Chavez unveils economic measures and cabinet reshuffle

Caracas, Venezuela, 11 June 2008. In a much expected TV appearance tonight, Venezuelan President addressed the nation to unveil economic measures and some changes in his cabinet. Important local business men and women attended the meeting at Alba Hotel in Caracas. During the event and after citing John Kenneth Galbraith and the world food crisis, President Chavez announced his "Relaunching production: investing in Venezuela". This new economic programme aims at the implementation of local socialism.

1. The creation of a US$1,000 million fund to finance productive investments with social intent. Strategic alliances with China and Russia would be favoured by this  financial scheme to boost food production and agricultural industry, manufacturing of raw materials, infrastructure, and local joint ventures. Relaunching of some industrial initiatives and socialist factories.


2. An increase in public spending on locally produced goods.


3. A increase direct subsidies for food production. A minimum price regulation for soy bean and sunflower. Writing off of agriculture debt incurred by farmers of of rice, coffee and corn who had contracted loans with the government.


4. Liberation of foreign exchange controls for the import of capital goods only. This benefit would apply for already registered companies and for requests up to 50 thousand dollars. Controls would remain for other Venezuelans who wish to buy foreign currencies.


5.  

This new "Relaunching Production" programme was designed to counteract increasing food prices and local inflation. It expects to orchestrate efforts made by the government with foreign strategic alliances countries such as China, Iran and Russia. Furthermore, it offers the private sector and local business community an opportunity to engage in local production enterprises. 

More news to come...

Sources: VTV, YVKE, Globovision,