forget

The Venezuelan economic debate has been dominated by headlines over hydrocarbon deals and speculation around the future of the mining sector. The focus is understandable. It’s a petrostate with an abundance of natural resources, capable of propelling us out of the prolonged economic and humanitarian crisis that chavismo inflicted upon us. But as we must continue to discuss the future of the oil, gas and mining sectors, we must not forget the reforms required to allow the non-oil economy to flourish.

Although a large share of the state’s revenues and the country’s GDP is ultimately tied to hydrocarbons, the overwhelming majority of Venezuelans are not oil engineers, geologists or miners. Nor are most Venezuelan companies directly involved in extracting natural resources. The non-oil economy is there, operating under a highly restricted business environment of price controls, extortion, a minefield of a tax system and labour laws hostile to companies. All while facing a contraction in its market due to the migration crisis and severely restricted access to credit.

Venezuela is still among the hardest places to do business in the world. It is time to discuss how to give the sector, which includes formal and informal businesses of all sizes, the breathing space it needs to grow.

Let’s first put the power grid and infrastructure issues aside. The reforms required span virtually every aspect of the business environment, from the institutions that oversee the economy at the macro level, to the banking system and the nitty-gritty of tax and labour law. At the most basic level, the private sector needs confidence that contracts will be respected, property will be protected, and disputes can be resolved through institutions that are predictable and independent. Without these basic reassurances, investing in Venezuela remains a gamble that many businesses and outside investors will simply not be willing to take.

Dollarization without the institutional and financial framework to back it will fail in its mission to stabilize the economy.

As previously explained regarding the macro level, the Venezuelan Central Bank (BCV) needs to regain its independence and establish a credible monetary policy based on transparency and clear rules, supported by a board and president who are not subordinate to Miraflores. Burning through the petro-dollar cash pile to curb the Bolivar devaluation won’t cut it. The central bank is estimated to have used 65% of the oil sale proceeds to shore up the Bolivar. This has proven to be futile without a proper macro framework to support such interventions. It is the BCV’s credibility that is fundamental to correcting the distortions in the FX market and preserving confidence in the Bolivar, in order to lower the still extraordinary inflation rate hovering around 500%.

A credible BCV will also be fundamental to back whichever currency policy the State decides to embrace. Debates over dollarization have spread. However, the measure is not a magic wand, and going for it without the institutional and financial framework to back it will fail in its mission to stabilize the economy. Monetary stability with a functioning BCV will not suffice, but it’s a necessary foundation to correct the distortions that pervade the Venezuelan economy.

Surviving without credit

Reforms aimed at stimulating the non-oil private sector must not stop there. 

Venezuela needs its banks to be banks again. The country has by far the region’s lowest credit portfolio relative to GDP thanks to draconian restrictions from regulators, which limit the capacity of banks to function as credit facilitators, and reduce them to mere transactional businesses. A functioning banking system is fundamental for the private sector’s recovery. Venezuelan businesses need the capital, as much as consumers need the credit to finance purchases of the goods and services those businesses produce.

Without a functioning banking sector, the private sector costs of capital increase as businesses either accept higher rates from non-bank lenders or are forced to rely disproportionately on their own cash flow to fuel operations. Ultimately, this leads to firms forgoing investments and lower productivity. The survival-mode resource allocation and corporate planning allowed some firms to surf through the crisis, but still makes it considerably harder for a successful company to scale operations and increase productivity.

Under the right conditions, Venezuela could become fertile ground for a dynamic M&A market.

On the consumer side, there is an important advantage from which to build on. Venezuela has a relatively high degree of financial inclusion and has rapidly adopted digital technologies for payments and money transfers. This provides an infrastructure through which a consumer credit market can develop.

Time for real business-friendly laws

Labour laws and informality must also be addressed. The private sector needs to be able to absorb more workers, particularly those who will eventually transition out of an oversized public sector, without facing excessive legal and financial restrictions associated with hiring. The current system makes formal employment particularly costly for smaller businesses, contributing to informality and limiting the capacity of companies to expand their payrolls and operations.

Venezuelan businesses have performed something close to a miracle by continuing to operate under such dire conditions. But many of the businesses that remain have low productivity and have become costly to scale. The end goal of this debate should be to reduce the cost of capital and frictions that limit businesses from increasing their size and productivity, aiming to allow companies to compete at scale internationally.

We need to keep pushing for reforms across the non-oil economy so that businesses can access credit, hire more workers, invest, consolidate and attract capital.

