Annotated Bib (4).docx - Venezuela a Corrupt Socialist Regime Annotated Bibliography 1 Introduction Since the 1980s Venezuela’s economy has started to

Annotated Bib (4).docx - Venezuela a Corrupt Socialist...

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Venezuela a Corrupt Socialist Regime Annotated Bibliography 1. Introduction Since the 1980s, Venezuela’s economy has started to slow down. Economic changes such as the rate of inflation have potentially damaged the country’s economic development along with the devaluation of Venezuela’s currency. Venezuela is one of the biggest exporters of oil in the world. The oil industry in this country accounts for 20% of the GDP and 70% of exports. During 1980-1994, the rate of inflation continued to drop, causing for Venezuela’s investors to stop investing in the country. In 1993, the imports rose to 11.1 bn dollars, which represents 20 percent of the country’s GDP. This action leads to an economic slowdown, which caused Venezuela to import more, increasing food imports to 70%. Before WWII, the Venezuelan crisis started to be noticed. Companies began to build individual markets that didn’t pay taxes nor helped the government rise from their debts. Nevertheless, this became more problematic as the years passed. The unemployment sector rose by the fact that the currency was losing its value. Poverty lines were undistinguishable; people started to receive 118 per month as a minimum wage. A study done by SIVAN showed that one out of three children in Venezuela suffered from starvation. Mulhern, A. (1996). Venezuelan small businesses and the economic crisis: Reflections from Europe. International Journal of Entrepreneurial Behaviour & Research, 2(2), 69-81. DOI:10.1108/13552559610119340 The economic uncertainty led activists such as Hugo Chavez to rise to power in 1999. The two groups that helped Chavez rise to power were the Democratic Action Party and the Social Christian Copei Party. The Democratic Action Party was mostly composed of civilians that wanted a change from the current government. The Social Christian Copei Party involved a religious group that was also in favor of changing social classes. Chavez's political statement was to bring a socialist democracy that would be beneficial to all social classes. Chavez, the main concern was to take the money from the rich and give a chance to the poor. One of his many efforts involved changing the constitution of Venezuela. Which Chavez managed to do in 2007 by changing 69 articles of the law. This affected the macroeconomics of Venezuela and led the government to take over the private sector. Ellner, S. (2000). Polarized politics in chavez's venezuela. Nacla Report on the Americas, 33(6). The has not been much change since Chavez died. In 2017, a boost in the sovereign bond market indicated that Venezuela was one of the top performers with 9.7% compared to the drop of 2.3% by the JPMorgan EMBI Global Diversified Index. However, it is essential to consider that the year before, Venezuelan’s sovereign bonds suffered a 34% decline in the bond market. Moreover, social and economic issues
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continue to develop in Venezuela. Topics such as high rates of starvation, a decrease in oil production, a boost in unemployment and 150 billion dollars of unpaid debts are the leading causes for the Venezuelan’s economic collapse. Many of the investors that
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  • Spring '13
  • jemerson

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