VENEZUELA: Venezuelans say feel they are thriving because President Chavez's government has focused on narrowing wealth gap and increasing social spending

Record ID: 343497

  • Title: VENEZUELA: Venezuelans say feel they are thriving because President Chavez's government has focused on narrowing wealth gap and increasing social spending
  • Date: 4th May 2011
  • Summary: CHILDREN PLAYING IN A FOUNTAIN
  • Embargoed: 19th May 2011 13:00
  • Keywords:
  • Location: Venezuela, Bolivarian Republic of
  • Country: Venezuela
  • Topics: Domestic Politics,Lifestyle
  • Reuters ID: LVA1IJOSKI47PQ681NJQSHG1N3VR
  • Story Text: Despite mediocre economic data, Venezuelans feel they are thriving because President Hugo Chavez's government has focused on narrowing a wealth gap and increasing social spending, the country's statistics chief said last week.
    Earlier this month, a Gallup poll placed Venezuela fifth in a ranking of countries by the "well-being" their citizens felt.
    The poll came as a surprise to many because of lackluster economic results in the OPEC nation. Inflation was 27 percent last year and the economy contracted by 1.4 percent.
    But inflation has shown signs of slowing and some analysts expect it could go to as low as 20 percent this year.
    Many Venezuelans say yearly wage increases keep them competitive compared to workers in other countries.
    "Compared with Europe and Latin America, it's [wage increases] an advantage we have. We are in one of the first countries to have the ability to change the amount of money coming in [to one's personal finances] every year. This makes it easier too," said Caracas resident, Argenis Montes de Oca.
    The head of the National Statistics Institute, Elias Eljuri, said it is more than just wage increases that add to citizen's well-being factor. He says it is important to look at Venezuela's leftist government's policies aimed at redistributing wealth and social spending programs.
    "When you don't mention salaries and the raises being given to the minimum wage, of the increases being given to the scales, in the laborers account; given all of this you can't just analyze the increases in what people are getting in wages. You also have to look at the additional social benefits the population is getting and that is what causes polls like the one done by Gallup in which they asked for the level of satisfaction and well-being of the Venezuelan people which came in tied with Finland in fifth place because 64 percent of the people felt satisfied and think their situation will continue to improve over the next five years," Eljuri said.
    Eljuri, who has been active in left-wing political movements for decades, said the socialist government had spent $330 billion on health, education and social services since Chavez took office in 1999.
    The British trained statistician says the Chavez government has put "the human being first" and invested in health and education saying university attendance has more than doubled to 2.3 million students under Chavez.
    Chavez announced the wage increases on state television noting that he was increasing benefits while they were being slashed in the wealthy countries of Europe and the United States.
    "Today the minimum wage is the highest in Latin America while in the United States and Europe they are laying-off workers; eliminating benefits , pensions, many years of benefits, prolonging the retirement age. They are doing all of this in the United States and Europe while here, we are raising salaries and so on. The increase is notable; it is a 26 percent increase in the minimum wage," Chavez said to an applauding audience.
    Eljuri also said the inequality of wealth in Venezuela was now the lowest in Latin America and overall poverty had reduced to 26 percent from 70 percent in 2006.
    Critics of the Chavez government say the fall in poverty is in response to a massive surge in government income due to booming oil prices in recent years, rather than sustainable wealth creation policies.
    Caracas resident, Luis Perez, said despite the claims many Venezuelan workers still struggle to makemeet.
    "The people earning a minimum wage can't buy anything. They can't, they can't… For example, in order for someone on minimum wage to buy the basics they need to work really hard. In addition to their wage [job] they have to work really hard. Not me, I am fine, by that I mean I am comfortable. But I will tell you again, not everyone can live well in this country on this wage," Perez said.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: Footage contains identifiable children: users must ensure that they comply with local laws and regulations governing the publishing of this material.
Register