[R-G] Fwd: Venezuela: New Report Examines Economy and Social Indicators During the Chávez Decade

[Anthony Fenton]

Begin forwarded message:

>
> Press Release
>
> Report Examines Economy and Social Indicators During the Chávez  
> Decade in Venezuela
>
> For Immediate Release: February 5, 2009
> Contact: Dan Beeton, 202-239-1460
>
> Washington, D.C. - The Center for Economic and Policy Research  
> (CEPR) released a report today on the Venezuelan economy on the  
> tenth anniversary of President Hugo Chávez's tenure, which began in  
> February 1999.
>
> "Looking at the economic data and social indicators, it's not  
> difficult to see why Chávez remains popular and has won so many  
> elections, despite overwhelmingly hostile media coverage," said Mark  
> Weisbrot, Co-Director of CEPR and lead author of the report, "The  
> Chávez Administration at 10 Years:  The Economy and Social  
> Indicators."
>
> Among the highlights:
>
> The current economic expansion began when the government got control  
> over the national oil company in the first quarter of 2003. Since  
> then, real (inflation-adjusted) GDP has nearly doubled, growing by  
> 94.7 percent in 5.25 years, or 13.5 percent annually.
>
> Most of this growth has been in the non-oil sector of the economy,  
> and the private sector has grown faster than the public sector.
>
> During the current economic expansion, the poverty rate has been cut  
> by more than half, from 54 percent of households in the first half  
> of 2003 to 26 percent at the end of 2008. Extreme poverty has fallen  
> even more, by 72 percent. These poverty rates measure only cash  
> income, and do not take into account increased access to health care  
> or education.
>
> Over the entire decade, the percentage of households in poverty has  
> been reduced by 39 percent, and extreme poverty by more than half.
>
> There have been substantial gains in education, especially higher  
> education, where gross enrollment rates more than doubled from  
> 1999-2000 to 2007-2008.
>
> Over the past decade, the number of social security beneficiaries  
> has more than doubled.
>
> Real (inflation-adjusted) social spending per person more than  
> tripled from 1998-2006.
> The report also examines the current economic situation and how the  
> country will be affected by lower oil prices. It concludes that  
> because of Venezuela's large accumulation of foreign exchange  
> reserves, it is unlikely to run into balance of payments problems  
> even if oil prices remain depressed for much longer than analysts  
> and oil futures markets are anticipating. The most important and  
> immediate challenge for Venezuela, according to the analysis in this  
> report, will be to implement a timely and adequate fiscal stimulus  
> package to counteract the effects of the global recession. Over the  
> long run, the analysis also sees a need for a more competitive  
> exchange rate in order to diversify away from oil.
>
>
> ##
>
>
> The Center for Economic and Policy Research is an independent,  
> nonpartisan think tank that was established to promote democratic  
> debate on the most important economic and social issues that affect  
> people's lives. CEPR's Advisory Board includes Nobel Laureate  
> economists Robert Solow and Joseph Stiglitz; Janet Gornick,  
> Professor at the CUNY Graduate School and Director of the Luxembourg  
> Income Study; Richard Freeman, Professor of Economics at Harvard  
> University; and Eileen Appelbaum, Professor and Director of the  
> Center for Women and Work at Rutgers University.
>
> Center for Economic and Policy Research, 1611 Connecticut Ave, NW,  
> Suite 400, Washington, DC 20009
> Phone: (202) 293-5380, Fax: (202) 588-1356, Home: www.cepr.net
>
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