APPROVE the reform is to accelerate social and economic
The Constitutional Reform Project aims to integrate fundamental to the Constitution of communal power structures and accelerate social and economic transformation. See Constitutional Reform Proposal Final
- - -
This article is part of the puzzle that has to do with all the socioeconomic model of our country, the powers and duties of the Central Bank of Venezuela and Coordination Macroeconomic Policies. The wording of Article 321 reads verbatim as follows: "legislation shall provide for a stabilization fund aimed at ensuring macroeconomic stability in state expenditure levels municipal, regional and national levels to fluctuations in revenue. The operating rules of the fund shall observe basic principles of efficiency, equity and non-discrimination between the public organs contributing resources to it. "
The proposed reform is posed as follows: " As part of its function Management of international reserves, the Head of State shall, in coordination with the Central Bank of Venezuela and at the end of each year, the level of reserves necessary for the national economy, and the amount of excess reserves, which funds are available go to the National Executive productive investment and infrastructure development, financing of missions and, ultimately, the integral, endogenous, humanist and socialist nation. "
This article and the creation of this Fund is to be an extremely important to offset fluctuations in revenue, and largely due to fluctuations in oil prices, the Macroeconomic Stabilization Fund was the result of a law in 2003, aimed at ensuring the stability of state expenses municipal, regional and national levels to fluctuations in revenue.
This law was created in order to generate savings for the Venezuelan state and to avoid the decline in social spending during downturns in oil revenues, the National Assembly passed the reform law that created the Macroeconomic Stabilization Fund (FEM) in 2005. In this regard, the reform focused on adapting and give the FEM operation so that it can absorb the impact of fluctuations (fall) in revenue in order that any reduction in public spending.
In boom periods, generally increase in current expenditure and capital expenditure, which is invested in social programs and some infrastructure. In periods of recession Governments are forced to cut spending levels which produced budget cuts are made at the expense of these programs, making the implementation of development policies and ongoing investment.
The creation of the EMF fundamental purpose is to counteract the harmful effects on our economy generated by the volatility of oil prices which have a major impact on the nation's total income. Oil tax revenues are the most relevant to the Venezuelan government. Contributions
Macroeconomic Stabilization Fund
Within the economic benefits arising Reform Act of Macroeconomic Stabilization Fund are:
a) Macroeconomic stability. Fiscal and monetary balance and reducing the pro-cyclical behavior (unstable swings in cycles) of expenditure.
A stabilization fund operating and well-designed print a more stable fiscal spending during periods of increased revenue by disruptions in oil prices. This causes the aggregate demand for fiscal origin is stable and not rise sharply from this type of disturbance.
established reform will result avoid instability on other variables such as relative prices exchange, the costs of public and private investment, employment, real exchange rate, inflation and balance of payments, by avoiding situations such as generating inflationary prices and trends of real exchange rate appreciation or depreciation.
b) Ability to save the state on the basis of all national economic reality and not just in terms of external behavior of oil prices. The defining rule and accumulation of contributions to the FEM experience in the proposed amendment is substantive and does not depend on the behavior of oil tax revenues.
This can be seen in Article 9: "The National Executive allocated in the Budget of the Republic, the Macroeconomic Stabilization Fund an amount equal to not less than twenty percent (20%) of the excess, in real terms and comparable between income and expenditure incurred in immediately preceding fiscal period in order to sustain the rate of economic growth, public investment and social spending levels needed. " Social benefits
Macroeconomic Stabilization Fund
Accordingly, the main benefits that are generated from FEM reform are:
a) Improvement in quality of life of people product of macroeconomic stability. The very fact that public spending does not have a pro-cyclical behavior generates the level of spending is maintained over time and investment in the social aspect are constant. Consequently, the reformation proposed as solutions to this variability in revenue, public expenditure on social aspects present greater stability.
b) Reduced drop out of school. Economic studies show that in the Venezuelan case, the education sector is one element that is most affected by the volatility of oil prices. Generally, "the negative economic shocks force many families to withdraw their children the education system. Later, when the situation is reversed in periods of prosperity, most children do not return the system or simply fail to fit. " In this sense, the decline in public spending reduces the number of seats available, resulting in conditions of exclusion and dropout.
