Flags and Facts

The Venezuelan economy is heavily based on the production of exportation of petroleum From the 1940s to the 1970s Venezuela was the world's largest petroleum exporter and was the principal exporter of oil to the U.S. Venezuela relied on oil profits to expand other industries. In the 1960s Venezuela launched several protective tariffs to limit imports of manufactured goods and to promote the growth of domestic manufacturing and export-oriented instruries expanded. In the mid-1970s the government nationalized Venezuelan iron ore, oil, and gas industries, then used earnings from fossil fuel exports to fund major infrastructure improvements and other public works. By the end of the 20th century, Venezuela had developed several other natural resources industries. However, the country’s oil profits slowed due to rising international petroleum prices and global economic recessions. Problems continued to worsen when the economy was pressured by massive foreign debt, high unemployment, rapid population growth, and illegal immigration. In 1998 President Hugo Chavez was elected. Chazez was determined to reduce U.S. economic influence in Venezuela, he used funds from the country’s oil to grant generous funds to neighboring countries. However, during Chazez’s presidency, the mismagengment of oil funds led to significant declines in oil production and profits. When world oil prices plummeted in 2014 so did the economy and the country’s GDP declined by 75%. In the coming years Venezuela had deep shortages of food and medicine, leading to a humanitarian crisis in Venezuela.