In spite the severe economic and financial
troubles the country has suffered during the last decade, Venezuela
continues to be one of the foremost economic leaders of the region, with a
very solid democratic system of government and a dynamic market
representing a truly guarantee for national and foreign
The potencial of Venezuela’s economy is
great. In fact, the country has many economic advantages: its longstanding
democracy, a highly open and profitable oil and gas industries, a stable
judicial floor and a wealth of many other natural resources. The present
government is determined to work hard in the way to give a long leap to
the Venezuela’s economy.
The structure of the Venezuelan economy is
based in two main concepts: First it is a mixed economy with extensive
public and private participation. Second, it is divided into two
fundamental components: the oil economy, oriented toward exporting, and
the internal economy, where most of the country’s goods and services are
produced and consumed. During the coming years, non oil economic activity
will be concentrated in agriculture and industry, which are the two
sectors most seriously affected by import competition.
The new economic policy has several basic
objectives: one is to reorient industry toward areas in which Venezuela
has comparative advantages, by reallocating resources away from
uncompetitive activities, which are now discouraged. Enhancement of
productive efficiency and product quality are the key policy goals. This
reorientation should reduce the Venezuelan economy’s dependence on single
export product the domestic demand for which is growing steadily, and lead
to a diversification of exports to include more manufactured
In this way, is very important to stress
that Venezuela’s business environment is one of the most open in Latin
America. Starting in 1989, the country’s economy has undergone a
progressive liberalization. Today, the country offers to investors low
tariffs and competitive tax rates. Investment opportunities have steadily
grown with new legislation designed to attract foreign investment and
promote increased private sector activity.
Other market-oriented reforms have included
a reworking of the country’s banking and insurance laws and of its social
security system, provisions improving protection for intellectual property
rights, and growing private-sector participation in the country’s
strategic industries such as oil and gas.
There is no capital repatriation limitation,
no profit transfer limitation, and no prior authorization requirement for
investment in the economy. Foreign companies are not treated any
differently from their domestic counterparts. Foreign companies’
investments can include trademarks, patents and other technical known as a
Venezuela affords protection to investors;
its membership in the Overseas Private Investment Corporation (OPIC) means
that investors are shielded from political risk. Venezuela has also joined
the World Bank’s Multilateral Investment Guarantee Agreement (MIGA), which
provides similar protection to any foreign investors.
Furthermore, as it was said before,
Venezuela is among the most politically stable countries in Latin America,
with a democratic tradition spanning more than 40 years. Venezuela
continues its democratic system, adopting recently a new and modern
National Constitution voted by means of a popular referendum.
In relation to the improvement of the
Venezuelan economy, the country has pretty good physical infra-structure,
having an electronic network modernizing and expanding each year.
Telecommunications have developed quickly since the sector have been
widely open to the private national and international investments. The
national government is now determined to impulse and promote no
traditional exports in the way to capture major flow of investment toward
the country. For this reason has been working hard in the negotiations of
new zones of free commerce to open new spaces for the Venezuelan goods and
services. At the same time, the country’s government has been removing
obstacles and making the necessary judicial floor to allow to re-establish
the trust among the members of the national and international business
Venezuela: An Ideal Place For
It is well known that Venezuela houses an
extraordinary land of the most beautiful and varied landscapes: High
mountains ranges of the Andes, with lovely "Paramos" and an enormous
diversity of settings; the colourful extensive central plains or "Llanos";
the varied and impressive sceneries of the Guayana region, with its huge
and mysterious high tablelands or "Tepuyes" with the most abundant and
spectacular water falls in the world; the beautiful and varied beaches of
the Caribbean Sea. But the wonders are not only limited to its landscapes
or its flora, but also to the country’s fauna, ideal, for instance, for
eco-tourism, as Venezuela has a bird life considered to be among the most
attractive in the world.
Really, Venezuela, more than any other
country has more advantages and attractions for tourists without equal for
travellers, and lovers of adventure and nature. As currently overseas
people said: "Heterogeneous and full of contrast, enigmatic and magic,
located precisely in the middle of the New World, this is a place where
everything is still waiting to be discovered".
In Venezuela, within an area so close, the
country offers to travellers beaches and snow, sun and shade, forests and
plains, mountains and sea, desert and rivers, pure nature at its best,
full of solicitude and mystery. "Columbus anticipated this from the
beginning when he first set foot on the American Continent in 1498. In
front of the Coast of Venezuela, he believed he had come upon paradise on
earth and called the new world "The Land of Grace".
Venezuela: A Country with very Good
Investors have found good opportunities in
all sectors of the Venezuelan economy. These are the cases of the today’s
opened oil industry, for instance, or in the telecommunications sector
which is now totally open to national and international investors. In this
last sector are competing without any kind of restriction companies as
Genesis, Veninfotel, New Com, Telcel Bell South, Supercable, Telecom,
Mobile, CANTV, etc.
In oil and gas sectors participate the major
oil and gas companies of the world. After the economic liberalization
experimented in the last years, the range of investors widened in a great
variety of the economy sectors, having a growing interest in the
Venezuelan stock exchange. In this way, foreign investment in oil,
insurance and baking is growing steadily from 1996. The same has happened
in agriculture, mining, commerce, transportation and warehousing.
Telecommunications seems to be the most attractive sector for foreign
investment, due not only to the growth of services but also to the
expansion of the already existing concessions. The financial and insurance
sectors, as well as tourism also represent mayor potential areas for
abundant farmland and temperate climate provide ideal
conditions for agriculture. However, as oil came to
dominate the economy, agriculture languished and, during the
oil-boom years of the 1970s, imports of agricultural products
rose rapidly. The sector today only provides for less
than 5% of GDP, when just four decades ago it was still one of
the principal backbones of the economy. Even though
today approximately only one-fifth of total land area is used
for agriculture, it remains an important source of employment
(around 14% of the labour force). More than 50% of
agricultural revenues are produced by cattle ranching, while
dairy products, fruit, grains, poultry farming and vegetables
aggregated generate approximately 40% with the balance coming
from forestry and fishing. Venezuela imports more than
half of its needs for wheat, sugar, vegetable oil and yellow
corn with the United States supplying more than one-third of
Venezuela's total food imports.
exports are coffee, cocoa, tropical fruits and fish.
Cocoa has traditionally led the agricultural sector as one of
the principal export commodities but production has declined
in recent years as a result of low international prices.
Similarly, the coffee sector has also suffered from price
declines and production has been stagnant. Both
contraband imports from Colombia and low government mandated
prices account the coffee sector's lacklustre
performance. Overall revenues from the agricultural
sector are meagre in comparison the income generated by
oil. The agricultural sector receives not only
preferential treatment but also notable subsidies.
However, so far, subsidies have not managed to improve
efficiency and productivity of the sector, which suffers from
inefficient management, shoddy marketing, lack of capital and
outdated production techniques.
Caracas is known for the quality of its restaurants, where you can have meals from all over the world. It also has several shopping centers, modern and luxurious that make shopping and interesting activity. Among the most popular buys for the tourists are gold jewels and shoes (consequence of the Italian immigration in the fifties).
Centro Ciudad Comercial Tamanaco (CCCT)