http://www.reuters.com/article/2013/03/18/venezuela-election-idUSL1N0CA8MN20130318
Venezuela has elections on April 14 to decide the President after the death of Hugo Chavez. The two candidates are the current acting President Nicolas Maduro and the opposition candidate Henrique Capriles. Nicolas Maduro is seen as Chavez's successor.
Henrique Capriles has stated that he would end the export of highly subsidized oil to Cuba if he comes to power. Under Chavez, Venezuela was exporting large quantities of oil at extremely cheap prices to Cuba, a communist nation and a Venezuelan ally. This is a major burden on the Venezuelan economy, which is already suffering from low growth and high inflation. Stopping the export of a 100,000 barrels daily to Cuba would provide more resources for the domestic economy and would help reduce inflation. This would also allow foreign companies to access some oil reserves in Venezuela and sell them at a near market-price rate and not the state-decided price.
Maduro is expected to maintain Chavez's style of governance which would focus on nationalization and socialism. It would be interesting to see how Henrique Capriles would change Venezuelan economic policies if he comes to power
Venezuela has elections on April 14 to decide the President after the death of Hugo Chavez. The two candidates are the current acting President Nicolas Maduro and the opposition candidate Henrique Capriles. Nicolas Maduro is seen as Chavez's successor.
Henrique Capriles has stated that he would end the export of highly subsidized oil to Cuba if he comes to power. Under Chavez, Venezuela was exporting large quantities of oil at extremely cheap prices to Cuba, a communist nation and a Venezuelan ally. This is a major burden on the Venezuelan economy, which is already suffering from low growth and high inflation. Stopping the export of a 100,000 barrels daily to Cuba would provide more resources for the domestic economy and would help reduce inflation. This would also allow foreign companies to access some oil reserves in Venezuela and sell them at a near market-price rate and not the state-decided price.
Maduro is expected to maintain Chavez's style of governance which would focus on nationalization and socialism. It would be interesting to see how Henrique Capriles would change Venezuelan economic policies if he comes to power
4 comments:
the rule of Hugo Chavez was very controversial, many people benefited while many others struggled to gain ground. With the decreased trade to Cuba the american gas prices could see a sharp decline as there will be more gas available, making it easier on our wallets and our economy
The Venezuelans need to really sit down and decide whats best for their country. Its clear that under chavez's rule the country was divided. A community cannot move forward if they are divided. I personally think it is about time they gave someone with new fresh ideas the chance to rule the country. Alot more can be done with their oil and other natural resources and to add to that, they desperately need to improve relations with the United States.
I saw in the news this week that Maduro was claiming that the CIA actually killed Chavez. With this situation and his plan to continue Chavez’s style, it is obvious that with him in power, the relationship between Venezuela and the United States will not get better any time soon. I would like to see how a president with new ideas could change Venezuela; but, this election is up to the people of Venezuela and will allow us to see which side of the divided nation is in the majority.
Broadening their oil sales to a larger market could definitely benefit the Venezuelans. With increasing wold dependency on oil, Venezuela could get much more income and could improve its relations with the US. So much of the economy designed by Chavez was based on politics. Change may be probably if the Venezuelan people can see that the policies aimed to improve social conditions have actually caused the economy to face growth challenges.
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