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"Venezuelan gov't keeps pricing dissociated from reality"

The “Economic Stabilization,” a proposal submitted by Unasur to the Venezuelan government, including fixing electric power and fuel prices and exchange unification, economist Francisco Rodríguez reported

Francisco Rodríguez: Exchange and fiscal measures are required

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09 de septiembre de 2016 23:59 PM

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"Venezuelan gov't keeps pricing dissociated from reality"

Last June, the Union of South American Nations (Unasur) brought forward to the Venezuelan government a proposal called “Economic Stabilization” in order to fix the existing unbalances in the domestic economy, economist Francisco Rodríguez reported on Wednesday.

Items contained in the document, where Rodríguez acted as technical coordinator, included new pricing of goods to increase profitability; reasonable fuel and electric power prices; forex unification and flotation for the market to determine the dollar price.

“We suggested stabilization of this economy based on a series of exchange and fiscal measures,” he affirmed.

During an interview with “Vladimir a la 1” (Vladimir at 1), a talk show aired on TV channel Globovisión, Rodríguez stressed the need to stabilize the domestic economy due to the continued increase of prices of goods, fourfold their real value because of the annual inflation estimated at 200%-300%. Additionally, he reckoned that the Venezuelan economy will shrink 10% this year, something similar to the economic depression in the United States in the 1930’s.

In this regard, the expert said that the government keeps pricing “dissociated from reality.” Therefore, the economy does not work because companies cannot sell the products at profitable value.

Rodríguez mentioned that the very Venezuelan government commissioned the paper during the administration of Vice-President of Economic Affairs and then Minister of Productive Economy, Miguel Pérez Abad.

According to Rodríguez, the government ignored the proposal called “Economic Stabilization.” Nor did it permit its dissemination so that other economists or opposition sectors could give their views.

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