In 2005 he announced an increase in the royalties the

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In 2005, he announced an increase in the royalties the government would collect from oil sales from 1 percent to 30 percent, and he increased the tax rate on sales from 34 to 50 percent.Due to these extreme changes implemented by Chavez, it seems apparent to me that foreigninvestors would be unlikely to want to work in and with Venezuela in the future. This lack offoreign investment into Venezuela’s oil industry would have a negative effect on the overall economy of the country, as oil accounts for 70 percent of the country’s exports. 3. As stated in the article, Venezuela was ranked in 2012 165th out of 174 nations of level of corruption.Because of the corruption happening in the country many people are going to want to leave, which will lower their population count. Once people see that people are leaving then people won't want to visit or move. Therefore these high level of corruption rates will affect the future growth rates.
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4. High oil prices helped the Chavez government to gain higher income through the export of oil and it helped in reducing the unemployment, decreasing the poverty and funding the other social programs.Chavez also made an error of not consolidating upon these
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