News / Americas

Maduro Government 'Occupies' Venezuela Electronics Chain

President Nicolas Maduro, right, with Adan Chavez, (left) brother of the late president Hugo Chavez, and Venezuela first lady Cilia Flores, visit the late leader's tomb in Caracas, Venezuela, Nov. 5, 2013.
President Nicolas Maduro, right, with Adan Chavez, (left) brother of the late president Hugo Chavez, and Venezuela first lady Cilia Flores, visit the late leader's tomb in Caracas, Venezuela, Nov. 5, 2013.
Reuters
Venezuela's President Nicolas Maduro has ordered the “occupation” of a chain of electronic goods stores in a crackdown on what the socialist government views as price-gouging hobbling the country's economy.

Various managers of the five-store, 500-employee Daka chain have been arrested, and the company will now be forced to sell products at “fair prices,” Maduro said late on Friday.

State media showed soldiers in one Daka shop checking the price tags on large flat-screen TVs. And hundreds of bargain-hunters flocked to Daka stores on Saturday morning to take advantage of the new, cheaper prices.

“We're doing this for the good of the nation,” said Maduro, 50, who accuses wealthy businessmen and right-wing political opponents backed by the United States of waging an economic “war” against him.

“I've ordered the immediate occupation of this chain to offer its products to the people at fair prices, everything. Let nothing remain in stock ... We're going to comb the whole nation in the next few days. This robbery of the people has to stop.”

The measure, which comes after weeks of warnings from the government of a pre-Christmas push against private businesses to keep prices down, recalled the sweeping takeovers during the 14-year rule of Maduro's predecessor Hugo Chavez.

Maduro, who took over from Chavez in April after the latter's death from cancer, has stopped short of more outright nationalizations, in this case saying authorities would instead force Daka to sell at state-fixed prices.

“Inflation's killing us. I'm not sure if this was the right way, but something had to be done. I think it's right to make people sell things at fair prices,” said Carlos Rangel, 37, among about 500 people queuing outside a Daka store in Caracas.

Rangel had waited overnight, with various relatives, to be at the front of the queue and was hoping to find a cheap TV and air-conditioning unit.

Soldiers stood on guard outside the store before it opened.

Critics say Venezuela's runaway inflation - the annual rate is now 54 percent, the highest since Chavez came to power in 1999 - is due to economic mismanagement and the failure of socialist policies rather than unscrupulous retailers.

Price distortions

Opponents also blame excessive government controls and persecution of the private sector for shortages of basic goods ranging from flour to toilet paper, and for price distortions and corruption caused by a black-market currency rate nearly 10 times higher the official price.

“This ridiculous show they've mounted with Daka is a not-very-subtle warning to us all,” said a Venezuelan businessman who imports electronic goods and is an opposition supporter.

Under price controls set up a decade ago, the state sells a limited amount of dollars at 6.3 bolivars, but given the short supply, some importers complain they are forced into a black market where the price is nearly ten-fold higher.

“Because they don't allow me to buy dollars at the official rate of 6.3, I have to buy goods with black market dollars at about 60 bolivars, so how can I be expected to sell things at a loss? Can my children eat with that?” added the businessman, who asked not to be named.

Maduro showed astonishment at a fridge on sale in Daka for 196,000 bolivars ($31,111 at the official rate), and said an air-conditioning unit that goes for 7,000 bolivars ($1,111) in state stores was marked up 36,000 bolivars ($5,714) by Daka.

Daka officials could not immediately be reached for comment.

Maduro retains support from large sections of the population, particularly the poor who benefit from massive state welfare programs and who remain loyal to Chavez's dying exhortation to support his chosen successor.

But the growing economic problems in a country which is a member of OPEC and has the world's largest oil reserves, have begun weighing on his popularity, which dropped 10 points in recent months to 41 percent according to a recent survey by pollster Datanalisis.

The economy is the No. 1 issue going into local elections next month that are the 50-year-old Maduro's first test at the polls since narrowly beating opposition leader Henrique Capriles in the April presidential vote to replace Chavez.

Capriles, 40, is trying to cast the Dec. 8 nationwide municipal elections as a referendum on Maduro, whose legitimacy he still refuses to accept, alleging fraud at the poll.

“They don't say how they will fix inflation, shortages, devaluation. Incompetence rules,” he tweeted this week in the latest of a stream of attacks on the government.

Many economists are predicting a devaluation of Venezuela's bolivar currency after the elections, perhaps in early 2014, but senior officials have repeatedly denied that.

“Venezuela's immense resource base means it is not on the verge of collapse or default,” said David Smilde, a sociology professor at the University of Georgia who has studied Venezuela for 20 years, in a recent blog on the economy. “But it is sliding into serious economic dysfunction and that could seriously undercut Chavismo's viability as a democratically supported political project.”

You May Like

Hong Kong Democracy Calls Spread to Macau

Macau and Hong Kong are China’s two 'special administrative regions' which gives them a measure of autonomy More

After Nearly 2 Years, Pistorius Remains Elusive

Reporter Anita Powell reflects on her experience covering the Olympic athlete's murder trial More

Kenyan Coastal Town Struggles With Deadly June Attacks

Three months after al-Shabab militants allegedly attacked their town, some Mpeketoni residents are still bitter, question who was really behind the assaults More

This forum has been closed.
Comment Sorting
Comments
     
by: Martin Gill
November 12, 2013 9:32 AM
"“Inflation's killing us. I'm not sure if this was the right way, but something had to be done. I think it's right to make people sell things at fair prices,” said Carlos Rangel, 37..."

Just like all liberal politicians and liberal voters or socialist supporters, just do something, regardless of whether it will fix the problem or not! So long Venezuela, it was entertaining knowing you.


by: Sentinel from: USA
November 09, 2013 10:44 PM
It's happening here in the US too, just not as blatantly.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Obama to Ramp Up Anti-Ebola Efforts in Africai
X
Luis Ramirez
September 15, 2014 11:01 PM
President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video Obama to Ramp Up Anti-Ebola Efforts in Africa

President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

More Americas News

UN: Enforced Disappearances Continue Unabated Globally

UN Working Group on Enforced Disappearances says more than 43,000 cases from 88 countries still remain to be clarified
More

Hurricane Odile Weakens, Still a Threat to Mexico

Odile could drench Baja California with as much as 46 centimeters of rain by Friday
More

Powerful Hurricane Threatens Mexico's Baja California

US forecasters have downgraded Odile to strong Category 3 storm, with top sustained winds of 205 kilometers per hour
More

Hard-hitting Films Tackle Homelessness at Toronto Festival

'Time Out of Mind,' 'Shelter,' and 'Heaven Knows What' all focus on characters struggling with homelessness, addiction on the streets of New York
More

After Tax Reform Triumph, Chile's President Faces Rockier Road

'Honeymoon' may be over for Michelle Bachelet as protests rise and economy, security outlook worsen
More

Mexico: Texas Governor's Border Deployment Politically Motivated

Rick Perry says he is sending up to 1,000 troops to Mexican border to deter criminal activity caused by drug cartels
More