Venezuela’s Economic Crisis

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    Hugo Chavez’s Presidency

    During Chavez’s presidency, it was seen a huge oil price increase by 4x and that allowed an immense flow of income. Then, Chavez with the state-owned a oil company, PDVSA, was allowed to take all the profit and invest in welfare programs to boost its good image. Such programs focus on improving education, giving food subsidies, and free healthcare.
  • Chavez’s death and Maduro’s election

    President Hugo Chavez dies and Maduro, picked successor, applies to presidency. Maduro then won the election and continues running the welfare programs imposed in Chavez’s mandate. By such, Maduro’s continues spending a lot but not receiving the same amount of income as oil prices have drop and there is a huge public debt and trade deficit on the back.
  • Removal of powers

    The Supreme Court, composed mostly by the socialist party, removes the powers of the National Assembly, that had a great opposition majority. Such action provokes mass protests against the government that lasted for months, it left more than 100 dead.
  • New Constitution

    A new constitution is dictated to be done and such creates a Constituent Assembly. That ends up rewriting and taking legislative functions as the politicians elected are Maduro’s allies.
  • Rigged Election

    Maduro won a second six-year term. This is so as he managed to do so as he vanished his opposition; this was done by percussion with kidnapping, arrest, or murder. Most of the international community declared such elections as a fraud since there wasn’t any democratic procedure.
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    The effects of the crisis have made Venezuela to collapse entirely as there is an extreme hyperinflation, corruption, food and basic necessities shortages —provoking a migration crisis where many have decided to flee the country. Even more as help by the international community is hardly received as Maduro has blocked any type of foreign aid to enter the country.
  • Sanctions

    The U.S applies sanctions to the state oil company PDVSA as they don’t allow it to receive crude exports on U.S refineries; that cuts one the main sources of the Venezuelan government.