Glossary of Terms
Quick reference for all terms, models, and acronyms used in the plan.
Plan Structure
| Term | Definition |
|---|---|
| Venezuela S.A. | Corporate holding of 40 million citizen-shareholders. Invests in JVs, collects royalties, manages the Venezuela S.A. Investment Fund, and distributes dividends. It is NOT the State — it is the citizens' company |
| State | Regulatory and supervisory entity. Only 5 functions: government, healthcare (supervises), justice, education (supervises), security. It does not operate businesses or services |
| Venezuela S.A. Investment Fund | Investment fund managed by Venezuela S.A. that accumulates oil, mining, and diversification revenues. Target: USD 250-470B in 15 years. Returns are distributed as citizen dividend |
| Citizen Dividend | Annual direct payment to every Venezuelan from the returns of the Venezuela S.A. Investment Fund (10-40% of returns depending on phase). Model: Alaska Permanent Fund |
| Pre-Seed | First funding round of the plan. USD 39.5M from the diaspora (79,000 investors x USD 500 average). Starts without government |
| CVP | Citizen Value Package. Combines 7 components: healthcare + education + employment + infrastructure + security + property title + dividend. The real value for the citizen |
| FCV | Citizen Fund Venezuela. Mandatory unified personal account (Singapore CPF-style) with 5 sub-accounts: Retirement (8%), Health (7%), Housing (4%), Education (2%), Severance (2%). Total: 23% of salary (11% worker + 12% employer). One institution, one account, one app. Evolves from 14% (emergency phase) to 27% (maturity) |
| Venezuela S.A. Investment Fund | Collective investment fund (Norway NBIM-style) managed by Venezuela S.A. Receives oil, mining, gas, and JV royalty revenues. Invests 100% outside Venezuela. Distributes annual citizen dividend. Do not confuse with the FCV — the Investment Fund is collective, the FCV is personal |
Healthcare
| Term | Definition |
|---|---|
| FONASA | National Health Fund (Chile model). Mandatory universal insurance funded by 7% salary contribution. Everyone contributes, everyone is covered. fonasa.cl |
| Tramo A | FONASA category for people with no income or in extreme poverty. Full coverage, 0% copay |
| Tramo B | FONASA category for low-income people. Full coverage, 0% copay |
| Tramo C | FONASA category for middle income. 10% copay on services |
| Tramo D | FONASA category for high income. 20% copay on services |
| Copay | Percentage of a medical service's cost that the patient pays out of pocket. Tramos A/B: 0%. Tramo C: 10%. Tramo D: 20% |
| ISAPRE | Private Health Insurance Institutions (Chile model). Private health insurance. Voluntary option for those who want more coverage or shorter waits. Does not replace FONASA — it complements it |
| Medisave | Individual savings component of the FCV Health Sub-account (Singapore model). Gradually introduced from year 5: the 7% health contribution is split between the common contributory fund and an individual account. It is not a separate system — it is part of the FCV |
| FONASA + Medisave Hybrid Model | Gradual transition: Years 1-5: 100% contributory FONASA. Years 5-10: 5% FONASA + 2% Medisave. Years 10-15: 4% FONASA + 3% Medisave. Years 15+: 3% FONASA + 4% Medisave |
| BOT Concession | Build-Operate-Transfer. Model where the private sector builds and operates a hospital (or infrastructure) for 20-30 years and then transfers it to the State/Venezuela S.A. |
Education
| Term | Definition |
|---|---|
| Universal Voucher (K-12) | Allocation that every child and young person receives to pay for tuition + transport + extracurricular activities at the school of their choice (public, private, online). It is a right — not merit-based |
| University Voucher | Allocation for higher education. Unlike K-12, it is earned and maintained by merit: grades, admission exam, semester performance. Failure to meet requirements means losing the voucher (not the seat) |
| SEP | Preferential School Subsidy (Chile model). Differentiated voucher: low-income families receive a 50% larger voucher. This makes schools compete to attract low-income students because they bring more funding |
