In recent years, administrative analysis and design have been enriched by involving elements of systems and processes to understand the whole and parts of the organization, reflection within and outside the general and specialization, for their understanding. of internal integration and external adaptation of efficiency and effectiveness.
System is understood as the set of interdependent and intervening elements is greater than the result that the units could have if they operate independently with two fundamental properties:
- Every system has one or some purposes or objectives and that the units or elements, as well as the relations, define a distribution that it always tries to achieve as an objective.
- Every system preserves the essence of an organic nature, by which, if an action produces changes in the units of the system, it is very likely to produce changes in all other units. The system will always react globally to any stimulus produced in any part or unit.
There is no single model or way of managing, since different environments lead the state to adopt new strategies and the new strategies require different organizational structures to be implemented efficiently and effectively.
Organizations are exposed to one part of the environment, and that part may have certain characteristics that differ from the others. Thus, in markets, environments can be:
- Homogeneous: When there is little market segmentation. Heterogeneous: When there is a lot of market segmentation. Stable: When few changes occur or when changes are characterized by slow and predictable development. Unstable or dynamic: When many changes occur or when the changes are characterized by their unpredictability and turbulence.
For example, there are so-called generic processes that are a set of activities and decisions with which the government organization creates or adds added value to goods, services or products, which must be taken into account to define them:
- That they have a strong potential impact on market differentiation. That they have a different economic and / or technological basis. That they represent a significant part or an increasing proportion of the total cost of the product / service and that it satisfies a felt need of the total customer. That allows it to be evaluated through management indicators in order to monitor, control and give feedback on the execution of the activities or, if appropriate, make changes to it. That has defined limits and a clear scope of the process. Ownership of the process. Definition clear of internal interactions and responsibilities. Documentation of procedures, requirements and functions of the positions involved. Cycle times established.
In the administration, information is one more element of the management infrastructure; however, technology plays an important role, not only as a tool for the implementation of parts of the information system, but for the opportunities that it offers to the organization.
"Permanently analyzing in the government administration the external and internal allows us to recognize the demands of changes in the external environment."
As you know, economic growth is governed by the increase in Gross Domestic Product compared to the previous year.
Nations that manage to establish conditions of constant GDP growth over time enjoy levels of development far superior to those of peoples with unstable financial systems. These differences, however small, generate very large divergences in the per capita income of the countries, after a certain period of time greater than or equal to ten years.
New economic theories explain that accumulating capital is not directly related to long-term growth. In the new world reality, the development of peoples is due to technological updating and the renewal of production processes to make them more efficient.
In this sense, there is no technological development without training of human capital, that is, companies and societies that want to achieve levels of prosperity, must encourage the training of the worker or their peoples.
ADMNISTRATION IN VENEZUELA
An analysis shows that Venezuela experienced two economic moments in the twentieth century, one miraculous, between 1950 to 1978, where the country grew to such a point of having the highest growth rates in the world, and in those twenty-eight years there was little inflation.
The other economic moment can be called "disastrous." Since 1978, the Gross Domestic Product GDP has followed a decreasing trend. This is due to a series of bad and repetitive economic policies and the lack of an institutional floor that allows clear rules of the game to be set for investors.
These disruptions have provoked the international reaction, the most prominent economists in the world describe Venezuela as a disaster in economic growth and the saddest thing is that they do not explain why.
Statistics show that countries with decreases like ours, which are only 4 or 5, have suffered wars, or extremely large natural disasters.
All these data allowed us to point out that the economic disaster has impoverished the Venezuelan to such an extent that our per capita income is the same as we had 50 years ago, that is, that of 1953.
Between the 1950s and 1978 the growth rate was above 5%. On the contrary, from 1978 to here, the rate is negative, since it is between -2 and -3%.
The characterization pattern of the State crisis includes some recurring points that are interrelated in different measures:
- End of post-war developmentalism due to the end of the Bretton Woods, the oil crises, the liquidity crises and the instability of the international financial market, the new competitive integration requirements of globalization, etc. The Keynesian welfare state crisis due to dysfunctions and disadvantages of state intervention as a guarantee of well-being or economic stability, in relation to the attributes of the market, according to what was sustained by the currents of neoliberal inclination from the 1970s on. Bureaucratic dysfunctions or crisis of the state implementation mode of public services. Ungovernability: tax overload, excess demands and crisis of legitimacy, among other problems.
THE VENEZUELAN ADMINISTRATION AGAINST GLOBALIZATION.
The State must take very seriously what ex-President Caldera expressed: “When an analysis is made of what has been done in this country, in the 40 years of democracy, with all the effects and failures that can be assigned to some governments or to some activities, especially in the last decades, you will find yourself with a fundamental concern for education… that is why I have commented, when speaking of the famous phrase of Dr. Uslar Pietri: Sow the oil ”, that if the oil was sown. Part wasted, lost, perhaps painfully, part stolen, but a good part, the most important. It was invested not only in infrastructure works, but in the main infrastructure that is human, which is the infrastructure of education ”. Unfortunately the latter has deteriorated,When deviating from the objective of what should be Venezuelan education in current times, the contamination of deterioration of values infiltrated the universities and thus it lost its course, its mission, obtaining in the present professionals who need to be better trained. This must be corrected once and for all by the Venezuelan State and the Universities with a better integration between them in favor of their rescue.
It is a true fact that we are acting within a scenario where Globalization is decisive in the success of the actors who have decided to participate, as in the case of Venezuela, the country that concerns us, where the business sector must play a very balanced role., backed by great strategies, led by managers who know how to interpret what is demanded, in order to satisfy consumer needs, in addition to producing, manufacturing highly competitive products, as well as services that are profitable, that guarantee the conquest of new markets, the development and expansion of organizations.
