Douglas Bolivar, Caracas, Venezuela
The global economy is struggling with high inflation, problems in supply chains, widespread poverty. One of the most debated topics are energy and specifically oil prices. In that context, eyes have turned to Venezuela, the country with the biggest global oil reserves.
On the situation and perspective of the Venezuelan economy, we spoke with Ramón Lobo. Lobo is former Minister for Economy and Chairman of the Central Bank and serves currently as member of the Venezuelan National Assembly.
How do you evaluate your country’s economy currently?
We can say that the Venezuelan economy finds itself in a progressing, flourishing state. This is the result of the resistance we have shown in the last years. Today, the economy is being born again. Under the leadership of President Maduro, all internal productive forces, state owned or private, have been mobilized again.
But today, even institutions like the Bank Credit Suisse, not very affiliated to the Bolivarian Revolution, declare that Venezuela’s economy has a bright future. The IMF expects 1.5% GDP growth, Credit Suisse even up to 20%. This clearly shows that the national economy is on the path of growth.
We have already in the past year achieved the turn around. We are now expecting the expansion of the productive apparatus, resulting in more supply of consumer goods and services, and on that way, we will achieve a more stable and better exchange rate as well.
The United States’ sanctions have affected our oil industry deeply, both concerning the earning of foreign currency as well as measured in our national currency, the Bolivar.
First in 2015, when President Obama declared Venezuela a “threat to national security”, and then in 2017, when President Trump imposed new sanctions, our economy entered a blockade. The access of our state-owned oil company PdVSA to international financial markets was limited. Our access to raw materials and more importantly, to capital goods, which we predominantly import, was hindered.
But we have learned in this blockade. We have improved our system. We have gained experience. We have created new, unusual alliances. There is Eurasia. There are Türkiye, Iran, China and Russia. Recently, President Maduro has undertaken a trip to Eurasia. These alliances have permitted us to sail our ship to a happy and peaceful harbor and to overcome the effects of these sanctions.
Is the future of the global economy in Eurasia?
There is no doubt about that. In terms of GDP, the major part of global growth is achieved in China. They produced, even under the conditions of the pandemic, a growth of 7%.
To China, we have to add countries such as India and Russia, despite all the attacks it suffers currently. And of course there is the Middle East with its connection to Europe.
Besides, there is the BRICS. We are hopeful that, when Lula da Silva wins the elections in Brazil, BRICS will regain the initiative it had a decade ago. Currently, we are already working on reestablishing commercial relations with Brazil.
Can Türkiye play a distinguished role for the Venezuelan economy?
It is already playing that role. Türkiye has been threatened, and the country is facing a difficult situation within the NATO. But Türkiye always has marched forward. And we have developed important commercial relations with Türkiye.
For us, Türkiye is in the same camp as China, India, Russia and Iran. And we have marvelous relations with these countries.