To stand a real chance, Venezuela needs a solution that inspires at least a million of its emigrants, to immediately return to their homeland.

Sir, Ricardo Hausmann writes that for Venezuela “there is no road to recovery without the freedoms that underpin the market mechanism and without international financial assistance to kick-start imports and output. That will only happen after Mr Maduro leaves and this regime ends” “Maduro will not reverse an unprecedented economic collapse” August 24.

Indeed, but since so many of our landsmen are dying because of hunger and medicines, and the country is losing so much of its educated youth and that might find opportunities in other nations and never return, we need something much faster, much more drastic.

Hausmann states “by over-borrowing during the [oil] boom years: at over 600 per cent, Venezuela has the largest foreign public debt to export ratio in the world." If we include all the accounts payable hanging around it could even be much worse than that. 

My proposal is to capitalize on our creditors weaknesses. After excluding all those who clearly have no legal enforceable claims, and there are many of them, I would call all Venezuela’s creditors and tell them:

“Here, take all Venezuela’s oil extraction and refinery assets. Put these to work as fast as you can, so you have a chance to collect something of your credits, as fast as you can; and pay out all royalties that will be due for any oil extracted, directly, in equal parts, to all Venezuelans living in Venezuela, as fast as these can be deposited in their respective debit cards.

Then the Venezuelans would, with that money demand what they most want and need, and the market forces, in a country so blessed with so many other resources than oil, and freed from the interference of its odious redistribution profiteers, would respond, almost instantaneously.

A dream? Perhaps, but also the last thing I want for my country is a bailout a la Greece, one that leaves all our youth indebted forever.

And who knows, perhaps then even Ricardo Hausmann would leave Harvard Kennedy School and return home. I sure would!

http://theoilcurse.blogspot.com

http://unsustainabledebtsustainability.blogspot.com

http://petropolitan.blogspot.com

@PerKurowski

Sometimes there is even more homeland business going on outside the borders than within.

Sir, Tim Harford writes “The world economy is far more integrated now. Some of this globalization is independent of national borders…”, “The Business of borders” March 15.

Indeed, in 2007 I estimated the earnings of the emigrants of El Salvador working in the USA, to be 67 percent higher than the GDP produced in El Salvador by those who remained in their country.

Emigrants/Immigrants of the Whole New World Unite!

Sir if John Gapper can ask “Workers of the New World Unite!”, December 13, when referring to scriptwriters and designers then clearly the same rights should be bestowed on those that voting with their feet and with their remittances are perhaps even more the real workers of the New World, though they still lack a unison voice…. Emigrant/Immigrants of the Whole New World Unite!

Since in gross earnings the emigrants/immigrants definitely represent one of the major economies in the world, they (and the global corporations) are really the ones who should next be empowered with Chairs at the Executive Boards of the World Bank and the International Monetary Fund.