VENEZUELA: TOUGH ECONOMIC POLICY HAS SEVERE EFFECT ON PEOPLE

Описание: (22 Jun 1996) Spanish/Nat

A tough economic adjustment programme appears to be pushing more and more Venezuelans into poverty.

It's estimated that currently 80 percent of Venezuelans now live at or below the poverty line and that the number will increase as anti-inflation measures take effect.

More than any time in its history, the Venezuelan capital Caracas is a city of two faces.

On the one hand the affluent modern city -- and on the other, the vast slums climbing up the steep slopes of the surrounding hills.

Venezuela is in the fourth year of a steep recession which has seen a sharp decline in incomes.

This process has accelerated since President Rafael Caldera announced a "shock" programme on April 15 to reduce inflation.

The International Monetary Fund made tackling inflation a condition for a one an a half (b) billion dollar loan.

Experts had expected inflation to reach more than 100 percent by the end of the year.

Higher taxation, a sharp increase in petrol prices, a currency devaluation and a lifting of exchange controls have made life more difficult for Venezuelans, especially the poorest.

SOUNDBITE: (Spanish)
"I'm a father of a family and I can tell you we have many, many families living in this same poverty because each day things get worse and the people are just going down the plughole. And the government has just got to be more conscious about how much the people are suffering, even though they're hardworking."
SUPER CAPTION: vox pop shanty town dweller

At least half of the population of Caracas now lives in the shanty-towns surrounding the city.

More and more people are simply having to make do with living in rough shelters on waste land.

When this man lost his job his home went with it.

Now he wants the government to help the poor.

SOUNDBITE: (Spanish)
"So I think the government's got to do something for us, not just for us for all the people, foreigners and Venezuelans alike, because I've seen that on the banks of the River Guaire there are children in a state of total exploitation."
SUPER CAPTION: homeless man

In Venezuela's oil rich days, the state took care of everyone.

But now those who don't have a family to look after them find themselves alone in the world.

SOUNDBITE: (Spanish)
"I haven't a father, I haven't a mother, I haven't a grandmother, I haven't uncles or aunts, I haven't anyone. I'm an orphan, I haven't anyone so what can I do?"
SUPER CAPTION: homeless man

International financial organisations acknowledge the severe effects the reform programme is having -- but they say the tough fiscal medicine will eventually cure Venezuela's economic ills.

However, Venezuelans just see themselves getting poorer and poorer.

SOUNDBITE: (Spanish)
"In Venezuela for 20 years now we've been experiencing a progressive and powerful process of impoverishment. An aggressive, rapid and violent process, the likes of which has been seen virtually nowhere else in Latin America or the world."
SUPER CAPTION: Bernardo Gonzalez, Economist

While the debate continues over the merits of Venezuela's austerity programme, one fact remains.

Life for most people in Caracas continues to be a daily search for shelter and a battle against hunger.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...