We are delighted to host Count Friedrich von Luxburg Carolath for this interview, in light of the recent efforts his foundation has done to help the Venezuelan people during the hard times the country is going through.
Q: In light of your foundation's longstanding assistance to rural and indigenous communities for 83 years, I would like to know your perspective on the economic challenges facing Venezuela today. What strategies or measures do you believe can lead the country out of its current situation?
Reviving the economy in Venezuela is a complex and multifaceted issue that needs a holistic approach. Some challenges that must be addressed are, for example, hyperinflation. Implementing sound monetary policies, such as controlling the money supply and stabilizing the currency, can help combat hyperinflation but most importantly it is critical that the Central Bank becomes independent again for the good of the nation.
Another important aspect is economic diversification. Encouraging diversification beyond oil-based industries can help create a more resilient and sustainable economy. Our industries are almost non-functional at the moment. The potential of our nation in Agroindustrial production, mining or tourism is enormous and completely underutilised.
We must also create the right environment to attract foreign investment again. Through clear and stable economic policies, this can help stimulate economic growth and create employment opportunities.
As we have been doing at a smaller scale for over 8 decades, implementing social programs to support vulnerable populations and reduce poverty can help improve overall economic stability as well.
Q: What are the key changes that can be implemented to stimulate the economy and promote its growth?
Implementing fiscal reforms to address budget deficits and reduce government debt can help restore confidence in the economy. but stabilizing the currency in Venezuela is a critical step in addressing the economic challenges facing the country. In addition, a transparent and consistent exchange rate policy can help reduce uncertainty and restore confidence, coupled with building and maintaining an adequate level of foreign exchange reserves to support the value of the currency and provide a buffer against external shocks.
Q: What are the pros and cons of maintaining the bolivar as the currency in Venezuela?
Definitely yes. Even though the current situation has the economy dollarized, we must rebuild the confidence behind our national currency and stabilize it. Luis Herrera Campi put in place the exchange control in the 80s that is still in place today but there are other mechanisms which are part of having an independent central bank.
Q: If the aforementioned changes are implemented in the near future, what are the potential subsequent steps or outcomes that could be expected?
Our people have left the country in search for better opportunities elsewhere. Many of these are experiences professionals in many fields from medicine to engineering. We need to bring our skilled population back again to our country to help in its development. We also need to prioritize education and skills training to build a more skilled and productive workforce and develop certain industries that have almost disappeared, which is essential for driving economic growth and innovation.
Additionally, emphasizing sustainable development practices, including environmental conservation and responsible resource management, can help us ensure long-term economic viability and be an active participant in the world economy.
On the political front, the government and the opposition should actually work in a constructive manner if we are going to get out of the current downturn. This would also allow our international partners to take our country more seriously.
At the end of the day, we are a constitutional democracy, and that is sacred to our people since the time of Simon Bolivar. The current government is doing what it can but of course, all of Venezuela needs to unite to solve the serious problems. We are facing at the moment and this is what our democracy is all about.
Q: What can we do to address the challenges and improve the situation in Venezuela?
Our plans are not plans. We have always been in Venezuela, close to our people and its traditions and we shall continue to do that. Our family foundation was established in 1940 in Maracaibo, the city of my mother Walli Paula Luise von Luxburg, and has always fostered education, supported children’s hospitals, the church and tribal institutions in the country. We are just putting more effort now as the people need more support on the ground as we endeavour to combat poverty.
Q: Could you provide us information about a well-known personality in Maracaibo ,Your Mother
Indeed, she was known as the Angel of Trujillo for her humanitarian work in Venezuela. She was a voluntary with the Red Cross in Maracaibo during the Second World War, helping establish the German Hospital in Zulia. She also founded a well know orphanage there and continued to support many communities in Venezuela her whole life.
Q: What is the subject or topic of your new book?
In my book I analyse the issues related to poverty, social development and aid programmes, addressing the inefficiencies and how to solve them with some use cases of Micro Finance. I provide examples and case studies where micro finance has helped combat poverty in its core and allow communities to flourish and become part of the economy.
Q: What was the objective or purpose from recent presence in Dubai?
We conducted a series of meetings in the framework of COP28 since part of our scope is also to preserve the natural beauty of our country. In addition, I am meeting the senior officials to establish better links. We have a lot to learn from the visionary leadership of Gulf countries such as the UAE and Saudi Arabia. They are also OPEC members and oil producers like us, and have achieved wonders in the development of their nations and the quality of living of their citizens. What they have achieved we can do too, with a united effort from within.
Q: Could you provide a message for readers in Venezuela and around the world?
Our nation is not only one of the richest countries in terms of natural resources, it is also a nation of resilient and striving people. Our people are the true value of our nation. We can proudly say there is almost no religious of racial discrimination, our population is comprised of immigration from every corner of the world. In these times of adversity, when we are tested the most, is when it is important to have unity, from all sides and all communities, and to take the necessary steps to put our country on the path of development and economic recovery.
