Forums - Politics Discussion - Half the Venezuelan economy has disappeared

Leadified said:
DarthVolod said:

Oversimplification there. Yes, the country has had major economic problems and a economic cycle of sorts since the 1980's, but virtually everything has been tried to attempt to tinker with and "fix" the economy. That is the essence of the problem, chronic interference in the economy so far as I see it. 

Good article I found on the subject: https://revista.drclas.harvard.edu/book/venezuela-1980s-1990s-and-beyond 

The essence of the problem is oil and it will always be a problem until Venezuela develops it's economy which will not happen without government intervention.


Perhaps they should move away from the whole nationalization thing since that is not working out for them ... 40 years ago it was not nationalized ... is not like they could never go back. 

I'm also pretty sure Venezuela could diversify itself without government intervention if only it was given the opportunity. Maybe if its people were not starving they would have the chance be entrepreneurs...



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DarthVolod said:
Leadified said:

The essence of the problem is oil and it will always be a problem until Venezuela develops it's economy which will not happen without government intervention.


Perhaps they should move away from the whole nationalization thing since that is not working out for them ... 40 years ago it was not nationalized ... is not like they could never go back. 

I'm also pretty sure Venezuela could diversify itself without government intervention if only it was given the opportunity. Maybe if its people were not starving they would have the chance be entrepreneurs...

It's not as easy as you put it. Widespread privatization could very well lead to the same thing that happened in Russia in the 1990s, and Russia was not as dependent on one export as Venezuela is. Things are extreme right now in the country so a solution is not simple, for now they can probably only hope for oil to go up.



Leadified said:
DarthVolod said:

Perhaps they should move away from the whole nationalization thing since that is not working out for them ... 40 years ago it was not nationalized ... is not like they could never go back. 

I'm also pretty sure Venezuela could diversify itself without government intervention if only it was given the opportunity. Maybe if its people were not starving they would have the chance be entrepreneurs...

It's not as easy as you put it. Widespread privatization could very well lead to the same thing that happened in Russia in the 1990s, and Russia was not as dependent on one export as Venezuela is. Things are extreme right now in the country so a solution is not simple, for now they can probably only hope for oil to go up.

This we can agree on. The country can't pivot to something so different without a lot of time and effort. Would be like a meth addict going cold turkey.