The death of pragmatism: Venezuelan economy

IT WAS billed as a “big shake-up”. With Venezuela immersed in its most severe economic crisis since 2003, President Nicolás Maduro's announcement of a major restructuring of his government raised hopes that he might have a plan to tackle the problem. Instead, on September 2nd Mr Maduro ruled out any “capitalist” solution, declared his economic policy “successful” and sidelined Rafael Ramírez, the only cabinet member proposing substantial change. Mr Ramírez, chairman of the state oil corporation and vice-president for the economy, had argued for a unified exchange rate, reducing the money supply and raising the domestic price of petrol. After months of dithering, the president finally gave his answer by moving Mr Ramírez to the foreign ministry and splitting his super-portfolio into three separate jobs, none of them in the hands of a political heavyweight. More…