| Extracurricular Voucher | Portion of the voucher designated for activities outside the academic curriculum: languages, music, theater, visual arts, martial arts, sports, robotics, programming. Parents choose accredited providers |
| School as Autonomous Enterprise | Model where public schools transition to private enterprises managed by the educational community. They compete for vouchers. They receive modernization funds and technical assistance for the transition |
| Online School | Digital school with official accreditation. Operates with a network of in-person and remote tutors for personalized support. Valid option equivalent to in-person schooling |
| Accreditation | Quality certification that enables a school or university to receive vouchers. Based on outcomes (employability, grades, satisfaction). If lost, the market loses trust and the institution must take action to recover it |
| Quality Agency | Supervisory entity that audits schools and universities on academic results, infrastructure, and management. Model: Chile Education Quality Agency |
| PIRLS | Progress in International Reading Literacy Study. International reading assessment at age 10. Singapore #1 worldwide. Reference for the reading pillar of the Venezuelan curriculum |
| PISA | Programme for International Student Assessment (OECD). Assessment of mathematics, science, and reading at age 15. Venezuela has not participated since 2009. Target: rejoin and reach the LATAM average |
| ISA | Income Share Agreement. Bootcamp payment model: the student pays no tuition; they pay a % of their salary (15-20%) for 2 years after getting a job |
Finance and Fiscal
| Term | Definition |
|---|---|
| Flat Tax | Single-rate tax. Venezuela proposes 15% for individuals and companies. Model: Estonia, Georgia |
| VAT | Value Added Tax. Proposal: 12% (vs. Chile 19%, Colombia 19%). Basic basket exempt |
| SEEZ | Special Economic Zone for Technology. Areas with 0% corporate tax for 10 years + 30-year regulatory stability. Model: Shenzhen, Dubai, Argentina RIGI |
| Forward Contract | Agreement for advance sale of oil at a fixed price. Allows Venezuela S.A. to secure future revenues and obtain immediate financing against future production |
| Floor Price | Guaranteed minimum price in a forward contract. The plan uses USD 55/barrel as floor |
| Base Price | USD 60/barrel. Every calculation in the plan uses this price. Anything above goes to the Venezuela S.A. Investment Fund as upside |
Pensions
| Term | Definition |
|---|---|
| AFP | Pension Fund Administrator (Chile model, historical reference). In Venezuela, pensions are the FCV Retirement Sub-account — not a separate AFP system. Contribution: 8% initial, rising to 10% at maturity, within the unified FCV of 21-25% |
| CPF | Central Provident Fund (Singapore model). Mandatory multi-purpose account: retirement + housing + healthcare. Contribution 37%. Ranked #5 globally. Long-term reference |
| Pillar 1 | Universal basic pension funded by taxes. For EVERY retiree from Day 1. Target: USD 100-200/month. Covers those who never contributed |
| Pillar 2 | Mandatory individual savings in AFP/CPF. The worker accumulates their own pension. Worker's property |
| Pillar 3 | Additional voluntary savings. Tax incentives to save beyond the mandatory amount |
| Replacement Rate | Percentage of the last salary that the pension replaces. Chile AFP: ~40%. Singapore CPF: ~70%. Venezuela target: >50% |
Governance
| Term | Definition |
|---|---|
| Tripartite Oversight | Governance model where service quality (healthcare, education) is supervised by three actors: State (standards and auditing) + Community (local committees) + Users (free choice and surveys) |
| JV | Joint Venture. A joint enterprise where Venezuela S.A. contributes land/resources/permits as equity and the private partner contributes capital/technology/management. Venezuela S.A. is a shareholder, not an owner |
| Debswana Model | Reference for JVs: Botswana (50%) + De Beers (50%) created Debswana to exploit diamonds. Botswana went from being one of the poorest countries to having the highest GDP per capita in Africa |
