Decree power
So the Venezuelan National Assembly is soon expected to approve decree powers for Hugo Chávez, which would last 18 months. There are eleven different areas that will fall under this decree power:
- Popular participation
- Essential values in the exercise of public administration
- Economic and social matters
- Finance and taxation
- Citizen security and justice
- Science and technology
- Territorial arrangement
- National security and defense
- Infrastructure, transport and services
3 comments:
well nothing is excluded! It's ironic that even with his party controlling 100% of the National Assembly (AN) he still can't be bothered with using it.
On the Economy:
Capital flight is a lot lower because of currency controls, causing inflation (highest in Latin America in 2006 and projected to be the highest in 2007 too).
BTW, the official exchange rate is ~2,100 in the past month it shot up from ~3,500 to 4,600 on the black market.
Foreign investment:
http://blogs.salon.com/0001330/categories/pictures/2006/12/14.html
But what are the controls on moving your money out of the country, bank transfers, etc.? Maybe it's tougher to get dollars, euros, etc. but once people have them, what are they doing?
I know there are restrictions on money transfers and in buying dollars/euros... I'm not sure what the specifics are. As for the what people do with dollars? if they are well off then they keep them in overseas banks since keeping Bolivares in the bank is a lossing investment. Inflation is at least 17% and the bank interest rate is about 6% so once you have money you buy dollars or spend the money immediately hence the economic growth (all based on consumerism).
Here is a link to two people who know a lot more about economics and Venezuela. For an idiots guide (for people like me) the link to F. Toro (FT) is a good summary.
http://www.vcrisis.com/index.php?content=letters/200701311100
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