As has been commented in the reports of the kind of problem by its participants, it is not only necessary to talk about the obstacles that Venezuelan companies face in the face of globalization, but it is also important to evaluate their expectations and position regarding this challenge. Of course, all of this invites us to really ask ourselves if Venezuelan businessmen who always advocate limiting imports, seeking protection for their products, feel the need to face what they will sooner or later have to face, such as the full integration of their economy in the face of globalizing current.
COMPETITIVENESS IN THE VENEZUELAN COMPANY.
We are beginning a new century, where the Venezuelan is once again hopeful to make up for lost time, trusting that the country, once and for all, takes off from the crisis that, unfortunately, within a climate of democracy, its former rulers They led, yes, hoping to achieve a fair level of quality of life, that unemployment does not continue to be a threat, that the new national government now represented by a compatriot who has the opportunity to carry out this task, who identifies with the Bolivarian spirit, as is the current President Hugo Chávez, once and for all, his promises do not remain in words, but in actions, that generate the changes that are required with convincing economic programs, with trained, excellent professionals,With the collaboration of a business sector that requires that the contingent variables of its environment, such as that of the State, are not a threat, on the contrary, that they are guaranteed that their competitiveness in a globalizing scenario is profitable and is profitable in the National Gross Domestic Product and we do not continue to depend exclusively on oil.
Marcel Antornosi Blanco points out that competitiveness is the entrepreneur's ability to design, produce and market goods and services, the qualities and prices of which make up a package more attractive than that of the competitors.
The Venezuelan company cannot ignore that it is in scenarios where competitiveness is increasingly dynamic, full of opportunities, but also threats, all of which depends on how well it has prepared to face its competitors, on whether it has the right technology, with a well-trained management, capable of facing the challenges, the risks, effectively using your emotional mind, your analytical capacity, your modern administrative knowledge.
It is no longer possible to survive, neither as a company nor as a country, with the traditional levels of productivity and quality. Whatever the capacity of the political leadership, as pointed out by the participants of the chair of Problematics of the Venezuelan Administration of the School of Administration of the University of Carabobo, to adapt to the new world context, the survival and prosperity of the The company depends on the ability of its leaders to take on the challenge of its own modernization. Of course, this requires a deep understanding of the characteristics of technological and managerial change, as well as the nature of globalization in the markets.Only in this way can the dangers of the opportunities be distinguished and only with that understanding can successful strategies be designed to learn to grow and prosper in this new context.
The Venezuelan company must become competitive, must make an administrative audit of its reality, of how globalization is facing what is its current social responsibility, of how is its ability to offer the market its highest quality, its best prices and greatest satisfaction to consumers regarding what the competition is offering. You must evaluate how management is currently facing challenges, how modern administrative philosophies are used, how paradigms are interpreted, how administrative tools are being used.
The Venezuelan management, our analysis case, cannot ignore the reality of the current national and international scenarios, to make use of reengineering, based on the premise that it is not the products, but the processes that create it that lead companies to success in the long run. Good products do not make winners; winners make good products. What companies have to do is organize around the process.
Reengineering therefore allows us to redesign processes so that they are not fragmented, that is, it is a process that includes the creation of a new design for the procedures and functions of the organization and a radical and drastic redesign with the aim of achieve dramatic improvements in contemporary and critical performance measures such as: cost, quality, service and speed.
The Venezuelan Dime can not avoid when facing and using reengineering to become competitive, it must start again with this tool to start again, it is not doing more with less, it is with less giving more to the client. Hence, the management responsible for ensuring the survival of the Gimes and achieving their success must be responsible for reengineering allows it to place itself in an advantageous competitive position.
THE MANAGEMENT AGAINST THE VENEZUELAN ADMINISTRATION.
The Venezuelan management must adapt to the new knowledge that the current scenarios demand, it cannot remain anchored in the past, applying old theories, tools, models that attempt against the survival of the organizations where they work. Today the scenarios are more dynamic, constantly subject to changes, innovations, and turbulence, where the Alliances are decisive figures in opening up to conquer new markets.
Hence, all this requires that the manager of the present must be innovative, proactive, with vision, with the knowledge required by the new paradigms, as well as being a good strategist, entrepreneur, creative, a leader of change, seductive, persuasive.
It is time to change the management style, since the one we have maintained has indicated to us that we have not known how to take advantage of opportunities, provide feedback on our strengths and transform our weaknesses.
Venezuela cannot be isolated from international markets, given the opportunities for the business sector to manifest itself in them by offering quality products, highly competitive, backed by a managerial leadership that must be trained with the latest advances in science administrative, knowing how to interpret what are the requirements currently demanded by the markets in order to satisfy the needs that the consumer requires, requests.
Venezuelan companies must accept the challenge of what it means to develop a management that occupies that level that is needed to be competitive, especially in the face of globalization, despite the fact that uncertainty is faced, as a result of a political system that has not guaranteed security, more Well, risk, fear of investment has predominated, and above all, when there is no clear pronouncement of economic programs so that management evaluates them and can design plans, actions in favor of achieving the social responsibility that today must play the Venezuelan company.
If you do not know how to interpret the scenario in which companies operate, they may perish, fail, for which you must evaluate what are their current competitive advantages, obstacles, weaknesses and strengths. What should be the leadership style that guarantees its success, the integration of work teams, productivity, the achievement of quality.
