Venezuela - the background

An interesting article about the background to current events in Venezuela:

Anatomy of an economic suicide: Venezuela under Maduro - Asia Times

Most “democratic” governments today are failing (see, e.g. Europe), but Venezuela’s failure has been dramatic. I have met many Venezuelan expatriates in various countries – mostly intelligent, well-educated, capable people. But I had not realized that a quarter of Venezuela’s people have voted with their feet or been thrown out of their native land. That is almost worse than the Ukraine!

… Between 2013 and 2025, the Bolivarian Republic of Venezuela experienced the single largest economic contraction in modern history for a country not at war. According to data from the World Bank and the IMF, the economy evaporated approximately 80% of its GDP, a figure that dwarfs what happened to the United States in the Great Depression (29%) and to the Soviet Union during its collapse. …

… The Venezuelan collapse serves as a grim case study in public goods failure. The primary economic mandate of a state is to provide a stable currency, security and basic infrastructure (power/water). When a government fails to protect the value of money or the stability of the grid, its economic legitimacy evaporates. …”

5 Likes