Venezuela’s Economic Crisis

Venezuela’s recent presidents, the late Hugo Chavez (1999-2013) and Nicolas Maduro (2013-present), have defined themselves in part through their opposition to the United States, regularly criticizing the U.S. government, its policies, and its relations with Latin America. President Maduro has also continued his predecessor’s policies, notably what the Venezuelan government refers to as "21st Century Socialism," which is characterized by an outsized role for the executive, extensive state intervention in the economy, and efforts to expand Venezuelan economic and political influence among nations in Latin America and the Caribbean.

During the 1970s, Venezuela was the richest country in Latin America. With the region’s highest growth rates and the lowest levels of inequality. It was also one of the most stable democracies in the Americas.  Starting in the early 1980s, Venezuela began the political and economic process of falling apart. Venezuelans, during this period of time, went through three coup attempts and one presidential impeachment. Protests in the streets became the norm, leading to arousing the question in the Western hemisphere of what happened to this rich oil country?

The fall of oil prices since 2014 punished the Venezuelan economy, which receives 96% of its divisas from exportation of hidrocarburos. The country had to drastically reduce its imports, which generated high scarcity from all types of goods, the industries are stuck due to scarcity. The IMF predicts Venezuela’s inflation (which is the highest in the world) to rise 1660% by this year. Meanwhile Maduro does not do anything to fix the problem, but only makes it worse, he blames “the imperial powers” for the economic crisis and travels to Cuba when the situation heats up in Venezuela.

Venezuela's economic crisis has given rise to a shortage of goods including food items and medicine. Critics have accused the government of economic mismanagement which shrank domestic production while imports were cut. Many Venezuelans have called malnutrition in the country due to the shortages, the "Maduro diet". Maduro, 55, has blamed an "economic war" waged by opponents for the country's woes. Maduro's predecessor, Hugo Chavez, who died in 2013, long relied on oil revenues to fund his social programmes. But when crude prices crashed from 2014 onwards, Venezuela was left with a hole in its budget.To make matters worse, oil production in the country has taken a tumble due in part to a lack of basic equipment.

Name : Putri Esmeraldha 

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