Venezuelan Social Policy Reduces Poverty

Finance Minister Rodrigo Cabezas

Venezuelan authorities considered on Saturday that poverty reduction is a result of the country's social policy, which places this South American nation in the second place in the region, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Finance Minister Rodrigo Cabezas pointed out that the CEPAL report, published on Thursday, confirms that poverty was reduced by 18.4 percent and extreme poverty dropped 12.3 percent from 2002 to 2006.

In statements to the Zulia-based newspaper La Verdad, Cabezas noted the need to continue to work in that direction, as 22 percent of Venezuelan homes are still poor.

He pointed out that Venezuela ranks second in the continent, after Argentina, despite the country's paralyzation from December 2002 to February 2003 as a result of opposition actions that made the gross domestic product (GDP) drop nearly 30 points.

Cabezas confirmed that the goal of keeping inflation under 12 percent will not be achieved this year, but efforts are being made to keep that rate as close as possible to that target.

The Venezuelan official attributed the increase in inflation above predictions to a gap between demand and supply in September and October, when inflation increased to 13.6 percent.

The increase in demand for milk, sugar and cooking oil has been met by importing additional amounts of those products, the minister added.

Inflation, which reached 17 percent in 2006, is the main concern in Venezuelan economy, which grew 8.7 percent during the third trimester of the year, and reported a balance of payments of 3.94 billion dollars during that period.

Venezuela's GDP grew from July to September for the sixteenth consecutive trimester.