The Venezuelan people struggle to cope with the toxic effects of hyperinflation, severe debt and chronic food and medicine shortages, as Venezuela – once the wealthiest country in the region – is mired in the worst economic crisis in its history.
“Venezuelans today cannot eat. You see people eating from the garbage,” says Professor Margarita Lopez Maya, Central University of Venezuela.
So how does a country boasting the world’s largest oil reserves find itself on the brink of economic ruin?
It’s the country’s very history that sheds light on what has gone so drastically wrong in Venezuela today.
When Hugo Chavez was elected president in December 1998, he promised to tackle corruption and poverty.
He used Venezuela’s rapidly growing oil wealth to set up social programmes, known as the Misiones, with the aim of eradicating poverty and reducing inequality. It was, many claimed, a much-needed intervention in the entrenched disparity between Venezuela’s rich and poor.
As Chavez strived to transform the nation with what he called 21st century socialism, his populist policies began to take a more radical turn. He nationalised industries and bloated state bureaucracy at great national expense, all funded by high oil prices and unchecked borrowing. Venezuela became saddled with record-high levels of debt.
By the time of his death in March 2013, Chavez handed over both the reins of power to his handpicked successor, Nicolas Maduro, as well as the poisoned chalice of an economy about to implode.
“Maduro has inherited a legacy of oil dependence at a period when Venezuela has gone bust, and at a time where the oil price has gone bust,” says Professor Julia Buxton, author of The Failure of Political Reform in Venezuela, adding that Maduro “has simply not addressed any of the problems or the legacy that he inherited from President Chavez.”
“The collapse of economic activity makes this period, from 2013 onwards, the largest recession in Western Hemisphere history – significantly larger, almost twice as large as the Great Depression of the US,” says Ricardo Hausmann, former Venezuelan minister for planning.
The IMF predicts that in 2018, the Venezuelan economy will contract by 15 percent, and inflation will reach 13,000 percent.
But will those now tasked with governing a struggling nation learn any lessons from its troubled past?
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ููุงู ูุฑู ุจูู ุงู ูุนุงู ู ุงูุนุธูู ูุจูู ุฃู ูุณุชูุฒู ู ู ุฃุฌู ุงูุนุธูู
Now they coming to US with crime, Prostitutes, and alot of them are armed!!
Wtf is it going to take for the GOVT to stop this INVASION!!
AMERICANS ARE NO LONGER SAFE!!!
Clear example of how communism and socialism enhsnces poverty, poor quality of life and corruption. While Qatar and the kingdom kept the sovereign fund and diversified the capital, Venezuela killed its productivity by giving everything free and being populist.
Cautionary tail.
Nationalizing your entire economy has never worked.
Basically, without U.S. sanctions Venezuela would stand a chance.
It's disgusting listening to all these filthy rich people having exploited the majority for centuries whining over losing "their assets" (for a while before their foreign corporate allies come to rescue them with their bucks – dollar hegemony)
Now i see what the problem was….incompetence. Instead of using the oil wealth to "plant seeds" for the economy to grow, they just used the money to import everything and hand it out to people. Not to mention a failure to maintain basic maintenance on the only cash cow you have-the oil industry.
Pure incompetent leadership.
stores
Coming to canada
That man gained control through works of sorcery clearly this is why everything failed he didn't suppose to be in that high seat
now all those those ppl looking for handouts in the US
Maduro is trying trying to reassure himself that he has the support of Venezuelans, but he is mistaken. They do not trust him, and that was reflected in a low turnout because they know he is sinking Venezuela into deep international problems, including international conflict and embargoes, which will make Venezuelans' lives worse.
Have a lesson for others country leaders, please find a good lesson
Be careful and prepare if Donald Trump becomes USA president again as he will try to sanction Venezuela again to get the resources and money, don't trust the USA at all.
