Thursday, May 26, 2016

Matias Vernengo — A brief note on Venezuela and the turn to the right in Latin America

Matias explains the situation in Venezuela in more detail. The problem is endemic and not directly the result of the Chavez-Maduro governments. A right-wing neoliberal government won't be able to fix it either, although they would likely get assistance from the IMF and US, at a price that will be borne by the people rather than the elite, who will be boosted by it, in particular as compradors.

Naked Keynesianism
A brief note on Venezuela and the turn to the right in Latin America
Matias Vernengo | Associate Professor of Economics, Bucknell University


Matt Franko said...

Haven't those two been in charge since like 1998?

Matias Vernengo said...

Yes, and they have been re-elected (and the Carter Center has always approved) every time. He might loose a referendum now, but as I suggested that's not necessarily an endorsement of neoliberal policies.

Dan Lynch said...

Matias said "while one can blame the left of center governments of Chávez and Maduro for not being able to break the structural dependence on oil, it is hardly the case that this is a problem just of the left of center governments."

That sums up the situation well.

One wonders what is the way forward?

Tom Hickey said...

One wonders what is the way forward?

The Left needs to stop relying on neoliberal economic and financial models and dopey Marixst models (not say all Marxist models are dopey).

The way to break the empire's back is not play their neoliberal game. Pegging to the USD due to false beliefs is just asking for what you get. So is thinking that exports are necessary to get munnie.

Nationalization of major resources and industries is OK but it's also necessary to know how to run them. One of the problems is Galtism, where the elite and upper middle class essentially go on strike and sabotage the economy, knowing that in bad times, their chance of taking over through election is good and if that fails then stronger measure will seem justified by conditions.

This is a playbook. And it's not like there aren't MMT, Post Keynesian, and Marxian economists that we call name that could show them the way out of their financial and economic difficulties.

That doesn't win the class war that is going on in Latin America, but it would go a long way helping the Left to succeed when they are in power instead of either blowing it themselves or being maneuvered into blowing it.