how did the country get there (and how could it get out of it)?

0
9

Already in crisis and isolated for a long time, Venezuela is currently going through a turbulent phase. While President Nicolas Maduro – considered illegitimate by part of the international community – began this month a second term of six years, the Speaker of the National Assembly Juan Guaido – opponent backed by the United States and by more and more other countries – self-proclaimed president. The opposition is preparing to demonstrate to convince the army, pillar of the current power, to let Nicolas Maduro for Juan Guaido.

The crisis in Venezuela is "exceptional in its magnitude, as well as in its humanitarian and demographic consequences: the country suffers from enormous emigration, because its inhabitants are hungry and are deprived of drugs," said Eric Dor, director of studies Economics at IESEG School of Management. In addition to serious shortages of basic necessities, Venezuelans also suffer from turbulence on the oil front, the country's main source of resources via Petróleos de Venezuela (or PDVSA), the state-owned company. Overview of the main causes of the Venezuelan crisis and possible solutions to put – finally – an end.

>> Read also – Economic crisis in Venezuela: a daily hell

An undiversified economy

Venezuela was spoiled by nature, the country overflowing with oil: its proven reserves were estimated at 303 billion barrels at the end of 2017 – ahead of Saudi Arabia, reports Gregory Vanel, professor at Grenoble School of Management. The flip side is that this abundance of black gold had prompted former President Hugo Chavez to overbid at the expense of other parts of the economy. As a result, an insufficiently diversified economy, with oil accounting for 90% of its export earnings, denounced Eric Dor, who pointed out that it was thus particularly exposed to the vicissitudes of the oil demand cycles and the evolution

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "(…) Click here to see more"data-reactid =" 27 "> (…) Click here to see more

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Venezuela: Maduro begins second term in a country in crisis
How Donald Trump leads the industry in Europe and Asia
Venezuela: Maduro invested for a second term in an increasingly isolated country
Huawei charged with technology theft and violation of sanctions, the torch burns with Donald Trump
United States: the longest shutdown in history hits the economy
"data-reactid =" 28 "> Venezuela: Maduro begins second term in a country in crisis
How Donald Trump leads the industry in Europe and Asia
Venezuela: Maduro invested for a second term in an increasingly isolated country
Huawei charged with technology theft and violation of sanctions, the torch burns with Donald Trump
United States: the longest shutdown in history hits the economy