Question

The story of Venezuela's economic boom, and its subsequent collapse is another example of the challenges that developing democracies face. What best explains Venezuela's economic growth and more recent collapse?

Answer 1

Earlier Venezuela was one of the largest producers of Petroleum products which were accounted for about 95% of exports. The economy has been facing a state of economic collapse since 2010. By export of Petroleum products Venezuela experience a growth which attracted several immigrants as the nation enjoyed greater standard of living. Not only Petroleum but the economy Exports many heavy industry products like aluminium cement and steel. Other manufacturing of the economy includes automobiles, electronic items, foodstuff and beverages. But when it comes to agriculture the country is not much self sufficient in the sector.
In 2015 a political as well as social economic crisis begin in the country, which was marked by hyperinflation increasing mortality and crime rates greater starvation diseases and this all caused in massive immigration from the nation. The aspects of the crisis like GDP contraction and unemployment are comparatively much worse of Venezuela than that of the earlier countries which phased similar situations. The increasing shortages in the country intensified the crisis under the den government which group more severe as a consequence of much lower prices of oil in early 2015. The demand for Venezuela oil in the Global market decreased which resulted in in fall in the value of the currency and cost of imported goods as well. The recent economic collapse in the country resulted in a major decrease in its economic growth as well as the standard of living of the citizens of the country which ultimately resulted in increasing mortality rate as well as increasing crime in the nation. People their because of starvation attempted to kill each other.