Venezuela Flashcards
State 3 factors that have influenced Venezuela’s growth and development negatively.
- High Levels of poverty (most live in shanty towns)
- High levels of corruption
- Brain drain (1999)
What happened to the Venezuelan economy in 2016?
Hyperinflation
Name the biggest strength for the Venezuelan economy.
Venezuela has the world’s largest proven oil reserves
Name 4 problems/weaknesses of the economy.
- Hyperinflation
- High levels of unemployment
- Low levels of infrastructure
- Highly dependent on a primary product (oil)
What is Venezuela’s estimated economic growth in 2020.
-25%
How many years has Venezuela’s economic growth been -ve for?
The past 5 years
Name 3 supply-side policies that the Venezuelan economy has implemented to promote economic growth (long term).
- Improving infrastructure such as building the first railway to neighbouring countries e.g Brazil
- Investing in education
- Investing in better training
What % is Venezuela’s total exports is from petroleum?
95%
Over the past 5 years, how high has inflation been in Venezuela?
Over 5000%
Name 3 of Venezuela’s main exports.
- Petroleum
- Chemicals
- Agricultural products
What % of GDP is Venezuela’s national debt?
26%
In 2018, how many people fled the country every day?
5,000
How many Bolivars can you get for $1 USD?
1.8 million Bs
What proportion of roads are paved in Venezuela?
1/3
What is a negative having the world’s largest oil reserves?
They are Primary Product Dependent.
What is their S&P credit rating?
SD (selective default)= risky country to get loans
Is Venezuela a member of a trade bloc?
Nope as they got suspended from Mercosur :|
Why could Venezuela be seen to not be competitive on a global market?
High inflation
Evaluate why improving Venezuela’s competitiveness might not be a beneficial thing for the economy.
Venezuela could become more dependant on overseas countries.
What is Venezuela’s Gini coefficient?
0.45
Does Venezuela van weak property rights?
Yes, businesses cannot use the law to protect their assets= decrease in investment.