Under the right conditions, Venezuela could become fertile ground for a dynamic M&A market. Consolidation can allow fragmented industries to achieve economies of scale, invest in technology, professionalize management, employ more people, and eventually compete internationally. Stronger and better equipped companies would become more attractive to foreign investors and better positioned to access global markets.

This is what economic reform should seek to achieve: a private sector made up of larger, more productive, inclusive, and competitive businesses.

The private sector has already demonstrated that it can survive under almost any conditions. The task now is to create the conditions for the windfall from those petro-dollars to run through a private sector that is more efficient, inclusive, and scalable. We need to continue pushing for reforms across the non-oil economy so that Venezuelan businesses can access credit, hire more workers, invest, consolidate, and attract capital. That will allow it to become one of the engines of our economic transformation.

YOU SAY Oxford Circus, you think crowded streets and busy shops – but there is a whole other side to it you might not have known about.

So we’ve taken it on in two different way – as a busy mum looking to keep her kid busy, to a girly weekend in the city without going to the shops.

Blow dry bars, Mexican afternoon teas and gorgeous Italian dinners

Kara Godfrey, Deputy Travel Editor, explores the busy centre on a girly weekend wanting some pampering.

Growing up in the countryside, my first impression of London was the hubbub of Soho, with bustling streets full of eager shoppers elbowing each other out of the way.

Yet 20 years later, having since moved to (and left) the crazy capital, I know there is more to the iconic city centre than its shops.

And with the announcement that it is about to become pedestrianized, it’s about to become an attraction in its own right.

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If you want to explore the centre of London without actually dipping into the shops, it also makes for the perfect girly day out either with your best mate or your mum – if you know where to go as a local.

It is a fantastic destination for a pamper, with affordable nail salons and hairdressers – and did you know one of London’s most famed blow dry bars is found at the bottom of the John Lewis department store?

Having first launched in Chelsea back in 2014 (becoming a fave with the Made in Chelsea stars), Duck & Dry has become an institution for the place to go before a big event.

I sank into the plush chairs, laidback music overheard while I chatted to my hairdresser as my hair was massaged and washed.

As a woman in my mid-30s, I’ve realised that it’s the little luxuries that make life worth it and a person kneading all of my worries away is one of them.

Just 30 minutes later, I left a new woman with a fresh new do so gorgeous, I even bought a blow dry brush on my way out to try and replicate it at home.

(Don’t stop there though, one of my favourite nails bars, Cona, is just around the corner, with the hidden salon tucked behind the bold oranged painted cafe front).

Hair done, nailed fixed – we needed something to line our stomach and gone are the days of our 20s where we opted for a bottomless brunch.

Being more afternoon tea gals, one of the more unique ones is found in the Treehouse Hotel just off the main high street.

This isn’t your usual afternoon tea, however, (although you will still find a scone or two on top) – it’s called the Afternoon Te-Quila, so expect a Mexican fusion.

Starting with a freshly made margharita, we gorged on fresh fish tacos, pumpkin pies and even a unique chocolate taco, pumped full of decadent chocolate mousse.

The views are just as amazing, looking out over London from the top floor, but as I sat under a ceiling of green hanging plants, I was transported to somewhere much more tropical.

There is so much to do outside of this as well that doesn’t require you to lug shopping bags around town.

Or how about catching a West End show? The Palladium has some fantastic shows coming up including Delta Goodrem, Michael Ball and of course the Christmas panto.

(While I might have said there is so much to do along the high street without the shops, I would still recommend popping into the new M&S flagship, with four entire floors of homeware, clothes and a Food Hall. I may have left with both new linen trousers and some Percy Pigs…)

Don’t think I forgot about dinner, because London isn’t one of the world’s best food capitals for no reason.

And with more than 600 restaurants to choose from, according to OpenTable, where do you even start?

Well I’ve found just the place, if you want somewhere slightly quieter away from the crowds, but with fantastic service, a low-key atmosphere and hearty, Italian portions.

Enter Lavo at the BoTree.

Start at the bar for a cocktail – while the menu might sound confusing, it explains which cocktail they are similar to, so I had their version of a negroni.

On weekends there is also a live DJ who toes the line of great, lo-fi music without being so loud you can’t hear each other.

Slightly woozy at this point, my direction to my table was welcome before gorging on towering piles of tuna tartare and large bowls of penne a la vodka.

Our extremely funny server even tempted us into sharing what is now going down as one of the best tiramasus we’ve ever eaten.

