Nobel prize winner praises Venezuelan economy, so suck it all you naysayers
Stiglitz, in Venezuela, Pushes Public-Private Balance (Update1)
By Matthew Walter
Oct. 10 (Bloomberg) -- Joseph Stiglitz, a Nobel economics laureate visiting Venezuela, said developing nations must strike a balance between public and private control of the economy.
After meeting in the presidential palace with Venezuelan leader Hugo Chavez, Stiglitz praised the South American country's success at distributing its oil income among citizens. He urged the government to ensure its economic policies are leading to sustainable growth.
``What's fundamental is to have a balance in the role of the market and the government in the economy,'' Stiglitz said at a forum on emerging markets sponsored by a local bank. ``We have to realize it's not just about setting interest rates, but also about supporting growth.''
The Nobel Prize winner said Venezuela's economic growth in recent years has been ``impressive.'' Chavez, a critic of the U.S. government and a self-described foe of capitalism, has cited Stiglitz in speeches this year warning about the U.S.'s ``irresponsible'' economic policies.
Venezuela, the fourth-biggest supplier of crude oil to the United States, had an 8.9 percent economic growth rate in the second quarter, its fifteenth straight quarter of expansion. Increased consumer demand and government spending has pushed inflation to 15.3 percent, the highest in Latin America.
Stiglitz said during his speech today that relatively high inflation isn't necessarily harmful to economic growth, and that central-bank autonomy shouldn't be ``excessive.''
Bank Autonomy
Chavez plans to formally do away with the Venezuelan central bank's independence later this year through a rewrite of the constitution.
Stiglitz praised China's and India's success in reducing poverty and maintaining economic growth, and criticized Brazil's high lending rates during his presentation. He said Venezuela has managed its oil boom better than Russia.
The economist's trip to Caracas follows a series of high- profile visits from U.S. citizens interested in the South American nation's so-called ``Bolivarian'' socialist revolution.
Actors Kevin Spacey and Sean Penn visited Caracas earlier this year and were received by President Chavez.
Actor Danny Glover is co-starring in a film sponsored by the Venezuelan government called ``Miranda Regresa,'' about the life of Latin American revolutionary hero Francisco de Miranda. The movie opens in Caracas theaters Oct. 12.
Stiglitz, who won the Nobel Prize in economics in 2001, chaired the U.S. Council of Economic Advisers under former U.S. President Bill Clinton. He is a professor at Columbia University.
Also, it's been confirmed now that a new addition to the constitutional reforms that are presently being debated but will soon go to the people for a vote will include a clause banning discrimination based on sexual orientation. You heard that right, a ban on discrimination against gay/lesbian/transgender people on the constitutional level. No other nation in the world has this now (edit: My bad...South Africa does. The ANC, though they sold out their Socialist roots in the economy, did not do so when it came to social policy). The clause will lead to gay marriage being legal too, perhaps.
Hugo is the man. A gangbusters economy with the profits going to the people and a progressive social stance. What more could one ask for?
President Hugo Chavez and peace activist Cindy Sheehan
By Matthew Walter
Oct. 10 (Bloomberg) -- Joseph Stiglitz, a Nobel economics laureate visiting Venezuela, said developing nations must strike a balance between public and private control of the economy.
After meeting in the presidential palace with Venezuelan leader Hugo Chavez, Stiglitz praised the South American country's success at distributing its oil income among citizens. He urged the government to ensure its economic policies are leading to sustainable growth.
``What's fundamental is to have a balance in the role of the market and the government in the economy,'' Stiglitz said at a forum on emerging markets sponsored by a local bank. ``We have to realize it's not just about setting interest rates, but also about supporting growth.''
The Nobel Prize winner said Venezuela's economic growth in recent years has been ``impressive.'' Chavez, a critic of the U.S. government and a self-described foe of capitalism, has cited Stiglitz in speeches this year warning about the U.S.'s ``irresponsible'' economic policies.
Venezuela, the fourth-biggest supplier of crude oil to the United States, had an 8.9 percent economic growth rate in the second quarter, its fifteenth straight quarter of expansion. Increased consumer demand and government spending has pushed inflation to 15.3 percent, the highest in Latin America.
Stiglitz said during his speech today that relatively high inflation isn't necessarily harmful to economic growth, and that central-bank autonomy shouldn't be ``excessive.''
Bank Autonomy
Chavez plans to formally do away with the Venezuelan central bank's independence later this year through a rewrite of the constitution.
Stiglitz praised China's and India's success in reducing poverty and maintaining economic growth, and criticized Brazil's high lending rates during his presentation. He said Venezuela has managed its oil boom better than Russia.
The economist's trip to Caracas follows a series of high- profile visits from U.S. citizens interested in the South American nation's so-called ``Bolivarian'' socialist revolution.
Actors Kevin Spacey and Sean Penn visited Caracas earlier this year and were received by President Chavez.
Actor Danny Glover is co-starring in a film sponsored by the Venezuelan government called ``Miranda Regresa,'' about the life of Latin American revolutionary hero Francisco de Miranda. The movie opens in Caracas theaters Oct. 12.
Stiglitz, who won the Nobel Prize in economics in 2001, chaired the U.S. Council of Economic Advisers under former U.S. President Bill Clinton. He is a professor at Columbia University.
Also, it's been confirmed now that a new addition to the constitutional reforms that are presently being debated but will soon go to the people for a vote will include a clause banning discrimination based on sexual orientation. You heard that right, a ban on discrimination against gay/lesbian/transgender people on the constitutional level. No other nation in the world has this now (edit: My bad...South Africa does. The ANC, though they sold out their Socialist roots in the economy, did not do so when it came to social policy). The clause will lead to gay marriage being legal too, perhaps.
Hugo is the man. A gangbusters economy with the profits going to the people and a progressive social stance. What more could one ask for?
President Hugo Chavez and peace activist Cindy Sheehan