Posts tagged with: venezuela


Pope Francis in Bolivia | VINCENZO PINTO/AFP/Getty

Acton’s Director of Research, Samuel Gregg, recently wrote a piece for The Stream about Pope Francis and his visit throughout Latin America. This part of the world is dominated by “leftist-populist governments.” Latin governments often combines left-wing politics with populist themes. Leaders’ rhetoric generally consists of anti-elitist sentiments, opposition to the system, and speaking for the common people. Gregg argues that this sort of talk generally puts one group against another: the rich against the poor, foreigners against nationals…etc. This is especially true in Chávez’ Venezuela where it has caused countless problems:

Contrary to the protestations of Hollywood celebrities, Venezuela is simply the most advanced down the path of out-of-control inflation, price-controls, shortages of basic necessities (such as toilet paper), the systematic use of violence against regime critics, and complete contempt for rule of law.


venezuela queueAccording to Daniel Pardo, citizens of Venezuela have figured out the fine art of queuing (that’s “waiting in line” for Americans.) It’s a good thing, too, since things like milk, sugar, soap, toilet paper and other essentials are always in short supply in this socialist country.

The government regulates the price of these goods. It doesn’t subsidise them – it tells the producer what they can charge. That might just about make sense in a buoyant economy but with inflation running at over sixty percent and the value of the currency plummeting, it appears producers are not only failing to make a profit but are operating at a loss. Similarly companies who export food to Venezuela have given up waiting to be paid by a government that’s down on its luck and are now selling their goods elsewhere.


While in Argentina for Acton Institute’s March 18 “Christianity and the Foundations of a Free Society” seminar, President and Co-Founder Rev. Robert A. Sirico conducted a wide ranging interview with La Nación, the country’s leading conservative newspaper. For more on the event, jointly sponsored with Instituto Acton Argentina, go here. What follows is an English translation of the interview. The original version, titled “Una sociedad con bajos impuestos es más próspera” in Spanish, may be found here.

La Nación: Why did you decide to devote yourself to economics in relation to ethics and religion?

Sirico: In the 1970s, while living in California, I was away from the faith and was involved in a number of leftist social change movements. Someone gave me some books to read on economics, which I did. This set off a chain reaction which resulted not only in rethinking my more socialist activism, but also in my return to the Catholic Church and eventually continuing on to seminary and the priesthood. Once ordained, I continued to write and speak about these matters and eventually formed an Institute which engages many scholars and writers of all religious persuasions to discuss these kinds of ideas. (more…)

Rioting in Caracas, 2014

Rioting in Caracas, 2014

In a country rife with economic and social ills, Venezuela’s Catholic bishops issued a strongly-worded critique of the government during their annual conference this week. According to The Wall Street Journal:

The church has long preached reconciliation in the bitterly polarized nation. But as the oil price plummets and economic disaster threatens, the bishops clearly are losing patience. Monday’s statement recalled the 43 deaths during antigovernment protests in early 2014, the “excessive use of force” by the state against protestors, and “the detention of thousands . . . many of them still in prison today” or awaiting trial.


Venezuelan President Nicolás Maduro

Venezuelan President Nicolás Maduro

Venezuela has been at the top of the news lately because of violnent demonstrations and government abuses (for background on the situation in Venezuela, check out Joe Carter’s post). Director of research at Acton, Samuel Gregg, has written a special report at The American Spectator commentating on Venezuela as well as Latin America as a whole:

Given Venezuela’s ongoing meltdown and the visible decline in the fortunes of Argentina’s President Cristina Kirchner, one thing has become clear. Latin America’s latest experiments with left-wing populism have reached their very predictable end-points. There is a price to be paid for the economics of populism, and no amount of blaming nefarious “neoliberals” can disguise cruel realities such as food-shortages, electricity-blackouts, endemic corruption, the disintegration of rule of law, utterly insecure property-rights, and wild inflation — all of which have helped Argentina, Venezuela, Bolivia, and Ecuador achieve the ignominious distinction of being categorized as “repressed economies” in the 2014 Index of Economic Freedom.

