How Venezuela's New Economic Czar Plans to Boost the Economy
Venezuelan President Nicolás Maduro chose Trade and Industry Minister Miguel Perez Abad to replace leftist sociologist Luis Salas as the country's new economy vice president amid a severe economic crisis looming in the embattled country.
On Monday evening, Maduro announced his decision to appoint the businessman, who hails from the eastern part of Venezuela, to help the country survive the severe recession that threatens to affect even the country's food supply.
"I have decided to name the minister for industry and commerce, companion Miguel Perez, as the new vice president for productive economy," the Venezuelan president said during a televised announcement cited by Reuters.
He further revealed that the newly appointed vice president for economy will make announcements on Tuesday but left details unsaid.
Perez, whom Reuters described as someone 'more inclined towards reform' compared to his predecessor, made noise when he sought an open discussion with the private sector as well as the unification of the South American country's multiple exchange rates.
However, the effect of his appointment as the new economic czar remains unseen considering the depth at which the country's economy has sunk.
Economic analysts see the move as only one of many factors needed for economic adjustments to bear fruit.
"For an economic adjustment to be successful, many things are needed. Two of those are competence and credibility. Both are in short supply," said Henkel Garcia, a Venezuelan economist.
Francisco Rodriguez, Bank of America's senior Andean economist, is one of several economic experts who believe that having an economic czar from the private sector for the very first time raises hopes of positive changes in the country.
Despite this, he also revealed in a note to their clients last week that they are expecting currency devaluation and an increase in the price of gasoline in the country.
"While we expect these changes to move policy in a positive direction, they could well fall short of the major overhaul needed to deal with the current liquidity crisis," he wrote.
As expected, however, some are not happy with Perez's appointment, particularly those who support the 39-year-old former economy vice president and the Socialist revolution.
"People like Perez Abad are sending the party bases to the dogs," said sociologist Carlos Lanz, an avid supporter of Salas, during a forum at the Bolivarian University of Venezuela where the former czar taught political economy.
However, Maduro revealed that Salas left office for family reasons and would be occupying a new and different post in the Cabinet, according to the Wall Street Journal.
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