Venezuela: A oil rich state to Gasoline deprived nation

Venezuela: A oil rich state to Gasoline deprived nation  

A brief scenario of Venezuela crisis

From a wealthy nation to a deprived country Venezuela has seen all the phase of depression and inflation in their economy

People of Venezuela are protesting day and night against there government for not providing adequate food, jobs and all the other basic necessity which requires to live peacefully.

The youth is now more into crime like murder, abducting and robbery due to lack of jobs and there aren't any income sources left. Women are into prostitution and sex trade as many have a family to run and children to feed charging 100,000 pesos for 15 minutes as per the sky news report. People are doing cross border smuggling due to the price they can get is much higher selling in their own

country

Caracas the capital of Venezuela is been ranked as the most dangerous city in the world

The inflation rate has been hit by 130,060 % and according to IMF this may hit 1 million percent by the end of 2019

Where this all came from (Time of Huge Chavez)

In 1999 when Huge Chavez won the election and been elected as the President of Venezuela. At the same time oil prices in the international market were rising as many developing countries like India and China where the demand for petrol and all other fuel was very high this benefited Venezuela and many middle eastern countries and Russia also.

The country started exporting oil and generated huge revenue. The revenue than was used for people and the ideology of Huge Chavez was of Socialism that all the generated revenue should be given to the people of Venezuela.

Many policies were introduced in the governance of Huge Chavez like subsidies on food and medicine. Many world leaders praised the policies of Huge Chavez

The youth was given jobs mainly in PDVSA a petroleum and natural gas company owned by the state of Venezuela. The company provided jobs but there was too much load on that company but it was managed because this was the company which was generating revenue for Venezuela

Poverty was cut down to 50% in Venezuela. Venezuela becomes the wealthiest country in Latin America

The geographic location of the country also helped them to grow as it was near to Canada and the USA they can export oil easily to those countries.

The country was major export was oil around 95% accounts for oil export is the only revenue source for Venezuela.

Depression time for Venezuela (Time for Nicolas Maduro)

As Huge Chavez died in 2013, Nicolas Maduro has been elected as the new president of Venezuela

of United Socialist party and he promised to continue the policies of Huge Chavez and his ideology of socialism

But the oil prices in the international market has been dropped down rapidly and this affected Venezuela, Middle Eastern countries and Russia economy but it affected mainly to Venezuela as their only source of revenue was oil production which is around 95% 

This is where Venezuela backed they were only dependent upon the oil they never tried to improve or to focus on other sectors like Agriculture, Industry, and manufacturing people were also not skilled in any kind of work.

It eventually caused a depression in the country and unemployed rampant the nation which caused the increase of crime in the country

The government of Huge Chavez never believed in the idea of capitalism and wants all the major companies of the nation should be under the government. If any company becomes big and makes huge revenue the government transfer the company to state own

This factor also leads to the crisis as there no company flourished successfully and thus lacking in employment 

Opposition party started blaming Maduro for the condition of the country, they wanted him to resign but Nicolas Maduro wants to be in power and he appointed his party loyal members as the judiciary in the supreme court. If any allegation is put upon him he can be saved by the supreme court.

To have stable pricing the central bank of Venezuela has decided their own exchange rate to not to hike up the prices which are creating situation even worse that's why people are smuggling their goods across the border in black market so they could get a good price for there goods  

People are not getting food as the gasoline supply has been stopped and harvested vegetables and grains aren't being able to transport in the country. People are eating rotten meat to survive.

Power cuts are for long 5 days and maybe a week.

Problems not come alone  (USA sanctions)

The USA has imposed sanctions on Venezuela because Russia has invested $6 billion on Venezuela and has set up an army base and an airbase for nuclear power dominance on the USA. Seeing all this USA and all other his friendly countries of the US said that they don't want Nicolas Maduro to be the president and want Juan Guido to be the president of Venezuela. Guido is the opposition president. Trump said that Marudo doesn't know how to run a country on this Maduro reaction was that the USA shouldn't interfere in their countries problem. Russia also warned the US. The USA is the biggest importer of oil from Oil Venezuela and they aren't buying from them

China has also invested in Venezuela

Conclusion

The government should have invested in other sectors and should have motivated for capitalism.

 Should have open more private businesses and foreign investment   

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