| Santiago Principles | 24 governance principles for sovereign funds defined by the International Forum of Sovereign Wealth Funds. Include transparency, political independence, and accountability |
| ICSID | International Centre for Settlement of Investment Disputes (World Bank). Arbitration tribunal for disputes between investors and states. Venezuela withdrew in 2012 — the plan contemplates re-entry |
| OFAC | Office of Foreign Assets Control (U.S.). Administers sanctions. Controls which companies can operate with Venezuela and under what conditions |
Infrastructure and Services
| Term | Definition |
|---|---|
| Concession | Contract where the State/Venezuela S.A. grants the private sector the right to build and operate infrastructure (highways, ports, hospitals) for 20-30 years. Model: Chile MOP |
| PPP | Public-Private Partnership. Public-private association for infrastructure. Venezuela S.A. as shareholder in JV, private sector as operator |
| BOT | Build-Operate-Transfer. The private sector builds, operates for the concession period, and transfers at the end |
| Cost-Reflective Tariff | Price of a service (water, electricity, gas) that reflects the real cost of production and distribution. No subsidy. Venezuelan hydro is naturally cheap (~USD 0.05-0.06/kWh) |
| Targeted Voucher | Monetary aid directed ONLY to people in verified extreme poverty (5-10% of the population) for basic services (water, electricity). Not a universal subsidy |
Oil and Energy
| Term | Definition |
|---|---|
| bpd | Barrels per day. Current production: ~0.9-1.1M bpd. Target: 3M bpd in 15 years (Rystad Energy) |
| Orinoco Belt | Largest oil accumulation in the world. Extra-heavy crude requiring dilution and special processing. Extraction cost: USD 35-40/barrel |
| Rystad Energy | Norwegian energy sector consultancy of reference. Its investment and timeline estimates for Venezuela are the basis of the plan |
| Royalty | Percentage of production value that the resource owner (Venezuela S.A.) charges the operator (oil/mining company) for the right to extract |
| Caroni Cascade | Hydroelectric system in Bolivar state: Guri, Macagua, Caruachi, Tocoma. 18,000 MW capacity. 74% of Venezuela's electricity is hydroelectric |
International Reference Models
| Model | Country | What We Take |
|---|---|---|
| FONASA | Chile | Universal healthcare with mandatory 7% contribution. Income-based tramos |
| Medisave / 3M | Singapore | Individual medical savings. Efficiency: 5% GDP with first-world outcomes |
| CPF | Singapore | Pensions with high contribution (37%), multi-purpose individual accounts |
| AFP | Chile | Individual pension accounts with freedom of fund choice |
| SEP | Chile | Differentiated educational voucher: +50% for low income |
| MOP Concessions | Chile | 82+ infrastructure concessions in 30 years. Best PPP program in LATAM |
| e-Estonia | Estonia | 100% digital government. 99% of procedures online. Saves 2% GDP |
| ProgeTiger | Estonia | Programming from 1st grade in all schools |
| Police Reform | Georgia | Eliminated police corruption in 2 years. Dismissed and rehired the entire force |
| NREGA | India | Guaranteed employment 100 days/year in public works. 50M households/year |
| De Soto | Peru | Massive titling of informal properties. Unlocks capital |
| Plan Ceibal | Uruguay | 1 laptop per child. 100% of schools with internet in 5 years |
| Debswana | Botswana | 50/50 JV with De Beers for diamonds. Transformed the poorest country in Africa |
| Norway Fund | Norway | USD 2.2T oil investment fund. 30 years. Governance model |
Frequently Used Acronyms
| Acronym | Meaning |
|---|---|
| VSA | Venezuela S.A. |
| PDVSA | Petroleos de Venezuela S.A. |
| GDP | Gross Domestic Product |
| IMF | International Monetary Fund |
| OPEC | Organization of the Petroleum Exporting Countries |
| IEA | International Energy Agency |
| EIA | Energy Information Administration (U.S.) |
| STEM | Science, Technology, Engineering, Mathematics |
| LATAM | Latin America |
| ESG | Environmental, Social, Governance |
| LNG | Liquefied Natural Gas |
| ENCOVI | National Survey of Living Conditions (UCAB) |
| UNHCR | United Nations High Commissioner for Refugees |
| WEF | World Economic Forum |
| OECD | Organisation for Economic Co-operation and Development |