character length test

It is obvious that the Venezuelan government is doing more than just
talking to Cuba. However, Cuba has had to deal with shortages in the
past, some due to drastic changes in the economy (the collapse of the
soviet union) where instantly the economy was cut in half, and where
they couldn't afford oil for agricultural production, because the US
conditioned the remaking of Russia with at the time not trading with
Cuba. Because of limited foreign exchange Cuba was forced to deal with
shortages, and it did so in ways that rationed what was their rather
than raising prices, and having the rich who pay for it having, and
those who can not going with out. Similarly in Venezuela shortage of
electricity would generally lead to a rise in prices, which the rich
could afford and the poor could not. And so by rationing it, while
trying to provide future sources of electricity they are trying to get
through this.

Again this article is incredibly biased. Though their is real problems
with government beaurocracies in provision of electricity in some
cases, in capital intensive industries where the cost of entering the
market and the scale needed to compete is high, their is little
competition in the free markets. Thus sometimes it is cheaper and more
efficient to provide it through the government, b/c the government can
sell it at closer to cost rather than at the huge profits that can be
demanded under markets that aren't competitive (for instance a patent
on medical goods provides a private monopoly which allows companies to
charge double the price it will go for once the patent runs out). The
same thing happens with electricity. If a private company owns the
dam, and the cost of building a dam ensures lack of competition, the
private company may make incredible amounts of money, whereas if it
were public you could sell the good far closer to cost. In all these
cases you have to weigh the degree of private versus public interest.
I live in Manitoba Canada, and our dams are public and our electricity
sells for cheaper than basically anywhere in North America, b/c though
Manitoba Hydro still makes a profit, it does not make the same degree
of profit that comes generally with natural monopolies. It also means
that the profit distribution in Manitoba Hydro is more equal b/w
workers and managers, also a good thing. We are a developed country
and so we don't suffer from shortages, and we have a range of skilled
workers to adequately do their jobs.

Their is real problem with beaurocracy in Venezuela, especially given
the failures in education prior to Chavez and the dislike for Chavez
among the old educated elite. They need to overcome this through some
reaching out to the old elite, through education of the poor, and in
some cases it may be most efficient to privatize things with price
controls (in cases where natural monopolies might otherwise exist).
Their is no easy answers in underdeveloped countries, and when we
present biased information we don't help the situation.

Of course their is more nuance to this story than others would
suggest. The main stream media will pick up Chavez's discussion with
Cuba on how to deal with the energy crisis but ignore, the more
comprehensive approach taken by the country. First of the energy
crisis is a result of 30 some years of disinvestment, and investment
in infrastructure has actually increased under the Chavez
administration, when the economy went from 25 years of actual
percapita decline in GDP to the growing again. It is also not
mentioned that the shortages are due to a major drought and when you
depend on hydroelecticity as Venezuela does, and you are not a rich
developed country, you are more effected by obscure circumstances.
Very little of us for instance are blaiming Haiti right now anyways
for the people that are in need because we know that they are a poor
country, and are struck by abnormal circumstances. Similarly if the
inadequacy to solve the problem is caused by pro-US policies as in
Haiti, it does not disparrage the US, whereas if the problems happen
to a government that is not supportive of the US we ignore the good
things that are happening and focus on the problems.

To focus particularly on Chavez relationship with Cuba in dealing with
the problem is also misleading.
" On Sunday, president Hugo Chavez announced the creation of a special
fund of $1 billion for the strengthening of the national electricity
system; implementing 59 generation and distribution projects, and 50
operation and maintenance projects...
Also yesterday the minister for Energy, Ali Rodriguez, reported that
Unit 5 of Termozulia, a large thermoelectric plant in Zulia state,
began functioning, adding 140 megawatts to the electricity grid. The
government also inaugurated a new thermoelectric plant in Merida
state, which will generate 12 megawatts and benefit 33,500 people in
the area.

The plant in Merida, one of the areas most affected by the blackouts
over the last few months, cost BsF 22.7 million.

In addition, the government is planning to add 1,692 megawatts between
now and May, and 2,315 megawatts in the second half of the year.
Chavez urged the relevant ministers to speed up the installation and
purchase of electricity generation plants.

“It’s about making more effort to purchase new plants from Russia,
China, Japan and Germany, and bring them here, “ he said.

He added that due to the prolonged effects of the El Niño phenomenon
and the consequent lack of rain, it was important to save electricity
and water to prevent the level of Venezuela’s main dam and electricity
source, Guri, arriving at a level of collapse. Guri provides 70
percent of Venezuela’s electricity needs.

Recently the government launched an energy saving plan, involving
early shop closing times and replacing incandescent light bulbs with
fluorescent light bulbs, among other things, with the aim of reducing
electricity consumption by 20%. Rodriguez said that so far consumption
has reduced by 4%." http://www.venezuelanalysis.com/news/5114