Venezuela was once the richest country in Latin America. The country is known for its rich oil reserves and had a democratic government that was appreciated around the world. However, those good days are now over for Venezuela. With hyperinflation, extreme poverty, corruption, high crime rates, Venezuela, today, is in ruins.
The economic and humanitarian crisis in Venezuela is getting worse with every passing day. The communist government, with its faulty decisions, has led to this downfall. The government has been acting in a hostile environment, which makes things even worse.
So what do you need to do in order to bring a powerful country to its knees? Here is a recipe:
1. Start With The Socialist Revolution
Popular by the name of the Bolivarian Revolution, this socialist movement marked the beginning of a new political era in Venezuela. It all started with the democratically elected president Hugo Chavez in the year 1998. Chavez was the founder of the Fifth Republic movement and the United Socialist Party (PSUV). He considered himself a revolutionist rather than a politician and followed the principles of Simon Bolivar, the man who stood against Spanish colonialism. He preached about making Venezuela a powerful country that could stand against the powerful U.S. government. This helped him gain immense public support.
Right after taking his position as president, Chavez introduced a new constitution for Venezuela focused around socialist policies and a state-led economy. The aim was to use oil revenue to fund everything. The movement, which initially gave hope to the poor population, soon turned into an ordeal for the entire country.
2. Make Policies Which Will Lead To The Crisis
Chavez made major reforms to the constitution in 1999, which led to the current socioeconomic and political crisis. The Venezuelan government blames the fall in oil prices and U.S. sanctions as the major cause behind the crisis. However, the truth lies in the fact that the crisis is the ultimate result of the absolutism of government in the country’s economy.
Here are some of the major policies that affected the once stable country:
Nationalization
The new laws aimed at the extensive nationalization of private properties. Forty-nine laws were passed just for this purpose. The government wanted to redistribute the wealth and property owned by the rich and private companies to the poorer section of society. Nationalization was primarily focused on agricultural lands, which were taken from rich people and given to the poor citizens. The policy was supposed to reduce poverty and bring equality to society. During Chavez’s rule, around six million hectares of land were forcefully taken away from the rightful owners. The decision critically affected the production rates of the industries that the government nationalized. With thousands of private businesses under control, it was impossible to run them efficiently and make a profit. To cover up these failures, government employees started to sell things at a lower price to the people. To keep up with all the work, the government started hiring more and more employees. It was a bad industry decision.
Nationalization was then extended to electricity supply, water, banks, supermarkets, oil, construction, and many other important sectors. Payrolls were hiked and selling prices reduced. The outcome was a frequent interruption in water and electricity supplies, bankruptcy, and a downfall in oil production.
Take Control Over Currency and Prices
The command over foreign currency was the second step towards a crisis. The exchange rate between Venezuelan currency and U.S. dollars was overvalued in an attempt to fight the inflation that had started in the country. The scheme also included subsidizing imported goods. This decision meant rationing the existing U.S. dollars at the new high exchange rate. Since the demand for U.S. dollars was much higher than the supply, the doors to the black market opened up. Corrupt members of the regime and people possessing cheap U.S. dollars earned some good profit off this black market.
The scheme, which was to provide relief from inflation, instead increased it. Oil revenues, which were a major source of income for the country, reduced drastically. Left with no other option, the government then started printing new currency to fight the budget deficit. The regime capped prices on basic commodities like groceries, stationery, etc. The low prices naturally increased the demand for goods, which the government was unable to produce. Private businesses that escaped nationalization could not make any profit because of the prices set by the government and hence reduced or shut down production.
The shortage of every little thing resulted in long queues, while the privileged had easy access to everything. This was yet another failure of the policies introduced by Chavez.
Mismanaged Welfare Programs
To have the public support, the regime started a social mission in the fields of education, healthcare, poverty, and more. These steps were praised by the media and the leftists. The welfare programs and public work activities, which were supposed to help society, provided a better opportunity for the corrupt members of the regime. The government kept printing currency to fund such programs, thereby leading to hyperinflation.
The Government Under Chavez
The first phase of Chavez’s rule was praised by many. Door-to-door activities of distributing food and other useful commodities were well received by the poor section of society. The anti-American policies and ties with Russia were supported by a major part of the population, which led to Chavez’s win at the presidential election. There was no doubt that Chavez was loved by the people. But Chavez being in power for such a long time was a reflection of political repression, which meant a scam by the government.
The people of the country could see the failures on the part of the government and communism. Protests and revolts became widespread, leading to hundreds of injuries and deaths. The people could feel their rights being harmed by the new policies, but could not do much about it.
Current Scenario Of Venezuela
Corruption and increasing poverty have increased the crime rate to an all-time high. In 2013, the regime was taken over by Nicolas Maduro after the death of Chavez. Maduro won the 2013 elections with 50% votes, as declared by the election commission. The opposition challenged the decision and even provided evidence of electoral fraud. Recounting was done, which again declared Maduro the winner. This sparked protests among the people who believed the recounting was also illegitimate. To suppress the opposition, Maduro’s government carried out arrests all over the country, putting thousands behind bars. Meanwhile, the policies introduced by Chavez continued to be implemented by Maduro.
The new government under Maduro is taking steps towards total dictatorship. Rule by decree has been prevalent in recent times as well. Eighty percent of Venezuelans have voted in favor of the removal of Maduro from office but just the opposite happened. It was clear that a major scam was in place. Maduro consolidated his powers, bringing the country closer to authoritarian rule. In 2015, several supreme court justices were fired, and people loyal to the new leader were appointed. The following year, the opposition was stripped of its powers, giving way to massive protests across the nation. The National Constituent Assembly was created in 2017 with powers to rewrite the constitution without any challenges from the opposition. The public had no say in this step and was only allowed to vote for members of this new assembly.
In 2014, oil prices fell drastically, causing the world’s highest inflation rate. Food and medicine were inaccessible to most. The currency policy is now highly corrupted, and Venezuelan currency has become worthless in the international market. The military forces and selected people of the regime have access to resources while the public lives in abject poverty. The crisis has been profitable for the corrupt members sitting in higher positions, as they make money from the black market.
The Scam Exposed
The country has faced issues common in communist and socialist regimes. It is seen that a communist dictator comes into power by making false promises. They claim to achieve unrealistic targets. The poor population falls for that and elects the leader with the fanciest claims.
The leader does nothing for most of their term. Just when the term is near completion, they change the rule to ensure that they remain in power indefinitely, claiming that all the other people are bad and only they can do good. Obviously, they need more time. They always claim that the reason for their underachievements are others. They may blame anyone.
The same thing has happened in Venezuela. They have banned all other parties. They find excuses to jail people with different viewpoints. Thus, they maintain a communist nation with fear and lies. This has been the biggest scam in the nation.
Conclusion
While corruption in government can cause major problems, communism is the root cause of hyperinflation and a shortage of basic resources. It is clear that the elections were fraudulent, as Maduro still holds office even after the majority voted against him. Venezuelans are in distress as their daily lives have been disrupted.
The protests for freedom have caused hundreds of deaths so far. Venezuela is an example of how a successful democracy turned into a communist country with an unending crisis for the past two decades. It is a lesson for other nations. The movement that started for the betterment of the country has turned it into shambles.
