Latest update February 6th, 2025 7:27 AM
VENEZUELANS FACING A BLEAK FUTURE
Three years after power in Venezuela was bequeathed to President Nicolás Maduro by the late Hugo Chávez, Guyana’s oil-rich northern neighbour is suffering from the worst economic and political crisis in its history. Hunger, desperation and the spread of unrest and criminality have threatened the survival of the government. Most supermarkets are empty, and the few with food are being ransacked by angry, hungry mobs comprising mostly youths.
Food is now being transported under armed guard, and basic necessities are being rationed. People have to queue for hours and sometimes overnight on their assigned days to receive staples like rice and cooking oil. Many, especially the children and the elderly, are starving.
Blackouts, looting and murder have led President Maduro to declare a state of emergency in a desperate bid to cling to power to deal with the issues. Rule by decree has enabled him to confront all the international and national threats.
Based on IMF figures, Venezuela has the world’s worst negative growth rate at minus 8 percent, and one of the highest inflation rates at 482 percent. The unemployment rate is high and is expected to climb to 70% by year end. Its currency, the Bolivar, has slumped to 792 to the US dollar on the black market.
President Maduro inherited a ruinous state-run system from Chávez, but his policies have made things worse. Chávez built his popularity on the oil wealth and excessive borrowing to pay for food imports. He nationalized more than 1,200 companies deemed to be against Venezuela’s interest. However, in 2015 the steep fall in the price of oil and reckless spending by the government; have made Venezuela a high-risk debtor.
Unable to borrow from foreign banks, the government increased its finances by printing more money, which fueled inflation. It also used the country’s gold reserves to pay its foreign debt and basic food imports. Obviously its gold reserves have been depleted, and Venezuela has defaulted on its payments and the import of food is at a minimum. It is catastrophic.
As the crisis deepens, President Maduro has accused the United States of having imperial designs on Venezuela, and of playing a role in the crisis that has gripped the country. He also accused the Organization of American States of being a tool of the United States, and claimed that right-wing leaders in the region are generating chaos in order for the US to intervene in Venezuela.
However, those are old tactics often utilized by Maduro in an attempt to reverse his flagging popularity and deflect public attention from the economic and social turmoil in the country. President Maduro apparently wants Venezuelans to ignore the fact that their country is in ruins.
According to Transparency International, Venezuela is the ninth most corrupt country in the world and billions of dollars have been siphoned from the coffers by government officials.
Given the devastated economy and falling oil prices on the world market, it is not surprising that Venezuelans are experiencing power blackouts, shortages of food, medicine, and basic goods. Many have fled to neighbouring countries to seek refugee status.
The crisis has gone beyond economics into the politics. It is not a healthy situation, but Maduro continues to deal with the issues in his usual iron-fisted style. He has no respect for democracy. The opposition-controlled Congress has attempted to pass laws against the rule by decree, but state institutions which are controlled by the government have blocked its efforts. However, the opposition has galvanized support on the streets and has organized 2,138 protests since the beginning of the year in its attempts to force Maduro to resign.
Guyanese are hoping for a brighter day for Venezuelans who are facing a bleak future.
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