Summary: The Shortage Of Venezuela

Inflation is one of the most talked about words in society that causes a big problem in economics today. Inflation is an increase in the overall prices of goods and services and a decline in the purchasing value of money. This exists when the money supply surpasses the goods and services that are available. For this commentary, I chose to pick the article In a Venezuela Ravaged by Inflation, ‘a Race for Survival’ that deals with the topic inflation.

When Christopher Columbus discovered the coast of Venezuela, he thought he had encountered an earthly paradise, today that grace land is ravaged by famine, inflation, scarcity, violence, social and political conflicts; “social implosion [being] driven by economic collapse, caused by shockingly self-destructive policy making” (Toro, 1). Venezuela’s antidemocratic government and its lack of foresight has created a severe economic crisis crumbling health care system and a lack of basic necessities and is jailing innocent people who object.

I am writing this to you to address the current economic crisis that is currently afflicting your country. Your country thrived for many years on large oil reserves but due to the oil market your countries economy is now suffering. It is my hope that after addressing your strengths and short comings that you can utilize my suggestions as an outsider looking in and we may work together to start on the path to securing a financially stable Venezuela. I know taking advice from an outsider may seem illogical but I have thoroughly analyzed your your countries economy and the burdens that it has caused for your people and have worked to create solutions

What would happen to Venezuela if the oil disappears? Venezuela is going through a very critical situation in which the economy is being affected. One of the reason why the situation in the economy in Venezuela is so urgent right now is because they are depending 96% on oil. That is one of the reason why in Venezuela, the people can’t buy basic product. To solve this problem, Venezuelans should find a way to expresses their voice in the “Organization of the Petroleum Exporting Countries” (OPEC) because that is the organization that has the power to raise the prices of oil. Another way that this problem can be solved is that Venezuela must stop depending only on oil because, they can use other natural resources which will greatly

So, Graziano Silva and the President of Cuba have pledged to work together to keep food safety a political priority in the region. Cuba is highly prone to tropical storms, heavy rainfalls and occasional earthquakes which have caused more than $20 billion in losses which damaged the economy and food security. Contrastingly, A severe drought caused water shortages for 1.2 million people so the prices for food rose because of food shortages. Over the last 50 years, the country’s comprehensive social protection programs have largely focused on ensuring food security and nutrition as the key priority. Although Cuba’s comprehensive social protection programs do work, they usually rely on food imports and strain the national budget which is why they aren’t the best solution to the

Introduction: Venezuela is a country in South America that occupies the northern coast. It has a population of 30.4 million people according to a 2013 survey. The entire country of Venezuela is about a third larger than Texas. Venezuela shares its border with Columbia to the west, Guyana to the east, and Brazil to the south. The GDP per capita in 2013 was $14,414 US putting Greece on the middle tier on the Global Economic Pyramid. Venezuela’s 2013 inflation rate was also 56.2%. Venezuela has the “largest proven reserves of crude oil in the world” and is currently dominated by the oil industry.

Venezuela is located on the north coast of South America. It is a very interesting country, since it possesses many unique attributes and resources that other countries in the region do not. There are several different systems that represent these resources and attributes. Major Kris A. Arnold (2006) states “PMESII is (sic) military acronym listed in several joint and service publications, which evolved from a systems perspective, and equates to the political, military, economic, social, infrastructure, and information systems of states. The acronym provides a starting point for identifying key interrelated systems of an adversary and facilitates analysis and kinetic and non-kinetic targeting”. Venezuela is an especially interesting case due to the political system in place, in addition to the unique economic power that the nation has.

Venezuela Economy Approximately 13% of Venezuelans are involved in farming. The main crops planted are corn, sorghum, sugarcane, rice, bananas, vegetables, and coffee. There is also extensive livestock rearing and fishing. Venezuela's mountains long hindered the nation's economic development because of the communications problems they faced. The country has developed a fine highway system, but goods are still carried mainly by ship. Venezuela has the second largest petroleum reserves in the world, and oil accounts for about 90% of the export income, 50% of government earnings, and 30% of the gross domestic product.

