Less than fifty years ago, Venezuela was the richest country in Latin America. Hard to believe when dramatic inflation numbers and deadly protests have recurrently made the headlines over the past four months. During the Venezuelan crisis, more than 100 people have been killed in protests that started in April 2017, with thousands wounded and hundreds arrested. Tensions between the local population and President Nicolás Maduro’s autocratic government have increased. Venezuela faces a deadlock. But, how did we get here?
Venezuela’s current crisis started over two decades ago. For years, the country has become trapped in a downward spiral of corruption, poor leadership, and mismanagement of its most important resource: oil. Venezuela owns the largest reservoir of extra heavy oil in the world and is the world’s fifth largest oil exporter. A rewind of Venezuela’s economic and political history offers the best chance of understanding the crisis it faces today.