Certainly it’s not clear that Nicolás Maduro’s regime in Venezuela will lose power. As the Wall Street Journal’s Mary Anastasia O’Grady has underscored, the Castros who run the prison camp otherwise known as Cuba will do whatever-it-takes to try and prevent that. Nor is it certain that Argentines won’t vote for yet another Perónist who promises to solve everyone’s problems via government decree when presidential elections come due in 2015.

But if crises are indeed opportunities, now is the time for those Latin Americans who recognize populism’s flaws to think seriously about what comes next. One mistake would be to imagine that all that’s required are different economic policies. (more…)

venezuela-protestsWhat’s going on in Venezuela?

A wave of anti-government demonstrations has been sweeping through Venezuela since early February. There have been at least 13 people been killed, 150 injured, and over 500  arrested.

Where exactly is Venezuela?

Venezuela is a country on the northern coast of South America that borders Columbia, Brazil, and Guyana. The Caribbean Sea is along the northern border. The country, which is nearly twice the size of California, is is one of the ten most biodiverse countries on the planet.

What is the cause of the conflict?

The protests began earlier this month when students demanded increased security after a female student alleged she was the victim of an attempted rape. (Venezuela has the fifth highest murder rate in the world and crime plagues many of its urban areas.) The protestors are also concerned about record inflation (official figures suggest yearly inflation in December 2013 stood at 56.2%) and shortages of basic food items. One in four basic goods is currently out of stock, according to the central bank’s monthly scarcity index released Feb. 10. Milk, for example, is reported to have been missing from supermarket shelves for months.

Blog author: jcouretas
Wednesday, January 26, 2011

When we think of rule of law failure, countries like Zimbabwe and Somalia come to mind. But as Acton Research Director Samuel Gregg points out in his latest piece over at Public Discourse, rule of law can also be subtly eroded in wealthy countries. The negative consequences for risk-taking, entrepreneurship, and long term investment, he says, can be far-reaching.

Risk is an inherent part of the workings of market economies. But Gregg notes that’s not the same thing as uncertainty:

Measurable risks are . . . no deterrent to the making of economic choices. If we take them seriously, they help us to calibrate our economic choices to be consistent with our responsibilities, resources, and opportunities. The same measurements also allow us to distinguish between prudent risk takers and the reckless, and reward them appropriately. Uncertainty, by contrast, involves those risks that cannot be quantified. It can occur either because of the sheer complexity of a given situation or because the subject matter cannot be reasonably measured. As long as a situation of uncertainty persists, it will deter many people from even considering whether to take economic risks.

Uncertainty in America, according to Gregg, is being magnified by the sheer complexity of laws such as the United States Internal Revenue Code:

A tax code of this size and complexity which is subject to so many sources of potentially conflicting official and semi-official explanations is bound to embody significant contradictions, and offers considerable scope for arbitrary decision-making. Uncertainty is the result. It’s also valid to claim that the same tax code may well be impossible for large numbers of honest law-abiding citizens to understand and comply with—not to mention difficult for conscientious civil servants to administer justly. As a result, many people may unintentionally violate the law or simply choose to forgo making any number of potentially wealth-creating opportunities for fear of violating the law.

Another example is the thousands upon thousands of pages of legislation being passed by Congress every year. As Gregg writes:

Then there are the rule-of-law problems associated with the sheer volume of law that directly shapes American economic life. The 2010 healthcare reform legislation, for instance, amounted to 2,700 pages. Not far behind it in length was the 2010 financial overhaul act: a mere 2,300 pages. More than a few legislators have confessed to never having read either piece of legislation in its entirety. Nor should we assume any great familiarity on their part with the thousands of pages of legislation which these acts superseded, integrated, or reinterpreted. The possibility that many laws governing healthcare and financial services have subsequently been rendered unclear, inconsistent, and impossible to comprehend is high.

These erosions of rule of law, Gregg says, result in large incentives not to take risks and not to make long-term investments. It also encourages entrepreneurs to look elsewhere for a more friendly, stable and comprehensible legal environment.

Read the piece in its entirety at Public Discourse.