February 5, 2009
For Immediate Release: February 5, 2009
Contact: Dan Beeton, 202-239-1460
Washington, D.C. – The Center for Economic and Policy Research (CEPR) released a report today on the Venezuelan economy on the tenth anniversary of President Hugo Chávez’s tenure, which began in February 1999.
“Looking at the economic data and social indicators, it’s not difficult to see why Chávez remains popular and has won so many elections, despite overwhelmingly hostile media coverage,” said Mark Weisbrot, Co-Director of CEPR and lead author of the report, "The Chávez Administration at 10 Years: The Economy and Social Indicators."
Among the highlights:
The report also examines the current economic situation and how the country will be affected by lower oil prices. It concludes that because of Venezuela’s large accumulation of foreign exchange reserves, it is unlikely to run into balance of payments problems even if oil prices remain depressed for much longer than analysts and oil futures markets are anticipating. The most important and immediate challenge for Venezuela, according to the analysis in this report, will be to implement a timely and adequate fiscal stimulus package to counteract the effects of the global recession. Over the long run, the analysis also sees a need for a more competitive exchange rate in order to diversify away from oil.
The Center for Economic and Policy Research is an independent, nonpartisan think tank that was established to promote democratic debate on the most important economic and social issues that affect people’s lives. CEPR’s Advisory Board includes Nobel Laureate economists Robert Solow and Joseph Stiglitz; Janet Gornick, Professor at the CUNY Graduate School and Director of the Luxembourg Income Study; Richard Freeman, Professor of Economics at Harvard University; and Eileen Appelbaum, Professor and Director of the Center for Women and Work at Rutgers University.