What does Venezuela do with that of its oil money that it's not currently spending?
February 10, 2006 2:55 AM Subscribe
The Chavez government is doing a lot of direct investment in the people of Venezuela, but it can't be spending all the money at once: I am wondering if it has a fund similar to the Petroleum Fund of Norway - any kind of fund saving up some of the oil money? Particularly interested if they have a fund that invests some of the money in the stock market, as the Norway's fund does. Bonus questions inside.
What inroads, if any, have the Chavistas made on the stock exchanges of Venezuela, as regards influence, attempts at nationalization, and the like?
What inroads, if any, have the Chavistas made on the stock exchanges of Venezuela, as regards influence, attempts at nationalization, and the like?
I dare say that Venezuela could spend the money pretty much as it came in. There's no reason that it would not just be another projected income against a national budget. This was the case in the UK, which got its hands on North Sea Oil and Gas at the same time Norway did, and decided to spend the money on paying dole to all the people that had been put out of work during the 1980s. Of course one has to take into account the per capita differences in income between the UK and Norway (and Venezuela with regard to the question), but with regard to Venezuela there's also the relative poverty to take into account.
enrevanche: Well that was balanced.
I would be interested to hear an explanation of the phrase 'Yet, he has also found a way to make authoritarianism fashionable again, if not with the masses, with at least enough voters to win elections.' because it doesn't appear to make a huge amount of sense to me in the context of a democracy where, in general masses = voters.
posted by biffa at 4:36 AM on February 10, 2006
enrevanche: Well that was balanced.
I would be interested to hear an explanation of the phrase 'Yet, he has also found a way to make authoritarianism fashionable again, if not with the masses, with at least enough voters to win elections.' because it doesn't appear to make a huge amount of sense to me in the context of a democracy where, in general masses = voters.
posted by biffa at 4:36 AM on February 10, 2006
Best answer: I'm confused - What exactly do you want to know?
One of the cool things about the Petroleum Fund is that it is expressly designed not to inflate Norwegian asset prices and to diversify away from the petroleum/energy/basic materials industries. So if Chavez were doing something like that he would expressly not be getting involved with local exchange.
But my understanding is that he is spending it as it comes in - even re-investing less back into the fields then most oil and gas guys would tell you he should. I think its a pretty short-sighted approach but politically it makes him a lot more popular. At the end of the day its their money so they can do with it what they wish.
posted by JPD at 5:19 AM on February 10, 2006
One of the cool things about the Petroleum Fund is that it is expressly designed not to inflate Norwegian asset prices and to diversify away from the petroleum/energy/basic materials industries. So if Chavez were doing something like that he would expressly not be getting involved with local exchange.
But my understanding is that he is spending it as it comes in - even re-investing less back into the fields then most oil and gas guys would tell you he should. I think its a pretty short-sighted approach but politically it makes him a lot more popular. At the end of the day its their money so they can do with it what they wish.
posted by JPD at 5:19 AM on February 10, 2006
Best answer: enrevanche: For a good overview of what Chávez is doing for (and to) Venezuela and Venezuelans, check out the fetchingly titled article "Hugo Boss" in the latest issue of Foreign Policy.
Javier Corrales does seem a little negatively biased and most definitely sticks with antagonistic prose. While, he obviously has studied a good deal about the Cuban and Venezuelan political history, I am wondering if he has a personal axe to grind. Because of these shortcomings and also because it has nothing to do with the question, I wouldn't necessarily call this article good. It even strongly resembles past CIA propaganda templates.
Contrary to much negative publicity, Chavez is working to push for reforms that help the poor and unprivileged more than previous administrations and other South American countries which are not leftist. The BBC gives a more unbiased view of some of the reforms but does not mention any specific fund from oil money. I would imagine oil profits are used directly in the budget. Of course this is a guess and I would hope Chavez places some visibility of the process to discourage any graft.
posted by JJ86 at 6:20 AM on February 10, 2006
Javier Corrales does seem a little negatively biased and most definitely sticks with antagonistic prose. While, he obviously has studied a good deal about the Cuban and Venezuelan political history, I am wondering if he has a personal axe to grind. Because of these shortcomings and also because it has nothing to do with the question, I wouldn't necessarily call this article good. It even strongly resembles past CIA propaganda templates.
Contrary to much negative publicity, Chavez is working to push for reforms that help the poor and unprivileged more than previous administrations and other South American countries which are not leftist. The BBC gives a more unbiased view of some of the reforms but does not mention any specific fund from oil money. I would imagine oil profits are used directly in the budget. Of course this is a guess and I would hope Chavez places some visibility of the process to discourage any graft.
posted by JJ86 at 6:20 AM on February 10, 2006
here is an article that briefly describes these social programs, and has additional notes on the venezuelan economy; briefly, i think it could be said that venezuela is 'investing in social capital.' But i don't think this answers your question.
