Social policy and oil revenues: Some negative aspects in Venezuela

Abstract

This article examines the contradictory impact on social policy in Venezuela of the growth of oil revenues. A poverty that is born of riches is described. The effects of the oil economy in, for example, undermining local food production and destroying local housing construction in favour of importing food and prefabricated structures is analysed. Social policy is characterised as improving the welfare of the people while simultaneously contributing to the development of a rentist economy linked to the precarious future of the world capitalist economy. Such social policy has the support of the recipients of welfare and so limits any possibility for social struggle and transformation.