The management of the present, must know how to analyze what their actions should be in order to interpret the economic, social, political, legal, educational process that is currently being faced with the government of Hugo Chávez, in order to adapt to the changes, taking very into account Seriously, human resources occupy an important place within the management framework, especially that of knowledge.
Management must also prepare to be competitive in the scenarios where it operates, trying to achieve, achieve market leadership. Know how to optimize the quality of information, making it accurate, reliable and timely as a basis for decision-making. Redesign its administrative structure, making it less bureaucratic and more flexible.
It must be taken into account that centennial organizations are already beginning to disappear, to make way for new business forms, such as alliances, mergers, and economic blocks.
Definitely, Venezuelan management cannot maintain the autocratic leadership style, it must open up to be more participatory, more seductive, to become a true agent of change. You must form a good team, make members take part in decisions. One cannot continue in the face of the certain fact that 75% of Venezuelan managers are the decision makers, ignoring the sense of group integration, of the atmosphere of a participatory democracy. Management must rethink and change its leadership style, evaluate the causes that make it act in such a way that affects the good organizational climate.
Companies must redesign what the characteristics of the required manager profile should be. Avoid placing people in these positions for political commitment, friendship, brotherhood, on the contrary, proactive, dynamic, visionary, modern administrative knowledge, true strategists, innovators must be selected, who know how to interpret and produce the changes without creating conflicts, with culture, responsible, disciplined, with ethics, defined values and they know for sure where they want to go and how to achieve it, where, of course, collective interest predominates more than individual interest.
Management must be framed in a change strategy so that policies are adopted that actually achieve qualitative changes where there is the ability to maintain participatory leadership aimed at understanding and applying the goals and objectives of the organization, where it is seen career and personal development as an investment and the pursuit of employee satisfaction and the achievement of a good organizational climate.
The good Venezuelan manager must rescue the figure of what is a good administrator, must not fall into improvisation, of knowing how to optimize the use of his resources, have safer, more controlled and timely operations that allow increasing productivity and of course, stimulate individual and collective creativity, as well as personal development and fulfillment.
ECONOMIC BEHAVIOR
The Venezuelan economy is mainly based on the exploitation of oil and its derivatives. In recent decades, it has tended to diversify with exports of iron ore, aluminum, coal, cement, and non-traditional products, such as petrochemicals, steel metal manufactures, and others.
Until the beginning of the 1980s, Venezuela enjoyed a high oil income from external sources, which allowed the State to constantly increase its spending without increasing internal taxation, enjoying a high standard of living for the population with a notable improvement in the services of health and education.
An internal industrialization was achieved that replaced many imports, the construction of an important road infrastructure, irrigation and hydroelectricity and the formation of large public companies.
Subsequently, there was a sustained fall in oil income, which was reduced to a third in 1993, accompanied by high payments of the external public debt and sustained financial pressure due to the outflow of international monetary resources, which culminated in 1994 with a serious banking crisis., with high levels of corruption, and a decrease in the quality of life.
During this time, a new economic policy was implemented with the unification and floating of the exchange rate, the liberalization of domestic prices and interest rates, the start of the privatization of public companies and the renegotiation of external debt. In 1994, the gross national product (GNP) totaled 58.250 million dollars, giving a per capita income of 2,854 dollars.
This financial crisis has been reflected in an increase in poverty. In this framework, an economic change was initiated in 1996 in which the privatization of deficit public companies is accentuated, the stimulation of foreign investment in various industries, such as oil, petrochemicals, gold mining, diamonds, coal, nickel, forestry, tourism and other sectors. This is expressed, moreover, with the freedom of prices and the acquisition of foreign currency, and with changes in the Social Security system.
farming
The Venezuelan government approved an Agrarian Reform Law in 1960, which was aimed at expanding and diversifying agricultural production, which has also been stimulated by increasing the irrigable area to 310,972 ha in 1994. In the mid-1990s, agricultural activities occupied 15% of the country's active population and contributed 6% of annual GDP.
The cultivated area amounted in 1994 to 1,748,907. The various Venezuelan agrarian resources are expressed in diverse productive systems that cover from subsistence and semi-commercial agriculture, developed in traditional conucos and in small farms where products for domestic consumption are grown (beans, beans, cassava and tropical roots), up to plantations of various types, such as the old ones (today modernized for the most part) dedicated to the cultivation of coffee, cocoa, sugar cane and other commercial products. Mechanized and modern annual cultivation systems have multiplied in recent decades, such as those specialized in corn, rice, sorghum, sesame, peanuts, sunflower and cotton, thanks to irrigation, fertilization and pest control.that have transformed the agrarian geographic landscapes of the Guanipa table and important extensions of the central and western Los Llanos. The recent introduction of innovative systems for fruit growing, viticulture, horticulture and commercial floriculture in the Andean states of Zulia, Falcón, Lara, Guarico and Aragua, among others, stands out.
Significant advances in the mobilization of livestock resources with improvements in the yields of various types of livestock are noted. At the beginning of the 1990s, the cattle herd in Venezuela had 13,272,135 heads of cattle, 2,903,900 pigs, 525,000 sheep and some 57,000,000 poultry. The landscapes created by modernized livestock farms are seen in the lowlands of the southwest of the Lake Maracaibo basin, in Perijá, Bobures, Monay, Bajo Motatán, Carora, southern Falcón state and in Los Llanos, where it has been established a prosperous area of intensive meat and milk production.
