Landau warns that without political stability, there will be no economic reconstruction in Venezuela

Deputy Secretary of State Christopher Landau sent a strong message to the international financial community during his speech at the SelectUSA Investment Summit.

Landau was emphatic in pointing out that Venezuela's economic recovery, after decades of institutional asphyxiation, depends entirely on the creation of an environment of confidence which the country has yet to consolidate.

"Investors are going to want certain assurances of the political situation in order to invest. Uncertainty is the worst enemy of investment," Landau stated. His words underscore the urgency of legal certainty as a non-negotiable pillar for any capital flow into the South American nation.

Politics and economics: A mandatory evolution

For the official, it is impossible to separate a country's financial health from its institutional stability. Landau explained that, after the collapse caused by more than 20 years of bad governance, the reconstruction process must be comprehensive. It is not enough to open markets if there is no rule of law to protect investors from the arbitrariness that characterizes the Chavista regime.

"Obviously, in the process, the political and economic evolution of the country must go hand in hand," the diplomat said. In this sense, Landau emphasized that they are working with the authorities of the interim regime to encourage reforms that guarantee that investment is protected.

The objective is to move from an "economic disaster" to a model where guarantees do not depend on the whim of the rulers.

The undersecretary also addressed the management of the oil industry, a critical sector for stabilization. Washington maintains tight oversight over energy revenues to prevent cash flow from being misappropriated or used for purposes unrelated to national reconstruction.

"We are in constant contact with Venezuelan authorities to make sure that those funds are used for legitimate uses and are not diverted to other types of issues," Landau said.

Finally, he called for a dose of realism and reminded that the current transition has only been in effect for four months, so it is necessary to have "a little patience" while the foundations of a democratic Venezuela that is attractive to global capital are being laid.