Eric Martin @EMPosts More stories by Eric Martin. The Downfall of Venezuela’s Economy. Guy Lanzafame March 7, 2019 at 11:04 pm . But today, Venezuela’s democratic institutions and its economy are in shambles.The country has the highest inflation in the world, making food … Venezuela depends heavily on its oil. Many in the media have blamed Venezuela’s worsening humanitarian crisis on corruption, mismanagement, falling oil prices, or U.S sanctions—anything but the rise of socialism in what was once the wealthiest country in South America. CARACAS - How did Venezuela, once Latin America's richest country, sink into ruin? Venezuela's political crisis has laid bare competing narratives over what is to blame for the country's economic crash. The major leverage that the government has with the opposition -- and this is a bit of a paradox -- is to stay in power. Now oil prices have fallen to as low as $28.36 -- … Currently, however, it is facing an economic disaster. ... What is the state of Venezuela's economy today? Basic necessities such as food, electricity, and medicine are scarce and insufficient for … The opposition needs some figure in the government to continue in power in order to take the blame for the measures that are coming. Venezuela: How the most oil rich nation on earth was brought to the brink of collapse. And it sped up the beginning of one of the worse economic times Venezuela has seen. These are going to be painful, difficult measures to bring Venezuela’s economy back. That was great when a barrel of oil was worth $100 a barrel in 2013 and 2014. What brought Venezuela's economy to ruin? Its economy, once Latin America’s richest, is estimated to have shrunk by 10 per cent last year – worse even than Syria’s. Why Citizen-Detached Parties Imperil Economic Governance By Javier Corrales Venezuela used to be considered a miracle country. A basic guide to what has been happening in Venezuela, once one of Latin America's most prosperous countries, where a political and economic crisis has reached new heights. Venezuela once had a strong and growing economy due to its large-scale petroleum production. From 1950 to the early 1980s, the Venezuelan economy experienced steady growth. How did … Related: Live Updates from Venezuela . What Broke Venezuela’s Economy and What Could Fix It By . Today Venezuela is the third least free economy in the world, ahead of only Cuba and North Korea. Unfortunately for Venezuela, this wealth wouldn’t last – and an over-reliance on oil would soon decimate the economy in unexpected ways. It was also a stable, center-left democracy, quite an oasis in a region plagued by authoritarianism, insurgency, or unrest. Migrants fleeing Venezuela sell art made from nearly worthless Venezuelan currency. As the country faces a presidential election Sunday, here are four key elements in the unraveling of its economy. Media caption Watch as Juan Guaidó forces his way into Venezuela's parliament and is ... a convenient scapegoat to blame for the dire state of Venezuela's economy. Venezuela's worst economic crisis: What went wrong? Venezuela's economy: 'It's at the point of no return' Venezuela holds the world's largest supply of crude oil -- what once seemed like an … Until the early 1980s, it was one of the only four Latin American countries certified by the World Bank as an upper-middle-income economy. It was during those years, when the country was awash with oil money, that the Venezuelan economy became a patronage economy, and the Venezuelan state became a client state. By 1982, Venezuela was still the richest major economy in Latin America. This is what happens when an economy and a society disintegrates due to economic … by Patricia Sabga. This could easily pass as an account of the Chávez years. Venezuela's economy depends mostly on oil. ... 3 Responses to "What Happened To Venezuela?"