Expropiations in Venezuela

The expropriations and the exchange control are in effect, economic policies that provide resources to the government for its equal distribution, or on the contrary, according to the economic consequences that the same ones have brought to our nation, these can be considered to be policies that have isolated progressively the Venezuelans from obtaining access to economic resources that allow them to reach a better quality of life?

My inquiry is due to the ongoing interventionist and/or state capitalistic economic model applied in Venezuela during the last years, considering these two policies to be the most emblematic of the above mentioned scheme, where these have been contributors to the contraction of the private sector in approximately 50%, according to the Central Bank of Venezuela's (BCV) last reports, causing a significant decrease in the non-oil exports which together to the increase of imports per capita, which has turned our economy more and more dependent on oil exports, has lead to an important decrease and disappearance of the foreign direct investment in the country, mainly, due to the lack of confidence that this scenario generates to the investors. Being these the consequences at macro levels, to micro effects this has caused our economy and our citizens, an increase in unemployment rates and a shortage of supplies in the requirement of goods, creating a excessive increase in prices, which has produced an inflation, thus becoming one of the highest of the world. Under this scenario, the country's Gross Domestic Product (GDP) during the last two years (2009-2010) has contracted in 3,3 % and 1,9 %, respectively, according to the data published by the BCV, turning the Venezuelan economy into the only economy in Latin America with negative balances.

From these results and with a hardly optimistic future scenario for the Venezuelan economy, it is possible to establish that these policies have lead to the increase of poverty in