I suppose one shouldn’t gloat about the misfortune of your enemies, but what’s happening in Venezuela — politically and economically — is enormously satisfying.
This horrifying report on the state of the Venezuelan economy in The Economist, and the prospects for the future, seems like what a nation that celebrated a loony, paranoid view of the United States deserves.
The government has admitted that in the 12 months to September 2015 the economy contracted by 7.1% and inflation was 141.5%. Even Nicolás Maduro, Chávez’s hapless heir and successor, called these numbers “catastrophic”. The IMF thinks worse is in store: it reckons inflation will surge to 720% this year and that the economy will shrink by 8%, after contracting by 10% in 2015. The Central Bank is printing money to cover much of a fiscal deficit of around 20% of GDP.
The government has run out of dollars—liquid international reserves have fallen to just $1.5 billion, thinks José Manuel Puente, an economist at IESA, a business school in Caracas. While all oil-producing countries are suffering, Venezuela is almost alone in having made no provision for lower prices.
This spells misery for all but a handful of privileged officials and hangers-on. Real wages fell by 35% last year, calculates Asdrúbal Oliveros, a consultant. According to a survey by a group of universities, 76% of Venezuelans are now poor, up from 55% in 1998. Drugmakers warn that supplies of medicines have fallen to a fifth of their normal level. Many pills are unavailable; patients die as a result. In Caracas food queues at government stores grow longer by the week. Shortages will get even worse in March, worries a food-industry manager. Violent crime is out of control.