Crisis in Venezuela

Quick Facts: Who was Crisis in Venezuela?

Subject:

Crisis in Venezuela

Known for:

A protracted socioeconomic and political collapse marked by hyperinflation, shortages, and mass emigration.

Verified Source:

2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

An ongoing socioeconomic and political crisis began in Venezuela during the presidencies of Hugo Chávez, Nicolás Maduro and Delcy Rodríguez. It has been marked by hyperinflation, starvation, disease, crime, and mortality rates, resulting in massive emigration. Food shortages and hyperinflation have ended, but inflation remains high. It is the worst economic crisis in Venezuela's history and considered by some sources as more severe than the Great Depression in the United States, the 1985–1994 Brazilian economic crisis, or the 2008–2009 hyperinflation in Zimbabwe. In 2019, the Institute of International Finance called it the single largest economic collapse outside of war in 45 years.

Pivotal Works & Achievements

Writers have compared aspects, such as unemployment and GDP contraction, to Bosnia and Herzegovina after the 1992–95 Bosnian War, and those in Russia, Cuba and Albania following the Revolutions of 1989. In 2010, Chávez declared an "economic war" due to increasing shortages in Venezuela. The crisis intensified under the Maduro government, growing more severe as a result of low oil prices, and a drop in oil production from lack of maintenance and investment. In 2016, the opposition-led National Assembly declared a "health humanitarian crisis." The government failed to cut spending in the face of falling oil revenues, denying the existence of a crisis, and violently repressed opposition. Extrajudicial killings by the government became common, with the UN reporting 5,287 killings by the Special Action Forces in 2017, with another 1,569 killings in the first half of 2019, stating some were "a reprisal for participation in anti-government demonstrations." The European Union, the Lima Group, the US and other countries have applied sanctions against officials and members of the military and security forces, as a response to human rights abuses, degradation of the rule of law, and corruption.

Enduring Legacy & Impact

In 2017, the US extended its sanctions. These blocked oil exports, paralyzed the Venezuelan economy, froze Venezuelan financial assets and blocked the country's access to international payments systems. According to a 2019 report by Mark Weisbrot and Jeffrey Sachs, sanctions caused Venezuela a loss of $38 billion between 2016 and 2019, prevented the government from resolving the crisis using fiscal and monetary policy changes, and in combination with preexisting negative trends resulted in an estimated 40,000 excess deaths between 2017 and 2018. The report's methodology and conclusions were criticized by other economists. Supporters of Chávez and Maduro said the problems result from an "economic war" on Venezuela falling oil prices, international sanctions, and the business elite.

Chronological Milestones & Life Events

1. 1985: 1985 Milestone — It is the worst economic crisis in Venezuela's history and considered by some sources as more severe than the Great Depression in the United States, the 1985–1994 Brazilian economic crisis, or the 2008–2009 hyperinflation in Zimbabwe.
2. 1992: 1992 Milestone — Writers have compared aspects, such as unemployment and GDP contraction, to Bosnia and Herzegovina after the 1992–95 Bosnian War, and those in Russia, Cuba and Albania following the Revolutions of 1989.
3. 2010: 2010 Milestone — In 2010, Chávez declared an "economic war" due to increasing shortages in Venezuela.
4. 2016: 2016 Milestone — In 2016, the opposition-led National Assembly declared a "health humanitarian crisis.
5. 2017: 2017 Milestone — Extrajudicial killings by the government became common, with the UN reporting 5,287 killings by the Special Action Forces in 2017, with another 1,569 killings in the first half of 2019, stating some were "a reprisal for participation in anti-government demonstrations.
6. 2019: 2019 Milestone — In 2019, the Institute of International Finance called it the single largest economic collapse outside of war in 45 years.

Historical Fact-Check Quiz: Crisis in Venezuela

True or False: “The crisis in Venezuela was solely caused by international sanctions imposed after 2017.”

Answer (FALSE ❌): While sanctions were a major factor, observers also cite anti-democratic governance, political corruption, and gross mismanagement of the economy as primary causes.

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Frequently Asked Questions about Crisis in Venezuela