At the time of writing Venezuela is in the news so it is worth reflecting how it got to this impasse. In the postwar period Venezuela had for some four decades among the highest rates of economic growth in the world. This was driven by it’s oil resources and an expanding population. For three decades until 1998 it’s politics was dominated by a two party system known as Punto Fijo.

This system was stable but, fatally, failed to diversify the economy beyond oil. Rather than invest the oil revenues in downstream industries and diversify into new industries the oil revenue was distributed to the population to shore up political support.  There developed a large State dependent class prone to populist rhetoric. Had the economy been more diversified it is probable that such populism would have failed to attract such a broad following.

In 1998 Hugo Chavez was elected by the popular classes and he was able to sustain his base by distributing the oil revenue. However during his long regnum the oil industry was ruined by cronyism, international oil companies were driven off by abrupt changes in terms and there was considerable underinvestment; this in spite of Venezuela having the highest reserves in the world.

The Maduro Presidency since 2013 has been a continuation of Chavez but in the last few years oil production has gone into freefall due to technical incompetence, failure to replace parts and equipment and, more recently, electric power outages. There is now a vicious circle of cutbacks and outages. The collapse in oil revenue has forced the Government to resort to printing money and this is the cause of the hyperinflation today.   

Contents

Introduction

The Modern Period

The Current Era

The Modern State

Economics from the Ground Up

Political Systems

Trade Theory

The EU as a Model of Integration

Industrialisation

Synopsis

Data                                   

            World GDP                                           2018

            World GDP PPP                                   2018

            GDP per capita ppp                           2018

            Exports  &  Imports                           2018

            Container Traffic                  2010 & 2018

            Oil Production                                    2018

            Migrant Remittances                       2018

            Tourism Statistics                             2017

            Tourism americas                             2017              

Latin America         

Background

The US and Latin America

Economy

The EU and Latin America

Mercosur

World Exports                                   2000-2018

Venezuela                       

            Introduction

            Political System

            Chavez

            Chavez Foreign Policy

            Grupo de Lima

            Economy

            Going Forward

            Charts & Chart Commentary

Sources

68 pages