Throughout the presidency of Hugo Chávez the Venezuelan government have made progress with its economic policies especially with regards to the redistribution of wealth through social policies and land reform programs and the democratization of economic activity by the implementation of self-management at the workplace. Another area in which the Chávez government obtained success was with reasserting the country’s economic sovereignty. This was achieved by encouraging increased Latin American economic integration and thereby resisting an American push for free trade and by reclaiming control of the state owned oil industry (Wilpert, 2007, p. 69). The government regained control by completely reforming the Venezuelan oil industry, which then in turn prove to be of great importance to the continued support and love for Chávez as the it would have otherwise been difficult for Chávez to steer the nation into the direction of his socialist ideology. However, before we take a closer look at the Chávez administration and its policies towards the oil industry and the reformation of it, there are two things we need to understand but oil in Venezuela. Firstly, “(…) Venezuela is the world’s fifth largest oil exporting country, with the largest reserves of conventional oil (light and heavy crude) in the western hemisphere and the largest reserves of non-conventional oil (extra-heavy crude) in the world.” (Wilpert, 2007, p. 87). Secondly, oil production is one of the most lucrative industries in the world as the ratio between the cost of producing a unit and its market price is usually higher then at other industries, which makes this industry one with tremendous amount of conflict (Wilpert, 2007, p. 87). As we can see above the oil industry m... ... middle of paper ... ...r every barrel sold, whilst the state lowered the income taxation on oil extraction from 59% to 50% (Wilpert, 2007, p. 95). The government argued that it was much easier for it to collect royalty payment then to collect taxes on oil income, as it is more difficult for the government to track and calculate the taxes on oil production profits as they involve far more variables then simple tracking how much crude is being extracted and the calculating the royalty payment based on the current price for oil (Wilpert, 2007, p. 96). What this essentially does is that it cuts the expenses tax deductible, which in turn gives the companies a strong incentive to make their operations more effective and as such it can be argued that “(…) royalty makes the interests of the natural resource owner (the state) and of the investor (the company) coincide.” (Wilpert, 2007, p. 96).
Venezuela’s Economy Do you know that Venezuela could be one of the richest countries in the world? Venezuela is one of the countries that has one of the most profitable products in the whole world. Venezuela depends most in the price of oil to keep their economy afloat because it is one of the products that makes countries economies high. Surprisingly economy in Venezuela is really terrible because there’s not globalization. The are too many problems going on there: some of these problems are
Venezuela Country Report History Venezuela was first explored by Columbus on his third journey in 1498 where he found Arawak, Carib, and Chibcha natives (9 Infoplease). The name Venezuela means little Venice. Venezuela was one of the first South American colonies to revolt against colonial rule in 1810 winning its independence in 1822. It became a republic in 1830 than a period of unstable dictators ruled Venezuela until 1870 (9 Infoplease). In 1870 Antonio Guzman Blanco governed till 1888 during
these headlines in a Google search of Venezuela today. All around the country, there are long lines to buy simple necessities, like bread and milk. High inflation rates lead to shortages of food supplies, which increase frustration leading to protests in the streets and, sadly, an increase of violence. The protests and violence result from the inability of Venezuelans to provide the most basic human needs for their families. Sky-rocketing inflation rates in Venezuela are the result of Hugo Chavez, the
the opposition leader, Leopold Lopez was accounted for organizing all the protests that have recently taken place in Venezuela. Indeed, he has been arrested with charges of terrorism and murder; however, these charges have been changed to conspiracy counts and government threat. What it started as a peaceful protest of students demanding more security and economic stability in Venezuela became to be a massacre of innocent young people fighting for a peaceful environment. The opposition and outsiders
guide analysis, Venezuela was generally examined as a system of systems to identify nodes, linkages, and Centers of Gravity (COGs) and determine the relationships between them. Once the COGs of each system were identified, the critical capabilities (CCs) of those COGs were analyzed to determine which is the most consequential to achieving U.S. strategic objectives within Venezuela. This paper argues the significance of Venezuela’s Executive Office and the importance of the oil industry as critical
