Communal economic system with legal shield
Sunday, August 15, 2010
The firm said Ecoanalítica aims to generate a model whose center is "new social economy" with interconnection between social production companies, state and private.

Maria Ramirez Cabello
mramirez@correodelcaroni.com
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The communal economic system deals with companies from all sectors communal economic system is strengthened at least legally. Through legislation, some already approved and the other to regain the National Executive seeks to give primacy to economic organizations promoted by the Community institutions. The goal is to move to private capitalists.

In its latest report, the company reiterated that the Executive Ecoanalítica not seek the elimination of private property, but the formulation of a new model supported by the State. "Today, the private sector is not clear what their role in this new model. Worse still, there is a significant group that believes that this model excludes it. While this happens, the private sector will continue lethargic and not dynamic print the economy. "

The past few quarters have been negative for the Venezuelan economy. With the fall of Gross Domestic Product (GDP), the most beaten sector has been private with falls of 4.5% in 2009 and 6% in the first quarter of 2010.

The desire for private gain ground on the project began with Simon Bolivar established in paragraph IV socialist productive model. Ecoanalítica explained that "aims to generate a model whose center is 'new social economy' with interconnection between social production companies, state enterprises and private, but where the first two have supremacy. They also have not ruled out the emergence of joint ventures .

Multiple Strength
Ecoanalítica According to this new economic structure has been promoted by the state, especially the executive and legislative branches. "For the first, through significant budget and even the establishment of ministerial structures as Economy and the People's Communes."

Indicate that from the legislative point of view, the effort has focused on the adoption of a set of laws that support the new system. In the National Assembly have produced at least seven laws that develop the concept of communal state. "This set of laws include the Organic Law of the People and Communities Act," says the firm.

In addition, the NA seeks to reclaim the Property Law Social and reform of the Commercial Code. "Last year, the Citizen Participation Committee drafted a proposal in which he detailed the operation of the different forms of ownership. Now MEPs want to go further and intend to include aspects such as the definition of the distribution system and trade of socially owned enterprises. "

Economic context
The firm notes that this new legal architecture has been in the context of a deterioration of the Venezuelan economy, after falling 3.3% of GDP in 2009 and 5.8% in the first quarter of 2010.

With a fall in investment of 3.3% in 2008, 8.2% in 2009 with a sharp decline in the fourth quarter and 27.9% in the first quarter of 2010, the law discourages zero capital injection by the private sector.

Ecoanalítica data ensures that investment is clear that an important component of the current economic crisis is the lack of private sector confidence. "

"In a context of macroeconomic deterioration, restrictions on foreign exchange and public spending is linked to the perception that private property does not enjoy full guarantees. This is aided by an aggressive policy of expropriation and the legislative agenda," the report said.

Months ahead

The Chavez government is facing a dilemma, says the report Ecoanalítica. "On one hand you try to deploy the new model, which in turn generates a stay in the private sector and, as such activity is still the most representative leads to a general deterioration in the country which is manifested in loss of support for President Chavez .

"Paradoxically, this is an incentive for the Executive to attempt to revive the economy over the medium term," the firm said, adding that "does not necessarily mean she does, but its Achilles heel is that the further progress of the model deepens socialist, the greater the degree of vulnerability of the Chavez political project long term. remains to be seen what it is willing to sacrifice Chavez and, therefore, what changes will be introduced to prevent the collapse of the country. "

"Months of interest are to come," finished.