Maza Zavala proposed reform of the state
Thursday, 09 October 2008

J.D. Maza Zavala said that if oil falls below $ 80, "could not sustain the Venezuelan economy"

The former director of the Central Bank of Venezuela, Domingo Maza Zavala, considered as "a salute to the flag" the austerity measures announced by the national government, and suggested the desirability of a reorganization of the State apparatus which he felt was hipertrofiado. "In terms of the austerity that has trumpeted President Chavez is a salute to the flag because they limit the salaries of senior officials does not mean much, reduce spending on phones, cars and cell phones does not mean anything, should be undertaken a reorganization of the State" and insisted that eliminates red tape units that have no raison d'etre and hinder the public service.


What is the actual reduction of the budget, "the economist wondered then pointing out that" it would redirect the budget and concentrate resources on investment and social development to which the state has adequate opportunity to eliminate corruption. Corruption is corroding the state budget. " He added that inflation is another factor that erodes the ability of the state.

Emphatically stress that if oil falls below $ 80, "could not sustain the Venezuelan economy. We are on the brink of the ravine and would have to prepare for the contingency."

We must tell the truth

Maza Zavala reviewed the impact that the financial crisis will have on the world and in Venezuela. Criticized the attitude of the authorities against the global debacle. "The government is determined to show a different picture to Venezuelans because it hurts from danger and the risks it is best to the truth."

He said that the Financial palliatives that in the United States and Europe are taking are not going to solve the crisis, but to alleviate it and they will not prevent it from becoming a true economic recession.

That is why we showed concern about the indebtedness of Petroleos de Venezuela, despite high revenue recorded. "PDVSA will not be able to continue borrowing because financial markets can not provide even a dollar and be more demanding payment of the debt. PDVSA does not have to borrow when you are receiving income largest in its history."

Similarly, considered inconvenient for the creation of several banks with countries like Iran, China and Russia because they are nations which are also affected by the global crisis.

"China and Russia are on the same path of the hurricane, the Moscow stock exchange has fallen estrepitosamente which means that capitalism in Russia is subject to the same risks of capitalism, Western China, too, so you may as China and Russia if they They are trying to save itself from the crisis. "

He warned that the domestic tax capacity will also be affected by the realignment to take place as a result of lower oil and this capacity should be encouraged through a plan of economic recovery and development, he said.

"The rationality, common sense, prudence, caution, is what should prevail because we are really exposed to the winds and coletazos of the financial earthquake we found unprepared," he warned.

Maza Zavala has doubts that meets the growth target of 6% said that the Planning Minister, Haim The Troudi, because he recalled that "the basic food basket which is mostly of interest to the population is in the order of 40% it destroys the purchasing power of the people, the drugs every day go up in price, the automotive parts are not achieved, the problem of housing is unaffordable for the vast majority of the population, and increases the inefficiency of public services. " Agencies

Strengthening economic fundamentals

Again, the former director of the BCV recommended strengthening the economic foundations of the country "to produce here what we are importing, to cut imports and there is no outflow of capital that destroys the prospects of domestic investment and for that we must create a climate of security in the country. "

On the possibility that financial autonomy to the communal councils, said it is impossible because the community councils have no resources, "will depend financially from the state budget, that is not possible, it is something that is inconceivable."

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