The average monthly income of workers in Venezuela’s private sector is about $500, while public-sector employees earn roughly $300, including bonuses, according to a study by Datanálisis. Wages need to rise, but financing an increase through unbacked money creation—as happened in August 2022—could trigger currency devaluation and accelerate inflation. The article’s author argues that wage growth should therefore be supported by increased output and productivity, or by actual government revenue.
One potential source of funding is the reorganization of state-owned companies. The proposal is to bring in private capital and hand management over to private partners to boost output, competitiveness and exports. According to the organization Transparency Venezuela, the country had 914 state-owned enterprises in 2022. The 2025 budget puts their combined workforce at around 500,000, with annual losses of $8–12 billion. The article links their operations to budget deficits and money creation, which began in part to finance PDVSA, the state oil company.
The proposal is to group enterprises according to their political sensitivity. In less sensitive sectors, including agriculture, manufacturing and regional transport, private investors could be offered at least 80% of shares; in regional electricity and mining, 45–79%; and in PDVSA, national electricity and state-owned banks, 20–45%. The author says sales should follow an international audit and be conducted through open auctions or debt-for-equity swaps, with shares set aside for employees and a stock-market listing. Revenue from the reform, estimated at $5–10 billion over three years, could help gradually raise wages by 300–500%, provided production and commercial targets are met. Rather than framing this as a debate over privatization versus state ownership, the author proposes calling the pragmatic approach “productive recovery.” Sustainable growth would also require labor-law reform and agreements that encourage private investment, diversification of production and exports.
Full version: How can some public employees’ salaries continue to rise without “failing in the attempt”?