Productivity and transparency in public administration
Within the major institutional benefits generated by the reform of the FEM can be found:
a) Adequacy of the Law on the Elimination of PDVSA as part of the fund. Since the saving of the state oil occurs through the National Development Fund (Fonden) and the Country Development Fund (FONDESPA) for the economic development of the nation, has its obligation to savings within the FEM. Therefore, the adjustment should occur in all standards for adequacy of the new law
b) Increased administrative efficiency in managing the fund. The problem of the state, from the institutional point of view, is to manage resources received mitigating or avoiding adverse effects on the economy (inflation pressures for increased spending, appreciation or neutralization of the recessionary effects in the case of a disturbance negative for oil prices).
c) Increased transparency in the implementation of withdrawals and evaluation capacity of the Fund's management. For removal of Fund resources include notification to the Standing Committee on Finance of the National Assembly and the Comptroller General of the Republic, and is included in the draft estimates of the procedure in the event of a declaration "State of Economic Emergency," according to the specificity of this course of withdrawal and use of resources accumulated in the FEM, as is laid down in Article 17 of the amended Act.
These changes are creating more transparency since monitoring external institutions the operation and the conditions regarding the execution of the draw-FEM.
If I major in the reform proposal substantially improves the existing Article 321, because if we constitutionalising what the law is doing this fund, which is that under the stewardship of resources and reserves international, the Head of State shall, in coordination with the Central Bank of Venezuela, and at the end of each year, the level of reserves necessary for the national economy, and the amount of excess reserves, which are allocated to Funds available to the National Executive for productive investment, development and infrastructure financing of missions and, ultimately, the integral, endogenous, humanist and socialist nation. That is, it would create, not just a single fund, but would be many funds and in various areas, which gives the State flexibility in transferring resources to the development of areas of special significance for our people and even solve their most pressing needs.
This is another reason to say YES to this reform reform.
Socialist Fatherland or Death! We
Beating!
The Constitutional Reform Project aims to integrate fundamental to the Constitution of communal power structures and accelerate social and economic transformation. See Constitutional Reform Proposal Final
- - -
This article is part of the puzzle that has to do with all the socioeconomic model of our country, the powers and duties of the Central Bank of Venezuela and Coordination Macroeconomic Policies. The wording of Article 321 reads verbatim as follows: "legislation shall provide for a stabilization fund aimed at ensuring macroeconomic stability in state expenditure levels municipal, regional and national levels to fluctuations in revenue. The operating rules of the fund shall observe basic principles of efficiency, equity and non-discrimination between the public organs contributing resources to it. "
The proposed reform is posed as follows: " As part of its function Management of international reserves, the Head of State shall, in coordination with the Central Bank of Venezuela and at the end of each year, the level of reserves necessary for the national economy, and the amount of excess reserves, which funds are available go to the National Executive productive investment and infrastructure development, financing of missions and, ultimately, the integral, endogenous, humanist and socialist nation. "
This article and the creation of this Fund is to be an extremely important to offset fluctuations in revenue, and largely due to fluctuations in oil prices, the Macroeconomic Stabilization Fund was the result of a law in 2003, aimed at ensuring the stability of state expenses municipal, regional and national levels to fluctuations in revenue.
This law was created in order to generate savings for the Venezuelan state and to avoid the decline in social spending during downturns in oil revenues, the National Assembly passed the reform law that created the Macroeconomic Stabilization Fund (FEM) in 2005. In this regard, the reform focused on adapting and give the FEM operation so that it can absorb the impact of fluctuations (fall) in revenue in order that any reduction in public spending.
In boom periods, generally increase in current expenditure and capital expenditure, which is invested in social programs and some infrastructure. In periods of recession Governments are forced to cut spending levels which produced budget cuts are made at the expense of these programs, making the implementation of development policies and ongoing investment.
The creation of the EMF fundamental purpose is to counteract the harmful effects on our economy generated by the volatility of oil prices which have a major impact on the nation's total income. Oil tax revenues are the most relevant to the Venezuelan government. Contributions
Macroeconomic Stabilization Fund
Within the economic benefits arising Reform Act of Macroeconomic Stabilization Fund are:
a) Macroeconomic stability. Fiscal and monetary balance and reducing the pro-cyclical behavior (unstable swings in cycles) of expenditure.
