Caracas:
In what came across as a welcome relief, the Venezuelan government announced on
Sunday that thousands of workers in Venezuela will receive a pay rise of 30
percent as the country’s socialist government works towards improving its
deteriorating economy.
The introduction
of the minimum wage is aimed at calming tensions caused by runaway inflation
and food shortages. President Nicolas Maduro’s government has been rocked by
protests in response to the crisis and demands from the country’s opposition to
stand down. Maduro said: “We made this to defend the Venezuelan people against
the unconventional economic warfare led by the right-wing opposition to
destabilize the country.”
The leader said that as of May 1, the
minimum wage will jump to 15,051 Bolivars per month (US$1,505), while the
monthly food ticket to 18,585 Bolivars (US$1,858). This is the 12th increase
made by Maduro.
The
government, which models itself on the leftwing ideology of its late leader
Hugo Chavez, still has significant support among the country’s poor. However,
even the most dedicated supporters are feeling the pinch these days. Many have
turned to government-sponsored, self-sustaining programmes to deal with the
shortages.
Venezuela has been hit by the plunge
on oil price. The price per barrel of crude oil has dropped from US$108 to
under US$35, a drop of nearly 75 percent.
This situation has affected
Venezuela’s economy as oil revenue is needed to provide everything from basic
services to the continuation of the social programs.
However, the government of President
Maduro has refused to implement austerity in order to protect people, but the
drop has undeniably impacted the overall economy.
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