State monopoly competitive weakness of Venezuela settles
Written by Anggie Martinez / Photo: Miguel Frontado
Saturday, September 11, 2010
Ciudad Guayana .- macro conditions of the country situation, continue to weaken the possibility of economic growth and in the meantime, companies that generate revenue for the government and deepen their jobs back production.
This fact was supported by the report relating to the Global Competitiveness Index developed by the World Economic Forum, which showed that for the period 2010-2011 Venezuela is ranked 122 of 139 countries, with a score of 3.5 points on 7 placing behind the rest of Latin America.

For the previous period, 2009-2010, although it had the same rate, the country was in place 113 on 133 countries, which means that descended on the rate of nine posts on the competitiveness and hence on productivity.

This figure, according to analysts "is nothing strange," especially considering that despite expert guidance, the State is hanging than it should be the engine of the economy, ie the investors' capital the private sector.

The report indicates that another variable that determined the decline in competitiveness was the growing rate of inflation and political instability, restrictions, labor regulations and government bureaucracy.

All these factors, according to economist Fidel Hernández, deter investment of entrepreneurs, and with it the potential to create more jobs. As in the current conditions of growth of public sector enterprises, economists let them know your concern that the State incurred in a monopoly by concentrating factories of different industries under its control.

Energy and defense

The electricity crisis situation does not go unnoticed in the report as it is drawn to Venezuela in 117th place among 139 countries measured by the quality of the country's infrastructure.

Particularly, in terms of quality of electric service the country is ranked 124 among the 139, with an 2.3 mark on a global average of 4.4 points. It responds to continuing power outages and the specific case of the commercial sector that still has the restriction of working only after 11am.

Referring to the defense of property, located Competitiveness Index to Venezuela with a score of 1.8 points in July, among the 139 countries evaluated. On the conditions for doing business is awarded 3.48 points for a maximum of 7, while referring to the institutional environment in which elements are considered as the independence of the judiciary and the transparency of government management, he qualifies of "dismal."

The Data:

In the field of telecommunications, Venezuela stands out in the 55th to have 24 fixed telephone lines per 100 inhabitants, while in cellular telephony, the country is ranked 62 by taking an average of 92 per 100 cell lines inhabitants.