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Everything You Need To Know About Venezuela’s Food Crisis

Venezuela has gained a bad fame over the last decades; corruption, drug trafficking, alarming crime rates, censorship, dictatorship. So much to talk about, but famine is the most characteristic problem of them all. Maybe because it’s incredibly absurd.

If you don’t know anything about Venezuela, let me fill you in: it’s a country, right next to Brazil and Colombia, in South America. No, we are not small. No, we don’t lack resources. We have the biggest proven petroleum reserve, uranium, coltan, great potential for agriculture, great potential for tourism. Long story short, we could develop an economy in any field we want. We used to be, not too long ago, one of the best economies in Latin America and an established democracy. We had a promising future, until socialism arrived, 17 years ago.

How we got here? An extended analysis:

Massive arbitrary expropriations occurred and immediately after the now-public enterprises turned completely inactive. When an enterprise was not expropriated, they would still have to face regulations and controlled exchange of currency, this meant, that when they needed dollars to buy prime matter or machinery, they often were not permitted to exchange the amount they needed or anything at all. These two factors alone killed the national production and imports and caused constant devaluation and the highest inflation of the world (now, over 700%). As if it’s not enough, even if an enterprise was successful enough to be able to buy dollars from the black market (for a very expensive price) to get their business going, they could be forced by the government to sell it for a lower price than what it cost producing them, this is excused by the government with “The Organic Law of Fair Prices” sustained by the insane premise of the supposed intentional harm orchestrated by the private sector and the United States, also named by them as “Economic War“. Consequently, many enterprises had to close, which is why today the responsibility to provide food for the whole Venezuelan population (30 million) practically lies on solely ONE big private company named “Empresas Polar”, which can hardly manage the task, for obvious reasons. Note: The government “regulates” prices for services too, for example, Medical ones. Even if the government didn’t regulate them, they couldn’t charge what it truly should be, simply because very few could afford it. Note that charging in dollars it’s illegal in Venezuela, you can only charge in Bolívares.

Empresas Polar workers protesting the denial to exchange currency in order to buy prime matter. Credit: El Impulso, Juan Brito.
One of the most known cases of expropriation. Franklin Brito starved during 59 days as a protest until he died, demanding his land back. Credit: Unknown.

This is where the scarcity kicks in. Kilometric lines to buy food are formed. The humiliation that Venezuelans have to go through to get their groceries is unbelievable. “4 per person”. “You can’t buy this product again until 2 weeks from now”. “Today is not your turn to buy”. Some of the systems that have been used to keep control of who buys what and when, are fingerprint scanners, marked numbers in arms (non-permanent) and the final number that pertains to your citizen ID (The day you get to buy certain products, will depend on what number your ID ends in).  It’s important to say, all of this does not only apply to food, also to basic need products like toilet paper, medicines, toothpaste, soap, etc.

Venezuelans in a line to buy food in “Garzon”, a supermarket in San Cristobal. Credit: Reuters, Carlos García.

 

Poster indicating which day you can buy food depending on your ID. Credit: Diario La Verdad, José Urdaneta.

The shortage of food, however, is not the only problem. But also how much Venezuelans are making. The minimum wage, recently raised, that will be on practice on November 1 of the current year, is Bs. 177.507,43 + Cestaticket Bs. 279.000 (Cestaticket can only be spent on food). This, converted to the dollar prices of the black market (which is, in practice, the only way to get them and in the amount you need since mostly only government officials get the privilege to the much lower government-established exchange rate), is $11,05 PER MONTH and only $4,29 of it can be used in expenses different than food. Consider that the prices in here in normal conditions are the same than the prices in the rest of the world, so no, it’s not that you can get dinner with a cent, it’s that millions of Venezuelans have had to figure out and will continue to figure out how to live with about $7,91 (previous minimum wage, raised on September 1 of 2017) for a whole month. The price of the dollar raises every day, which is why in no much time, this updated minimum wage ($11,05) will be less that $10 again. Venezuelans keep track of it with an app called “Dollar Today”.

This deeply reflects the population. Here are some quick facts that wrap up how bad the situation is:

In the meantime, Venezuela seems to be a dead-end. After a proven fraudulent regional election (the percentages don’t even add up 100%) that were not going to get us anywhere anyway, now out of 23 states + capital district, only 5 are under control of opposition governors out of which 4 betrayed the Nation submitting them to the strongly protested illegal new constitution. The only governor that stayed loyal to the people’s wishes, Juan Pablo Guanipa of Zulia, will now be dismissed by the Government. All politicians are doing is “considering” whether to participate in municipal elections or not although already 2 fraudulent elections took place only in 2017. With a brainwashed military, a bought political “opposition”, no more international attention and an even more oppressed population, there seems to be no hope at all.

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