95% of Venezuelan have mental issues
I love the millions of comments saying "SOCIALSIM๐ก" when they can define it except as "big gubermint"
It would be wonderful if the CORRUPT US government lifted the embargo against Venezuela. I guarantee that when the CORRUPT US government lifted sanctions this country would prosper immediately! Don't be fooled by "socialism"! That's the excuse the US government is using against this poor country. It's not their people so why would it matter to them?! They're not northern Europeans, so why would they care for these people?! So much for "freedom and democracy"! It sounds more like freedom and HYPOCRACY ๐น๐คฅ!!! It makes you wonder ๐ค who the terrorists really are?!?! And they're not in the Arab world. It makes you wonder ๐ค why America is seen as the world's biggest murderers and HYPOCRITS ๐น?! As long as they're not northern Europeans things are going well. Who cares if others are suffering?! Like someone once said in California. ", When something bad happens in a white community everyone takes action". I wonder ๐ค why?! Oh! I know, I know. Because they're not northern Europeans! As they say in America, ", nothing can be further from the truth". Or is it a lie? This caos reminds me of the German economy after the Second world war. The world bank bailed them out of this economic mess. And you may wonder ๐ค, why not Greece when their economy collapsed? Oh! Iknow, I know. I can answer that question. FOR THE SIMPLE FACT THAT LIKE VENEZUELANS, THEY'RE NOT NORTHERN EUROPEANS!!! I KNEW I WAS RIGHT ๐! Like they say in America, remember? ,"nothing can be further from the truth"! Or is it really a lie ๐คฅ?!
๐๐๐ ๐๐
I will offer to become the new President of Venezuela and fix the economy for the people of Venezuela if you need a good leader!
Why did they not make contingency plans for reduced oil-dependent revenues during the inevitable oil price downturns, or set up a sovereign fund like Norway? Why did they not use the oil money to develop a functional self-sustaining, oil independent manufacturing and agricultural based economy so that they would be less dependent on imports? Whether it comes from oil or other peopleโs taxes, eventually the money runs out when itโs based primarily on a net external revenue stream.
This is a horror story ๐ข I see why republicans go so hard against socialism.
Monroe doctrine for the Americas will easy tentions & dispersions: climate change too much petrol around: ๐ค The planet is complaining; cool down on mining โ extraction of mountains demolitions. ๐ New UN artistic world order ๐๐จARCHITECTURE UN PRESIDENT XI ๐๐ผ๐ฉฐโฉ๐จ ARTISTIC WORLD order "Renaissance ๐๐ฉโ๐ฆฐ๐ ๐' 3 religions one land " ๐" A ๐ No different than Ra & RE ๐ถ๐ฉฐ๐ MONTFORT CASTEL "ISRAEL" ๐๐ UN new artistic house & guess. ๐
Chaves tern the country in to corrupted star of the world. On the way corruption went full speed his family becomes super wealthy
Solidaritรฉ
Por Ahora, maybe people should get it through their dumbass heads that communism doesn't work. People in Venezuela don't even use the Bolivar …. they use the USD
So how did this happen when the US was the greatest economy of all time with Donald trump ๐
They were fooled by the promises of socialisms made by Chavez
Venezuelans failed to understand how the economy works.
Socialism is an equal distribution of poverty
Capitalist is an unequal distribution of wealth
Sadly they made the wrong choice…
Socialisms is like feeding the lazy unproductive populace. .to the detriment of the hard working and creative people..
Save to Myanmar ?๐๐ซ
This is truly sad that once a very wealthy country despite being rich in oil has turned into an utopia and it isn't worth it at all.
Vant be slint yet ffs๐ฎ๐ ๐ฎ๐๐ฎ๐๐
Venezuela is an experiment. There are those watching how all this plays out, so when what is happening in Venezuela happens globally, which it will, those watching will know how to respond to the civil unrest and etc. While cultures differ, human response don't ๐
Maduro is doing what he has been told to do.
Almost as twice as large as the great depression. My Lord.
I'm no expert economist, but kitchen table economics says, "spend some, save some." It's how I was raised and still do it after all of these years. It continues to work for me to this day.
"And upon the earth distress of nations with perplexity; the sea and the waves roaring."
Where Americans put hands … everithing is being destroyed and sucked up from resources.
Sorry for me lol that it took me so long ๐ฎ that you are my neighbor visited your country in the 90s i believe lol
HORRIBLE….SAVE VENEZUELA….
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