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NEWS and REPORTS => World News => Topic started by: NBCNews on May 16, 2013, 11:30 PM

Title: Venezuela is running out of toilet paper
Post by: NBCNews on May 16, 2013, 11:30 PM
   (http://msnbcmedia.msn.com/j/MSNBC/Components/Photo/_new/130516-caracas-empty-shelves-430p.photoblog600.jpg)Jorge Silva / ReutersSupermarket staff work next to partially empty shelves of toilet paper in Caracas, May 16, 2013. Supplies of food and other basic products have been patchy in recent months, with long queues forming at supermarkets and rushes occurring when there is news of a new stock arrival. By Fabiola Sanchez and Karl Ritter, The Associated PressFirst milk, butter, coffee and cornmeal ran short. Now Venezuela is  running out of the most basic of necessities — toilet paper.

Blaming  political opponents for the shortfall, as it does for other shortages,  the embattled socialist government says it will import 50 million rolls  to boost supplies.

That was little comfort to consumers struggling to find toilet paper on Wednesday.

"This  is the last straw," said Manuel Fagundes, a shopper hunting for tissue  in downtown Caracas. "I'm 71 years old and this is the first time I've  seen this."  



One supermarket visited by The Associated Press in  the capital on Wednesday was out of toilet paper. Another had just  received a fresh batch, and it quickly filled up with shoppers as the  word spread.

"I've been looking for it for two weeks," said Cristina Ramos. "I was told that they had some here and now I'm in line."

Economists  say Venezuela's shortages stem from price controls meant to make basic  goods available to the poorest parts of society and the government's  controls on foreign currency.

"State-controlled prices — prices  that are set below market-clearing price — always result in shortages.  The shortage problem will only get worse, as it did over the years in  the Soviet Union," said Steve Hanke, professor of economics at Johns  Hopkins University.

President Nicolas Maduro, who was selected  by the dying Hugo Chavez to carry on his "Bolivarian revolution," claims  that anti-government forces, including the private sector, are causing  the shortages in an effort to destabilize the country.

The government this week announced it would import 760,000 tons of food and 50 million rolls of toilet paper.

Commerce  Minister Alejandro Fleming blamed the shortage of toilet tissue on  "excessive demand" built up as a result of "a media campaign that has  been generated to disrupt the country."

"The revolution will  bring the country the equivalent of 50 million rolls of toilet paper,"  he was quoted as saying Tuesday by state news agency AVN. "We are going  to saturate the market so that our people calm down."

Finance  Minister Nelson Merentes said the government was also addressing the  lack of foreign currency, which has resulted in the suspension of  foreign supplies of raw materials, equipment and spare parts to  Venezuelan companies, disrupting their production.

"We are making progress ... we have to work very hard," Merentes told reporters Wednesday.

Many  factories operate at half capacity because the currency controls make  it hard for them to pay for imported parts and materials. Business  leaders say some companies verge on bankruptcy because they cannot  extend lines of credit with foreign suppliers.

Merentes said the  government had met the U.S. dollar requests of some 1,500 small- and  medium-sized companies facing supply problems, and was reviewing  requests from a similar number of larger companies.

Chavez  imposed currency controls a decade ago trying to stem capital flight as  his government expropriated large land parcels and dozens of businesses.  

Anointed by Chavez as his successor before the president died  from cancer, Maduro won a close presidential election April 14 against  opposition candidate Henrique Capriles, who refused to accept the  result, claiming Maduro won through fraud and voter intimidation. He  filed a complaint to the Supreme Court, asking for the vote to be  annulled, though that's highly unlikely to happen since the court is  packed with government-friendly justices.

Patience is wearing  thin among consumers who face shortages and long lines at supermarkets  and pharmacies. Last month, Venezuela's scarcity index reached its  highest level since 2009, while the 12-month inflation rate has risen to  nearly 30 percent. Shoppers often spend several days looking for basic  items, and stock up when they find them.

Fleming, the commerce  minister, said monthly consumption of toilet paper was normally 125  million rolls, but that current demand "leads us to think that 40  million more are required."

"We will bring in 50 million to show those groups that they won't make us bow down," he said.