President Nicolás Maduro this Wednesday set up special zones with fiscal and customs incentives to “attract investment” to Venezuela amid sanctions. USA, an initiative that mimics “experience” China and other Asian countries, according to the president.
It’s “a way to attract productive investment,” Maduro said as he enacted the law. Law on Special Economic Zonesapproved at the end of June by the official parliament.
“We already know well the experience of China for 40 years, the experience of South Korea, the experience of Vietnam, including (…), which inspired us to take this step,” the socialist leader said.
After the collapse of the Venezuelan oil industry Ripe She had to loosen the tight economic controls that had prevailed for more than two decades of Chavisma rule.
Economy Venezuela rebounded in 2021 after falling 80% in GDP in seven consecutive years of recession, also marked by runaway inflation.
Ripe established the first five areas that will give “special conditions” to investors under the new law: industrial Paraguana (northwest), which hosts one of the main crude oil processing complexes in this Caribbean country, the ports of La Guaira and Puerto Cabello / Moron (in the center) and the tourist islands of Margarita and La Tortuga (in the north).
The legislation establishes the creation of zones with a “special socio-economic regime” for the “development of economic activity” with public, private and mixed “investments”, as well as “tax and customs benefits”.
Chinese economic reform as an alternative
China started betting onSpecial Economic Zones”. in the late 1970s and early 1980s as part of their economic reform, under which they apply special conditions for investment with fewer restrictions than in the rest of the country.
Ripe is looking for alternatives to raise capital among the restrictions imposed by US financial sanctions against Venezuelawhich include, from 2019, a ban on American companies and citizens from trading in Venezuelan oil.
Washington ignores re-election Venezuelan President in 2018, calling it a scam.
“They fired missiles at us, sanctions nuclear bombs (…) and believed we were going to surrender,” he said. Ripewhich had China one of his greatest allies.
AFP
Source: RPP
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