3 ms·

Not every petrostate is born equal. Norway fares better than Russia, Russia better than Venezuela. Can't say about Saudi Arabia.

pessimizer 11y ago
Before Chavez, Venezuela was falling apart because of a crash in oil prices, instituting price controls, raising new taxes, tariff-rich, and socialism-free. "In 1995, Venezuela adopted the Andean Price Band system to replace a similar national scheme in place since 1991. The Andean system applies to imports of certain agricultural items (including meat, dairy products, sugar, and various cereals, fats and processed foods) originating outside the region. Its stated objective is to stabilize the domestic price of those products in a manner consistent with the implementation of the Common External Tariff by all Andean Group countries. The system operates by adding an ad valorem levy to the CET rate whenever a reference price falls under a floor, or subtracting from such rate if the reference price exceeds a ceiling; floor and ceiling prices are linked both to the moving average and the spread of prices prevailing in world markets during the previous five years. As under this system applied rates could increase, in principle, beyond bound levels, questions arise about the predictability of such a form of border protection which exhibits many of the properties associated with variable levies. "In May 1995 customs clearance fees were abolished. Since April 1992, tariff surcharges have been applied to imports of 15 ten-digit NANDINA agricultural products, including certain types of cheese, maize and mineral waters. According to the authorities, these surcharges were to be eliminated by January 1996. "Since September 1994, a VAT-type wholesale and (luxury) consumption tax has been applied at rates ranging from 12.5 to 32.5 per cent on all goods, except some basic foods; on services; and on royalties from the exploitation of all types of intellectual property rights. Additional internal taxes on alcoholic beverages exclusively affect imported items; details of applied rates were not available to the Secretariat at the time of completion of its report." https://www.wto.org/english/tratop_e/tpr_e/tp26_e.htm https://www.wto.org/english/tratop_e/tpr_e/tp26_e.htm "While the oil boom appeared to be a tremendous blessing to Venezuela, it did have some negative consequences, such as chronic inflation and, paradoxically, an increasing indebtedness. These problems were exacerbated when, in the mid-80’s the price of oil began to plummet, due to OPEC members’ breaking of their production quotas. By 1998, the price of oil had reached a new historical low of $3.19 per barrel (in 1973 prices). This decline in oil prices had a significant impact on Venezuela’s economy, particularly on per capita income, which had been in a steady decline between the mid-80’s and the present." http://venezuelanalysis.com/analysis/74 http://venezuelanalysis.com/analysis/74
jacobolus 11y ago
Norway fares better in large part because one Iraqi geologist managed to convince the nation to sock away its oil profits in a national trust instead of spending the money wantonly. It’s a testament to the Norwegian political system that they ultimately listened to his message and followed his advice. https://encrypted.google.com/search?hl=en&q=Farouk%20al%2DKasim https://encrypted.google.com/search?hl=en&q=Farouk%20al%2DKa...

pessimizer 11y ago

Before Chavez, Venezuela was falling apart because of a crash in oil prices, instituting price controls, raising new taxes, tariff-rich, and socialism-free. "In 1995, Venezuela adopted the Andean Price Band system to replace a similar national scheme in place since 1991. The Andean system applies to imports of certain agricultural items (including meat, dairy products, sugar, and various cereals, fats and processed foods) originating outside the region. Its stated objective is to stabilize the domestic price of those products in a manner consistent with the implementation of the Common External Tariff by all Andean Group countries. The system operates by adding an ad valorem levy to the CET rate whenever a reference price falls under a floor, or subtracting from such rate if the reference price exceeds a ceiling; floor and ceiling prices are linked both to the moving average and the spread of prices prevailing in world markets during the previous five years. As under this system applied rates could increase, in principle, beyond bound levels, questions arise about the predictability of such a form of border protection which exhibits many of the properties associated with variable levies. "In May 1995 customs clearance fees were abolished. Since April 1992, tariff surcharges have been applied to imports of 15 ten-digit NANDINA agricultural products, including certain types of cheese, maize and mineral waters. According to the authorities, these surcharges were to be eliminated by January 1996. "Since September 1994, a VAT-type wholesale and (luxury) consumption tax has been applied at rates ranging from 12.5 to 32.5 per cent on all goods, except some basic foods; on services; and on royalties from the exploitation of all types of intellectual property rights. Additional internal taxes on alcoholic beverages exclusively affect imported items; details of applied rates were not available to the Secretariat at the time of completion of its report." https://www.wto.org/english/tratop_e/tpr_e/tp26_e.htm https://www.wto.org/english/tratop_e/tpr_e/tp26_e.htm "While the oil boom appeared to be a tremendous blessing to Venezuela, it did have some negative consequences, such as chronic inflation and, paradoxically, an increasing indebtedness. These problems were exacerbated when, in the mid-80’s the price of oil began to plummet, due to OPEC members’ breaking of their production quotas. By 1998, the price of oil had reached a new historical low of $3.19 per barrel (in 1973 prices). This decline in oil prices had a significant impact on Venezuela’s economy, particularly on per capita income, which had been in a steady decline between the mid-80’s and the present." http://venezuelanalysis.com/analysis/74 http://venezuelanalysis.com/analysis/74

jacobolus 11y ago

Norway fares better in large part because one Iraqi geologist managed to convince the nation to sock away its oil profits in a national trust instead of spending the money wantonly. It’s a testament to the Norwegian political system that they ultimately listened to his message and followed his advice. https://encrypted.google.com/search?hl=en&q=Farouk%20al%2DKasim https://encrypted.google.com/search?hl=en&q=Farouk%20al%2DKa...