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Slavery In Venezuela

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Venezuela’s economic development began long ago when Christopher Columbus discovered it on one of his voyages to the new world. The development started with the colonial experience led by the Spanish. In the 1500s word had spread that there were pearls and rare precious metals to be found in Venezuela. With the newly found pearls, the Spanish colonizers started developing extractive policies to harvest these pearls and metals to the point where new ways and resources had to be found. In the 1520’s, instead of extracting resources and treasures from Venezuela, the Spanish began extracting their native people, taking the people for slavery. The slaves that were extracted from Venezuela were used to supply the growing need for labor in the Caribbean …show more content…

The Spanish slavers faced conflict and competition when a group of German bankers came into Venezuela with permission from the Spanish leadership to begin to exploit the area’s resources. These Germans had absolutely no intention of settling and went about the colonialization by establishing more extractive policies, not focusing just on human capital but also on material wealth they could attain from resources. The German bankers were led by the House of Wesler and they were in Venezuela on a contract from the Spanish crown to pay off a debt they had with the Germans. The Spanish found mountains of gold in Peru and Mexico and that is what they Germans were looking for, they were in search of the dream El Dorado. The colonization of Venezuela was one of extractive economic policies from Spanish conquistadors and German Bankers. Extraction of human capital (slavery) and material wealth (pearls, metals) did not seem to be worth the investment in time for both the Germans and Spanish so a large portion of Venezuela was left untouched from settlers and …show more content…

Formerly under control from Dictator Hugo Chavez, and now currently under control by Nicolas Maduro, With an estimated 34.2% of the GDP accounting for the public debt, and an extremely high inflation rate of 56.2% in 2013 raising from 21.1% in 2012, it is obvious that the policies and programs aren’t working out for the country. Poor leadership in Venezuela has driven the country’s economy into a downward spiral. Having one of the larger resource endowments among the developing countries, it is questionable how there are so many problems with its economy. Since the 1920s Venezuela’s economy has been primarily driven by their vast availability of petroleum. Being a member of the OPEC, Venezuela’s main export is oil. The powerful oil industry in Venezuela is driven by their state-run petroleum company Petroleos de Venezuela S.A PDVSA. Venezuela sits on top of the world’s largest oil reserves and this oil based economy accounts for roughly 50 percent of government revenue, 95 percent of Venezuela’s exports, and 25 percent of Venezuela’s GDP, just in oil alone. With a population of 29.9 million people (estimated in 2012) the country has a per capita GDP of $12,756. Venezuela is highly dependent on oil revenues, these oil revenues account for around 96% of all export earnings. Venezuela’s development faces various challenges being a

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