Venezuela: Stiglitz visits Caracas

President Chavez met with the 2001 Nobel Prize winner Joseph Stiglitz to exchange ideas and views on Latin American economics, global markets, and other economic issues relating to the situation in Venezuela.Stiglitz, a former World Bank employee, proclaimed that the World Bank and other international financial institutions impose conditions that may delay the effects of development on all citizens and the economy.

While visiting Caracas, Joseph Stiglitz congratulated Chavez on the country’s success at distributing oil income to its citizens. However, sources did not quote Stiglitz on whether or not he approved of oil production as a sustainable or environmentally friendly method of state funding.The growth of the Venezuelan economy is mostly driven by oil production, and quickly implemented policies have brought benefits to citizens and promoted economic development.

Stiglitz commended Venezuela for the development of the Bank of the South, saying that "the initiative made by Venezuela would benefit the countries of South America and boost development." He also argued in favor of Venezuelan inflation rates, which, although high, may not necessarily be harmful to the economy. Stiglitz declared Venezuela must find balance between public and private control of the economy.   Stiglitz criticized Brazil’s high lending rates, and the Washington Consensus’ actions toward neo-Liberal policies in Latin America. President Chavez has proposed reforms to the Constitution to remove the autonomy of the country’s internal lending systems.

 His trip followa a series of high-profile visits from U.S. Citizens who have visited Venezuela to learn about the "Bolivarian" revolution.