República Bolivariana de Venezuela.

Ministerio del Poder Popular para la Educación Universitaria.

U.A.H “Universidad Alejandro de Humboldt”.

Inglés Instrumental III

Sección: DCM0602CI

Facultad de Ciencias Económicas y Sociales.

CONECTORES EN INGLÉS

Profesor:

Prieto Gonzalo

Caracas, Enero de 2019.

Economic and commercial situation of Venezuela since 1983

On February 18, 1983, it went down in history as the day in which the
country's economic history changed, as until that date the stability and
reliability that had characterized the Bolivar since the second decade of the
20th century were officially maintained, because of a sudden devaluation
against the US dollar.

The fall in oil prices, the flight of capital and the economic policies assumed
by the then president Luis Herrera Campins, were some of the immediate
causes of this situation that took the Venezuelans by surprise.

On February 2, 1984 Dr. Jaime Lusinchi (AD) assumed the presidency of the
Republic. The day of the inauguration, Jaime Lusinchi announces his
intention to fulfill the electoral promise of being the president who always
speaks truthfully and of exercising a policy of austerity. Therefore, it would
implement a policy of reorganization of the financial system, reduction of
public spending, elimination of the fiscal deficit and stabilization of the
exchange market. When referring to the external debt, Lusinchi affirmed that
"Venezuela will pay everything it owes, up to the last cent".

In June of that same year the National Congress approved the so-called
enabling act, which empowers the president to take the measures he
considers necessary to overcome the crisis.

On March 1, 1987 a restructuring agreement of the Public Debt was signed,

with the International Creditors Bank for $ 21,200,000.00.

On February 2, 1989, the presidency of Carlos Andres Perez took office for
the second time and on February 18 of that same year, the President
announced to the country, an Economic Adjustment Program, which was
called "paquetazo," which was a set of neoliberal economic measures: the
IMF's adjustment program: interest on free rates ; increases utility rates;
Public salaries increase by 5%; progressive elimination of tariffs on imports;
reduction of the fiscal deficit to 4%; Flexibilization of labor relations. Inflation
80.7%, the real wage reduced its value by 40%, unemployment by 14.0%,
and the level of poverty remained at 80.42%.

On February 27, 1989, El Caracazo or Sacudón emerged, which was a series

of strong protests and riots in Venezuela related to the economic measures
announced and the increase in the price of gasoline during the Carlos Andrés
Pérez administration, in which it was extended to other cities near the Capital.
In this situation, and the inability of the local police to control the looting, the
Perez government used the Army as a means to contain the violent events
that occurred throughout the city, which activated a riot control strategy
known as "Plan Ávila". This measure had a high cost since the Armed Forces
incurred an excessive repression that left, according to figures, 276 dead and
many injured or even more.

On December 6, due to the disillusionment of Venezuelans by traditional

parties, Hugo Chávez is elected president of Venezuela in free elections, by
the MVR Party.

In 2001 President Chávez uses an Enabling Law to implement land

redistribution measures although private companies and some labor sectors
are concerned that Chávez is trying to concentrate political and economic
power in the state. Chávez intensifies anti-US rhetoric particularly due to the
terrorist attacks in New York and Washington in September. Between 2002
and 2003, the oil strike promoted by Fedecámaras, the directors and workers
of Petróleos de Venezuela, PDVSA, the opposition parties of the Democratic
Coordinating Coalition, the Confederation of Workers of Venezuela,
organizations such as Sumate, and the media private communication.