There was an interesting new post at Democracy Digest on the Venezuelan crisis.
President Nicolás Maduro ’s authoritarian government, long a practitioner of tight state control of the economy, has quietly and cautiously begun implementing free-market policies to tame hyperinflation and correct an economic contraction worse than America’s Great Depression. So far, that approach is providing a sliver of light to the moribund economy, The Wall Street Journal reports:
Sergi Lanau, deputy chief economist for the Institute of International Finance in Washington, warned that the measures undertaken in Venezuela are “not part of a well-thought-out adjustment program” and that stratospheric inflation could return if the regime abandons its improvised reforms. “Is this a turning point? I would say no, definitely not,” said Lanau, warning that the regime could abandon its improvised reforms. “Who knows in a few months if the decision will be ‘Well, we need money again. Let’s print some more.’ ”
Several smaller opposition parties have agreed to direct negotiations (CFR) with Maduro’s government after opposition leader Juan Guaido announced that a Norway-brokered peace process had been exhausted. Guaido called the decision a “maneuver” by Maduro’s regime to split the opposition. The move threatens to erode Guaidó’s efforts to hold together a coalition to confront the socialist administration, Associated Press adds (HT:FDD)
Get full story here.