Economic Issue

Declining oil prices are devastating Venezuelas already struggling economy. For
the past decade, Venezuela has had an unstable economy under the rule of Hugo
Chaves. However, the new leader of the country, Nicolas Maduro has not made
the necessary changes to reconstruct the countrys economy. Venezuela is facing
the consequences of a poorly managed economy and the reliance on only one
major export- oil.
The government of Venezuela manages the oil exports, so in this way the
government and the economy are closely linked. Unfortunately, this negatively
affects the country as a whole. Globally, oil prices have fallen from around $100
per barrel in July to about $35 today. As Venezuelas economy is extremely
dependent on oil exports, this devastated the economy. The unofficial exchange
rate used by the majority of citizens has inflated by 700 percent as a result.
In a viral photo, a Venezuelan holds an empanada wrapped in a 2 bolivar bill.
This image perfectly captures the economic situation in Venezuela, as it shows
that a napkin is worth more than a 2 bolivar bill. The population is facing extreme
shortages in food and goods as a result of the inflation of the bolivar, leaving
Venezuelans frustrated and angry with the government and economy in their
country.

The economy in Venezuela is complex and corrupt, however there are a few
possible ways to help solve the problem. The economy in Venezuela focuses
primarily on one export, which is extremely dangerous. As seen recently, if the
price of this major export drops, the entire economy will suffer. In order to
prevent this from happening in the future, Venezuela should diversify its
economy. The country should attempt to strengthen other aspects of the
economy, such as tourism or the export of valuable minerals. If one aspect of the
economy fails, the others will still be able to support the country.
In addition, Venezuela should privatize a portion of its oil reserves. Under Hugo
Chavez, the government nationalized all of the countrys oil reserves, resulting in
corruption and irresponsible management of the economy. At the moment, three
official exchange rates exist in the government as a result of corruption.
However, f the oil reserves were privatized, the companies would be in
competition, leading to better quality goods and fair prices.

Venezuelas economy is spiraling out of control. If no action is taken by Maduro

to reconstruct the economy, the country could destroy itself.
Political Issue
This year, President Nicolas Maduros government has faced intense opposition
and protests. Economic and social problems in the country fueled the protests,
often composed of crowds of young people. The protests gained global attention
as the result of civilian and police clashes, leaving hundreds of protestors injured
or killed. Maduro has been pointing fingers at opposition leaders and even the
United States as the ones to blame, however the corruption in the Venezuelan
government is the sole cause of the political unrest.
The protestors, mainly young people, demanded for improved security, an end to
food shortages and freedom of speech within the country. The police attempted
the end the protests, the largest Maduro has seen since his election last year,
but the confrontation soon turned violent. Images and videos of the police
brutality sparked global outrage, leaving Venzuelas political leaders in a difficult
situation. Instead of attempting to solve the issues the people were protesting
for, Maduro blamed the protests on others.
Leopoldo Lopez, an opposition leader, was arrested on in connection with the
deaths of four anti-government protestors and for supporting and organizing
protests nationwide. Amnesty International, a human rights group, called this act
a "smack of a politically motivated attempt to silence dissent in the country."
Also, Maduro has accused the United States of trying to destabilize Venezuela,
and forced three U.S. diplomats to leave the country. Obama responded to this
by saying, "Venezuela, rather than trying to distract from its own failings by
making up false accusations against diplomats from the United States, the
government ought to focus on addressing the legitimate grievances of the
Venezuelan people."
Instead of ignoring the countrys obvious political problems, the Venezuelan
government should focus on solving these issues. Maduro should learn to listen
the complaints of his people, instead of stifling their yells with police force. If the
people of Venezuela respect and admire Maduro, the country will become more
unified and successful. Currently, Maduro is setting negative examples by
imprisoning opposition leaders and blaming other countries for Venezuelas
problems.
Also, the United States should take a stand in the issues affecting Venezuela.
Although the tow countries are hostile to one another, both are large trading
partners for each other. If this trade relationship was lost, both countries could
suffer tremendously. The United States should attempt to establish healthy
relations with Venezuela, and restore ties in order to prevent Venezuela from
falling to political ruin.
Environmental Issue

Located in Northwest Venezuela, Lake Maracaibo is the largest in South America.

