http://www.bostonherald.com/news/opinion/op_ed/view/20100518shortages_hit_venezuela_dictators_re-election_not_assured/excerpted
Venezuela has the largest oil reserves outside the Mideast and some of the largest known natural gas deposits. Yet the country is an economic shambles thanks to the mismanagement of its buffoonish and authoritarian president, Hugo Chavez.
This past week he further crippled the economy by effectively banning private bond trading to stop Venezuelans from sequestering savings in dollar accounts.
He instituted currency controls of 2.60 bolivars to the dollar for priority goods and 4.30 for nonessential items. The black market rate is 8.20 bolivars to the dollar. Not surprisingly, there is a thriving black market, widespread shortages and soaring inflation of over 30 percent
In 2003, when Chavez began experimenting with price controls, Venezuela was self-sufficient in beef. Last year it imported over half of what it consumed. After his police began rounding up butchers for selling beef at more than the state mandated price, beef disappeared almost altogether from the stores.
The same has happened with coffee. After expropriating roasting companies, coffee warehouses and plantations, production in coffee-producing Venezuela fell by over 16 percent last year.
Because of lack of investment in the national grid - and with some help from a drought - electricity is rationed and there are frequent blackouts and mandatory power cuts. Similarly, since he barred Western firms from participating in Venezuela’s oil industry, investment has fallen
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