Venezuela: Economic Crisis Update

First off via the Economic Times, we learn that the International Monetary Fund is predicting inflation in Venezuela will hit 10 million percent.

The collapse has led to shortages of food, medicine and other basic goods, and prompted an exodus of Venezuelans that has overwhelmed neighboring countries. The IMF said on Tuesday the economy would contract 18 percent in 2018, consistent with its July forecast, and 5 percent in 2019.

Reuters has an article about how recent moves by the Venezuelan government has led to protests at the oil corporation PDVSA. Venezuela recently increased the minimum wage by 60-fold. Of course, this leads those who were making above minimum wage to protest:



But workers at PDVSA said their wages had not been bumped up accordingly, and that the cash-starved company had instead been paying one-off bonuses.

Currently, the head of the PDVSA is Major General Manuel Quevedo. With this, Reuters reports there are issues popping up between the military and those working at the PDVSA:

Thousands of oil workers are fleeing the state-run firm under the watch of its new military management, which has quickly alienated the firm’s embattled upper echelon and its rank-and-file, sources have told Reuters . . . Still, fears of dismissal and heavy military presence at PDVSA have kept protests in check in Venezuela, home to the world’s biggest crude reserves.

It is likely that Quevedo was put in charge of PDVSA so that the military wouldn't attempt to over-throw Maduro. They get to siphon off some profits from the oil industry to keep themselves wealthy. One side effect of this appears to be that a number of oil workers are walking off the job, perhaps angry that corruption that once was under their control has now shifted to the military. Also, it should be noted that the military isn't just running PDVSA. They also have troops on PDVSA grounds.

The Miami Herald and the Independent UK have articles up about the continued refugee crisis.

The Miami Herald puts a positive spin on things via comments from Un Refugee chief Filippo Grandi:

The Peruvian and Colombian strategy of trying to integrate the Venezuelans into the community is much more effective [versus camps], he said. “But then you have to help the community. This is where we cannot count on Peruvian resources or Colombian resources — we need to help them take this responsibility.”

The Independent UK puts a darker spin on things, indicating that Venezuelan women are at risk of sex trafficking:

Bethzaz Roca, 23, an architecture graduate, sits on a bench at Rumichaca soaking up the last of the evening sun while she waits for a bus to take her to Quito. Like many other young Venezuelan women fleeing the crisis in their country she is vulnerable to xenophobia, becoming a victim of sexual harassment, gender-based violence or even trafficking.

The UN is probably spinning things in a positive way for political reasons. You can't exactly slam Peru and Colombia for turning a blind eye to forced prostitution and expect them to work with you on dealing with this refugee crisis.