Venezuela is considered a single-product economy at which petroleum represents the 97.8% of Venezuelan exportations; therefore, Venezuelan economy is highly dependent on the oil market. This high dependency is caused by the lack of incentives from the government to expand the production spectrum of Venezuela´s economy, plus the implementation of a currency exchange control since 2003. As a result of the country´s singular production, and the limited and scarce internal production of goods besides
Since long time ago Venezuela is in the first page of the international newspaper but unfortunately never in a good way. The situation in Venezuela is really reaching levels that no one has ever imagined that such a country could have, people are starving because of the lack of food or because of the lack of money and the inability of buying it. People die because of diseases that could be curable or treatable but the lack of medicine doesn’t provide all people what they need to be cured. The police
Rough Draft: Venezuela is a country located in the northern area of South America that’s national language is Spanish. It is a very complex and interesting country with many important events in the past as well as some current events that have made headlines. Venezuela has been struggling with development for a long time and it has a landscape that can sometimes make it quite hard to build roads and tracks, thus hindering the forward progress of the nation. Venezuela is a democratic country with
The political instability, social unrest, and economic recession in Venezuela is leading to government collapse of the country. Current Events The current political climate is creating an immediate impact to Venezuela. There is an ongoing problem in Venezuela with looting, food shortages, and financial deficiencies from the lack of proper government from the current administration. This lack of proper management has put the population in a state of social unrest. As a result of the social unrest
doomed to take at the end of their rule. There is no in between. Venezuela, a South American country that has a coastline on the Caribbean Sea, is a prime example of this truth. Venezuela is an oil-rich country that suffers from a multitude of problems created by previous governments, most notably the Chávez regime. Under Chávez’s rule, the country was guided down a devastating and highly controversial path (Rohter). Although this oil-rich nation had been lead by flawed leaders before, Hugo Chávez
the most northernmost part of South America, lies Venezuela, a home to over thirty-one million people (The World Factbook, 2018). Most of the people live in the northern or western highlands, which includes their capital city of Caracas (The World Factbook, 2018). Similar to the unequal population distribution in the country, Venezuela suffers from an unequal distribution of total income. That being said, the World Bank still classifies Venezuela as an upper middle income of development. (World
think about the news”(Boykoff). He found out that the US prestige press, which includes the New York Times, the Wall Street Journal, and the Washington Post, “adopted four dominant frames: the Dictator Frame, the Castro Disciple Frame, the Declining Economy Frame, and the Meddler-in-the-Region Frame.” These frames were aimed at Hugo Chavez, to give him a negative media representation in America, especially during the Bush administration. Boykoff analysis is based on 979 articles from the year 1998-2007
is the duly elected leader of a relatively small country on the northern coast of South America called Venezuela. It is a nation whose regional stature has, in the last twenty years, grown in influence in total disproportion to its size. The reason for Venezuela's increasing political clout is simple. It is the owner of vast reservoirs of liquid gold. It is perched on an enormous supply of oil. To a country like America, which is the world's largest consumer of fossil fuels by far, nothing could
2005). In other words, devaluation occurs in a situation when a country is operating under a fixed exchange rate regime and its government decides to lower the value of its currency in relation to the currency it is pegged against. In the case of Venezuela, the bolívar fuerte is pegged against the US dollar. A government objective generally associated with devaluation is the improvement of a trade deficit. If a country’s imports are greater than their exports, devaluing their currency can help, as
interesting. The United States has had the world’s largest economy for about 140 years, and it roughly accounts for 22% of global GDP. In recent years China has overtaken the U.S. by its economic strength. This is GDP based on purchasing power parity (PPP). That’s where the similarities end. They are comparable in total size, the makeup of each economy is totally different. The United States is a sophisticated and highly diversified economy. This information comes from their services, finance, and