Editorial comment by Arturo Rosales: The basic information outlined below is what readers abroad will rarely see in the corporate media. From the BBC to CNN, FOX and the floundering big city newspapers. If such media ever did publish this information it would be an admission that Chávez’ economic policies are working for the vast majority of the almost now 29 million Venezuelans. The corporate media will concentrate on GDP declines or growth(see second article below) as being the yardstick by which to measure “economic success”. President Chávez, however, says that GDP figures do not interest him. He is interested in the decline in poverty, unemployment and inequality and these are the measures which the Bolivarian Government strives to improve and are seen from 1996 through 2009. It’s a lesson for us all in Economics 101, involving the measures which the capitalists hate to see thriving.
¡Adelante Comandante!
- Arturo Rosales in Caracas
Columnist, Axis of Logic
Poverty in Venezuela fell from 70% in 1996 to 23% in 2009
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Caracas, Mar 04. ABN.- Thanks to the policies of the Bolivarian Government poverty in Venezuela fell to 23% in 2009 from 70.3% in the second half of 1996 accompanied by 40% of extreme poverty and a record inflation rate of 103%.
These figures were presented by the President of the Venezuelan National Statistics Office (INE), Elias Eljuri, in the TV program “Between Jornalists” broadcast on the private TV channel Televen.
Eljuri explained that poverty in Venezuela which reached 55% and extreme poverty 25% after the oil industry sabotage orchestrated by the right wing opposition in an attempt to overthrow the Chávez government, has been falling steadily. It is currently 23% in total with 6% being qualified as extreme poverty. The calculation is based on international standards which take income into account as the overriding factor.
“Many of these opposition politicians and intellectuals seem to forget that they took inflation to over 100% and poverty to over 70% when they were in power,” Eljuri commented. He defended the validity of the INE’s statistics which are frequently questioned by the opposition.
He emphasized that the Gini Index of inequality was the lowest in Latin America which descended from 0.49 to 0.39 in 2009. Now, the richest 20% control 46% of the wealth compared to 54% in 1998.
“The richest 20% still control a large chunk of the country’s wealth but this is a steady change in favor of the vast majority of Venezuelans”, Eljuri added ...
“We are still not satisfied with this wealth distribution and the only way to change this is by implementing deep structural changes in the economy which President Chávez is currently undertaking.”
Despite opposition studies which always show that poverty is son the rise Eljuri concluded by saying that the INE figures are fully supported as being transparent and objective by the Economic Commission for Latin America and the Caribbean as well as by the World Bank.
Venezuelan National Statistics Office
GDP contraction does not alter social development indicators in Venezuela
Caracas, Mar 05. ABN.- The contraction of 3.3 percent registered in the Venezuelan Gross Domestic Product (GDP) in 2009 has no direct relation with the social development of the nation, because it is a macroeconomic index referred to the production of the different economic sectors in the country.
Jose Rafael Lopez, General Manager of Social Statistics and Environment of the National Statistics Institute (INE) made the explanation and added that the fall registered by the national economy was a consequence of the world's economic crisis produced by he capitalist depression; fall of oil prices; and the cut on oil production established by the Organization of Petroleum Exporting Countries (OPEC).
Lopez underlined that Venezuela's State policy, in contrast to other countries, is aimed at overcoming poverty, focusing mainly on social aspects and not based on economic factors. This formula is reflected in the positive figures showed by indicators measuring human development and life conditions.
“Social expenses increased from 12.46 billion dollars in 1999 to 330 billion in 2009,” he said.
In reference to the socialist economic policy in Venezuela, Lopez highlighted that it is interesting to compare how world's crisis has affected other countries that base their economy on the market laws of the capitalist model.
For instance, the unemployment rates rocketed in the United States, France and Spain last year, affecting their population purchase power with a direct incidence on the supply of goods and services, which constitutes one of their economic growth engines.
Lopez reminded that the Human Development Index (HDI), which evaluates population access to health and education, went from 0.7880 in 2003 to 0.8277 in 2008, placing Venezuela among the group of countries with the highest HDI in the world. This is translated into more welfare for the people, who have now more opportunities for their individual development.
“We can not talk about development in a country, if said development is only reflected in economic growth terms, leaving aside the human factor. Social aspects support the economic field,” he emphasized.
Also, the social statistics manager pointed out that in past years, Venezuela has improved its income distribution: while in 1999 the Gini coefficient was 0.498; in 2008, it was 0.412, which means population has improved its purchase power.
All these results are a consequence of sustained and social inclusion policies, aimed at fighting poverty from diverse angles, in contrast to the punctual transitory public measures applied in the 90s by the governments of the moment.
Among current policies to fight against poverty, the INE representative mentioned the food program Mision Alimentacion; the food store networks Mercal and Pdval; the health program Mision Barrio Adentro; people's improved access to health and education systems; and the increase of the minimum salary, which last year became the highest in Latin America.
Lopez explained that poverty is a multidimensional phenomenon caused by an unequal distribution of the resources and opportunities, and by basic needs that are not fully satisfied.
In this regard, INE figures show that by the second semester of 1995, 23.8 percent of the Venezuelan homes lived in extreme poverty. The same evaluation carried out in 2009 showed that said indicator was reduced to 6 percent of the homes.
All these results show that the social situation has improved in Venezuela during the last decade, at the margin of the economic contraction in 2009. Incomes are distributed fairer, poverty has decreased and Venezuelans purchase power has increased.