http://whatsnextvenezuela.com/news/venezuelas-economy-ranks-second-to-last-in-latin-america/

Yet another study confirms what most Venezuelans already know – Mr. Chávez’s failed economic policies are hurting that country’s economy. The 2012 Index of Economic Freedom ranks Venezuela’s economy 174 out of 179. Among Latin American economies, Venezuela is second to last, ranking 28 out of 29 economies. To put it in perspective, Venezuela’s economy is less free than that of Burma, Iran, and the Democratic Republic of the Congo. The index was released earlier this month by The Heritage Foundation and The Wall Street Journal.

The 2012 index captures the dim state of affairs for the Venezuelan economy, listing a number of factors that contribute to that country’s economic repression. Topping the list is the near-total authority wielded by the Chávez government. Since Chávez’s 2004 political takeover of the nation’s Supreme Court, Venezuela’s judiciary has been little more than a rubber stamp for the executive branch, allowing Chávez to break contracts and expropriate private property with near impunity. After opposition candidates won a parliamentary majority in the 2010 elections, Chávez convinced the outgoing legislature to grant him authority to rule by decree for the next 18 months, giving him almost total control of the Venezuelan economy.

According to the report, economic freedom in Venezuela is further hampered by extensive state interference in the economy. The imposition of price controls and the meddling in financial markets disrupt the flow of goods and services, resulting in widespread shortages and soaring inflation (which exceeded 28 percent in 2011). Meanwhile, there is little transparency in government decision-making; the state enforces regulations erratically and often awards contracts without competition, further dampening the climate for private investors.

All these factors taken together contribute to unemployment remaining above 12 percent in Venezuela. In addition, as expropriations continue to increase and Venezuela’s economy continues to grow more slowly than that of any other country in the Americas, it appears that there is little hope for immediate improvement under Chavez’s rule.

To see the 2012 Index of Economic Freedom, click here.