Global Security Studies Practicum

7 December 2011 President Chavez meets with President Hu Jintao of China in 2008. In a public statement on 6 December, President Hugo Chavez said China could surpass the US and become Venezuela ’s top trade partner. Growing economic ties between Venezuela and China have strengthened their strategic alliance in the last few years, amounting to US20 billion in trade. China previously agreed to more than US32 billion in loans to the South American country, while the latter increased oil shipments to China in return. Source:  http://www.washingtonpost.com/world/americas/chavez-china-story.html (Reliability: 9.0) Comment: The loan agreements with China provides key support to Chavez as he looks to finance spending in social programs ahead of next year’s presidential elections. Meanwhile, relations between the US and Venezuela remain strained. The US Embassy in Caracas is without an ambassador since July 2010 and the US has revoked the visa of the Venezuelan ...

30 Novemeber 2011 Shoppers stock up on toilet paper and at a supermarket in Caracas. Price controls announced by the Venezuelan government came into effect on 22 November, causing panic buying of regulated goods and leading to shortages of staples like coffee and toilet paper. The recent price cap placed on certain goods has led many to stock their homes and resell the products at a profit in the black market. Authorities announced they will visit stores to ensure availability of regulated products. Source:  http://www.bloomberg.com/news/2011-11-25/chavez-price-caps-spark-panic-buying-of-coffee-toilet-paper.html (Reliability: 8.5) Comment: Price control regulations took effect on 22 November in an attempt to slow Venezuela’s 26.9% inflation rate registered in October 2011, the highest in the Western Hemisphere. A freeze on 18 personal care items ranging from toothpaste to deodorant is expected to last until mid-January. The measure comes less than a year before preside...

23 November 2011 President Chavez announced price controls via a state TV address. The Venezuelan government  extended price controls to 18 products in a bid to curb the country's 27% inflation rate. In a state television address, President Hugo Chavez announced a price freeze to “protect people from capitalism” and prevent “the big monopolies, the big trans-nationals and the bourgeoisie [to] dominate and ransack the people.” Meanwhile, critics of President Chavez say high levels of public spending and currency controls are the factors contributing to inflation. The government first introduced price controls on food staples in 2003. Source:  http://www.bbc.co.uk/news/world-latin-america-15850784 (Reliability: 9.0) Comment: The extended economic measures by the Venezuelan government come less than a year before the October 2012 presidential elections. President Chavez’s latest price control initiative is likely to cement his popularity among the lower classe...