Venezuela’s political divisions making problems worse

Global Business

Former Venezuelan Minister of the Economy Jorge Giordani was recently removed from his post amid what many call failed economic policies. The move is stirring controversy within the government after a public retaliation by Giordani in the form of a letter against President Nicolas Maduro. Martin Markovits reports from Caracas.

For most Venezuelans, recently dismissed Planning Minister Jorge Giordani was the economic architect of Hugo Chavez’ socialist Revolution. But with a decaying economhe government has opted for a new approach.

Political observers say Giordani’s far left thinking lost influence a while back, and his policies led to high inflation, shortage of basic goods and helped trigger the largest anti-government protests in the last decade.

Even supporters of Chavez and President Maduro are calling for a change.

Soon after his dismissal, Giordani wrote a public letter denouncing Maduro’s leadership, blaming his administration for mishandling millions of dollars.

In response Venezuelan president sent him an indirect message during a televised cabinet meeting referring to him as “bourgeoisie” and accusing him of trying to divide the Venezuelan people.

And the tensions may be causing division between radical keepers of Chavez’ leftist legacy and the more moderate and pragmatic Chavistas who are looking to do away with pricing and currency controls which have dominated the Venezuelan economy for years.

That includes lifting price controls and the devaluation of the country’s currency. Chavez’ policies resulted in a reduction in poverty levels in Venezuela.

Socialist Party Official Carlos Hurtado is concerned that this division in the government will bring down the gains socialism have made.

For the more pragmatic Chavistas, new Vice President of the Economy Rafael Ramirez signaled a hopeful transition out of Giordani’s multi-tiered currency system, but no further details have been revealed.

Venezuela’s political divisions making problems worse

Venezuela’s political divisions making problems worse

Former Venezuelan Minister of the Economy Jorge Giordani was recently removed from his post amid what many call failed economic policies. The move is stirring controversy within the government after a public retaliation by Giordani in the form of a letter against President Nicolas Maduro. Martin Markovits reports from Caracas.
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