the supposed political rationale which he puts forth in all other reasoning does not always work. Sooner or later reality catches up to those who deny it.
How can we justify raising the price of gasoline for Venezuelans while we give away fuel to New York, Boston and London? How can we explain that our formidable oil wealth is spent without brakes or controls? How can we justify the prodigious presidential generosity with Cuba, Bolivia, Argentina, Nicaragua, and however many other countries he wishes?
How can we hide now certain uncomfortable realities? The national oil company is losing money, among other things, because we have to import gasoline to supply the internal market. Gasonline which is paid for dearly. This importation is necessary because our production and refining capacity is declining-- the same problem which prevents us from better taking advantage of the high oil prices worldwide.
That the rich will pay for the increase, as the President said to put a fleshy tone on the neo-liberal cheeks of his argument, is yet to be seen. Two prices for one product es a difficult thing to administer in practice and a source of corruption. We all remember the "milk for the masses".
Even if gas for the people did not increase one cent and this cheap gasoline found salvation from contraband and speculation, they would pay the increase in the effect it produced in other costs-- such as the transport of food and of all other things, and the air fares which daily move business executives who will recalculate their operating expenses, and in the adjustment of the prices of goods and services which can come with the mere threat of a rise in costs. Thus neither is it true, because it is not possible, that increasing the price of gasoline will not bring inflation. Here the government, if they don't know, are mistaken, and if they do know, lie.
The Vengeful Truth
Sooner or later reality catches up with those who deny it. We said it before, and we repeat it now. Look at the case of the chain Mercal, propped up with fat subsidies and government imports, as if it were possible to sell cheap because of a political decision, and without producing or generating secure, well-paying jobs.
"The Mercal network lacks chicken, milk and sugar." The managers of various type II establishments told El Universal that they are now recieving one sixth of what they had been getting from CASA, the official supply company.
Products are being sold on the black market. Sugar can sell for up to 4500 Bolivars per kilo. Meat, with a fixed price of little more than 9 thousand Bolivars, can be bought for up to 16 thousand. Deputy Ricardo Gutiérrez admits that there are shortages and attributes this to the fact that imports are down 42%. He says they will increase imports to fill these gaps. And wasn't sugar cane a "banner project"?
But speaking of the real world we must speak of politics also, not just economics. Society is diverse and plural, and this cannot be ignored by the political system, because it will pay for it. Deputy Iris Varela cries for debate in the National Assembly. She says that "parliament dies if there is no discussion". Because parliament has not been representing, controlling, and legislating. If not, what could she be talking about? The General Secretary of the PCV declares that this historical party will "continue existing", because it "does not depend on the will of one man". As of the Partido Unico, "some comrades will migrate, and others will continue the tradition".
Reality also imposes itself on the social sphere. What a raw report from El Universal on Sunday the 21st, which reveals why Venezuelans are emigrating-- poverty, unemployment, political instability, uncertainty. A million and a half have left in these years. A drama.
EDIT: Fixed spoiler tags.