Venezuela’s Leadership Acknowledges Past Economic Mistakes
Delcy Rodriguez, the “acting president” of Venezuela, acknowledged on Wednesday night that the socialist government had made errors leading to the country’s severe hyperinflation and the departure of millions of Venezuelans. In a nearly 30-minute address, she urged citizens to “right the wrongs” of the past and proposed six measures aimed at transforming and modernizing the Venezuelan state.
During the broadcast, which faced interruptions from power outages, Rodriguez emphasized the goal of curbing inflation and establishing a sustainable economic model. She went so far as to recognize that, by 2019, Venezuela was suffering from significant shortages of essential goods and soaring inflation rates, reportedly exceeding “more than 344,000 percent.” This admission about the mass migration of Venezuelans over the last decade marked a notable shift for the government.
Rodriguez reflected on the earlier stages of migration, describing the flight of professionals seeking a better life abroad. She added that the initial wave gave way to a broader immigration crisis, which affected vulnerable groups within the population.
The past decade has seen the collapse of Venezuela’s “Bolivarian socialism,” resulting in one of the world’s most serious migration crises, comparable to those in Syria and Ukraine. Estimates from independent organizations suggest that nearly 8 million Venezuelans—about a quarter of the country’s population—have left the nation. Some calculations even indicate that this number could rise to 9.1 million by 2025, spread across 500 cities in 90 countries globally.
Rodriguez previously served in multiple government roles, including foreign minister, under President Nicolás Maduro. Throughout this time, officials from the regime have consistently denied the reality of a mass migration crisis affecting their citizens.
The exact figures for hyperinflation in Venezuela remain unclear, especially since the Central Bank stopped sharing official monthly rates in 2018. The International Monetary Fund had anticipated an inflation rate of 1.4 million percent by the end of 2018. As of now, the central bank only publishes inflation data sporadically, and the last comprehensive figures were provided back in November 2024.
On Wednesday, Rodriguez revealed that the government would raise the monthly minimum wage for the first time since 2022, though the specific amount was not disclosed. Previously, this wage was set at 130 Venezuelan bolivars, equivalent to about $0.27 at current exchange rates, a stark decline from its worth of $30 in 2022.
She indicated that this wage increase would be supported by revenues from fuel sales managed by the government, which has been under U.S. supervision since Maduro’s arrest in January. This oversight requires that all sales comply with U.S. guidelines.
The government supplements the minimal wages with bonuses distributed via the “Patria” platform, akin to China’s social score system. Rodriguez also announced the inception of a “National Economic Council” tasked with reforming the tax system, and other initiatives aimed at overcoming bureaucracy and encouraging private sector involvement in selected industries.
In her closing remarks, Rodriguez called on Venezuelans living abroad to return home and contribute to the modernization efforts, which will include a widespread census to assess the population of young people, professionals, and retirees.
