|The new Venezuela - |
Diversify to develop
In 2001 the Venezuelan government is predicting GDP growth of 4.5% and inflation of 10-12% as well as the return of foreign investment to the country.
It admits that its biggest challenge will be boosting economic recovery and guiding through new legislation in line with the new constitution.
|Venezuela offers many comparative advantages to investors with a long-term perspective, such as inexpensive and abundant raw materials and energy supply, a relatively modern road infrastructure and a strategic location for trade with the United States, Europe and South America.|
The Chavez government says that it will neither go down the capitalistic free market road nor revert to the sins of its state controlled past, but will look for a balance to meet the demands of 21st century globalization.
"In less than a year we have a new constitution, and new rules of the game. We have also stabilized the macro-economic indicators so that we can start to grow. If the economy grows and there is a better distribution of wealth we can help the people of our country, that is the greatest challenge we have to confront," says Jorge Giordani, Venezuela's Planning Minister.