And when you need to rest your weary feet from a day of pounding the pavements, you can’t get much more central than the Radisson Blu Bond Street.

Currently undergoing a renovation, it is just steps from the main road, with some of the best views of the high street from my room overlooking the shops.

With Oxford Circus not having many late night openings, don’t worry about not getting any sleep, as it was super quiet once everything had closed.

The cosy restaurant – with that brand new smell – also had a fantastic breakfast spread to refuel, from pancakes and avocado toast to all of the pastries and trimming of a Full English.

So while Oxford Circus will always be known at the shopping high street, there is so much more to it to bring your out of town friend, siblings or parents to without having to step into a shop.

Unless you get a Percy Pig craving, that is.

Illusion museums, kid-friendly food halls and ‘treehouse’ hotels

Caroline McGuire, Head of Travel (Digital), explores as a mum with a seven-year-old to keep occupied

As a London mum, I regularly take my seven year old into the city centre for theatre, museums, parks and all the other awesome attractions it has to offer kids. 

But Oxford Street? Are you mad? It’s somewhere I’d actively avoided, assuming it was the worst place for a very active kid who loves running around and touching everything in sight. 

How wrong I was. Because we recently spent an overnight stay on Europe’s most famous high street… and it was one of our best 24 hours in the capital. 

Oxford Street has changed a lot since I was a kid, coming up from the home counties to spend my Christmas money at Topshop. 

In some ways for the bad (those many American candy stores), but in many other ways for the good. 

As some of the big chain stores have departed, enterprising new ventures have opened up that are perfect for a family day out. 

Take for instance, the Twist Museum. A brilliantly fun illusion museum – even though the grumpy middle aged woman in me still insists it’s not a museum.

We had such a great time exploring all of the mind-bending activities, our favourites being the 3D hologram creator, the mirror room and the ‘big and small room’. 

It was so cool that I now have three pictures from there alone on my fridge at home – high praise. 

Equally fun was Swingers Golf and Carnival Games, which I’d always written off as an adults-only venue for big kids at heart to have fun with a beer. 

Not so, as during the day in the school holidays it was packed with families enjoying easily the best crazy golf I’ve ever done in my life. 

Then you get a half-hour pass to play as many games as you can in a retro-style arcade. 

As a parent who’s forked out more pound coins than I care to remember at amusement arcades, it was a total joy to do it all for free… and with a time limit. Plus, I got to sip on an extremely good frozen marg while I did it.

If the kids are feeling hungry, their food offering is a godsend. Several high-end food trucks like Patty and Bun burgers and Breddos tacos mean you can all pick what you want to eat. 

If you’re looking for something every so slightly more highbrow, we ended our day at Frameless – the very cool digital art experience where you’re put inside famous paintings, as they surround you on huge screens and come to life.

It was really surprising to see how much my son engaged with such old paintings, which he may have dismissed as stuffy in a gallery, by bringing them to life. 

Of course after pounding the streets for so long, we were in need of some refreshments, so we headed to Market Halls, which has every food any foodie or fussy kid would want. 

I dined on Malaysian Nasi Goreng and Thai soup, while my son had savoury crepes for main… and Nutella crepes for pudding. 

Thankfully, with our extremely full stomachs we didn’t have far to go to lay our heads, as we were booked into the Treehouse Hotel, an achingly cool and modern property on Langham Place, with some of the best views of London I’ve ever seen. 

Our room was very Scandi-style, with a lovely window seat so we could look out over the city. 

The next morning, we managed to find space in our stomachs for brekkie, at the Mexican inspired Madera restaurant, where I had a bagel topped with scramble tofu, vegan cheese and jalapeno pickled red onions, while my son opted for the waffles with whipped cream and berries. 

We lingered far too long over breakfast, sad to tear ourselves away from the stunning views from our table. 

All that fun of museums, art exhibitions, golf, arcades, and some fantastic food and drink, without stepping foot into a shop?

Teenage me would never believe it.

The New West End Company represents 100 streets in the district including Oxford Street, Regent Street and Bond Street.

They explain: “New West End Company is solely focused on representing and keeping the West End thriving. Established more than two decades ago, today our 800+ membership includes the most respected names in global retail, leisure, hospitality, real estate and business.

“We keep our West End streets clean and safe, promote world-class experiences, provide trusted data and insight, and make the case for policies that support growth. Between 2026-2031, we are investing £60 million to make the district stronger, safer and even more competitive.

“Together with our partners – including Westminster City Council, the Metropolitan Police, the Mayor of London – we are proud to shape the district our members thrive in.“