Current Economic Situation in Venezuela

Every nation all around the world has their own ups and down, speed train and slow train, there most powerful days or years and the weakest moment. There are different factors that make up a good and working state or nation, such as its military capability, economy, law, constitution, foreign policy well-being of the state and most of all peace. The military power of a state makes the ability to do and undo known to the rest of the world and for a state with a strong military background; they would be almost immune to terrorist and criminal attacks.

Above all the listed make-up of a state, the Economy of a state is one vital feature no state would want to joke with. The economy of a state is like a control panel of the state just like the motherboard of a system is vital to a computer system. A state with the good economy is blessed with all that is needed because a good economy can beget strong military power, a good constitution, booming foreign and local market, good foreign policy and most of all peace. Let’s not forget that the economy is also made up with good governance and the state’s natural resources.

Rise and crumble of Venezuela

Venezuela, on the other hand, is a state blessed with enough natural resources, not just anyhow resources but the resources that are a trending line of business amongst nations. This natural resource helped in building the economy of Venezuela right from the 80’s the discovery of crude oil, Gold, diamond, asphalt and all other sorts of natural resources, led the nation into the limelight. She was also blessed with a weather that encourages agriculture which made the country so blessed than they could count. She became more pronounced than most states.

Their economy boomed and production of crude oil, diamonds and gold made the state pronounced all over the world. As a result of this success and blessings, they join the (OPEC) organization of the petroleum exporting countries. This organization consists of countries with the availability of crude oil. Venezuela is one of the founding members of the organization. And as at this period she was ranked the second oil producing country in the world. Venezuela enjoyed the limelight spot so much that they were carried away and never care to make plans ahead. Venezuela depended fully on the production of crude oil, oil generates half of their annual revenue. Venezuela started full production of diamond and Gold. This made them almost unstoppable.

Conclusion

In the 21st century, there was a fall drastically in the fall of petroleum all around the world. This fall in price affected all the oil producing nations all around the world including Venezuela. Her economy began to crumble as there was less income from the production of oil. Most nations had to switch their source of income from petroleum to other source but for Venezuela, it was more like a suicide mission because the economy was based on the production of oil.