Venezuela sinks ever lower as the state tightens its grip
Life in Venezuela is now unimaginably hard. In recent years, we have watched as this once prosperous country descended into poverty, chaos and political turmoil.
The United Nations estimates that more than two million Venezuelans have fled the country since 2015, with thousands more attempting to pour over the boarders of neighbouring countries every day. They're fleeing a country brought to its knees by the inevitable consequences of socialist dogma – with food, medicines and even water now considered a luxury.
Rolling power cuts mean that the few retailers stocking meat are unable to keep it fresh, so it rots in the store. Anyone hoping to buy any would need to turn up at the shop with a suitcase of banknotes, since inflation continues to cause havoc with the currency. Reports from the country's desperate hospitals are almost too depressing to watch, with patients simply lying on the floors of facilities that are unable to offer basic treatments.
These conditions have fuelled, in the words of the UN, the worst migration crisis in Latin American history. In keeping with the kind of fantasy statements issued by authoritarian regimes the world over, the President of Venezuela's constituent assembly said this week that reports of the mass exodus were “suspicious” – adding that global coverage of the migrant crisis was manufactured as part of “a campaign against our country.”
While the state cries 'fake news' the misery facing ordinary Venezuelans is very real – as is the threat posed to the few remaining private enterprises in the country.
Yesterday, the FTSE100 listed packaging giant, Smurfit Kappa, became the latest company to fall into the hands of the regime after an apparent failure to comply with the state's strict control of pricing. Two executives were arrested, charged with “price speculation and destabilising the economy.” Smurfit has operated in Venezuela since 1986 and directly employs 1,600 people.
That the company held out as long as this is nothing short of remarkable, considering the rate at which foreign investment and operations have dried up. In a statement yesterday, Smurfit said that in recent years it had “invested significant amounts of capital in its business…and dedicated significant financial support and resources to…education and health.” The future of the company's Venezuelan operation, and the fate of its employees, is now in doubt.
The state's grip grows tighter as the country sinks ever lower.