“An odyssey that never seems to end” was how Bustamante described the everyday challenge of finding basic foodstuffs. “What good are the controls if it becomes so difficult to find basic products?” asked the mother of three. “It’s the government’s fault, not the owners of neighborhood grocery stores.” Venezuelans have long had to shop around to find scarce foods, and lately consumers have had particular trouble finding staples like chicken, cooking oil, sugar and coffee, as well as toilet paper and some medicines. The shortages are a potential political vulnerability for the government while President Hugo Chavez lies bedridden in Cuba, unheard from more than a month after his fourth cancer operation.
Such economic questions about his socialist model are adding to the political uncertainty sparked by Chavez’s illness and long absence. However, there have been no signs so far that the political crisis is aggravating the economic one.
Chavez’s government has sold cheap, subsidized staples at state-run markets for years to reinforce support among the poor. It says price controls, established in 2003, are essential to protect the poor by countering inflation while government-established exchange rates for foreign currencies are needed to prevent capital flight. Those currencies, chiefly the U.S. dollar, are used to pay for Venezuelan oil.
Many economists say the shortages stem from mismanagement of the economy through the price and currency controls. Official accusations of hoarding and price speculation aim to deflect blame for failed economic policy, government critics argue.—Reuters