However, over the years the water in the lake has become polluted from nearby
sites of petroleum production. The oil reserves in this area are massive a

prosperous, however the government has paid little attention to the negative
impacts that the extraction of oil has caused to the once pristine lake.
The lake is surrounded by around 6,000 wells connected by 45,000 km of
pipeline, forming a web underneath the lakebed. As a result, there are constant
leaks of oil and natural gas into the lake. Since May, however the number of
leaks have increased, and fewer repairs are being made to the pipelines. The
surveillance, maintenance and repair of the pipelines costs money provided by
the government, and the Venezuelan government is currently in extreme debt.
The pollution in Lake Maracaibo affects all of the plant and animal species living
in and around the lake, greatly disrupting the ecosystem. Also, fishermen are
losing their source of income as many of the fish species are dying, and residents
around the lake are in danger of health issues because of the pollution. Tourism
around the lake has also reduced significantly, as people do not want to travel to
a putrid lake, which does not help the Venezuelan economy.
One solution to this problem would be to increase awareness in the government
of the pollution in Lake Maracaibo. If political leaders knew of the issue and its
impact on the countrys environment, people and economy, they would most
likely be more willing to give more money towards maintenance of the pipelines,
resulting in reduced pollution to the lake. This could also lead to increased
awareness in the government of other sources of pollution in the country.
Another solution could be to privatize the wells surrounding the lake, as currently
they are owned by a government-controlled company. If a private company were
to own the wells and pipelines, most likely the pipelines would be better cared
for and pollution would be regarded as a serious issue. Companies must be
competitive in order to survive in the global market, so a private company would
be very focused on setting a good reputation for itself, especially by focusing on
reducing its impacts on the environment. Also, a private company would most
likely make and manage its money better than the Venezuelan government, so
more money could be allotted to reducing the pollution in Lake Maracaibo.
Social Issue
Venezuela has one of the highest murder rates in the world, with a staggering
25,000 homicides in 2014. A troubling problem has been merging of street crime
and organized crime, as the line between these two is becoming very blurry.
Venezuela is located in a central location, right between Central and South
America, making it an ideal location for the drug trade. This illegal activity
inevitably is associated with robberies, murder and other forms of crime.
With an extremely corrupt political system, Venezuela has had issues getting the
upper hand on crime. Often the police become involved in crime in some way, so
even the people who enforce the law cannot always be trusted. The military has
also been linked to drug trafficking. When the people who are supposed to
uphold justice betray the law, the people can develop a culture of crime that
seems justified.
The extreme food shortages in the country have also contributed to crime.
People become involved in the smuggling of basic goods into the country to sell
on the black market. Although they are simply providing necessities, this illegal
activity can often be linked to more serious crimes.

A large portion of the population in Venezuela lives in poverty, also contributing

to increased crime rates in the country. People who cannot make enough money
working low skill jobs often turn to crime and gang involvement in order to
provide for their families.
A solution to the problem of crime in Venezuela could be to end corruption in the
police force. If people see that the police are fairly enforcing the law, they will be
less likely to commit a crime in fear of getting arrested. Also, if police do not
associate with organized crime gangs, it will be much more difficult for these
criminals to carry out illegal activities under the noses of the police.
Another solution to this problem could be for the government to provide more
benefits to the lower class. If people of low economic status are able to get jobs
that allow them to provide for their families, they will be less likely to turn to
crime as an alternative job. The government could provide education
opportunities, food stamps, and welfare programs to help people living in
poverty.
If the culture of crime in Venezuela can be reversed, the country will be well on
its way to becoming a safer, more socially developed country.

