Dear Editor,
It seems that the socialism of the twenty-first century is really no different from socialism of the past. Take Venezuela, for example; its current tragedy, simultaneously culminating in food shortages, a crime epidemic, and an energy collapse, is the latest example of why a centralized planned economy does not work and how it is not far from tyranny.
In our western neighbouring country, it seems, even the most basic services and products are becoming inaccessible as a result of cronyism, interventionism and a controlled prices policy. It is reported that the national administration now works only two days a week in order to save energy. The inflation rate is the highest in the world, and some expect it to be at seven hundred and twenty per cent by the end of this year.
Yes, you can still go to McDonald’s in Venezuela, we understand, but you have to be willing to spend a lot more for French fries. And that is without a coke! since we have learnt, the company suspended its production in the country due to a lack of sugar.
Another, more tragic consequence of the ideological delusion now practised there is the loss of human lives. It is reported that Caracas has now the highest murder rate in the world.
The recent aggravation of the crisis has had especially cruel consequences on the weakest as more children are dying because of lack of basic medicines, electricity, and functioning equipment such as incubators.
As the Heritage Foundation’s Index of Economic Freedom stated, the situation in Venezuela started deteriorating right after the incumbent administration took control almost two decades ago.
A former mayor of Caracas, and an opposition leader were thrown in jail for political reasons. Currently, Venezuela has more political prisoners than even Cuba, it seems.
The current economic model is anything but sophisticated. Venezuela owns the largest oil reserves in the world, and it is one of the top ten oil exporters. The socialism of the 21st century consisted of spending oil money on populist and unsustainable social programmes while disrespecting property rights and neglecting the country’s infrastructure.
Now that the oil prices are going down, Venezuela has run out of money. The national administration is also losing support among neighbours. Until recently, Brazil and Argentina, two of the most important countries in South America, were governed by socialists who gave support to two of Venezuela’’s presidents. But now it appears the two now have new, more pragmatic presidents.
The Venezuelan opposition, which since last year has the majority in the National Assembly, has collected signatures in order to start the process for the calling of a referendum which could end the current administration’s days in office. It is unclear when and how Venezuela will abandon its policies, and the current crisis might end up providentially, creating the conditions for the rebirth of freedom and a new era in that country that may please the majority of its beleaguered citizens.
Yours faithfully
Rooplall Dudhnath
