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.
TEXT SIZE - +
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

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

More Americas News

NY Times: US Deportation of Illegal Immigrants Declines

Obama has come under increasing pressure from immigration advocates who have accused him of moving too slowly on immigration reform
More

Argentina's Fight with Bondholders Reaches US Supreme Court

The case concerns whether investors can force banks with which Argentina does business to disclose information about the country's non-US assets
More

As Fires Die Down, Chileans Return to Ravaged Valparaiso

Many of victims in the city, part gritty port and part colorful retreat, were poor people in houses perched high on the city's remote hills
More

Kidnapped Venezuelan Journalist Freed

Globovision television journalist Nairobi Pinto was freed in city of Cua, 8 days after being kidnapped near her home in Caracas
More

Canada Taxpayer Data Stolen in Heartbleed Breach

Private information of about 900 people stolen from nation's computer systems as result of vulnerabilities
More

Photogallery At Least 12 Killed in Chile Fire

President declares state of emergency as firefighters battle blaze in port city of Valparaiso
More