Forestry and Fishing
Despite the fact that forests and jungles cover much of Venezuela, the lumber industry has had only a moderate development due to the inaccessibility of natural forest areas. From 1973 to the present, massive plantations of Caribbean pine have been made, for commercial purposes, in the southern states of Monagas and Anzoátegui, along the banks of the Orinoco. Wood is used for the construction industries and for making furniture and paper. In 1994, 498,073,000 m3 of natural forest wood and 231,161,190 m3 of wood were obtained from Caribbean pine plantations.
Venezuela's vast fishing resources are made up of a wide variety of marine life. The most important commercial catch is shrimp, followed by tuna, sardines, dogfish, snapper, grouper and squid. Shrimp mariculture has been introduced on the Caribbean coast, trout farming in fish farms in Mérida and Táchira, and river aquaculture in Llanos, Zulia and Guayana. In 1994, maritime fishing production was 378,409 t, highlighting the productions of Sucre, Nueva Esparta and Falcón.
Oil and mining
Oil is the base of the Venezuelan economy, generating in 1994 73.3% of export earnings. Options of great magnitude are recognized in all types of crude oil, which explains that in that same year 2,574,000 barrels per day were extracted, most of it destined for export to the United States, Europe and other Latin American countries. This large oil production is extracted mainly from the Lake Maracaibo basin and the Barinas-Apure and Oriental basins.
The Venezuelan government nationalized the oil industry in 1976, which was left in the hands of the company Petróleos de Venezuela SA (PDVSA), whose subsidiary companies operate in seven refineries in the country of varying magnitude and have an oil refining capacity of 1,320,000 barrels. daily, in addition to another nine abroad (in Curaçao, the United States, Germany, Sweden and Belgium) that process an additional 485,000 barrels per day. A great future is foreseen in this sector, since there are reserves estimated at 64,877 million barrels of oil, including both conventional reserves and those of the Orinoco oil belt, where they have already begun to mobilize due to the orimulsion process, which It is an emulsion of bitums and water, mainly for the use of power generating plants.The country is one of the world's leading producers of natural gas: in 1994 production was 44,173 million m3 and 38,690,000 barrels of liquefied gas, butane and propane. Venezuela is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).
Other minerals exploited for commercial purposes are iron, bauxite, coal, gold, salt, phosphates and limestone. Extensive iron ore deposits were discovered near the Orinoco River in the 1940s in the so-called Imataca iron belt; It was exploited by US companies until its nationalization in 1975, and from this date it was taken by the state company Ferrominera del Orinoco, a subsidiary of the Venezuelan Corporation of Guayana, which extracted in 1994 a production of 18,309,000 tons of iron from the Guyanese deposits. Bolívar hill, San Isidro hill and Los Barrancos hill, of which 11,150,000 t were exported to Europe, Asia and the United States.
The extraction of bauxite minerals from Los Pijiguaos has been operating since 1987, with a production in 1994 of 2,530,000 t. Iron is processed in Ciudad Guayana, at the Siderúrgica del Orinoco facilities, with an annual production of 2,682,277 t of steel, while bauxite is transformed in the same city by Interalúmina, a subsidiary company of the Corporación Venezolana de Guayana that satisfies the demand of the aluminum producing companies. The exploitation of the Guasare coalfields in the state of Zulia, Carbo southwest in Táchira, and Fila Maestra and Naricual in Anzoátegui has reached the production of 4,434,000 tons of coal in 1994. There is an abundance of gold minerals (especially in the states of Bolívar and Amazonas) both in veins and in alluviums,representing its potential approximately 12% of the world's known reserves. Gold production in 1994 amounted to 9,944 Kg and diamond production to 314,000 carats. Venezuela is also a major producer of limestone and dolomite with 15,972,083 tons per year, which provide the raw material to fifteen cement factories. Other exploitations of great interest are the Táchira phosphate deposits that began to be exploited in 1994 with 57,337 t, manganese deposits in Guyana and nickel deposits in Aragua.Other exploitations of great interest are the Táchira phosphate deposits that began to be exploited in 1994 with 57,337 t, manganese deposits in Guyana and nickel deposits in Aragua.Other exploitations of great interest are the Táchira phosphate deposits that began to be exploited in 1994 with 57,337 t, manganese deposits in Guyana and nickel deposits in Aragua.
Industry
Since the early 1960s, the government has given high priority to the development of the manufacturing industry economic sector. The main industrial products are derivatives of petroleum, steel, aluminum, fertilizers, cement, tires, motor vehicles, processed foods, beverages, textiles, clothing, footwear, and plastic and wooden articles. In 1993, 8,974 industrial establishments were registered, employing 461,653 people.
The industry is concentrated in the cities of the Capital region and the Central region. In the last decades of the 20th century, the location of industries of various types in the Central Western, Zulia, Andes and Guayana regions has been consolidated, highlighting the importance of heavy industry in Ciudad Guayana.
Energy
More than 70% of Venezuela's electricity is produced in hydroelectric facilities with plants located in the state of Bolívar, where the state-owned company Corporación Venezolana de Guayana / electrificación del Caroní (EDELCA) has built and operates the megaproject for the Raúl Leoni hydroelectric plant (installed capacity of 10,000 MW) and Macagua I (installed capacity of 360 MW. Also important in the Andes region is the state-owned company Compañía Anónima de Administración y Fomento Eléctrico (CADAFE), which has put the hydroelectric plant into operation of Santo Domingo and has enabled the Uribante-Caparo hydroelectric complex, in its first stage, at the San Agatón plant, generating 67.63 billion kWh of electricity in 1994.
Currency and Banking
Venezuela's monetary unit is the 100-cent bolivar (673 bolivars is equivalent to 1 US dollar in April 2000). The Central Bank of Venezuela, founded in 1940, is the government's banking unit, the only bank that issues the currency and the center of exchange for commercial banks. The country's main stock exchange is located in Caracas.