Works Cited
ABC News. ABC News Network, n.d. Web. 04 Dec. 2015.
<http://abcnews.go.com/Technology/wireStory/11-countries-made-pledgesclimate-deal-35571198>.
"Basic Facts on Venezuela." Basic Facts on Venezuela. N.p., n.d. Web. 02 Dec.
2015. <http://venezuelanalysis.com/basicfacts>.
Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 02 Dec. 2015.
<https://www.cia.gov/library/publications/the-world-factbook/geos/ve.html>.
"The Economy of Venezuela - Live Trading News | Live Trading News." Live
Trading News. N.p., 07
Mar. 2015. Web. 02 Dec. 2015. <http://www.livetradingnews.com/economyvenezuela-98314.htm>.
"Guns and Money." The Economist. The Economist Newspaper, 10 July 2014.
Web. 12 Dec. 2015.
"Lake Maracaibo Venezuelas Most Valuable Resource." World View Opinion.
N.p., n.d. Web. 12 Dec. 2015.
Neuman, William, and Patricia Torres. "Few in Venezuela Want Bolvars, but No
One Can Spare a Dime." The New York Times. The New York Times, 18 Oct. 2015.
Web. 12 Dec. 2015.
Neuman, William. "In Venezuela, Protesters Point to Their Scars." The New York
Times. The New York Times, 27 Apr. 2014. Web. 12 Dec. 2015.
A Photo Posted on Reddit Monday Has Gone Viral. It Showed a Man Holding His
Empanada with a $2 Venezuelan Bolivar Bill as a Napkin. The Post Has Already

Generated over 1,770 Comments.

"Venezuela's Currency Is worth Less than a Napkin." CNNMoney. Cable News
Network, n.d. Web. 12 Dec. 2015.
Planas, Roque. "Venezuela Has World's Second-Highest Homicide Rate: NGO."
The Huffington Post. TheHuffingtonPost.com, n.d. Web. 12 Dec. 2015.
Ramirez, Antonio. "Update: An Introduction to Venezuelan Governmental
Institutions and Primary Legal Sources." Hauser Global Law School Program. N.p.,
n.d. Web. 3 Dec. 2015.
<http://www.nyulawglobal.org/globalex/venezuela1.html>.
"Timeline: Venezuela." BBC News. BBC, 01 Aug. 2012. Web. 02 Dec. 2015.
<http://news.bbc.co.uk/2/hi/americas/1229348.stm>.
"2014 Human Development Report (HDI)." UNDP. N.p., n.d. Web. 02 Dec. 2015.
<http://www.undp.org/content/undp/en/home/presscenter/events/2014/july/HDR2
014.html>.
"U.S. Relations With Venezuela." U.S. Department of State. U.S. Department of
State, 20 July 2015. Web. 03 Dec. 2015.
<http://www.state.gov/r/pa/ei/bgn/35766.htm>.
"U.S. Relations With Venezuela." U.S. Department of State. U.S. Department of
State, 20 July 2015. Web. 03 Dec. 2015.
<http://www.state.gov/r/pa/ei/bgn/35766.htm>.
"Venezuela - Climate." Venezuela - Climate. N.p., n.d. Web. 04 Dec. 2015.
<http://countrystudies.us/venezuela/9.htm>.
"Venezuela - THE GOVERNMENTAL SYSTEM." Venezuela - THE GOVERNMENTAL
SYSTEM. N.p., n.d. Web. 03 Dec. 2015.
<http://countrystudies.us/venezuela/37.htm>.
"VENEZUELA: Chronic Oil Leaks Sully Lake Maracaibo, Livelihoods." VENEZUELA:
Chronic Oil Leaks Sully Lake Maracaibo, Livelihoods. N.p., n.d. Web. 12 Dec.
2015.
"Venezuela Economy." Venezuela Economy. N.p., 30 Mar. 2010. Web. 02 Dec.
2015. <http://www.economywatch.com/world_economy/venezuela/>.
"Venezuela: Why Is There So Much Crime?" ValueWalk. N.p., 05 Nov. 2014. Web.
12 Dec. 2015.
"Venezuela's Giant Lake of Endless Oil Is a Filthy, Lawless Mess." Bloomberg.com.
Bloomberg, n.d. Web. 12 Dec. 2015.