From riches to rags: Venezuela's economic crisis

Once for Venezuela was the richest country in the region has fallen into the worst of the economic crisis, the Venezuelan people are hyper-inflation, serious debt, and to deal with the harmful effects due to lack of long-term food and medical care I am struggling.

Professor Margarita Lopez Maya of Venezuela Chuo University says:

So, how is the country with the world's largest oil reserves on the verge of the economic crisis?

It is the history of this country that reveals such terrible mistakes in Venezuela today.

When Hugo Chavez was elected President in December 1998, he promised to tackle corruption and poverty.

He governs with his charm and money. These two things disappear in 2013.

He built a social program called Misionion that aimed at eradicating poverty and reducing inequality by utilizing the rapidly growing wealth of Venezuela. Many people insist that this is a very necessary intervention to the deep-seated gap between the wealthy and the poor in Venezuela.

When Chavez tried to change the country with what he called socialism in the 21st century, his populist policy began to undertake a more fundamental change. He nationalized industries nationalized by high government expenses and state bureaucracy, which is covered by high crude oil price and unlimited borrowing. Venezuela has the highest debt ever

By the time of his death in March 2013, Chavez delivered power to the economically poisoned glass that was about to collapse with carefully chosen successor Nicolas Maduro.

Professor Julia Baxton, author of Venezuela's book Failure of Political Reform, said: "Maduro inherited the oil dependence legacy of Venezuela's bankruptcy and crude oil era era." President Chávez did not solve the problem. Problems and inheritance are inherited. "

"Due to the collapse of economic activity, this period that began in 2013 was the worst economic recession in the history of the Western Hemisphere, which is drastically big and almost twice the magnitude of the Great Depression," Venezuelan Minister Ricardo Hausmann Said. .

The International Monetary Fund predicts that the Venezuelan economy will shrink by 15% in 2018 and the inflation rate will reach 13,000%.

But do people who are responsible for governance of the country suffering now learn from the past's predicament?

Venezuela once was a wealthy oil stockpile and is dealing with an unprecedented economic crisis. Severe confusion continues due to overinflation, massive immigration, food shortage, an increase in the number of crimes, and expansion of poverty. Many of Venezuela condemn the current situation of President Nicolas Maduro. Below is the ongoing crisis in Venezuela and its impact on people. Hyperinflation is the biggest problem facing Venezuela. According to the International Monetary Fund (IMF), this year 's inflation rate is expected to reach one - fifth. This is comparable to the German crisis in Zimbabwe in the 2000s and 1920s. The government insists that the country is a victim of "economic war", but the main problem is due to opposition "conspiracy" and US sanctions.

The political crisis of Venezuela is exacerbated by a double tornado of economic and security issues. Venezuela is the most dysfunctional economy in Latin America due to its extraordinary currency control system. The inflation rate of this year is expected to reach 1600%. At the same time, the murder rate of Venezuela is 91.8 people per 100 thousand people, becoming the second most violent country in the world. (By contrast, Mexico 's murder rate is 17 to 100 thousand.) Caracas, the capital of Venezuela, is currently listed as one of the world' s most violent cities. The murder rate in Caracas is amazing 130 per 100,000 inhabitants.

Since 2010, during the President Hugo Chavez, socio-economic and political crisis has occurred in Venezuela and continues to play a role as Nicholas Maduro's current president. The current situation is one of the worst economic crisis in Venezuela's history and the most serious crisis experienced in the Americas. This crisis was the result of the Bolivarian revolutionary policy that began with the Chavez administration. On June 2, 2010, President Chavez announced "economic war" due to the shortage in Venezuela. The crisis of the Maduro government is intensifying and the crisis is intensifying due to the low crude oil price in early 2015.