Group 5- Narrative Report 2.docx - NARRATIVE REPORT...

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NARRATIVE REPORT Venezuela was once the wealthiest country in Latin America due to its reliance on petroleum. It has the world's largest known oil reserves, and its democratic government was once lauded around the world. It was also OPEC's sixth-largest crude oil producer, and it has been a rentier state since the 1920s, with oil as its primary export. However, it has been in a state of complete economic collapse since the mid- 2010s. Venezuela was experiencing hyperinflation in 2015, and the country's democratic institutions and economy are now in shambles. After Saudi Arabia unleashed pent-up production to punish OPEC members who had contributed to an oil market glut by producing excess quotas, oil prices crashed in 1985, putting exporting countries like Venezuela under economic strain. In 1998, Chavez was elected president on a socialist platform, promising to use Venezuela's vast oil wealth to alleviate poverty and inequality. While his costly "Bolivarian missions"

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