When did this country go wrong?
There is a big march today to push for the referendum mandated in the constitution that Chávez wrote and that now it's causing him so much headache. I have always said that Venezuelan problems have little to do with Chávez. They have to do with a long history. There is a game my friends and I play called When did this country go wrong? where we tried to point out the point in time that things started going really wrong in this country. My position has always been that it was in 1975 with the nationalization of the oil industry. Before that Venezuela had little inflation and strong financial responsibility. I've never had any proof of that. Now I do:
The graph above is Gross Product per Capita, the maximum is exactly at 1975. I am taking a course in finance because of my new job, just to learn what the company does, and that is where the graph come from directly from the Venezuelan Central Bank. The small improvement where the years I decided to come back from the US (1989-1992), just before Chávez attempted his stupid coup and screw us all. But even that slight improvement is nothing more than an illusion. Here is a graph comparing Gross Product per worker a sure sign of productivity...
You could argue that there were other events around 1975, but that wouldn't explain the whole graph. Nationalization as a source of inefficiency and corruption does...
© Copyleft 2006 Alfredo Octavio.
Last update: 1/19/06; 3:40:22 PM.