“Made in Venezuela” capitalism
By Antonio Padrino
That a car in Venezuela costs three times more than in Peru or in the United States and that one must wait six months to acquire one – through a bribe – is not all that surprising. And despite the fact that the prices for basic foods are regulated, unscrupulous merchants raise them, or that products from Mercal [1] are hawked on the black market also ought not to surprise us.
It’s a perfect combination: crooked traders, bribable officials and idiotic consumers. The government is blamed and we’re incapable of boycotting flashy merchants.
The monopolies/oligopolies, smuggling, abandoned acreage, political patronage, weak institutions, port economies, bureaucracies and so on, are elements typical of the capitalism imposed on Venezuela’s Fourth Republic that – if not corrected – may end up affecting the twenty-first century socialism decreed for the Fifth.
“Tell me what brand you use and I’ll tell you who you are,” would seem to be the definition of status for Venezuelans yesterday and today. They’ll do anything to possess iPads, laptops, iPhones, iPods, HDTV, Wii, Blackberries, Hummers, Botox, whatever. Not even the reddest of the red can totally escape the temptation of the capitalist demon.
Venezuelan capitalism is atypical, not remotely resembling that of France, England, the United States or Norway. In these countries, consumers, merchants and government officials generally comply with the rules and count on the backing of solid institutions. This is why generalized opinions about today’s capitalism would be the same as ignoring the differences that existed between Soviet and Chinese socialism.
Criollo capitalism is worthy of study. It’s a looting, inefficient multiplier of poverty and generator of nouveau riche. When businessmen and union members unite to topple a president instead of attending to their businesses and workers, there can be no doubt that some kind of strange gene must exist in “Made in Venezuela” capitalism.
[1] Mercal is a mission (program) established by the government of Hugo Chávez in 2003 in order to provide food items at lower prices to the Venezuelan population.
Antonio Padrino, a Venezuelan economist, lives in Miami. He was previously the Bolivarian Republic of Venezuela General Consul in Houston, Texas.
