VENEZUELA - The Economy & The Oil Curse.
Oil in Venezuela now is regarded as a curse. Anibal Romero, a political science professor at Simon Bolivar University, has said: "This is a sick society...as a result of an illness called oil. Oil...has asphyxiated the rest of the economy and led the majority of Venezuelans to believe that if they are not rich, it is because someone has stolen what belongs to them". In polls, most people say the state must let all share the oil wealth.
In Oct. 2001 President Chavez ordered a halt in payments to a fund created by his predecessor Rafael Caldera to save extra oil revenue for use at times of low oil prices. In 1999 the Chavez government pledged to deposit half of all oil income in excess of $9/b into the fund. The fund's current balance is $7 bn. Payments will be suspended until the beginning of 2003.
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|Publication:||APS Review Downstream Trends|
|Date:||Nov 19, 2001|
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