Venezuela needs to prop up economy to restore stability

Venezuela must overcome its economic crisis in order to tackle its political problems, especially amid growing public discontent and increasingly violent anti-government protests, a leading political observer said.

Luis Delgado, academic director of the Center for Higher Studies on Development and Emerging Economies, noted that the factors driving demonstrations in the capital of Caracas and other major cities are primarily economic: triple-digit inflation, currency speculations and a lack of basic goods.

"What is really dealing a blow to the government is the economic situation, the access to essential goods and service: food and medicine. As long as the government fails to resolve the problems, Venezuela is going to remain in a very problematic place," said Delgado.

Without a solution, the ruling United Socialist Party of Venezuela (PSUV) is likely to suffer during elections including the one for a new National Constituent Assembly (ANC) in July, followed by regional elections in December and presidential elections in 2018, he said.

President Nicolas Maduro's government needs to attend to the "everyday" problems Venezuelans are grappling with, said Delgado.

As rightist political groups are waging an economic war in order to regain power, the government has decided not to make a political counterattack, but to bet on the constituent assembly for rewriting the constitution to strengthen its support base and promote stability, he said.

It's a "great gamble," with Maduro surrendering nine of his top cabinet members, including Foreign Minister Delcy Rodriguez, so that they can run for the assembly, Delgado said.

"President Maduro is betting on his prominent political cadres, who have successfully carried out their responsibilities in government. It is Maduro's vote of confidence in the political process, so the National Constituent Assembly will have the necessary weight and strength to draft new laws," said Delgado.

The initiative to draw up a new constitution "seeks to motivate the country's different social sectors to participate, and to elevate political debate to the highest possible level, he said.

What is going to be created is a new national scenario where dialogue prevails over the confrontation that we are experiencing to date," added the expert.

However, the government could improve its standing by fixing certain key economic matters, said Delgado.

Anti-government protests have since April led to clashes in which more than 70 people have died.

(ASIA PACIFIC DAILY)