Monday, May 27, 2013

The Scoop on Poop in Venezeula

First milk, butter, coffee and cornmeal ran short. Now Venezuela is running out of the most basic of necessities – toilet paper.  Blaming political opponents for the shortfall, as it does for other shortages, the government says it will import 50 million rolls to boost supplies.

That was little comfort to consumers struggling to find toilet paper.  "This is the last straw," said Manuel Fagundes, a shopper hunting for tissue in Caracas. "I'm 71 years old and this is the first time I've seen this."

One supermarket visited by reporters in the capital was out of toilet paper. Another had just received a fresh batch, and it quickly filled up with shoppers as the word spread.  "I've been looking for it for two weeks," said Cristina Ramos. "I was told that they had some here and now I'm in line."

Economists say Venezuela's shortages stem from price controls meant to make basic goods available to the poorest parts of society and the government's controls on foreign currency.  "State-controlled prices – prices that are set below market-clearing price – always result in shortages. The shortage problem will only get worse, as it did over the years in the Soviet Union," said Steve Hanke, professor of economics at Johns Hopkins University.

Nicolas Maduro who was selected by the dying Hugo Chávez to carry on his "Bolivarian revolution", claims that anti-government forces, including the private sector, are causing the shortages in an effort to destabilise the country.  The government this week announced it also would import 760,000 tonnes of food in addition to the 50 million rolls of toilet paper.

Commerce minister Alejandro Fleming blamed the shortage of toilet tissue on "excessive demand" built up as a result of "a media campaign that has been generated to disrupt the country".  "The revolution will bring the country the equivalent of 50 million rolls of toilet paper," he said. "We are going to saturate the market so that our people calm down."

 

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