6 ms·
Venezuela is a country that is simply being looted and there isn't a lot of economic theory needed to explain simple theft. The Bolivar isn't freely convertibl
by slv77 10y ago
Venezuela is a country that is simply being looted and there isn't a lot of economic theory needed to explain simple theft.
The Bolivar isn't freely convertible except on the black market so there isn't any market (from free or otherwise) to talk about.
How it works is pretty simple. A connected businessman applies to the government to import medicine at the official exchange rate. He then takes those USD and contracts with a shell company he controls in Panama to buy antibiotics and provides all the paperwork. A small amount of those funds are then used to buy antibiotics on the open market and ship it to Venezuela. The profits are distributed around to othe shell companies controlled by various government officials to keep access to the favorable exchange rates.
Once they arrive in Venezuela the local paper writes up a story about the shortages and mentions the connected businessmen and officials as heros for importing needed medicine. Pictures are taken showing them inspecting the cargo as its offloaded.
But it there is still money to be made! Prices on antibiotics are regulated so a lot of the shipment is diverted into the black market which siphons up bolivars at the black market price.
Those are then traded back at the official favorable rates and the process repeats.
It's a brilliant scheme because the masses don't understand enough to understand how they are being robbed. Pick their pockets and then blame it on the "market" or "imperialist." Doesn't really matter as long as its a convenient.
And it gets better! Eventually things get so bad that people start sending relief supplies and cash which creates new opportunities to loot.
- matt_wulfeck 10y agoIt's almost like it's easier to loot and entire country when the government controls a significant amount of it.
- hourislate 10y agoYou only have to look at any socialist country in the last 80 years to understand what is going on. This is how Eastern Europe survived for decades. The diaspora kept everyone back home alive while those in Government became rich. How did it work out for Russia, 80 years of communism and everyone had to line up for a loaf of bread and bar of soap. Venezuela managed to do it in a few short years...
- shrewduser 10y agoand yet so many people think capitalism = evil and socialism = good. it's quite bizarre.
- Samis2001 10y agoEh, socialism and communism may seem to offer better end results but the difficulty of implementation without being exploited / converting to another ideology is evidently hard, perhaps impossible.
- Synaesthesia 10y agoSocialism is simply a philosophy that puts people before money, it has nothing to do with dictatorships or authoritarianism which this is.
- wooter 10y ago> Socialism is simply a philosophy that puts people before money That is a platitude that doesn't mean anything. Abolishing a pricing mechanism doesn't put people ahead - it destroys resources. Capitalism has done more for the people in the last 300 years than any other system in the last 30,000.
- Synaesthesia 10y agoFor which people? If you look at India, 200-300 years ago, it was a major manufacturing hub and much wealthier and better-off than it is today.
- ptaipale 10y agoIndia surely was comparatively wealthier, or less poor. When compared to other countries. But in absolute terms it was very, very poor compared to today.
- BurningFrog 10y ago