Venezuela s Current Economic Policies - 1095 Words

In order to understand Venezuela’s current economic policies, it is important to examine the economic and political ideologies adopted by past leaders of the Bolivar state. Chavez, who was the president of Venezuela from 1993-2003, took a very anti-neoliberal approach towards the Venezuelan economy. Chavez had a strong distaste for western ideology and aimed to lessen the degree of influence that the IMF and the United States had over Venezuela; In fact, Chavez’s desire to distance Venezuela from western influence is arguably the main reason that led to Venezuela’s shift in its economic model and economic partnerships. Foreign investors from the United States planted themselves in Venezuela’s oil industry. As a result, the IMF and the United States financially benefitted where Venezuela could not. Realizing it was in a position of economic disadvantage, Venezuela distanced itself from the United States and the IMF while attempting to become more economical ly independent. Chavez aimed to stray away from American imperialism and cut ties with the IMF once his debt was paid, the reason being that he did not want foreign businesses controlling Venezuelan economic industries. Additionally, in order to distance Venezuela from the influence of the United States, who covered about 60% of Venezuelan exports in the first decade of the 21st century, Chavez aimed to lessen the degree of dependence that Venezuela had on the United States by establishing economic ties with otherShow MoreRelatedVenezuela s Impact On Venezuela1339 Words   |  6 PagesIntroduction: 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 Eco nomic Pyramid. Venezuela’s 2013 inflation rate was also 56.2%. Venezuela has the â€Å"largestRead MoreHugo Chavezs President Of Venezuela1035 Words   |  5 PagesIntroduction: Corruption in Venezuela has prevalent since the nation gained independence in 1821. But, corruption rose to unforeseen levels during Hugo Chavez’s presidential era. Hugo Chavez was president of Venezuela for 11 years. â€Å"There is no exaggerating the extent of Venezuela s decline and fall. The wealthiest country per capita in Latin America is sinking deeper and deeper into what must inevitably be bankruptcy, as everything fiscal goes wrong.† (Thomson, 2010) He came into power with theRead MoreThe Political Landscape Of Venezuela1460 Words   |  6 PagesDEMOCRACY S STEP BACKWARDS The current political landscape in Venezuela is an alarming step backward for Democracy in Latin America. While Venezuela has the richest proven oil reserves in the world, the country s citizens are literally starving to death due to food shortages. While in a traditional democracy this would lead to the political leaders being ousted from power, Venezuela s President has seized more and more control, shifting the country towards an authoritarian regime. Venezuela had beenRead MorePresident Nicolas Maduros President Hugo Chavez1455 Words   |  6 Pagesdemocracy. Current President Nicolas Maduro took office after the passing of President Hugo Chà ¡vez in 2013. With a six year term ahead of him, he will likely have much more competition at the next campaign as opponents who are brave enough will have time to prepare a campaign against him. In fact, according to Rosales (2006), â€Å"in a vast area containing 100 states or provinces in federal countries, several countries, including Brazil, Mexico, Argentina and Republic Bolivarian de Venezuela, have adoptedRead MorePolitical Risk Analysis Snapshot Paper1502 Words   |  7 PagesSnapshot paper Venezuela Venezuela is a country located on the northern coast of South America. It borders Guyana to the east, Brazil to the south and Colombia to the west (â€Å"Basic Facts on Venezuela†). It is interesting to see how a country that was once rich and had a strong government can end up caught in an economic crisis. Then, this may result in violence and chaos in the country. The worst part is that a crisis in one country can produce shocks all over the world. Government: Venezuela is consideredRead MorePurpose - The Aim Of This Paper Is To Address The Following1268 Words   |  6 PagesPurpose - The aim of this paper is to address the following question: Should Venezuela unify the dual exchange rate mechanism in favour of a free-floating exchange rate regime? Findings – In my analysis, I argue that the negative economic impact of having a dual exchange rate regime cannot be neglected and that Venezuela should abandon the one-fixed-one-floating rate system. Originality/ value – Venezuela implemented the dual exchange rate system in March 2016; because of this, there is empiricalRead MoreThe United States And Cuba Essay1008 Words   |  5 Pagesexercises strength in this role through trade agreements and military strength. Because of this, the foreign policies the United States puts into place greatly affect the economies of other countries. This is especially true of Cuba. The island of Cuba is just over 100 miles south of the Florida border. The United States and Cuba have struggled to find common ground in regards to foreign policy over the past few decades. In the Cold War, Fidel Castro, who would later become the dictator of Cuba tookRead MoreInflation And Its Effect On The Economy1617 Words   |  7 Pagesexperiences inflation through the business cycle, which is defined as the natural fluctuation in economic activity between inflation (expansion), and recession (contraction). Inflation is not necessarily a negative factor for an economy because it reflects an expansionary trend of the business cycle that could translate into growth if managed accurately through controlled and efficient monetary policy. On the other hand, when inflation is not timely controlled via responsible monetary contractionaryRead MoreOpec1276 Words   |  6 PagesThe primary aim of OPEC is to unify petroleum policies between its member countries, to ensure fair and stable oil prices. OPEC also tries to ensure a steady supply of petroleum to oil consuming nations. The headquarters of OPEC are found in Vienna, Austria. Brief History of OPEC OPEC was created in 1960 at the Baghdad Conference (September 10-14th). The organisation was initially created by 5 nations: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The original headquarters of OPEC were in GenevaRead MoreVenezuel A Powerful Member State1378 Words   |  6 PagesNevertheless, Venezuela is â€Å"a very powerful member state because of its size, its highly industrialized society, and a GPD comparable to that of Argentina and Brazil.† It also has the â€Å"second largest export sector of all Latin American countries and the largest oil and gas reserves in Latin America.† These factors equip Venezuela with sufficient power to affect the Mercosur agenda and rival the influence of Argentina and Brazil. The Argentinian government, led by President Cristina Kirchner