gustavo coronel

The social programs of Hugo Chavez were based on direct transfers of cash and strong subsidies to the Venezuelan poor, in exchange for their political loyalty. As such they were exclusive and designed to obtain maximum political benefits. Poverty, however, is a structural condition that calls for structural solutions. Cash transfers and subsidies represent a fish a day, as compared to the need for empowering the poor to learn how to fish. When the transfers diminish or, even, disappear, the poor revert rapidly to their original condition, this time more despondent than ever.

Rafael Ramirez is the Minister of Energy and Petroleum of Venezuela. For the past 11 years he has also been the President of the state-owned petroleum company, Petróleos de Venezuela (PDVSA). I would like to describe in this article how he led the company into bankruptcy. In so doing he has also generated economic and social chaos in the country, since petroleum is the only source of foreign currency for our nation. It represents 96% of all Venezuelan exports.