Venezuela towards a Socialist Market Economy?
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In a sudden change in the Venezuelan economic agenda, President Nicolás Maduro announced last Wednesday, May 11, the placement of shares of public companies in the stock exchange as from next Monday, May 16 of this month.
Since the beginning of the Chavez government in 1999, the actions had been the other way around, the state gradually eliminated private participation in public companies and took as a banner that privatization was a capitalist movement.
Although it is announced that only between 5 and 10% will be offered to attract investment and capital for the companies that have been suffering from lack of maintenance and resources and are plagued by corruption, a good number of government supporters see this as a step backwards and a turn towards a capitalist system.
CANTV, which is the communications company, Movilnet, the petrochemical and mixed companies that handle oil and gas, as well as the basic companies of Guayana are among the first to be offered.
Although this is a move that may pay dividends to the State's funds, there is also the obstacle that Venezuelan investors do not trust the good management of the public entities and there would have to be some changes in these for them to dare to support this idea.
Some economists raise the possibility that the Venezuelan government is taking a turn towards a possible Socialist Market Economy, imitating China and Vietnam in this, but this requires many factors that do not seem to be in accordance with the laws or the Constitution, which would merit a reform of the same.
Greetings @jose1956, according to the different economic scenarios that are being presented in Venezuela I would not be surprised if a political and economic change associated with the one you mention is generated, since in a way this government must adapt to the changing style that has been presented and adopt one where the economy is not so affected, so that we will be attentive to the outcome of this change that you mention in your publication.
Thank you for your contribution.
Let's hope for the best and that this is not just another occasional slip-up.
Your post was upvoted and resteemed on @crypto.defrag
Hi @joseph1956 since last year, the Venezuelan president began to reverse the socialist economic model of his predecessor, Hugo Chávez, by handing over the management of some 13 state-owned food companies to third parties in exchange for payments, thus reducing public spending. It is in search of foreign currency, he has no other way out, but he is getting closer to the neo capitalist model, greetings and success.
In this country there has always been a state capitalism that reached its peak during the Chavez government, maybe it is time to change this.