Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Venezuela


International Outlook: Global Wrapup

VENEZUELA

The failed Feb. 4 coup attempt in Caracas highlights the risks that painful economic reform programs pose--even in one of Latin America's most stable democracies. President Carlos Andres Perez has lifted most price controls, scrapped government subsidies, and spurred foreign investment and the privatization of state industries. Although he has put up some good economic numbers, including 9% growth last year, the benefits aren't reaching the people. Venezuelans believe corruption is way out of hand and that they should be getting more from their oil wealth. Opinion polls show deep concern about inflation and crime. Strikes have crippled hospitals, courts, and schools in recent months.

Feeling the pinch themselves and hoping to tap popular discontent, rebel soldiers stormed the presidential palace and residence early in the morning and attempted to assassinate Perez. But the coup attempt was quickly thwarted by loyal troops.

Some analysts now worry that this shock could prompt Perez to abandon some of his reforms, to appease labor and special interests. But most predict that the tenacious leader will press ahead--as Argentine President Carlos Menem did after a coup attempt in 1990.EDITED BY STEPHEN H. WILDSTROM


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus