Some 90% of Venezuelans live in poverty and inflation recently topped 200%. But many have taken note of improvements: wider availability of food, more reliable electricity, water and telephone service, sufficient supplies of gasoline, fewer people fleeing.
The improved economic outlook has helped Maduro consolidate domestic support, outflank his opponents and reverse his political fortunes.
“We are seeing what is a tentative but still clear reengagement on the part of the United States with Venezuela,” said Theodore Kahn, senior analyst in Bogota, Colombia, with Control Risks, a consultancy group. “Definitely the new geopolitical reality post-invasion of Ukraine is an important driver of this and creates urgency.”In recent months, top U.S. officials have twice visited Caracas and met with government representatives. In October, the two nations announced a prisoner swap.
Talks between the Maduro administration and the fragmented Venezuelan opposition — facilitated by the government of Norway — are expected to resume within weeks in Mexico. The U.S.-backed opposition is seeking guarantees that national elections scheduled for 2024 will be fair and democratic.Given Maduro’s newfound strength, many observers suggested that he had little incentive to agree to electoral reforms.
Such developments may provide a boost for Maduro, analysts said, but do little to revive a country that has lost up to 80% of its economic capacity during the last decade. “Dollarization has provided relief for some, but the reality is that Venezuela is still in the middle of a deep humanitarian emergency,” he said., the national currency, and don’t have easy access to dollars.
“Inflation ... evaporates, practically burns, all of one’s earnings,” said Alejandra Rodríguez, 43, a single mother and office administrator. “I’m always a month behind on my bills. My salary is simply not enough for basic expenses.”
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