Background

VENEZUELA: 

• There are chronic shortages everywhere. Analysts say the socialist government’s currency controls that restrict the availability of dollars for imports has played a key role in creating the scarcity of many items.
• In a country with supposedly the largest oil reserves in the world, people queue around the block for goods that most likely won’t be there to buy when they get to the front.
• Venezuelans can’t get medicine, or parts to fix their cars.
• Inflation runs at anything from 200% to 600%, depending on who you believe, and the currency – at least officially, if not always in practice – has lost four fifths of its value this year alone. (from a December 2015 Forbes commentary)

ABOUT VENEZUELA’S GOVERNMENT:

For most of the first half of the 20th century, Venezuela was ruled by generally benevolent military strongmen, who promoted the oil industry and allowed for some social reforms. Democratically elected governments have [ruled] since 1959. Hugo Chavez, President of Venezuela from 1999 until his death in 2013, promoted a controversial policy of “democratic socialism,” which [aimed] to alleviate social ills while at the same time attacking globalization and undermining regional stability.(From the CIA World FactBook.)

Under the presidency of Hugo Chávez, Venezuela saw sweeping and radical shifts in social policy, moving away from the government officially embracing a free market economy and towards quasi-socialist income redistribution and social welfare programs. (from wikipedia)

nationalization – refers to the process of a government taking control of a company or industry, which can occur for a variety of reasons. When nationalization occurs, the former owners of the companies may or may not be compensated for their loss in net worth and potential income.

What is wrong with the socialist/communist policy of nationalization?:

Nationalization destabilizes a society and economy, reduces investment, entrepreneurial innovation and economic growth, and has negative consequences for the majority of the population, including the poor. It sends a message to inhabitants and outside investors that private property is not safe. Nationalization destroys jobs and the profitability of enterprises and is a crime against the general populace. It is bad for consumers, workers, the poor and democracy. (read more at moneyweb.co.za)

From a March 1 post by Theodore Cangero at aier.org:

• The socialist Bolivarian Revolution in Venezuela led by its late president, Hugo Chávez, appears to have failed.
• The Venezuelan economy has collapsed and hyperinflation has destroyed the country’s currency.
• The economy contracted over 10 percent in 2016, and inflation accelerated to 700 percent.
• President Nicolás Maduro is continuing the disastrous economic policies of the late President Chávez, however.
• Chávez was elected in 1999 and implemented a series of redistributive policies aimed at alleviating poverty.
• The Socialist Party of Venezuela, the party of Chávez and Maduro, used redistributive policies to reduce inequality at the expense of the overall economy.
• It is likely that inequality would have been reduced even more had Chávez and Maduro not interfered in the economy.
• The redistribution policies of Chávez depended completely on revenue from Venezuela’s state-owned oil industry.
• Private industry was strangled by centrally planned price controls, which caused widespread shortages of basic goods.
• Socialism and exclusive dependence on the oil industry have led Venezuela down the path of economic collapse, hyperinflation, and social and political unrest.

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ESTONIA:

• Read a 2015 "Tuesday's World" article: Estonia’s president urges NATO to send troops to defend his country
• Consider watching an inspiring film “The Singing Revolution” about Estonia’s freedom from the Soviet Union. We highly recommend this movie.

ON NATO:
The North Atlantic Treaty Organization (NATO) is an alliance of 28 countries from North America and Europe committed to fulfilling the goals of the North Atlantic Treaty signed on April 4, 1949. In accordance with the Treaty, the fundamental role of NATO is to safeguard the freedom and security of its member countries by political and military means. NATO is playing an increasingly important role in crisis management and peacekeeping.

POLITICAL – NATO promotes democratic values and encourages consultation and cooperation on defence and security issues to build trust and, in the long run, prevent conflict.

MILITARY – NATO is committed to the peaceful resolution of disputes. If diplomatic efforts fail, it has the military capacity needed to undertake crisis-management operations. These are carried out under Article 5 of the Washington Treaty – NATO’s founding treaty – or under a UN mandate, alone or in cooperation with other countries and international organizations. (from nato.int)