Venezuela is a country that place at South America. Its official name is Republica Bolivariana de Venezuela. Its International Reserves: US$ 29,468 billion, GDP (Purchasing Power Parity): $381.3 billion of International dollars, GDP per capita – PPP: 12,920 International Dollars and its Real GDP growth: 5.6% (Source: World Bank, 2012.) Venezuela is a developing country today. And it deals with exportation of oil as a means of sustaining the country economically. Most of countries like Saudi Arabia (1th), Russia (2th), and United Arab Emirates (3th) etc. are dependent on their oil export economically. Oil export has significant effect on people life in these countries and also the oil export affects other sectors. Not in Russia, but in Saudi Arabia and Venezuela, other sectors development can only be provide by oil export. However, Venezuela is a bit different for the reason that the oil trade has not had a very positive effect in the sector of quality of life improvement. Venezuela is world 10th oil exporter, but it is still not doing well. So what is the reason behind that? This paper will also include Dutch disease in the oil industry of Venezuela and the changes in the industry. Political events affected Venezuela’s oil industry. This will be written, too.In the period of 1920-1970, the country was a global oil exporter. Its position is 10 these days, because there were wars in the middle-east. The wars in the Afghanistan and Iraq make oil reserves to reduce. The current leader is Nicolas Maduro who has influenced by Hugo Chavez, had very big impact on Venezuela. In the earlier of Hugo Chavez’s management oil prices increased rapidly. And in these days, the US had to buy oil from Venezuela because the US needed oil to produc…
… of the country by the government. It has a negative effect on other sectors, because other sectors have big dependence on oil export. When it decreases, other sectors cannot develop. In this paper, Hugo Chavez’s effects on Venezuela’s economy have been written, because Nicolas Maduro is the president for 2 years and his effect on the economy cannot be seen recently. Venezuela is a good example for the country that try to develop other sectors by develop oil industry.
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Works CitedWhalen, C. “Venezuela’ S Oil Trap.” International Economy 21.2 (2007): 58-61. Business Source Complete. Web. 14 May. 2014.Hammond, J. L. “The Resource Curse And Oil Revenues In Angola And Venezuela.” Science & Society 75.3 (2011): 348-378. Academic Search Premier. Web. 14 May. 2014.Wilpert, G. , August 30th 2003, “The Economics, Culture, and Politics of Oil in Venezuela”
