(May 17, 2016 at 5:27 pm)abaris Wrote: Anyone considered cheap oil as one of the major reasons? I mean that's the only real asset the country has.
This is almost a two decade old problem and has almost nothing to do with the fluctuation of oil prices during that time. The only problem associated with oil prices was Venezuela not saving for a rainy day when prices were high.
Venezuela's biggest problem was that Hugo was one of those that gained power through populism promising unearned riches and entitlement. He was also one of those that thought Soviet style communism was a viable economic model, but that previous failed attempts measured in deprivation, starvation and death were simply the result of poor execution. Venezuela's economy has tanked primarily through it's practice of setting prices below the cost of production. This is why the shelves are bare and there's no work.
Despite the current situation in Venezuela, PDVSA still finds tens of millions of dollars a year to sponsor a Formula 1 racing team. I have to ask, why does the one state owned oil company need to advertise?