Foreign trade
Venezuela's main exports are oil and oil derivatives, which together accounted for more than 73.3% of foreign trade in 1994, although in previous years they represented more than 80%. Other notable exports are iron, steel, aluminum, coal, gold, petrochemicals, and basic industries. In 1994, total annual exports rose to $ 17,089,819,000. The main imports are machinery, transport equipment, chemicals, food products, and manufactured goods. In 1994 the cost of imports was $ 8,277,202,000. Its main trading partners are the United States, Colombia, the United Kingdom, the Netherlands Antilles, Japan, Mexico, Italy, Germany, Brazil, Canada, France and Spain.Trade has increased with the member countries of the following organizations: the Andean Group, the Caribbean Community and Common Market (Caricom), the Central American Common Market (CACM) and MERCOSUR (Common Market of the Southern Cone).
Transport
Venezuela had in 1994 with 95,796 km of roads, of which 34.3% were paved. Highway density is high in the north-central area, in the Federal District and in the states of Miranda, Aragua and Carabobo; These extend on an extensive highway system into the interior of the country, connecting the largest urban centers with the most remote rural areas. The country has only 450 km of railways in sections not connected to each other, mainly a line from Puerto Cabello to Barquisimeto and the Yaritagua-Acarigua section. A new railway network has been planned for the year 2000. The most important seaports are Puerto Cabello, Maracaibo, La Guaira, Guanta, Puerto Sucre (Cumaná), Guaranao and El Guamache. Inland water transport is important, particularly in the Apure-Orinoco axis system.There are several airlines, including Avensa, Aeropostal, Alas de Venezuela (privatized) and other small companies. The Venezuelan International Aviation Company (VIASA) ceased to exist in 1997. In 1994, air transport was used by 6,691,000 passengers on regular flights to thirty airports, among which several international ones such as those of Maiquetía, Porlamar, Maracaibo, Barcelona, Barquisimeto, Santo Domingo del Táchira and San Antonio del Táchira.000 passengers on regular flights to thirty airports, including several international ones such as Maiquetía, Porlamar, Maracaibo, Barcelona, Barquisimeto, Santo Domingo del Táchira and San Antonio del Táchira.000 passengers on regular flights to thirty airports, including several international ones such as Maiquetía, Porlamar, Maracaibo, Barcelona, Barquisimeto, Santo Domingo del Táchira and San Antonio del Táchira.
Communications
In 1994 Venezuela had 2,279,218 telephone service subscribers, registering 412 towns with direct national service. There were 373 radio stations, most of them belonging to national networks. The advancement of television has been highly sustained and rapid, with the operation of several state and private channels that are seen in more than 80% of Venezuelan homes. Among the newspapers with the largest circulation are El Universal, El Nacional, El Mundo, El Globo and Últimas Noticias, all published in Caracas, as well as other newspapers published in state capitals.
ADMINISTRATIVE ANALYSIS OF VENEZUELA.
Statistical analysis that emerges from the economic closure of the last quarter of 2003 compared to the drop observed during 2002.
“Closing to zero growth in the last quarter generates an annual decrease of 11.2%. If we add to this figure the abrupt drop that occurred during 2002, which was 8.9%, we have that 19.11% of the total economic activity in the country disappeared in a period of just four months ”. This balance indicates that the income per inhabitant of the Venezuelan will close 2003 at 27%, a figure that is well below that registered for the year 1998, just at the beginning of the Government of President Hugo Chávez.
This means that if the loss of per capita income is distributed equitably, each and every Venezuelan today has an income in real terms of 27% less than that of five years ago.
There are some representatives of the official economic sphere, who argue that zero growth should be seen as a positive sign.
"This zero figure confirms that if those who led the country to the December strike committed treason against the country, those who implemented exchange controls and created Cadivi, also those who decreed price controls, labor immobility, and those who promoted legal insecurity and they violated private property; they committed an even greater betrayal because its effects have been much more devastating and prolonged. ”
Globalization is the new ghost that runs through the earthly world, where unfortunately, no country in the region is ready to insert itself and be competitive in it, since the internal, regional and hemispheric integration agreements have not been streamlined, which constitutes a determining factor given that it is very significant to consolidate their common denominators, as a result that each nation by itself is irrelevant to compete in the global market.
The truth is that companies are obliged to adapt to the new globalized world where they will compete with national and international companies, demanding to improve the quality of their products or services, of their human resources, of course, all of this by preparing a staff more capable, of a good technology that allows them to be more competitive or else they will be out of the market, as has happened to many. SA, all this must be added the individual and joint efficiency of all the productive systems of the country's companies that must be increasingly higher. Where management must be more prepared, identified with the new administrative paradigms,with the new knowledge and where the Administration schools must be committed to the formation of excellent Administration graduates according to what the world and national scenario requires.
