During 2012 the Chavez administration spent like there was no tomorrow and avoided making any corrections to the numerous distortions present in the Venezuelan economy. Spending went down in October after the Presidential election, but most economic decisions were still on hold.
In fact, even the expected issuance of a new Pdvsa bonds to supply SITME was delayed until after a possibke devaluation in January, as it made little sense to issue now with a devaluation so close in time.
Most expected announcements after the Gubernatorial elections and a devaluation seemed assured even before the end of the year.
Chavez’ renewed absence and the very likely possibility of a Presidential election in the first quarter of 2013, places all economic decisions on hold, including devaluation, gas price increase, foreign exchange system, Sitme, bond issuance and the like.
It is likely that no economic decisions will be seen until April and that spending will once again be irresponsibly placed on steriods in order to promote the need for a Maduro Presidency. The feeling of prosperity has to stay in place once again, as Venezuela will go into electoral mode for the emoteen time in fourteen years.
This will only make economic adjustments tougher and the new President, whether Chavista or not, will be blamed for them. Meanwhile the holy image of Hugo Chavez will be preserved in history asthePresident that brought prosperity and could do no wrong
even if all of the adjustments will be due to his idiotic and irresponsible management of the economy.
And Giordani’s role in creating this mess will likely be forgotten.