Venezuela has a rich history that has been shaped by its vast oil reserves. In the early 1900s, the discovery of oil transformed the country from an agricultural society into one of the major oil producers in the world. By the 1970s, oil was the backbone of the Venezuelan economy, bringing wealth and development. However, this heavy dependence on oil also created problems. When prices dropped or mismanagement occurred, the economy suffered greatly.
In 1998, Hugo Chávez was elected president, promising to help the poor and redistribute wealth. He introduced socialist reforms, nationalized oil fields, and invested in social programs. During the early years of his presidency, high oil prices supported his initiatives, and many people benefited from these programs. However, as time went on, Chávez’s policies led to economic issues, including inflation and shortages of basic goods. Critics also pointed to authoritarian practices in his government.
Chávez died in 2013, and Nicolás Maduro took over. Maduro faced an already weakened economy, and the drop in oil prices in 2014 caused a financial crisis. Inflation skyrocketed, and shortages of food, medicine, and other essentials became widespread. The government struggled to manage the economy, and many people suffered. Protests erupted against Maduro, with many citizens demanding change and better living conditions.
By 2021, nearly 6 million Venezuelans had left the country in search of better opportunities. The political situation remained tense, with accusations of human rights abuses and a lack of democracy under Maduro’s leadership.
Today, Venezuela is still facing one of the worst economic crises in the world. The International Monetary Fund (IMF) estimates that inflation has reached staggering levels. The country’s GDP has shrunk by around 75% since 2013, leading to increased poverty and a collapsing public health system.
Although there have been some signs of slight improvement in the economy, mainly due to rising oil prices and some reforms, Venezuela still heavily depends on oil exports. This reliance makes the economy vulnerable to global price changes, and the lack of investment in other sectors limits recovery options.
The situation remains uncertain, and the road to rebuilding Venezuela will require significant changes and efforts to create a more balanced and stable economy.
Understanding Venezuela’s journey can help us learn lessons about managing resources, governance, and social welfare in our nation that is facing similar challenge.
Listening to the needs of the people and involving them in decision-making can help distribute wealth more fairly and improve living conditions. Good management of resources is vital.
Our (PNG) Government must act wisely and honestly to avoid issues like corruption and bad decisions that can lead to serious problems, or instead our generation will bear the consequences of our act today like Venezuela.
We can learn from Venezuela’s mistakes and taking the right actions for the sake of our beautiful country, our government can work towards a brighter and more secure future for all its people.
Mytagii
Infinite Intelligence 