Among the most prevalent obstacles that Venezuelan companies will have to face and solve are:
- Weak expansion of productive employment particularly in the sectors with the highest productivity and high wages, and a growing concentration of employment in the sectors with the lowest productivity, such as the informal sector and self-employed workers. Lack of highly trained intellectual human capital. Participation of companies towards a sustainable development that generates and develops a series of policies in favor of the ecological conservation of the country. As a result of the restructuring of the industrialization processes, there is also a trend towards the adoption of flexible manufacturing techniques, mainly by the large company, with a high content of imported inputs, an unfortunate heavy dependence on them.Under development of positioning and strategic alliances different from those of the heaviest industrial sector such as oil, which prevents said sector and the rest of the industrial sector from beginning to look a little more outward to be able to strategically insert itself within the new scope Latin American and global, failing to take advantage of the opportunities available in terms of geographical position and local engineering to promote the country as a pole of communications, services and transportation both intra-Latin American and European and Asian, while large companies have access to capital and new As technologies are located in international markets, many small and medium-sized companies do not have access to a significant source of capital, and they lag behind or tend to disappear with commercial opening.Expanded telecommunications infrastructure and adequate standards are not available. Unfortunately, Venezuelan companies lack a tradition of science and technology, given that they have never bothered to develop it, becoming dependent on those who supply it. develops new products in which it can assert competitive technological advantages. There are limited and outdated financial markets, that is, Venezuelan capital markets have hampered the competitiveness of the national economy. The banking sector traditionally lacked the capital, experience, and expertise to supply the resources necessary for business needs. Although this situation has changed a little with the entry of foreign banks,the same closed mentality continues to exist, that is how the concept of risk capital is unknown, for example. Precisely, interest rates are a reflection in part of inflation, but in another measure, of the high operating costs of national banks. There is very little preparation of the country's management to face the challenges of competitiveness, where the Management schools of national universities, have played a very significant role in not adapting their thinking to the requirements of the present. Of course there is a rentier mentality of national entrepreneurs and finally it can be added, a weak work culture, which It has stalled many small businesses.interest rates are a reflection in part of inflation, but to a different extent, of the high operating costs of national banks. There is very little preparation of the country's management to face the challenges of competitiveness, where schools Administration of national universities, have played a very significant role in not adapting their thinking to the requirements of the present. Of course there is a rentier mentality of national entrepreneurs and finally it can be added, a weak work culture, which has stagnated to many small businesses.interest rates are a reflection in part of inflation, but to another extent, of the high operating costs of national banks. There is very little preparation for the country's management to face the challenges of competitiveness, where schools Administration of national universities, have played a very significant role in not adapting their thinking to the requirements of the present. Of course there is a rentier mentality of national entrepreneurs and finally it can be added, a weak work culture, which has stagnated to many small businesses.where the management schools of the national universities have played a very significant role in not adapting their thinking to the requirements of the present. Of course there is a rentier mentality of the national entrepreneurs and finally it can be added, a weak culture of work, which has stalled many small businesses.where the management schools of the national universities have played a very significant role in not adapting their thinking to the requirements of the present. Of course there is a rentier mentality of the national entrepreneurs and finally it can be added, a weak culture of work, which has stalled many small businesses.
In the country's SMEs, we find several impediments, among them, the lack of knowledge of the advantages, scope and repercussions of the use of this tool for the development of companies. It is known that the management of the Venezuelan SME has been occupied by people with a great lack of knowledge of administrative knowledge, rather by empirical people who have contributed capital, who have inherited them from their family, who are acquiring experiences through of time, of its exercise. However, the vast majority lack university training, which prevents them from putting into practice the tools that guarantee success, knowing how to manage them efficiently. Everything indicates that there has been an inability to quantitatively measure the positive return that a reengineering process has when it is successful.
To this is added, in addition, the absence of a good culture of the Venezuelan businessman, who is wary of providing anyone with data on the economic reality of the company, where there is an absence of ethics, where corruption occurs, the deterioration of the values.
Of course, political uncertainty has also played a determining role, as well as the lack of vision of management and the low integration of companies with the Government in favor of conquering new markets taking advantage of trade openness, often very poorly designed in foreign trade policy. Adding in addition, the separation, divorce, little participation of universities with the business sector, through their management schools, which has prevented SMEs from benefiting from the training that these institutions can bequeath to them.
Leaving the Cariaco Trench
In the decrease in GDP, which reached a record -27.6% during the first quarter, the private non-oil sector contributed 12.9%, while the contribution of the public oil sector was 10.32%. The sum of both yields 23.22%, that is, 84% of the total fall in GDP was the result of oil sabotage and, as a consequence, is attributable to those who were responsible for it. This impact was decreasing throughout the year, for a smaller fall in GDP, in the second quarter, of -9.4%, with 7.21% from the private non-oil sector, and 1.65% from the public oil company, representing both sectors, over the total, 94.2% higher than in the first quarter. However, it was the incidence of the private non-oil sector that most influenced the fall in GDP in the second quarter of 2003, contributing 76.78%,while the incidence of the public tanker was lower in percentage terms with 17.5%, indicating the recovery that had been taking place thanks to the effort made by PDVSA workers in particular.
For the third quarter, GDP continued to fall with figures lower than the previous quarters by 7.1%. Of this total, the private non-oil sector decreased by 4.17%, contributing 58.7% of the total, in a lower proportion than in the second quarter, but in a higher percentage than in the first. The public oil sector, in its incidence on the fall in GDP during the third quarter, contributed in a greater proportion than that provided in the previous quarters, being 40.2% in the third, 17.5% in the second, and 37.4% in the first. It remains to know the result of the GDP during the fourth quarter.
Increasing reserves
The recovery and use of international reserves has shown another of the positive features that were established after the adoption of exchange control in February 2003.
