Venezuela was once a thriving nation, housing one of the largest oil reserves in the world. Between 1998 and 2008, Venezuela earned more than $500 billion in revenue due to oil exports. Venezuelan workers earned the highest wages in the whole of Latin America. The crisis was due to a number of reasons including the Bolivarian Revolution, the country’s inconsistent financial policies and the drop in oil prices.
The humanitarian and financial crisis within Venezuela is an ongoing socio-economic crisis that began during the presidency of Hugo Chávez and was pronounced in Nicolas Maduro’s presidency. A UN analysis estimates that, in 2019, 25% of Venezuelans needed some form of humanitarian assistance. In 2018, Venezuela led the world in murder rates, with 81.4 per 100,000 people killed, making it the third most violent country in the world.
The crisis has affected the life of the average Venezuelan on all levels. By 2017, hunger had escalated to the point where almost 75% of the population had lost an average of over 8 kg (over 19 lbs) in weight. Widespread starvation and diet linked diseases are common occurrences, with Venezuela having one of the highest percentages of infants affected with Kwashiorkor (protein deficiency).
Venezuela’s main source of income was its oil, with the nation having one of the largest oil reserves in the world: a staggering 17.8% of global oil reserves. However due to black market trading and slashed prices for locals, oil prices dropping created an economic crisis within the nation. According to UN figures, the ongoing crisis has caused more than five million.
In just two years, oil prices fell drastically from $100 per barrel to $30 per barrel. Fuel shortages brought the country to a standstill. Venezuela’s colossal oil sector came to a near halt, with production reduced to a trickle by years of gross mismanagement and American sanctions.
As a response to human rights abuses, the degradation in the rule of law, and corruption, the European Union, the Lima Group, the United States and other countries have applied individual sanctions against government officials and members of both the military and security forces. The sanctions have further deteriorated the living conditions and quality of life within the region.
Access to aid within the region is hampered on account of widespread fuel shortages, blackouts, and insecurity. Clashes between Colombian armed groups and Venezuelan armed forces have become prevalent throughout the country. Significant human rights violations in the form of unlawful or arbitrary killings, including extrajudicial killings by security forces of the former Maduro regime, colectivos (regime-sponsored armed groups), forced disappearances, torture by security forces, arbitrary detention by security forces, harsh and life-threatening prison conditions, political imprisonment, unlawful interference with privacy, and lack of judicial independence all menace Venezuelan society today. The above-mentioned atrocities prompted the UN to launch the 2021 Venezuela Humanitarian Response Plan that aims to assist 4.5 million vulnerable Venezuelan women, men, children and adolescents. The Plan allocates 708.1 million USD to the crisis.
Analysts around the world along with officials are of the opinion that a widespread Debt Restructuring Program will have to be initiated, along with the introduction of new foreign and financial policies. The government will need to rebuild the country’s oil industry, with perhaps investment worth tens of billions of dollars from the private sector alongside other international organisations. With the world moving towards renewable sources of energy and adopting a policy of reduced carbon emissions, many believe that it is too late.
The writer is a student at Aitchison CollegeLahorewith an interest in identifying and solving long-standing societal problems that obstruct development.
