Recently, Dr. Remi Piet — director of the Natural Resources and Infrastructure practice for Americas Market Intelligence — analyzed the growing chaos and seemingly incontrollable economic skid that the country is going into in an opinion piece for TRT World. Here is an excerpt:
Since 2015, paramilitaries supported by the government committed more than 500 extrajudicial executions, targeting mainly young people in poor neighborhoods. At the same time, more than 12,000 people were detained in the country with the constant persecution of activists, students, human rights defenders, media workers and members of the armed forces not proving enough their support to the regime. The video footage of militaries fleeing the scene during the attack on their president suggest that many would not die to protect an authoritarian regime.
Economically, the situation in Venezuela is even worse. Earlier in the week, the IMF confirmed a forecasted 1 million percent inflation rate in 2018 in Venezuela, a ratio similar to the episodes of hyperinflation experienced by Germany after the First World War, or by Zimbabwe in the late 2000s.
Faced with this uncontrollable skid, Maduro proposed last Wednesday a solution to the air of a magic formula: the removal of five zeros to the bolivar currency. The plan had already been announced in March when Maduro had suggested then to remove three zeros, but answers from the government cannot keep up with the collapse of the currency.
The new “sovereign bolivar”, expected for August 20 will hardly improve the daily life of millions of Venezuelans struggling to pay for food when they are lucky enough to find some.
Read the full piece here.