John McDonnell says hard-left Venezuela collapsed because they weren’t socialist ENOUGH
The Shadow Chancellor used an appearance in Davos today to say that their system only didn't work because they didn't mobilise their oil resources and invest long-term
THE hard-left regime in Venezuela collapsed because it wasn't socialist ENOUGH, John McDonnell said today.
The Shadow Chancellor used an appearance in Davos today to say that their system only didn't work because they didn't mobilise their oil resources and invest long-term.
He told a panel discussing free markets that former leader Hugo Chavez's policies had helped to "tackle inequality" and "invest in education".
And that they would have worked if they had only "mobilised the oil resources" and invested for their futures.
Speaking to business leaders and world leaders in the Swiss ski resort today, Mr McDonnell bizarrely claimed: "It’s not that the issue is socialism vs capitalism.
"In terms of what happened in Venezuela, they took a wrong turn."
He went on: "All the objectives of Chavez, in terms of tackling inequality, investing in education, developing people’s skills, would have been successful if they had mobilised the oil resources to actually invest in the long term and work with private sectors as well."The left-wing country has descended into chaos under Chavez's successor Nicolas Maduro.
The country's socialist policies have sent inflation soaring, which led to violent protests across the country, and severe food shortages.
In November the country defaulted on its debt as it heads towards bankruptcy.
He said that Venezuela should have "learned the lessons from the UK - we squandered our oil resources as well".
McDonnell said we "allowed private profits to take the benefits of that" as opposed to in Norway where they set up a wealth fund.
"I think in Venezuela they took a wrong turn, a not particularly effective path, not a socialist path.
"There are lessons to be learned on the mistakes all around."
McDonnell and other Labour MPs have repeatedly praised the leftie regime in Venezuela.
The Shadow Chancellor once said that Chavez "lit a spark" of revolution and helped to "address" poverty in the country.
After his death in 2013, Mr Corbyn tweeted: "Thanks Hugo Chavez for showing that the poor matter and wealth can be shared.
"He made massive contributions to Venezuela & a very wide world."
Shadow Home Secretary Diane Abbott has also praised the former leader and the country - hailing his "sweeping social, political and economic agenda".
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Speaking at Davos today he also called for accountants to swear a new kind of Hippocratic oath to promise not to help people avoid paying their taxes.
He also called on all businessmen and politicians involved in tax policy to release their income tax returns too - like he and Mr Corbyn have done - and a new Robin Hood tax on trading.
He told world leaders: "I come with a warning. When people are in depths of a recession, they focus on survival… now growth is returning but don't feel they are participating, that's when people become really alienated and angry.
"There is an anger out there, you need to realise and deal with it."
Meanwhile, it was revealed that Mr McDonnell was staying in a posh £700-a-night hotel during his stay.
The hotel boasts the largest indoor pool in Davos, and also offers a nightly five-course dinner prepared from fresh regional produce.
It is unclear about who was fronting the stay.