By: Dr. Vasu Singh, Bureau Chief-ICN UP
Venezuela is the country which has won all the beauty pageants titles.This country has produced most number of beauty queens in the world.This country is under severe crisis due hyperinflation which are the results of the seeds sowed by president HUGO CHÁVEZ in 2010.
People are killing one another for food and money and above all for existence. People are eating from garbage,there is noted fall in weight upto 8 kgs of almost 75% population. More than 90% population is below poverty line and more than 2.3 million people have emigrated till now.
The origin of this economic collapse, framed in the context of the Great Recession, years after the improvement of the extraction of unconventional hydrocarbons in the United States, showed a macro-economic phenomenon of great importance for the region.
From China’s slowdown, a steady increase in oil production and stable demand, generated a surplus of this resource that caused a drop in prices of reference crude oil, West Texas Intermediate (WTI), and Brent Crude, falling in 2014 from $100 a barrel to $50 a barrel, causing unfavourable changes in the economy of Venezuela.
Owing to high oil reserves, lack of policies on private property and low remittances, by 2012, of every 100 dollars, more than 90 came from oil and its derivatives. With the fall in oil prices in early 2015 the country faced a drastic fall in revenues of the US currency along with commodities.
In addition, the government has not made policy changes to adapt to the low petroleum price. In early 2016, The Washington Post reported the official price of state-retailed petrol was below US$.01 per gallon, and the official state currency exchange rate valued the US dollar at 1/150, what the black market did.
It is impossible to understand why the government is not reacting to this reality, why it has not taken measures to alleviate the economic distortions that are destroying the real income of Venezuelans.The current president NICOLÁS MADURO refused to take help from other nations.