1. Food changes and food security:
main effects of economic and trade
policies on Venezuelan consumer,
1990-2002
José Daniel Anido Rivas
At the
Centro de Investigaciones Agroalimentarias (CIAAL), Universidad de Los
Andes. Mérida, Venezuela. e-mail: anidoriv@ula.ve; anidoriv@yahoo.com
Address: Núcleo La Liria, edificio G “Leocadio Hontoria, 2º piso, CIAAL.
Mérida 5101, Venezuela

2. Inside …
1. Introduction
2. Methodological Aspects
3. Chronology of the Main Economic and Trade
Policies implanted in Venezuela, 1989-2002
4 The Effects of Policies on the Main Variables
Related to Food Security
5. Conclusions
6. Questions and comments

3. 1. Introduction
• 45 years of democratic era (1958-2004)
• An increasing stage of Investment and GDP (until
1978), followed by a deep decreasing stage
Venezuela: Evolution ofa l p eperacapita income,n1957-2002 0
V e n e zu e la : P r iv a t e r e real r c p it a in v e s t m e t , 1 9 5 7 - 2 0 0
140
34.000
 
Thousands of constant Bolivares of 1984
120
32.000 
Constant Bolivares of 1984
100 
30.000 

80
28.000 
  
60  
26.000   
40      
24.000     

   
    
   
  
20 
22.000
0
1962
1993
19991997
1957 1957
1959
1960 1960
1961
1963 1963
1964
1965
1966 1966
1968
1969 1969
1970
1972
1973
19751974
1975
1976
19781977
1978
1979
1981 1980
1981
1982
19841983
1985
19871986
1987
1990 1989
1990
1991
1993 1992
19961994
1995
1996
1998
1999
20022000
1958
1967
19721971
1984
1988
20.000
Ye a r
 P ri vat e re a l p e r c a p it a i n ve s t m e n t
S o u r c e : A c u er d o S o c ia l , 2 0 0 3
• Adjustment requirement: the recent era

4. Methodological Aspects…
• Purpose: show the impact of economic and trade policies on the
food changes in Venezuela, specially during the last three
governments (1989-1992)
• Indicators: economic policies goals, macroeconomics variables
and food availability, consumption and security variables
• Sources: economic policies goals, macroeconomics variables
and food availability, consumption and security variables
(Planning Ministries of different periods, Central Bank of
Venezuela, National Institute for Nutrition, Universidad de Los
Andes, Secondary sources, own calculations)

5. Chronology of Policies…
Structural
adjustments (1989-1992)
Carlos Andrés Pérez II
* Freeing prices of goods
* Goods and services opening markets
* Floating exchange currency (flexible and unique)
* Financial reforms
* Stimulus for foreign investment
* Privatization program
* Less State, More Market
* Agri-food sector subsidies elimination or substitution
* Agricultural portfolio reduction
* Fringe prices to protect agricultural domestic production

6. Chronology of Policies…
Non-orthodox and Orthodox
adjustment (1994-1996)
Rafael Caldera II
* Emergency measures to rescue the financial system
* Exchange control (until April 1996)
* Enrollment in the World Commercial Organization (1995)
* Group of Three and other regional integration agreements
* Practice of fixing minimum prices in some agriculture goods
* Social programs: Strategic Food Program (PROAL) and School Food
Program
* The Venezuela Agenda (1996), economic equilibrium and fight against
inflation:
- Floating exchange rate (no more exchange control)
- Freeing interest rates
- Public expenditure discipline (but without forgetting social matters)
- Taxes increase

7. Chronology of Policies…
The Bolivarian Revolution (1999-
2000 and 2001 until present)
Hugo Chávez
•Institutional reform: Constituent process and New national
Constitution (1999-2000) to “achieve sustainable and
diversified economic growth, reduce inflation and increase
the employment level, through fiscal and monetary policies”
•The National Economic and Social Development Plan
2001-2007 to achieve 6 goals
• The "missions" (Misiones, in Spanish: Robinson, Sucre,
"Barrio Adentro", Identity... )

8. 4. Main impacts…
Concerning the main variables of food
availability
Venezuela: main variables of food availability
30
50 3.000
Thousands Millions (billions) of constant Bs.
Pérez Caldera Chávez

Food imports as % of total availability
29
40

2.800
Calories/people/day
 
 
28
30 2.600

 
27  2.400
20
 

 

   
10  
26   2.200

  

0
25 2.000
1990
1989
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Food imports (5)
Years
Agricultural GDP Food availability for human consumption
Source: MAT, BCV, INN-ULA, Own calculations

9. 4. Main impacts…
Graph 3. Venezuela: changes on food patterns of calorie intake, 1989-2002
cer
200
Sti rt
150
fatA sugars
100
50
m ilks leg
0
fishes nutV
Eggs veg
Meats fru
1989-1993 1994-1998 1999-2002
Source: INN-ULA (Sev eral yars; own calculations

10. 4. Main impacts…
(in average percentages…)
1989-93 1994-98 1999-2002
Cereals 38,4 38,3 37,0
Roots and tuber dry 5,5 5,5 6,5
Sugar and sweeteners 15,8 17,4 16,5
Legumes 2,2 1,9 1,7
Nut and oilcrop seeds 0,1 0,1 0,1
Vegetables 0,6 1,0 1,3
Fruits (except platain) 4,6 4,5 4,3
Meats 6,4 6,6 7,5
Eggs 0,8 0,9 1,0
Fish and shellfishes 1,5 1,8 1,7
Milk and derivatives 6,2 5,7 5,9
Visible fats 17,0 15,2 15,3
Spices 0,0 0,0 0,0
Stimulants 0,7 1,1 1,3
TOTAL FCA (Kcal) 100,0 100,0 100,0

11. 4. Main impacts…
Concerning the infant nutritional
situation…
Venezuela: Prevalence of malnutrition in child population, 1990-2002
(in percent values, %)
Indicator / year Weigth-for-Height (WfH) Weigth-for-Age (WfA) Height-for-Age (HfA)
1990 16,06 24,77 31,08
1993 12,17 18,22 28,43
1994 11,44 17,87 28,65
1999 11,74 18,79 29,10
2002 12,92 18,93 28,89
Source: INN (several years)
…Decreasing figures on malnourish,
but followed by an moderate growth (except in HfA)

12. 5. Main conclusions…
1. Three different kinds of policies: Structural adjustment or orthodox
(1989-1993): non- orthodox and orthodox measures (1994-1998) and
“mixture” of policies (1999 until present) were observed
2. An strong decreasing trend in GDP, private investment, per
capita real income; and increasing trend in the agri-food GDP
3. During 1989-1993 and 1994-1998, there was a strong link
between “food Import” and “food availabilities”. It changed in
the 1999-2002 (agri-food GDP is now very correlated)
4. Irregular behavior in de FCA along de 1989-2002 period;
however during FCA grew up in the 1989-1992; drop in 1993-1998
period and trend to increase since then
5. An important decline in the infant nutritional indicators (in
relative terms); however, in absolute terms they presented
alarming values

13. The
End
Thanks for your attention!
¡Merci beaucoup pour votre attention!
¡Gracias por su atención!