Venezuela Shies Away from Major Economic Reforms

A Cabinet reshuffle suggests that Venezuela has chosen to take tentative steps toward economic reforms in upcoming months. Although such reshuffles are frequent in Venezuela, the Sept. 2 changes are notable because they sidelined the politically powerful Rafael Ramirez, who had been the president of state-owned energy firm Petroleos de Venezuela since 2004 and the minister of mines and energy since 2002.

Ramirez promoted economic measures that, although necessary, likely would have cost Venezuelan President Nicolas Maduro public support. Moreover, Ramirez's political clout probably made him a potential competitor to Maduro. With Ramirez removed from economic policymaking, the government will proceed carefully with economic measures in the coming months, unable to arrest the country's steep economic decline.