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Saturday, May 08, 2010

Even Chavez doesn't buy Venezuelan products 

Want to see a clear example of why Venezuela is not developing? Take a look at the beginning of this video:



Chavez shows off his shiny new Blackberry cellphone and asks rhetorically why he shouldn't he have one.

As is often the case with so much of the discussion around issues in Venezuela the question is incorrectly framed. He questions why he should be accused of having a capitalist product when in fact a Blackberry is neither capitalist nor socialist but simply a device, or technology.

He is correct about that, but he entirely misses the point. A Blackberry may be neither capitalist nor socialist but in Venezuela's case buying one is most definitely anti development.

How so? Because for Venezuela to progress as a country it must develop its own industries and technologies and not simply import everything.

In recognition of that Venezuela even set up a cellular telephone assembly plant with Chinese assistance. To the greatest extent possible all resources devoted to cellphones in Venezuela should be put into building up that plant, expanding its technology and production, and having more of its components produced in Venezuela. To further that goal, cellphone imports should be restricted to the greatest extent possible with very high tariffs, or banned outright.

Apparently, that is not happening as Venezuelans buy hundreds of thousands or even millions of Blackberrys. And none other than the President himself has scarce dollars spent on purchasing an expensive imported phone for himself rather than supporting local industry.

Following Chavez's lead Venezuela will never develop.

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