The failure of socialism .. Learn about the story of the collapse of the Venezuelan economy

The failure of socialism .. Learn about the story of the collapse of the Venezuelan economy


The failure of socialism .. Learn about the story of the collapse of the Venezuelan economyCountries are economically advanced through their prudent management of their natural and renewable resources and resources, and through their optimal utilization of human capital, technology and so on. Oil as a natural resource is a fundamental reason for the wealth of many countries. Let’s talk about a country with huge oil reserves. It is one of the world’s largest oil reserves. It is among the top 10 oil producing countries. It produces 3 million barrels of oil a day. It has a wide biological diversity and rich nature. Iron and gold and diamonds, and strategically located, but they went bankrupt and entered into poverty and are currently going through the worst economic crisis in the modern era, so that all the elements of life is not with the population, which led to the departure of collective forced! So the question is: Is it enough for the state to have a huge oil reserves to become a rich country and its people are hungry?

Venezuela is one of the richest countries in the world and oil production accounts for about 96 percent of its revenues. What led to bankruptcy? The story began at the time of former Venezuelan President Hugo Chavez, who was re-elected more than once. Chavez was a popular Venezuelan president and widely popular because of his socialist policies, which were in the interest of the poor and supported them, distributed land to them, and was famous for his hostility to the United States.

The crisis worsened in Venezuela and the government was unable to manage the buildings, hospitals and schools that it had built randomly in the period of prosperity. Due to the lack of liquidity,
Chavez was close to his people. He even had a television and radio program called “Halo O President” He also despises America through this program. “The greatest threat to the planet is the government of the United States of America,” says Chavez. “I am convinced that the road to a new and better world is not capitalism, the road is socialism.”

But Chávez’s socialist policies, economic mismanagement, distribution, rampant corruption and corruption were the main and main reason for what is happening in Venezuela today. Chávez helped the poor with his policies and his short-term happiness, but the effect of these policies on them was bad and even catastrophic in the long run!

Venezuela’s financial situation has rebounded in the period of rising oil prices. Despite Chávez’s hostility to America, America was Venezuela’s largest trading partner, and with the high revenues from oil revenues, the government disbursed these funds to build schools, hospitals and random distribution of land. Invest or stockpile any reserves to support them in times of crisis. At the time of the global financial crisis of 2008, one of the worst crises after the Great Depression of 1929, oil prices fluctuated and the Venezuelan economy was negatively affected, like other oil-dependent countries, as the main source of income.

As a result, the Venezuelan government has tended to borrow, especially from China, which has accepted to give Venezuela loans with oil guarantees, which means that China can import Venezuelan oil free of charge until the loans are met. The situation worsened and the crisis worsened in Venezuela, and the government was unable to manage those buildings, hospitals and schools that it had built randomly in the period of prosperity because of the lack of liquidity. The infrastructure of the oil sector has been eroded and the government is no longer able to manage this sector efficiently.

Venezuelan conditions continued to fall and roll like a big snowball until it reached the current situation. United Nations statistics indicate that nearly 3.2 million Venezuelans have migrated from their country to escape the misery of living and extreme poverty in the last few years. The economic situation in Venezuela has become very difficult and can not tolerate hyperinflation any more, with inflation now reaching 1698488.00% according to the data of the World Trading Trading website. Commodity prices were up 100 per cent in every week of 2018. As a sad example, a cup of coffee, which was sold at 0.01 Bolivar in 2016, now has more than 400,000 Bolivars!

In 2019, IMF experts expect Venezuela to experience a more severe contraction this year. After being the wealthiest country in Latin America, Venezuela has become the sad story of the collapse of the economy and the spread of poverty and corruption!