A stabilization fund operating and well-designed print a more stable fiscal spending during periods of increased revenue by disruptions in oil prices. This causes the aggregate demand for fiscal origin is stable and not rise sharply from this type of disturbance.
established reform will result avoid instability on other variables such as relative prices exchange, the costs of public and private investment, employment, real exchange rate, inflation and balance of payments, by avoiding situations such as generating inflationary prices and trends of real exchange rate appreciation or depreciation.
b) Ability to save the state on the basis of all national economic reality and not just in terms of external behavior of oil prices. The defining rule and accumulation of contributions to the FEM experience in the proposed amendment is substantive and does not depend on the behavior of oil tax revenues.
This can be seen in Article 9: "The National Executive allocated in the Budget of the Republic, the Macroeconomic Stabilization Fund an amount equal to not less than twenty percent (20%) of the excess, in real terms and comparable between income and expenditure incurred in immediately preceding fiscal period in order to sustain the rate of economic growth, public investment and social spending levels needed. " Social benefits
Macroeconomic Stabilization Fund
Accordingly, the main benefits that are generated from FEM reform are:
a) Improvement in quality of life of people product of macroeconomic stability. The very fact that public spending does not have a pro-cyclical behavior generates the level of spending is maintained over time and investment in the social aspect are constant. Consequently, the reformation proposed as solutions to this variability in revenue, public expenditure on social aspects present greater stability.
b) Reduced drop out of school. Economic studies show that in the Venezuelan case, the education sector is one element that is most affected by the volatility of oil prices. Generally, "the negative economic shocks force many families to withdraw their children the education system. Later, when the situation is reversed in periods of prosperity, most children do not return the system or simply fail to fit. " In this sense, the decline in public spending reduces the number of seats available, resulting in conditions of exclusion and dropout.
Productivity and transparency in public administration
Within the major institutional benefits generated by the reform of the FEM can be found:
a) Adequacy of the Law on the Elimination of PDVSA as part of the fund. Since the saving of the state oil occurs through the National Development Fund (Fonden) and the Country Development Fund (FONDESPA) for the economic development of the nation, has its obligation to savings within the FEM. Therefore, the adjustment should occur in all standards for adequacy of the new law
b) Increased administrative efficiency in managing the fund. The problem of the state, from the institutional point of view, is to manage resources received mitigating or avoiding adverse effects on the economy (inflation pressures for increased spending, appreciation or neutralization of the recessionary effects in the case of a disturbance negative for oil prices).
c) Increased transparency in the implementation of withdrawals and evaluation capacity of the Fund's management. For removal of Fund resources include notification to the Standing Committee on Finance of the National Assembly and the Comptroller General of the Republic, and is included in the draft estimates of the procedure in the event of a declaration "State of Economic Emergency," according to the specificity of this course of withdrawal and use of resources accumulated in the FEM, as is laid down in Article 17 of the amended Act.
These changes are creating more transparency since monitoring external institutions the operation and the conditions regarding the execution of the draw-FEM.
If I major in the reform proposal substantially improves the existing Article 321, because if we constitutionalising what the law is doing this fund, which is that under the stewardship of resources and reserves international, the Head of State shall, in coordination with the Central Bank of Venezuela, and at the end of each year, the level of reserves necessary for the national economy, and the amount of excess reserves, which are allocated to Funds available to the National Executive for productive investment, development and infrastructure financing of missions and, ultimately, the integral, endogenous, humanist and socialist nation. That is, it would create, not just a single fund, but would be many funds and in various areas, which gives the State flexibility in transferring resources to the development of areas of special significance for our people and even solve their most pressing needs.
This is another reason to say YES to this reform reform.
Socialist Fatherland or Death! We
Beating!
Juan Matorano
lawyer and political analyst. Candidate a member of the United Socialist Revolutionary Movement of Venezuela (MSURBV). Moderator of the "Revolutionary Path" aired on Mondays and Fridays from 6 to 7 pm on 880 AM Circuito Radio Venezuela Ciudad Guayana, together with the Deputy of the National Assembly by the Edo. Bolivar, Rafael Rios Bolivar. www.juanmartorano.blogspot.com
lawyer and political analyst. Candidate a member of the United Socialist Revolutionary Movement of Venezuela (MSURBV). Moderator of the "Revolutionary Path" aired on Mondays and Fridays from 6 to 7 pm on 880 AM Circuito Radio Venezuela Ciudad Guayana, together with the Deputy of the National Assembly by the Edo. Bolivar, Rafael Rios Bolivar. www.juanmartorano.blogspot.com
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