“All institutions that have active life in the country must understand that the deepening of democracy can be achieved to the extent that power is brought closer to the citizen and the rule of law supports life in society.” Neuro J. Villalobos R.
The definition of an investment program aimed at the construction and expansion of physical structures, together with a special housing plan executed by private contractors and social housing promotion organizations, is a fundamental factor in generating employment. The creation of social organizations such as: cooperatives, popular microcredit banks, alternative and complementary production models, such as co-management and self-management, will strengthen the social capital of the nation and its productive potential. In the proposed development policy, productive growth and greater distributive equity must be simultaneous and not successive.
Solidarity is also expressed in economic participation, this is where the production of the nation’s wealth is organized. Along with the recovery of classic private or public, national or transnational investment, democracy will rely on the capacity and strength of new entrepreneurs, cooperatives, self-management of small and medium-sized industries, altruistic, as well as “green” companies that promote the use of non-polluting alternative energy resources. These are some of the new models that complement the role of private entrepreneurs and the State as drivers of economic development in a new vision of democracy.
State action must be aimed at constituting an effective bureaucratic structure, with adequate financial institutions for savings and investment, which promote a growing non-oil economy based on competitive chains and groups. Financial markets must be at the service of citizens, understood as a means to achieve an end, not an end in themselves. The financial crisis has quickly become a crisis of the real economy. The lack of financial regulation was the trigger for the crisis; fiscal weakness and considerable amounts of public debt have hampered the ability of many governments to formulate policies that respond to it.
Solutions to the crisis must be consistent with the fundamental values of justice and social solidarity. Restoring confidence in financial markets requires an innovative regulatory process that guarantees the security and stability of ordinary citizens – pensioners who lose their life savings, homeowners who lose their homes, workers who lose their jobs, and creation of social protection funds for the development of small and medium-sized businesses that facilitate credit and capital flows that allow them to guarantee technological development and stable, well-paid employment.
As a measure to guarantee permanent price stabilization, the application of a strict monetary policy is proposed that includes rigorous supervision of the “automatic monetization” or conversion of the oil dollar at appropriate levels, in order to avoid the undue expansion of the mass. monetary in the market. Achieve exchange rate stability through monetary, fiscal and financial policies, which, together, guarantee the achievement and maintenance of macroeconomic balances, for which true autonomy of the Central Bank of Venezuela.
Within the framework of a democratic government, institutional mechanisms must be created and put into operation that allow rationalizing the use of surplus income, directing a large part of it to productive investment, and preventing its use to finance current spending, which would It involves implementing an equitable tax system with clear and transparent redistributive purposes, and allocating part of the surpluses to macroeconomic capitalization funds and provision for contingencies.
In tax matters, measures will be adopted that include tax decentralization, the establishment of moderate tax rates, the implementation of VAT with a national and regional dimension, the modernization of the customs regime and the significant reduction of tax evasion. www.venamerica.org.
Neuro Villalobos
*Director of VenAmérica
