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The History of Venezuela: Economic Troubles

Længde
1T 50M
Sprog
Engelsk
Format
Kategori

Historie

Venezuela’s economic history is deeply intertwined with its political and social landscape, shaped by cycles of prosperity and crisis. While the country has vast natural resources, particularly oil, mismanagement, external pressures, and political instability have contributed to its economic troubles. Understanding the roots of these challenges requires examining Venezuela’s early economic foundations, the role of oil in its development, and the influence of political decisions on its financial stability.

In its early history, Venezuela’s economy was primarily based on agriculture and trade. Before the discovery of oil in the early 20th century, the country relied on exports of coffee, cocoa, and other agricultural products. While these industries provided some level of economic growth, wealth distribution remained highly uneven, favoring a small elite class while the majority of the population struggled with poverty. The transition from an agrarian economy to an oil-driven one dramatically altered Venezuela’s financial structure, offering immense opportunities but also creating long-term vulnerabilities.

The discovery of vast oil reserves in the early 20th century transformed Venezuela into one of the world’s leading oil producers. By the mid-20th century, petroleum had become the backbone of the national economy, contributing to rapid industrialization, urbanization, and infrastructure development. The influx of oil wealth led to economic booms and improved social programs, but it also fostered dependence on a single commodity. This overreliance on oil made Venezuela’s economy highly sensitive to fluctuations in global oil prices. Whenever oil prices soared, the government expanded public spending and welfare programs, but during downturns, the country faced severe financial instability.

© 2025 Feisel John LLC (Lydbog): 9798318354410

Release date

Lydbog: 1. april 2025

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