In January 2003, the International Reserves (RIN) reached their minimum since the start of the current government, reaching 13,908 million dollars, including 1984 from the FIEM, with the operations of the Central Bank of Venezuela (BCV) being 6,533 million dollars, and non-operating 4,787. After the application of exchange control and two financing operations of the Republic, in dollars, at the exchange rate of 1,600 bolivars per dollar, for a total of 2,500 million dollars in August and December 2003, the RIN, as of December 19, 2003, they total 20,655, including $ 700 million for the FIEM; the operative ones are located in 14,401 and the non operative ones of the BCV in 5,554 million dollars. This recovery of 6,747 million dollars for the period exceeds 20.485 million dollars that were held in December 2000, which included 4,588 in the FIEM. This size of the RIN is almost equivalent to that of the Venezuelan external debt, in a one-to-one ratio, a ratio that is unattainable for any Latin American country. This enviable position theoretically could mean full support for the size of the country's external debt, which demonstrates an indisputable strength for Venezuela as a guarantee of its payment commitments.This demonstrates an indisputable solidity for Venezuela as a guarantee of its payment commitments.This demonstrates an indisputable solidity for Venezuela as a guarantee of its payment commitments.
Country risk in tailspin
The country risk of emerging countries is measured in many ways. One of them is expressed by the index called EMBI +. This indicator, which expresses a weight of several countries called emerging, includes Venezuela with a weight of 3.9%, in contrast to the weight of 22.3% for Brazil, 20.8% for Mexico, and 20.3% for Russia. The indicator, which in February 2003 reached 1,406 basic points, has been gradually decreasing until reaching 594 on December 19, 2003. This decrease of 812 basic points means a decrease of 8.12% less in the interest rate that the country should pay to seek resources in international markets. Comparatively, the index is above the average of 427 of the EMBI +, and also above the index for Brazil of 479, and Colombia of 430.The same applies to that of Mexico, which is 207 basis points.
As a curious reference, partly derived from the current situation in the country, the price of Venezuela's global bonds, which are at 90.50%, exceeded those of a country like Colombia with a lower country risk.
Internal financing rate
Another parameter that reflects the improvement in internal financing conditions is the rate at which the Venezuelan Treasury Bills are issued at 91 days. This indicator, constituted as a kind of marking rate, has been declining from 43.96%, which was in February 2003, to reach 15.20% at the end of December 2003, representing almost a third of the value that was held at the beginning of the year.
Blessed oil
After the recovery of the volume of oil production at the end of the first quarter of 2003, as a result of the heroic effort made by PDVSA workers, after the departure of almost 17,000 people who left their jobs during the sabotage, it was achieved the normalization of said production, as well as the maintenance of the prices of the Venezuelan basket at around 25.56 dollars per barrel, which has allowed stabilizing the national productive apparatus. The slogan of the new PDVSA that emerged after the sabotage is reaffirmed with the subsequent measures aimed at normalizing production, operability, and future development, under the parameters of greater transparency and interconnection with the national productive apparatus.
Oil continues to be the maximum engine of the Venezuelan productive apparatus, provider of foreign exchange of around 13 billion dollars during 2003, contributing 25% to the GDP, and 50% to the revenue of the Treasury, among other long factors. to list. Its dynamics are too important to leave aside, both in the short, medium and long term.
INFLATION INDICES IN VENEZUELA.
The inflation that had been controlled during the years 1999,2000, and 2001, came to exceed, in its interannual variations, the value of 38.7% in February 2003. Without considering the causes that motivated such an increase, the The values of said inflation have been decreasing until reaching, in October, 25.7%, with a rebound at the end of the year of 26.1% in November. Lacking the end of December, there is a cumulative value January-November 2003 of 24.8%.
The inertial nature of Venezuelan inflation is known, which, after high increases of 2.9% in January and 5.5% in February, has remained between 0.8% and 2.3%, with an average value in the last nine months of 2003 of 1.56%, which would allow us to attempt a forecast, of staying at that average value, of inflation of close to 20%, by failing to consider the effect it had during the first two months of the year, prior to the exchange control decision and subject in part to the dynamics that the country experienced during the last months of the oil sabotage.
Inflation in Venezuela stood at 1.8% last December, to accumulate 27.1% at the end of 2003, the issuer Banco Central de Venezuela (BCV) reported this Friday.
December's inflation index was slightly lower than that registered in November, when it stood at 1.9%, the issuer said in a statement.
The accumulated figure at the end of the year was also lower than in 2002 when the Consumer Price Index (CPI) closed at 31.2%.
The increase in prices in December «is attributable, on the one hand, to the concerted adjustments in the rates of the ground transportation services for passengers and electricity; on the other, to the remainder of the adjustments authorized in November for some goods belonging to the basket of controlled foods, "said the BCV.
The increases were evident in the categories of Alcoholic Beverages and Tobacco (from 0.4% to 1.5%), Clothing and Footwear (from 2.2% to 2.6%), Housing Services (from -0, 4% to 3.2%), Communications (from 0.5% to 1.2%) and Leisure and Culture (from 1.3% to 1.7%).
"Among the food products that showed significant increases are ham bread, pork and chicken, onion, paprika and precooked corn flour," the statement said.
Separately, the CPI component goods reflected a growth (2.2%) higher than that of services (1.5%), "with which the former closed 2003 with accumulated inflation of 35.3%, while that corresponding to services stood at 20.0% ».
The BCV recalls that 2003 “was characterized by the application of price and exchange controls, in force since mid-February. The goods and services subject to the price control measure reported an accumulated variation in the year of 17.9%, while the goods and services that were governed by the free play of supply and demand reflected an accumulated variation of 38,4%".
The following are the monthly inflation rates in Venezuela:
2003
- January 2.9%
- February 5.5%
- March 0.8%
- April 1.7%
- May 2.3%
- June 1.4%
- July 1.8%
- August 1.3%
- September 1.4%
- October 1.5%
- November 1.9%
- December 1.8%
WHAT TO DO TO GENERATE GROWTH
If the following variables are respected, in 25 years we could have the development of a first world country. To achieve this, an economic growth of 10% per year must be established during that period of time.