Another outcome that can be used in Venezuela is a regime change. For instance the prohibition of US dollars in oil transactions as it was done in Iran to change its regime. The crisis in Venezuela is caused by first mismanagement of the economy, the populist policies, its dysfunctional exchange rate system, and the currency of the money used in Venezuela. The Bolivar is the official currency of Venezuela. Which currently has lost almost all of its value against the US dollar. The country’s economy has fallen into a problem in the past few years due to a plunge in global oil prices and a miss leading government response to the crisis. The reduction or elimination of foreign currency in Venezuela means to make some adjustment to its economy

Venezuela has been facing a massive brain drain as 1.2-1.5 million citizens have left Venezuela in the past 15 years. They are the second country claiming the most asylums with 10,221 Venezuelan asylum seekers in America alone. Altogether, 260,000 have immigrated to America and 200,000 have fled to Spain. On another note, these migrants have not been able to claim refugee status as it’s internationally recognized for individuals escaping political persecutions, a more appropriate label would be, economic refugee if you will. This is exemplified by Venezuela’s economic crisis due to their crashed oil-dependant economy. Ultimately, this has led to their food shortage, as 87% of the population can’t access basic necessities ranging from baby diapers,

Daron Acemoglu and Terry Lynn Karl accurately predict events in Venezuela, due to the influence of political elitist, who have hindered the state’s progress towards economic advancement. Venezuela’s lack of political stability is defined by a rational actor, due to the inability of elitist groups to invest their wealth in domestic development. According to Acemoglu’s historical approach to assessing the role of institutions in economic development, “some societies have good institutions that encourage investment in machinery, human capital, and better technologies, and, consequently, these countries achieve economic prosperity. However, countries where elitist groups represent the institutions often times block progress towards industrialization

Venezuela currently has a population of 31 million people. Venezuela is still growing in numbers, and it’s getting harder for the government to provide health care for their people. Venezuela’s population is 1.9 times larger than South America. The country is mainly urban, and the wealth rate is declining. The resources per person needs to be the same, and as of now that’s not the case. Overall fertility rates are failing in Latin America. In 2015 the population was six times the size that it was in 1950, and the United Nations projects that it will be nine time larger by 2050, and still growing at that point, despite the long-term decline in fertility. (Latin America) Although there are many economic crisis in Venezuela, this isn’t preventing them from having children in higher numbers. This could be the shortage of health care.

The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.

Venezuela has the most crude oil in the world yet it has not properly utilized their natural resources. They saw their most successful years under their socialist leader popularly known as Hugo Chavez. Mr. Chavez took power when the economy was in a downward spiral and he implemented his socialist views and with the help of the soaring oil prices which sums up to 93% of their foreign exports in 2000. The Venezuelan economy was solely reliant on the production of crude oil. Oil prices rose upwards 100$ a barrel and the government took little advantage of this situation to improve the country’s economy and infrastructure. Venezuela makes money only by selling oil. When the oil prices came down, household income came down too. There was barely money for anything. The government regulates basic daily perishable goods that are very cheap; people will have to stand in line for a long time to buy common goods. Some people wait in those lines buy the goods and then resell them for hundreds of percent of profit. Economically, the Venezuelan government has been no good. Experts are talking now about inflation, they are also predicting a hyperinflation could be on the way. There are still questions about whether this government can make its external sovereign debt payments over the next few years. There 's going to be a serious fiscal shortfall. Henceforth we are already aware of the shortages in the supermarkets. And that 's clearly taken a political toll on this government

Venezuela has the world’s largest oil reserves and by 1960, it became the wealthiest country in Latin America. Petróleos de Venezuela (PDVSA), the state owned company, was the key to economic and social development in Venezuela under president Hugo Chavez. His government was settled in an environment where the oil prices were rising and the economy was booming, so he was able fund social programs and practices that were popular to the poor masses. This wealthy and growing Venezuela made Chavez to be very popular and his regime very powerful. Oil revenue accounted for nearly 90% of exports, more than 50% of government revenue, and 35% of country’s GDP.