Venezuela’s Whipping Industrial Sector
Millions fled the country and have become economic refugees due to chronic food shortages, rampant corruption, and rampant inflation. It’s been years that Venezuela is confronting economic crisis – probably the worst economic crisis of the decade.
The government often tried to respond to the die-hard crisis but unorthodox policies of Government proved like a mild blow against the wind. Caracas has not been lacking in creativity and gave out the policies of rabbit and chicken farming at home, saving the gold policy and cryptocurrency. Cryptocurrency describes the electronic transfer for even minor transactions.
Apparent Causes of Venezuela Crisis:
Venezuela is an oil-rich country in North America and has the largest proven oil reserves. Being an oil-rich nation, the country used to sell its oil reserves to buy imports probably goods. When oil prices plummeted back in 2014, the country had to face the shortfall of foreign currency.
With the shortfall of foreign currency, the imports were fallen, driving the country towards crisis. The government’s plans to print more money further reduced its value and stocked inflation. Now the ever-rising inflation has become the biggest problem facing Venezuela.
The prices get doubled within weeks and people are unable to pay in cash for that much price hike. As per the UN report, about 2.3 million people have fled the country since 2014 with the onset of economic pitfalls.
These refugees have entered neighboring Colombia from where they travel to other countries. The new currency exchange won’t help to cope with the economic crisis until the root cause of crisis is sustained.