venezuela economy

Venezuela has the largest oil reserves any country could have in the world. It is their oil refineries that had helped Venezuela to eliminate poverty and inequality for the country. Chavez decided to spend the money coming from oil in the various program established to reduce inequality and poverty. Thus, oil was a huge support for the Venezuelan government.

Just like the incidents from the 1970s and 80s, the prices decreased so much that turned out to be not so pleasant for Venezuela. The government failed to service its spending and today Venezuela is experiencing a horrible economic crisis. Additionally, Venezuela is not able to produce even half of the oil they once produced 15 years ago.

Such situations are alarming to the whole world. Why? Venezuela is the greatest oil trader in the whole world which means supply to other countries could be disturbed. The political unrest has damaged internal stability due to which people are going through such hard times. The friendly relations of Venezuela with China and Russia predict that such unrest is not just going to affect Venezuela but other countries as well. People are leaving the country behind to find new lives in other countries which is going to impact the rate of population in other countries.



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