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Have Chávezs policies hurt the Venezuelan economy?

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Have Chávezs policies hurt the Venezuelan economy?

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He has seriously scared the foreign investors. No one wants to invest in a country where the president has already nationalized many companies and where he announced this past week that he was planning to nationalize Colombian companies. Why have Chávez’s economic and social policies failed? Because they are a mix of failed macroeconomic populism–based on a mix of demand policies coupled with price and exchange controls–with severe limits to property rights and entrepreneurial initiative, which come from the Marxist traditions of communist countries. The result is a phenomenal long-run stagnation such as in Cuba, where income per capita today is lower than in 1959. Chávez, though, has expressed his admiration toward the Cuban policies. What he likes about the Cuban model is that it has been successful in guaranteeing that the leader remains in power. Some commentators say that Chávez’s aggression toward Colombia’s [Alvaro] Uribe is a smokescreen to divert attention from Venezuela’s i

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