October 2004: Venezuela Ignores Advice from IMF, Uses Oil Revenue to Fund Social Programs

Rodrigo Rato, the new managing director of the International Monetary Fund (IMF), urges oil producing countries to save the extra revenue generated from high oil prices. Venezuela, the world’s fifth largest oil exporter, shuns the advice and continues to use its oil revenue to fund literacy, health, and other social programs. In addition to the money that Petroleos de Venezuela, the country’s state oil company, contributes to the government, the company directly funds and administers another $3 billion in social projects. [BBC, 11/24/2004]