Venezula Crisis

Venenzula has plunged in to a major political crisis . The situation is getting worse day by
day.High rates of violent deaths and criminality,increased rates of abduction,blackmailing
and human rights violation has caused it the most Venenzula has plunged in to a major
political crisis . The situation is getting worse day by day.High rates of violent deaths and
criminality,increased rates of abduction,blackmailing and human rights violation has caused
it the most unsafe country in the world.unsafe country in the world.

The IMF has

drastically upped its inflation prediction.One had never seen such a worse situation in any oil
rich country. What happened to venezula in three to four years that paved the way to
destruction is quite perplexing.

# The story begins:

Venezula has the largest oil reserves in the world more than Saudi Arabia. It was heavenly
dependent on oil .All other economy resources were neglected in venezula.
In 1922 a huge oil well was discovered .All international oil companies attracted towards
venezula.. Resultantly,In 1928 venezula became the largest oil exporter in the world .Its
currency (boliva)also increased rapidly due to oil exports.
The oil demand increased during world war2.Venezula was producing 1million barrels per
day. By 1950 the middle eastern countries also started exporting oil as well .Supply became
more than demand and it caused the decrease in oil price.

Iran,kuwait,Saudi Arabia and venezula met on september 10-14,1960 and founded

OPEC.Certain quota was fixed for OPEC countries for regularisation and stabilisation of oil
prices.Several times OPEC countries used to breach the rules and also got accessibility for
more production.it caused nose-dives in oil production.

Suddenly the oil prices hiked and golden era of venezula began in
reign of Hugo Chavez(president of venezula from.1999to2013).He
laid great emphasis on social works.

Petroleum of venezula(PDVSA)was made state owned company. Under the

aegis of HUgo presidency, private sectors and other revenue generator
resources that include agriculture,Industry and manufacturing were
neglected.

AFter the demise or Hugo Chavez in 2013,NicolaS MAduro (UNited SOcialist party) was
elected as president of Venezula.

The dynamic of international politics causes the depreciation of

venezula’s currency due to oil price fall. As a result, inflation increased.

Inflation in the embattled South American country could reach

one million per cent by December, the International Monetary
Fund (IMF) warned this week, reflecting an economic crisis
comparable to Germany’s after the first world war and
Zimbabwe’s at the beginning of the last decade.

Poverty,inflation and high rate of unemployment reached at

zenith. Therefore, people accompliced in high rate crimes,blackmailing brutality,abduction
and criminality.
THe sitution is getting more worse than Syria due to wrong economic policies of the then and
the present government.Instead of solution of the prevailing problems ,political.parties are
fighting with each other for the quest of power and are causing grave consequences

Government and opposition parties should set and revive economic policies and should seek
for alternative resources for revenue generation(agriculture,manufacturing ,services and
industrial sector) instead of oil exports only.

By this way,it can again restore its lost prestige and can lead towards prosperity again.

Asadullah Arbani Memon

Assistant Executive Engineer
Irrigation Department