¿BUENAS INTENCIONES? MALOS RESULTADOS

Resumen

Toe economic policies of the Venezuelan Govemment, reinforced in the draft of Constitutional Reform, are harming the whole population but specially the poor. Price controls generate shortages, and fixed exchange rates increase inflation. Public services in health and education are deficient, and the nationalization of private services in these areas will worsen them. If private property is reduced, productivity will fall dueto the lack of incentives, and production will drop in quantity and quality. Venezuelans do not like communist regimes, where private initiative disappears and freedom is quenched. Cooperatives in which workers are at the same time owners of the firm may be useful in the initial steps of development, but cannot be the main type of organization of economic activity. Intemational reserves that support money emissions should not be used for other purposes.