The same reason that Maduro is so fat while the people are starving: the Socialist leaders say they are for the people but they are only concerned about themselves. The World’s Jason Margolis looks at the economic collapse that led to the election of Hugo Chávez in 1998. A Venezuelan police unit has been carrying out extrajudicial executions and arbitrary arrests in poor communities that no longer support the Nicolás Maduro government. Venezuela's highest-ever oil production occurred in 1998 at 3.5 million barrels per day (BPD). Venezuela’s descent into economic and political chaos in recent years is a cautionary tale of the dangerous influence that resource wealth can have on developing countries. Why VENEZUELA is so poor?? Venezuela also imports gasoline — which it gives away to consumers for a paltry 4 cents a gallon. Why is Venezuela poor despite having oil? Economics: Why is it that reporters keep scratching their heads about Venezuela's descent into extreme poverty and chaos? According to Martinez Lázaro, professor of economics at the IE Business School in Madrid, the economic woes Venezuela continued to suffer under Maduro would have occurred even if Chávez were still in power. But it isn't, and it's getting even poorer now, because of economic mismanagement on a world-historical scale. The coronavirus pandemic couldn't have struck at a worse time. Venezuela: How the most oil rich nation on earth was brought to the brink of collapse. Venezuela's economy was already struggling, for a variety of reasons. Simply because it is those poor … Venezuelan cities’ water infrastructure is crumbling after nearly two decades of neglect. Why and How Venezuela became so poor despite its rich natural resources? This is why Venezuela has been one of the hawkiest hawks in OPEC, always agitating for tighter quotas and higher prices. Venezuela's economy is in a deep crisis. 1. Analysts say socialist officials must re-examine idea that decreasing inequality will lead to less violence. It wasn't nationalization or a redistribution of wealth that produced Venezuela's ongoing national nightmare, but poor decision making and egregious financial mismanagement. So what happened? In Venezuela, the government of ... Take price controls, for example, which were aimed at making basic goods more affordable to the poor by capping the price of flour, cooking oil and toiletries. Venezuela has dirt-cheap fuel, so why is driving nearly impossible? End it and you will end the misery. Relevance. Not Prosperous – Wealth is... 2. Answer Save. Lv 7. … A … 5 Answers. The cause is simple. Rich In Oil, Venezuela Is Now Poor In Most Everything Else : Parallels Venezuela's president has responded to a worsening economic crisis by imposing even more controls. Poverty in Venezuela increased during the 1980s and early 1990s, but it decreased greatly in the mid to late 1990s. Maduro's government stopped publishing any … Once the richest country in South America, Venezuela is now in deep economic crisis. ... Venezuela, in other words, is ... Venezuela is almost too poor to afford inflation. The county never developed a large middle class, and is quite sharply divided into a rich upper class and a very poor working class. This is what happens when an economy and a society disintegrates due … 5 years ago. Venezuela, after all, has the largest oil reserves in the world. Prosperous – Wealth is limitless. Over the past few years, corruption and failed government policies have led Venezuela's economy to collapse, causing infrastructure to crumble and leaving millions of Venezuelans in poverty. That is a country which is nearly entirely dependent on a single industry. Sweden’s top marginal tax rate of 56.9 percent applies to all incomes over 1.5 times the average income in … It should be rich. Any shocks to this industry can have a catastrophic ripple effect. Venezuelan oil was discovered early in the 20th century, and lead to a lot of corruption. Under his rule, Venezuela’s unemployment rate halved, income per capita more than doubled, the poverty rate fell by more than half, education improved, and infant mortality rates declined. Photograph: Tom Phillips/The Guardian On 6 December 1998, Hugo Chávez proclaimed a … As poverty drops, crime rises in Venezuela. Adding to the problem is that Venezuela … A country with falling production doesn't need … Its president, Nicolas Maduro, declared a state of "economic emergency" for 60 days on Friday. It should go to those who produce it. They have had a lot of political upheavals, the latest being the Chavez presidency. Prosperous – Wealth is related to effort. Venezuela used to be one of the wealthiest countries in the world. That also happened to be the year that Hugo Chávez was elected president of Venezuela. The decreasing trend continued through the Chávez presidency, with the exception of the troubled years 2002 and 2003. The Venezuelan government has not released data on poverty since the first half of 2015 when the national statistics institute reported a poverty rate of 33 percent. Venezuela's is what would be classified as a "banana republic". Why Venezuela Has Not Been Defeated 5,827 0 Over the past half-decade, a small army of US analysts, politicians, academics and media pundits have been predicting the imminent fall, overthrow, defeat and replacement of the Venezuelan government. They were also hit hard in the 80's. It is produced. Why a state that should be rich is on the verge of collapse. Over 93% of their economy is tied to oil. Which is why anyone who is pro-poor should be anti-socialism. Re: Why Venezuela is so poor Because Chavez went against the jews, they had him killed and now they bleed the country dry under the pretence of debt settlement. Greg. Now the country's economy is on life support. Children in school are fainting from hunger; patients are dying from the lack of basic medicine. Venezuela’s economic situation is unthinkably bad, especially for what was once South America’s richest nation. A roadside graveyard of abandoned buses in Venezuela’s Portuguesa state. Venezuela is experiencing the worst economic crisis in its history, with an inflation rate of over 400 percent and a volatile exchange rate.. Venezuela has suffered a huge rise in the number of malaria cases in recent years - in stark contrast to neighbouring countries in Latin America, where numbers are falling. Venezuela's economy faltered while poverty, inflation and shortages in Venezuela increased. Venezuela's rich are indeed insulated from the economic chaos precisely because they're rich. 1 0. Socialism. A family stands next to their car out of use due to the lack of spare parts in Maracaibo, Venezuela. Both the rich and the poor pay the same value-added tax at 25 percent. Not Prospero Venezuela used to be a plucky little nation doing well on Oil money. - "/int/ - International" is 4chan's international board, for the exchange of foreign language and culture.