At least I took solace from one of the bullet-points: "Endogenous development is not an import-substitution model." Except, then, I read this Bloomberg piece, and realized that when they say "endogenous development is not an import-substitution model" what they really mean - and it takes superior hermeneutic skills to crack this one - is "endogenous development is an import-substitution model."
Venezuela to Spend $3.25 Bln on 11 State IndustriesGRRREAT!
Jan. 30 (Bloomberg) -- Venezuelan President Hugo Chavez plans to spend $3.25 billion to create 11 state companies that will produce goods ranging from cotton to steel, part of an effort to create jobs and reduce imports.
The businesses will include a new state steel mill, an aluminum-laminating company and ventures in cotton, iron ore, mining, cement and paper pulp, Chavez said in a three-hour televised address in Caracas. Chavez said the companies will create jobs while furthering the South American country's socialist revolution.
``Zero corruption! Zero bureaucracy,'' Chavez said of the new companies. ``They won't have air-conditioned buildings. I'd prefer they be operating out of camps in the country.''
Venezuela, the world's fifth-largest crude exporter, imports about 70 percent of the goods it consumes. Chavez pledged this month to invest oil revenue in ventures that would help develop the nation's industries.
Basic Industries and Mining Minister Victor Alvarez said the new companies will create as many as 5,000 jobs.
``Many of the products will replace imports,'' Alvarez said during remarks before Chavez spoke.
The 11 companies will be part of the country's new heavy industries holding company, Compañía Nacional de Industrias Básicas.
The money for the investments will come from a special spending fund of international reserves created by the government last year, Chavez said. The fund has about $7.9 billion in it now, and $5 billion more could be transferred to it this year, he said.
How screwed up is this idea? Let me count the ways:
Sometimes it seems like Chavez is determined to revive ALL the discredited policies of the past, one by one, one after the other.