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    A cashier counts Venezuelan bolivar notes at a street market in downtown Caracas, Venezuela

    Scholar on Venezuela Economic Measures: Currency Change Won’t Solve the Problem

    © REUTERS / Ueslei Marcelino
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    Venezuela’s government has released a new plan to address the issue of hyperinflation, which has decimated the country’s economy. Sputnik spoke with Dr Andrea Oelsner, Lecturer in Politics at the University of San Andrés, Buenos Aires, to find out if it would be successful or prove to be a failure by President Nicolas Maduro.

    Sputnik: Do you think that the new economic measures implemented by Maduro will help alleviate the crisis?

    Dr Andrea Oelsner: I think that it’s very unlikely. The problem is not a currency problem which the change of currency could potentially solve; the problem is both deeply political and economic. The change of currency won’t solve the problem, from what I’ve been reading, if anything it will make it worse.

    Sputnik: How has the government held power for so long?

    Dr Andrea Oelsner: There are many factors that allow them to hold on to power very well in a sense, which is surprising. They are still in for personal gain and extracting resources from the country, I also think they are holding on to power for dear life in a sense, the alternative may be a Gadhafi scenario. People are hungry and angry, so once they lose control it will be difficult to predict what will happen. They may face charges in front of the international criminal court in The Hague. The UN has received reports that say that the government has abused human rights and recommend that the case should be submitted for further investigation. The regime still has the capacity to buy the loyalty of the armed forces as they sustain the regime, there is also no real international pressure.

    The views expressed in this article are those of the speaker, and do not necessarily reflect those of Sputnik.

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    crisis, Nicolas Maduro, Venezuela
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