Disappointment in the private sector to wave estatizaciones
Sunday, May 24, 2009
Do you have private property or does not fit in the so-called Socialism of the XXI century and preaches that deepens with the Executive estatizaciones? The question remains occupied by representatives of dozens of small and medium industries in Guyana that were erected under the auspices of the core businesses. The deepening of state control in economic growth raises numerous questions in the business sector in the region because they feel that the level of private sector participation is declining.

Maria Ramirez Cabello
mramirez@correodelcaroni.comEsta email address is being protected from spam bots, you need Javascript enabled to view it



SMEs were born in Guyana of the hands of the companies core spaces seem increasingly closed to private initiative as the state increases its control and intervene more forcefully in the economic scene, spreading his arms to all productive sectors of the .

The policy of nationalization and has touched estatizaciones Guiana productive land, as in the case of Sidor 60% of whose capital stock belonged to the Argentinean consortium Techint, until a couple of weeks.

On Thursday, the president issued the order to nationalize the production of briquettes Matesi, capital of Argentina, Orinoco Iron and Venprecar, operated by the Siderúrgica Venezolana (Sivensa) Comsigua, mostly of Japanese origin and Mexican steel tubes Venezuela (Tavsa ), also argentina, Ceramics and Carabobo.

Estatizar ambition, coupled with the recovery of more than 70 service contractors of the oil from PDVSA, on the effective date of the Act which reserves to the State goods and services related to the primary activities Oil, sets a precedent.

The government's idea is to replace private property to give more strength to social property, and that's going to control those areas in the hands of transnational companies, but also those in the hands of national and indeed happen to briqueteras as Orinoco Iron and Venprecar, which are of national capital.

Hence the business is discussed, as the situation is worrying and uncertainty for small and medium industries in the region, whose representatives have previously warned that "private property is predestined to disappear" and that this model of production place in the "socialism of the XXI century.

Development Vision
Although the Business Alliance analyzes in depth the stage, several businessmen expressed their fear and uncertainty for the increasing of the state.

The national director of Fedeindustria, Oscar Acosta, said that the seed that allowed the growth of small and medium enterprises were planted by companies, which are always provided the necessary support for these organizations to grow in the "land of Grace, whose potential was felt with a privileged location, hydraulic power and raw metallic and non metallic too.

"Now we are concerned, there is uncertainty and we believe you are tired of playing the entrepreneurs, because at no time spoke to support," he said.

"SMEs carried born from the hand of core businesses, but now operates a double standard. Who is going to invest without legal or economic freedom?" He questioned.

Five of the companies expected to be nationalized are members of the Chamber of Commerce and Industry of the municipality Caroní (Camcaroní). "We feel that every time the level of private sector participation is declining and that worries those who believe in private initiative," said the vice president of the guild, Nancy Gomez, who emphasized that the Government sends clear signals to the investor distrust.

Three dismal quarters
The scenario of mistrust, coupled with the various obstacles in access to foreign currency, declining incomes and deteriorating production has resulted in the contraction of manufacturing activity, which in the last two quarters of 2008 and the first three months 2009 has seen a gradual contraction.

According to the Central Bank of Venezuela, manufacturing fell 0.1% in the second half of 2008 and 1.1% in the first quarter of 2009, reflecting a deepening of the damage.

Dead Lyrics

In 2008 was approved by the decree enabling rank, value and power of the Law for Promotion and Development of Small and Medium Industry and other units of social production.

Support, encourage, promote, expand and restore the small and medium industries and units of social property, as key factors in strengthening the productive model of the country, giving technical assistance, comprehensive training, funding and ongoing monitoring, to ensure their participation and inclusion in the economic and secure funding to public or private financial institutions, banks and non-bank, through agreements, lines of credit, contracts for provision of funds, trusts and any other contract, are some of the purposes of the Act .

Sources from the business sector have ensured that the legal precepts of the body have not been fulfilled.