Situated on
the northern coast line of South America, Venezuela was the 1st
country to be declared as an independent country in 1821 but country gained its
actual independence in 1830.
Country was
known for export of coco and coffee until oil found on its soil. Currently
Venezuela has the largest no of proven oil reserves and one of the leading
producers of oil. The country became dependent on oil export and majority of
money comes from there.
It was 1980
when all of this started, due to low oil prices the country started taking
loans from other countries and this leads to external debt crises.
The county
was at its dark phase the poverty and unemployment rate started rising and the
poverty level reached 67% in 1995
Good Days
Finally the
day came everyone was waiting for, the oil prices recovered, country stated
gaining its development speed. Government started many welfare policies. It
boosted the economic growth but also increased social spending. But the people
were happy and this is what the government needed to win election. But this
happiness doesn’t last very long.
2010
The oil
prices fallen again and government was not prepared for this, social spending
destabilized economy leads to an economic depression.
Peoples were
suffering because of shortage of food supplies this resulted in the rise of
prices of common food items.
On 2nd
June President declared economic war because of shortage of various daily used
good items.
Thing became
worst in 2015 oil prices fall again the oil production in Venezuela drops
because of lack of maintenance and investment.
Main Reasons
There were
many reasons beside this and government played an important role in this.
Economic
policies, crimes, corruption, economic downfall, human right violations,
economic mismanagement, mostly depended on oil this all combined and make the
situation even worst.
FAQ’s
Q-
Government of Venezuela was responsible for the conflict?
Ans-
Completely, they should and be this much dependent on oil and should have
invested in other fields.
Q-Is there
any way to solve is issue?
Ans- 1st
they have to fight with the corruption and crimes. The international level
support and awareness in peoples is the only solution left.
Q- Why the
oil production in Venezuela drops?
Ans- Due to
lack of maintenance and the investment the oil production of the country
dropped.
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