Venezuelan President Gains New Economic Team

President Nicolas Maduro replaced key figures of his cabinet in response to congressional losses, according to Bloomberg Business. Maduro removed certain people to address the dire state of the economy, which has long suffered due to a 40-percent drop in oil prices. Venezuela relies on oil revenue for 95 percent of its exports.

President Nicolas Maduro replaced key figures of his cabinet in response to congressional losses, according to Bloomberg Business. Maduro removed certain people to address the dire state of the economy, which has long suffered due to a 40-percent drop in oil prices. Venezuela relies on oil revenue for 95 percent of its exports.

The shift in congressional power marks a turning point for Maduro’s administration as opposition members seek to remove the socialist leader, and he faces outside pressure from Argentinian president Mauricio Macri, who openly called for Venezuela’s removal from a vital trade bloc agreement because of human rights transgressions.

However, Maduro faces a direct threat at home, and recent elections show that he could find himself on the chopping block sooner rather than later. This is the first time the opposition gained a strong foothold in 16 years, gaining 112 seats out of 167, rendering the president a lame duck if he fails to defeat his political opponents.

Congressional leaders wish to investigate corruption and remove Maduro within a six-month period, but his new cabinet could provide his saving grace. For example, college professor Luis Sala will helm a new economic ministry, but he has a reputation as a radical, and he will inevitably clash with moderate members of Congress.

Sala shows no sign of taking a conciliatory approach to political enemies and members of the business community, and it is the wrong strategy at a time when the country needs to reach across the aisle while attracting foreign investors. The president faces a tough road ahead as Congress calls for his head, but retaining aggressive loyalists will at least provide the necessary political cushioning the president needs to keep his detractors at bay.

Among other changes, Rodolfo Medina will become the new finance/banking minister, and Aristobulo Isturiz will be confirmed as vice president. The president also established ministries in the areas of urban agriculture and fishing, and Jesus Faria took up the mantle as minister of investment and trade.

Such shake-ups may seem jarring to a country undergoing drastic economic turmoil, but Maduro has nothing to lose as the economy races to the bottom with no relief in sight. The South American country reached its worst recession in history, and many people struggle to pay for necessities such as toilet paper and food, with inflation skyrocketing over 120 percent. The International Monetary Fund assessed a GDP contraction of 10 percent for 2015.