Venezuela 's Impact On Venezuela

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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.
Problems and Challenges: The main problem and challenge that Venezuela’s economy is facing today is a shortage in supplies. Many critics place the blame on Venezuela’s current president Nicolas Maduro and his poor management abilities. Venezuela doesn’t have a stable economy but instead has a poorly run exporting business. The cost of an oil barrel has dropped down significantly resulting in major issues for the country, including food and supply shortage. “Venezuela has $3.5 billion unpaid bill for pharmaceutical imports, payment arrears of more than $2 billion for food, and nearly $4 billion owed to airline companies.” A combination of factors have contributed to this major shortage including a “lack of foreign capital and declining oil prices” but the root of the problem ultimately comes from the countries “socialist economic policies.” The Venezuelan government has also been

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