Venezuela's poverty decline regarded as fragile
Experts assert that reported drop in poverty relies on oil income
To some experts, social investment is not the point at issue. What really matters is that oil revenues seem not to be utilized as appropriate.
"Distributing oil revenues in a way that citizens can make use of could result in temporary well-being, yet in the event that such income plummets, so will the current well-being we have enjoyed," says Henke García, director of consultancy firm Econométrica.
Without taking social support aside, García remarks, it is necessary to use oil resources for the development of infrastructure, education, health, and public utilities. Such an investment not only meets people's basic needs, but also leads to sustainable well-being.
Based on the Population and Housing Census 2011, Venezuela's critical poverty accounted for 6.97% in 2011 versus 11.36% in 2001. Non-critical poverty slipped from 21.64% in 2001 to 17.60% in 2011.
Economist Ronald Balza trusts the official results, yet he warns that the drop in poverty is associated with the oil boom, therefore "it could be fragile."
Translated by Jhean Cabrera
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.