From wealth to poverty In the midst of mounting economic collapse, Venezuela's economic story is shortened. The country, which occupied the headlines in the 1970s as an economic success story, continues to occupy headlines and the media today, but for various reasons.
The increase in the number of hungry people, the high mortality rate of the shortage of medicine, unprecedented inflation rates of some 4,000 per cent, loud demonstrations against government policies, dead and wounded as a result of the excessive security grip on the protesters, arrests in the opposition and a president clinging to power no matter how devastated Economic development of his country, that is Venezuela the second decade of the 21st century in the media.
In fact, Venezuela's economic story looks a little strange. How can a prosperous economy until 2012 lose a third of GDP in five years? To what extent is the state of economic insolvency and the inability to repay external debt, amounting to $ 150 billion, an indicator of the imminent economic collapse of a heavy oil state?
In fact, the Venezuelan economic crisis is deep and complex, perhaps two centuries back, when a series of military dictatorships during the period 1830-1935 caused widespread hunger among the Venezuelan people, a state of political instability and a loss of domestic and international confidence.
However, the opportunity was a chance for Caracas to overcome this odious history. By the 1970s and soaring oil prices Venezuela, like many oil countries, was in a strong financial position. According to the Central Bank of Venezuela, the period from 1958 to 1977 saw a GDP growth rate of 250 percent.
It is a staggering number of standards, and may not have been achieved by many other oil countries. The rate of growth has coincided with other economic successes, notably a low inflation rate, a strong currency and an expansion of Venezuelan cities.
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