Resource rich, result poor –

If you work with the Government and are living in Caracas, you may have a lot of free time on your hands. Electricity storage association Last month, the Venezuelan Government advised that civil servants only need to work two days a week.

Unfortunately, it’s not because they are so efficient that they can do a week’s worth of work in less than half the time. Gas smoker ribs It’s because they are facing an energy crisis and are trying to reduce electricity use. Electricity in salt water experiment On top of everything else, the country is on the brink of an economic collapse despite being a heavy exporter of oil. Gas prices going up Or is it because of it?

Venezuela has seen its fortunes stumble recently, with inflation predicted to hit 400% this year. Electricity 101 pdf The Government is finding it hard to keep things running from day to day, let alone pull themselves out of this mess. Gas news in hindi Power outages are common, running water has become a luxury and shelves in supermarkets have become bare. La t gastrobar opiniones Public confidence in the President is very low, but he remains in power, with the opposition accusing him of manipulating the system to keep hold of the reins against the will of the people.

The irony is of course many of the policies that have brought the country to this state of affairs were populist in nature. 6 gas laws When the price of oil was high, former president Hugo Chavez was voted in on a manifesto of subsidising goods in order to reduce the burden on the people. Electricity outage When the price of oil went down, there wasn’t enough money coming in to pay for everything.

As a result, his successor President Nicolas Maduro allowed more money to be printed and used that to maintain subsidies. Electricity pick up lines This, in turn, devalued the Bolivar (the national currency), which in turn pushed inflation up, which then made things very expensive.

Although the Government has allowed the price of petrol to rise from one US cent per litre to 10 cents (60 cents for the premium grade petrol – what we we call RON 97), effectively things are still subsidised substantially below their true value – at times, below the cost to make the goods themselves!

Manufacturers and producers prefer to sell on the black market many times the official government price. Electricity estimated bills Those that don’t break the law bend it by getting around restrictions. Gas and bloating after miscarriage For example, mixing some garlic with rice makes “garlic rice”, which isn’t subject to price controls.

It is a sad observation that Venezuela has slipped into this economic morass despite having rich resources of oil. Gas unlimited sugar land tx Or perhaps, it is because of it. Electricity and magnetism quiz questions Economists talk about something called the Resource Curse. K electric jobs It stems from the observation that countries with plentiful natural resources (especially oil) tend to have slower economic growth and worse development outcomes than their less “fortunate” neighbours.

Of course, the obvious question is how has the Resource Curse affected Malaysia? Not as badly as it could have, it seems. E payment electricity bill mp When economists talk about Malaysia with respect to the Resource Curse, they generally commend the country’s New Economic Policy (NEP) as being successful at sharing the wealth among the poor. Gas arkansas Although detractors of the programme may find this surprising, the truth is that the number of Malaysians in poverty has dropped since the 1960s and overall wealth has risen.

Another thing that Malaysia has managed to do is to move away from being too dependent on natural resources, with manufacturing now accounting for about 40% of exports. 1940 gas station photos Admittedly, about 20% of our exports are still commodity- based, but compare that to Venezuela where 90% of the exports is based on petroleum.

How could we do better? A key differentiator between countries that manage their resources well and those that don’t is the strength of its institutions.

In a paper published in The Economic Journal, researchers found that resource-rich countries that were prone to corruption would push aggregate income down, whereas countries with strong institutions less prone to corruption would raise income levels.

The quality of public institutions referred to here relates to the efficacy of rule of law, perceived efficiency of government bureaucracy, extent of corruption in government, expropriation risk (how government can make claims on private property, such as land) and enforceability of government contracts (in particular when it’s against the government’s interest).

Thus, if you want to succeed as a resource-rich nation, the solution is simple: Create strong institutions. Gas jewelry Make sure they are transparent and operate independently from the government.

It’s not clear how the Venezuelan Government will turn the country around. Electricity year 6 Already the IMF is projecting that if nothing is done, there will be hyperinflation, with an increase of 1,600% within two years. Electricity dance moms Under the circumstances, strengthening institutions seems like waving a teaspoon against a firestorm.

Perhaps at the end of the day, if they could stop civil servants from working in departments that are prone to wastage and corruption, this might be a step in the right direction. Shell gas credit card 5 But then again, this is advice that should be taken up by all countries, not just South American ones on the brink of collapse.

Logic is the antithesis of emotion but mathematician-turned-scriptwriter Dzof Azmi’s theory is that people need both to make sense of life’s vagaries and contradictions.