Mision Bario Adentro (Mission Inside the Neighborhood)
>Health and Dental (with help from Cuban doctors)
also health education, political participation
500 health centers built
Mision Mercal
>affordable food staples, also encouraging locally grown and organic foods
Mision Robinson I
>literacy program, achieved 99% literacy throughout Vn. 1.3 mil ppl
Mision Robinson II
>continued literacy, free primary school 1.2mil ppl
Mision Ribas
>free high school 1.4 mil ppl
Mision Sucre
>free university 275k ppl 5 new universities
Misiones Guaicaipuro and Habitat
>restoring communal land titles / human rights to rural poor and indigenous -5000 committees including 5 mil. people.
>urban land cmte's --84k titles to 126k families, 630k. much more work needs to be done, this is only a small percentage.
>also Habitat--a relatively small public housing initiative
Mision Vuelvan Caras (Turn Around)
>job skills training, with a focus on social needs
this article talks about the structure and the future of the political situation, and why it is perhaps foolish to think that all of these changes come from Chavez, rather than the grassroots 'circles' who support him.
As for this article in Foreign Affairs; findings from the OAS and Carter Center contradict this article's hand-waving at electoral fraud in Venezuela. (more direct allegations have certainly been made)
link
The [2004] referendum was certified by the OAS and the Carter Center. The electronic voting machines used in that election produced a paper receipt for each vote, which was then deposited in a ballot box. It was thus a simple matter for the election observers (OAS/Carter Center) to audit a sample of the electronic vote and match it to the paper ballots, which they did.
The Carter Center subsequently appointed an independent panel of statisticians who found that there was no statistical evidence for fraud in the election. The panel’s review included the above-cited paper, which was methodologically flawed and relied on data from opposition-gathered exit polls. (See: fraud_venezu_conspiracy.pdf ).
It boggles the mind that U.S. right wing policy makers will accuse other nations of electoral fraud; when those nations have higher standards for certifing the vote than the US does.
Other accusations that this article makes, like accusing chavistas of registering voters, are similarly puzzling.
posted by eustatic at 7:54 AM on February 10, 2006
Mision Bario Adentro (Mission Inside the Neighborhood)
>Health and Dental (with help from Cuban doctors)
also health education, political participation
500 health centers built
Mision Mercal
>affordable food staples, also encouraging locally grown and organic foods
Mision Robinson I
>literacy program, achieved 99% literacy throughout Vn. 1.3 mil ppl
Mision Robinson II
>continued literacy, free primary school 1.2mil ppl
Mision Ribas
>free high school 1.4 mil ppl
Mision Sucre
>free university 275k ppl 5 new universities
Misiones Guaicaipuro and Habitat
>restoring communal land titles / human rights to rural poor and indigenous -5000 committees including 5 mil. people.
>urban land cmte's --84k titles to 126k families, 630k. much more work needs to be done, this is only a small percentage.
>also Habitat--a relatively small public housing initiative
Mision Vuelvan Caras (Turn Around)
>job skills training, with a focus on social needs
this article talks about the structure and the future of the political situation, and why it is perhaps foolish to think that all of these changes come from Chavez, rather than the grassroots 'circles' who support him.
As for this article in Foreign Affairs; findings from the OAS and Carter Center contradict this article's hand-waving at electoral fraud in Venezuela. (more direct allegations have certainly been made)
link
The [2004] referendum was certified by the OAS and the Carter Center. The electronic voting machines used in that election produced a paper receipt for each vote, which was then deposited in a ballot box. It was thus a simple matter for the election observers (OAS/Carter Center) to audit a sample of the electronic vote and match it to the paper ballots, which they did.
The Carter Center subsequently appointed an independent panel of statisticians who found that there was no statistical evidence for fraud in the election. The panel’s review included the above-cited paper, which was methodologically flawed and relied on data from opposition-gathered exit polls. (See: fraud_venezu_conspiracy.pdf ).
It boggles the mind that U.S. right wing policy makers will accuse other nations of electoral fraud; when those nations have higher standards for certifing the vote than the US does.
Other accusations that this article makes, like accusing chavistas of registering voters, are similarly puzzling.
posted by eustatic at 7:54 AM on February 10, 2006
Hugo is sending low-cost oil to help heat homes of poor people in Philadelphia whose heat has been shut off by the monopolistic a-holes at PGW.
posted by LilBucner at 8:22 PM on February 10, 2006
posted by LilBucner at 8:22 PM on February 10, 2006
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posted by enrevanche at 4:03 AM on February 10, 2006