• Mohammed Sameer PGP04052

• Rahul Yadav PGP04070

• Rajesh Kumar PGP04071
• Soumya Swaroop Patro PGP04083
• Suhas Jirgi PGP04085
 Country is driven by oil revenues. Government spends on public
A massive oil well discovery in 1921 welfare schemes banking on its strengths of oil exports.

Economic and political turmoil leads to In 2014, global crude oil prices drop rapidly. Economy fumbles
Hyperinflation and a massive humanitarian crisis and the President initiates military actions to retain power.
1910 – 1930s • Dictator Juan Vicente Gomez takes advantage of oil resource and modernizes the economy

• Under President Marcos Perez Jimenez’s rule, Venezuela becomes the 4th best per capita GDP
1940 – 1950s nation in the world.
• But he was overthrown by a military coup.
• Romulo Betancourt, an ex-communist social democrat leader comes to power.
• Initiated bipartisan between two leading political parties.
• He started the process of nationalizing the oil industry and other private industries. Indirectly
1960 – 1970s
established socialism – cheaper gasoline, free education, healthcare and other welfare
activities at the expense of revenue generated from oil.
• All this to woo the lower and middle class voter base.
• President Carlos Andres Perez completes the nationalization of oil sector.
• Government has control over virtually all of revenue generating activities.
1970 – 1990s
• Started to maintain dominance over people under the pretext of socialism.
• Out of control spending created fiscal deficit and no real wealth creation took place.
• Two major military coups and impeachment of the president.
1990 - 1999 • Hugo Chavez emerged as a leader, promising a better life for the 65% Venezuelans who lived
below the poverty line.
 1992 - coup d'état attempt.
 Neo-liberal economic reforms.
 Hugo – led 2 unsuccessful coups.

 President (1998-2013)
 Messiah of ‘Disenchanted middle class’
 “Chavism” attempt at handling economy.
 Socialistic attempt at pleasing vote-bank.
 Taking a ride along with increasing Crude Oil prices.
 1998 - $20
 2008 - $145

 Most prosperous country in Latin America.

 Chavism :
 Subsidised, Price control.
 Food, Education, Healthcare.
 5-7% of GDP in each.
 Hydro-electric sources.
 Unipolar political system.
Source : https://www.macrotrends.net/1369/crude-oil-price-history-chart Shadows : Recessions
 Increased Govt spending leads to increase in GDP.
(Shadowed by over dependence on Oil)
 Focus shifted from Agriculture to Crude Oil Export.
 Labour force – 10%
 Contribution to GDP – 5%

 For vote bank - Rigged Economy.

 Share of manufacturing sector
 17.4% : ‘98 to 14.2% : ‘12
 Sharp decline due to
aggressive spending.

 Data suggests from IMF,

jstor.
Import Export
 2017- Export
 $15.1Bn Import
 $26.6Bn
 Petroleum - $18Bn
 India – $4.4Bn
 Nicolás Maduro
President since 2013

• Served as Ministry of Foreign affairs from 2006 to 2013.

• Vice president from 2012 to 2013.
• Took power after Chavez death and he won the election with
50.62% of the votes as the candidate of the United Socialist Party
of Venezuela.
• Higher government authority VEF/USD Exchange rate 10:1
• Black market exchange rate 12163 : 1
90 % of the Venezuelans are under poverty
• The petro, or petromoneda, launched in
February 2018, is a cryptocurrency
developed by the government of
Venezuela.

• In August 2018, the Maduro government

carried out a currency reform, centered
around replacing the old bolivar fuerte
currency with the bolívar soberano.

• The new "Bolivar Soberano" currency is

worth 100,000 "old" Bolivares.
 On August 24, 2017, President Trump signed an Executive
Order (“Order”) imposing additional sanctions on Venezuela.
 President Trump signed an executive order imposing the new penalties,
which would bar United States companies or citizens from buying debt or
accounts receivable from the Venezuelan government, including
Petróleos de Venezuela, the government-owned oil company that is the
parent of Citgo Petroleum Corporation.
• The Venezuelan Presidential election
was held on May 20, 2018.

• Six million voters decided to reelect

Maduro, with a turnout of 46%, the
lowest in the Venezuelan democratic
history.

• In 2013, Maduro was elected

President with 80% participation –
almost double the 2018 turnout
 Until May 25, 73 countries had made statements about the presidential
election: 25 recognize the Elections; 46 don't recognize the election, and 2
have not a clear position.
 Freedom of opinion and expression has been violated, particularly, since the
Constituent Assembly approved an “anti-hate law”, that established ill-
defined crimes punished with prison up to twenty years. Criticizing the
Government can be considered a hate crime and therefore a criminal
offense.
Maduro
 Ignored the facts that were draining the economy and instead relied
purely on emotions
Irregularity in Currency
 Over reliance of the Venezuelan economy on their oil
exports
16%
Political Blame Games and Bad
Judgement
 https://www.bbc.com/news/world-latin-america-36319877
 https://www.macrotrends.net/1369/crude-oil-price-history-chart
 https://tradingeconomics.com/venezuela/indicators
 https://en.wikipedia.org/wiki/Economy_of_Venezuela
 https://www.economist.com/finance-and-economics/2017/04/06/how-chavez-and-
maduro-have-impoverished-venezuela
 https://www.aljazeera.com/indepth/interactive/2018/08/venezuela-crisis-
numbers-180824123136718.html
 https://borgenproject.org/3-economic-crisis-in-venezuela/