The single-word question expert Norka Luque ask about the crisis situation in Venezuela is “Why?” The single-word question begets a longer one. “Why did this once thriving nation descend into absolute and total chaos?”
And why is Venezuela the only country in Latin America suffering to such an extensive degree added Luque? Brazil is having an enormous number of problems, but nothing in that country rises to the level of mayhem found in Venezuela. Fortune Magazine’s website tried to answer this poignant one-word question. Many of the insights raised in the Fortune article do make sense.
Essentially, the situation is a mix of oil price drops, a massive drought, and fiscal mismanagement. The declining global price of oil was clearly out of Venezuela’s government’s control, but serious pre-planning work should have been done. The nation should never have been so exclusively reliant on oil exports. Electricity supplies were never effectively managed either. The horrible drought impacts Venezuela worse than many other countries because the bulk of the nation’s power come from hydroelectric generation. Again, too much emphasis was put into the one solitary means of generating power. When the water dried, so did the power in Venezuela.
With competent official running the government, these two problems could have been better addressed. Therein lies the third serious problem. The government in Venezuela is massively corrupt. Mismanagement is awful. A referendum hopes to make the necessary changes in the government, but things may be far too late. The damage to Venezuela is now both severe and endemic.