Venezuela: Fatherland, socialism or death… and finance

Hugo Chávez is trying to commit Venezuela to 21st century socialism. In the meantime, private financial services are booming. Buoyed by the oil price, Chávez’s policies keep pumping out money. But can left-wing policies and capitalism work an economic miracle in the long term?

EVEN TOURISTS CANNOT escape Venezuela’s propaganda barrage. “Get to know Venezuela, where dreams are reborn” is one of the latest slogans from the People’s Power Ministry for Tourism. Dreams or nightmares? With the consumer price index at more than 20%, the Bolivarian republic has one of the world’s highest inflation rates. Access to foreign currency is limited by the state, so in the parallel market dollars normally cost two to three times the official exchange rate.

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