Below are the variables:
- Education of the population, as it would have a trained and attractive workforce. Guarantee health to citizens, as it relieves companies from making investments in health insurance. Defend patents and stimulate their creation, in this sense, rights must be respected of author. Respect for contracts and private property. Support economic researchers to create new theories adapted to our reality. Support for creativity, to create products adapted to our reality. Fiscal reforms. Create institutional floor. macroeconomic stability.Control the inflation rate and adjust them to the reality of the market.Avoid excessive, exaggerated and unjustified devaluations.Develop sectors where we have competitive advantages, for example oil technology.Do not limit yourself to being producers of raw materials. Diversify the economy, currently, 80% of the country's foreign currency comes from oil. Invest in technological development to avoid dependency. Produce value-added products as they are more listed in the Privatize companies that do not generate income.Open the market for competition and improve business productivity.Lack of clarity in the definitions, based on the fact that they do not master the concept of process reengineering, for this reason, they fail to carry out a rapid and radical redesign of the strategic value-added processes in order to optimize the workflows and productivity of an organization. Lack of knowledge of the process as such, because they see it as a difficulty and not as an agent of change that increases its competitiveness and efficiency.Lack of capital to transform processes, since these companies are characterized by being low capital. Difficulty in accessing credit because they are small companies, where financial institutions find it risky to give them loans. -resistance to change by these companies to improve the quality of their products as well as their productivity. SMEs do not have realistic expectations; perhaps due to a lack of clarity in the definitions or an excess of optimism to link the benefits of reengineering, in addition to the fact that many do not believe in these benefits. Lack of motivation on the part of management to plan processes that restructure their operations. projects with low risk and quick results, in the short term, rather than a solid project.The fear of technocentrism, that is,to the technology that is a key enabler of reengineering, since it constitutes a risk for many SMEs, because it involves training, costs and its efficient manageability involves time, an aspect that constitutes a threat especially in the face of its large and rapid changes.
CONCLUSION
As a preliminary conclusion, which can be broadened by visualizing other aspects of the progress that the country has had in the social field, it is to be hoped that the recovery of the productive apparatus, together with this massive attention to social problems, can reverse the trend that they dealt with. to impose from the end of 2002 those who tried to destroy their basic and strategic industry. The hard year of gnawing that was 2003 is being shelved by another more promising and constructive one.
Today's government organizations must also incorporate technologies for their administration that facilitate the response to the needs of personnel and the environment. The elaboration of an information systems plan has traditionally been carried out through an analysis of processes through the cycle of activities and work to produce goods, products and services. This life cycle is used to logically identify and group processes that can be identified based on the following criteria:
- Have a strong potential impact. Have a different basis in information, economic and / or technological. Represent a significant part or an increasing proportion of the total cost. Create or modify an entity or add and modify information during its realization.
The following processes are important to the Administration, which, in some way, have already been mentioned as important areas of the administration exercise.
- The primary processes: are the set of activities for: 1. The preparation of the service, good or product; It is directly prepared by the organization to provide existing services and gain in community outreach. 2. The provision of the service from the moment it is defined, until the moment its presentation is completed. 3. Follow-up to the service, good or product. Integrated processes such as: 1. The acquisition, which is associated with the incorporation of inputs or information necessary for the production of the good, product or service. 2. Technological development: associated with the effort to improve knowledge and acquired skills,
- Management of the teams of people linked to the organization: associated with the selection, hiring, training, development and compensation of all the organization's personnel.
Cultural organization infrastructure processes, which normally support all of the above processes and general administration, such as: planning, finance, legal affairs, and government regulations.
The question, as presented, is to establish a pattern of interaction between politics and administration that simultaneously meets the requirements of social integration and political regulation. The solution is as intricate, as the dilemma in which it is traditionally posed and above all misinterpreted, where the instrumental bureaucracy is subjected to political control, the exercise of politics is increased, or a bureaucracy is created that is not purely instrumental, but integrated and permeated by the political rationality of the political system, not by its own rationality. Both alternatives imply the advent of a post-bureaucratic apparatus, by definition, a state administrative system founded on both substantive and instrumental rationalities.Post-bureaucratic utopia is the correct sense of overcoming bureaucratic society and liquidating bureaucracy.
The paradigms examined and so many others to come are ideal-types of public administration. It is important to explore the construction and critical analysis of paradigms in the sense of supporting a vision of the Venezuelan administration that does not endorse the traditional dichotomy between administration and politics, between bureaucracy and democracy, but rather tries to take advantage of their integration in terms of legitimacy of action. public. This does not mean advocating for a heterodox stricto sensu line, based on the pre-selection of alternatives according to political circumstances. Nor does it mean revising the orthodox and liberal paradigms through a more innovative understanding of more appropriate management instruments and more appropriate ethical and moral conduct for bureaucrats,arguing that it would be preferable to update the orthodox paradigm from a perspective of submission to politics, than to subject politics to the business logic of public administration (Moe, 1994). Good administration is a possibility of organizational implementation of all the political-administrative relations of the State.
BIBLIOGRAPHY
- "Problems of the Venezuelan Administration" Source: UC FACES Archives. "Training in Cultural Administration and Management" Source: UCV FACES Archives. "Consumer Price Index (IPC) of the Caracas Metropolitan Area". Source: Press release from the Central Bank of Venezuela. "Venezuelan Per Capital Income" Source: Press release from El Carabobeño newspaper. "2003 A hard year to crack" Source: Press release from the Ministry of Planning and Development.
