[Marxism] An Empty Research Agenda: The Creation of Myths about Contemporary Venezuela

[Greg McDonald]

http://www.cepr.net/index.php/publications/reports/an-empty-research- 
agenda-the-creation-of-myths-about-contemporary-venezuela/



An Empty Research Agenda: The Creation of Myths About Contemporary  
Venezuela

March 2008, Mark Weisbrot

This paper looks at allegations against the government of Venezuela  
in Foreign Affairs' recently published article, "An Empty Revolution:  
The Unfulfilled Promises of Hugo Chávez," (March/April 2008), in  
light of available data. It shows that some of the allegations are  
altogether wrong, and others grossly exaggerated and/or misleading.

The article argues that "a close look at the evidence reveals just  
how much Chávez's 'revolution' has hurt Venezuela's economy -- and  
that the poor are hurting most of all." As the article notes, this is  
contrary to widespread belief.

The Foreign Affairs article alleges - among other things - that under  
the Chávez administration inequality has increased in Venezuela, that  
poverty reduction has been slow relative to economic growth, that  
social spending has been a low priority for the Venezuelan  
government, that the poor have suffered declines in their health and  
living standards, and that Venezuela's current account surplus faces  
elimination due to import growth.

The CEPR paper shows that all of these allegations are wrong.

In the five years since the government of President Chávez got  
control over the country's national oil industry there has been a  
substantial decline in inequality, the poverty rate has been cut in  
half, and unemployment by more than half. Real (inflation-adjusted)  
social spending per capita in Venezuela increased by 314 percent from  
1998-2006. The current account surplus is still very large, at more  
than 8 percent of GDP. The paper also shows that the article does not  
present evidence to suggest literacy has not improved in Venezuela.

It would be remarkable if this macroeconomic and spending picture  
were compatible with the dire picture of Venezuela that the Foreign  
Affairs article paints; the CEPR paper shows that it is not.