Saturday, February 24, 2007

Chavez vs. the Washington Consensus

. Saturday, February 24, 2007

According to the Washington Post, Hugo Chavez is using his oil windfall to counter market-based strategies of development. "For Chávez, the goal is nothing less than to kill the so-called Washington consensus, the economic prescriptions championed by the International Monetary Fund and the U.S. Treasury, which press governments to limit spending, raise interest rates and open their economies to foreign trade and investment...The Venezuelan model, which is predicated on a break with all multinational institutions with Washington ties, has plainly gathered steam in some Latin American countries...

"The question now is how long Venezuela can maintain the aid. Although the economy is growing thanks to high oil prices, it has little private investment and creates few new jobs. And, true to the predictions of economists who are skeptical of the Chávez model, inflation is skyrocketing -- so much so that Chávez recently threatened to nationalize grocery stores if they did not limit price increases."


Chavez vs. the Washington Consensus




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