[News] Venezuela - Food Card to Combat Scarcity Unveiled
Anti-Imperialist News
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Wed Mar 19 18:10:18 EDT 2014
Food Card to Combat Scarcity Unveiled
<http://venezuelanalysis.com/printmail/10502>http://venezuelanalysis.com/news/10502
<http://venezuelanalysis.com/print/10502>
By ZOE CLARA DUTKA
Santa Elena de Uairén, 19th March 2014 (venezuelanalysis.com)- Workers
marched to celebrate the 10 year anniversary of Misión Alimentación on
Sunday, Venezuela's vastly accessible nutritional program, launched by
Hugo Chavez in 2003.
During that time the program created more than 22,000 distribution
points ranging from supermarket-sized stores to neighborhood bodegas;
selling nutritional staples at prices subsidized by up to 80%.
The government has long cited the mission as part of efforts to reduce
malnutrition.
According to Venezuela's National Institute of Nutrition (NIN), child
malnutrition in Venezuela was found to have been reduced by 58.5%, from
7.7% to 3.2% in 1990 and 2010, respectively.
"Compared to the 4th Republic [the regime that preceded Chavez], there
is plenty of access to nutrition. Now you don't see hunger in the
streets like before," said Belkys Mogollón, resident of La Guaira, as
she stood amongst the congregation of people celebrating in front of the
presidential palace, Miraflores.
President Nicolas Maduro met the workers outside of Miraflores,
outlining in his speech a development of the program that is meant to
combat scarcity.
Scarcity has been pointed to as a source for recent unrest, despite a
number of distributing vehicles from Misión Alimentación being burned by
student protestors in the states of Carabobo, Táchira and Zulia in the
past few weeks.
According to the government, one reason for scarcity is that private
companies hoard food in hopes to then sell them for higher prices as
demand rises. In the first half of 2013, while opposition candidate
Henrique Capriles was campaigning against Nicolas Maduro for presidency,
at least 40,000 tons of food was found hidden in different locations
across the country. At the time Maduro regularly referred to the
hoarding as "economic warfare."
Another important reason is just how attractive their subsidized prices
are for smugglers looking to make a profit. A one kilogram bag of sugar
sold through any of Misión Alimentación's distributors can cost between
2 and 6 bolivars. In Colombia, a bag of Venezuelan sugar can sell for as
much as 150 bolivars.
A bag of powdered milk, yet another staple for Venezeulan households,
costs around 30 bolivars when sold at its regulated price. In Brazil,
its worth 600 bolivars. The price difference makes Venezuela a popular
shopping destination for Brazilians and Colombians alike, who, often use
the black market rate.
In his address on Sunday, Maduro cited that of the subsidized products
sold by the two main distributing organizers, Mercal and Pdval, more
than 40% leave the country.
He went on to describe the Food Card, or Ensured Supply Card. The free,
non-mandatory bank card will give the user certain benefits, and is
primarily meant to combat contraband and price speculation.
According to Maduro, the card represents a marriage between the Mision
Alimentación and the Fair Price Law, enabled late last year amid rampant
speculation when certain chain stores were found to have marked prices
up as much as 1,200%. The card is expected to bring greater efficiency
to both initiatives.
Upon mention of the card, members of the opposition were up in arms via
Twitter, calling it a "Cuban rationing card" and implying that the
biometrics fingerprint census required to receive the card is an
imposition on consumer freedom and privacy.
Roberto León Parilli, president of the Consumer Alliance ANAUCO, said
"by connecting Mercal, Pdval and Bicentenario [three distributors of
subsidized foodstuffs], the control the government employs upon people
will only worsen."
But private supermarkets will also enter the network; and though the
official details have not yet been released, all signs point to the card
working similarly to a loyalty card. Special deals and benefits will be
awarded to members, while nonmembers will still be able to make
purchases in the same places.
Details as to what the requirements will be to get a card, and exactly
how the system will work are to be released this week.
--
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