Daily Bulletin

The Conversation

  • Written by Alexis Sergio Esposto, Senior Lecturer, Economics, Swinburne University of Technology
image The Conversation/Zenobia Ahmed, CC BY-SA Venezuela’s major crises will continue in 2017. These include ongoing economic instability, over-reliance on the price of oil, shortages of food and electricity and increasing inequality. At the core is a history of political interference in the functions of economic and government and institutions. Since Nicolás Maduro became President in 2013 following the death of socialist leader Hugo Chávez, Venezuela’s dependence on oil exports has brought its economy to the brink of bankruptcy. Almost 95% of government revenue comes from oil exports. The price of oil has declined by around 50% since 2013. Government revenue has reduced to critically low levels - from an annual US$80 billion to $US30 billion. Maduro’s administration has no leverage with which to fix Venezuela’s faltering economy and appease the unhappy middle classes that are its backbone. Inflation is the highest in the world. From February 2015 until November 2016, it rose from around 80% to 800%. Daily food shortages continue to foster discontent and instability at every level of society. Murder, theft and kidnappings in major cities like Caracas, Maracaibo and Valencia are frequent. History suggests successful economies are built on solid and effective institutions. These induce strong economic performance over time. A consensus between political parties that guarantees independence for government and economic institutions may be the only way forward. Venezuelans live in hope.

Authors: Alexis Sergio Esposto, Senior Lecturer, Economics, Swinburne University of Technology

Read more http://theconversation.com/venezuela-72653

Writers Wanted

Racing 2-year-old horses is lucrative, but is it worth the risks?


How to Sanitize Cloth Masks Properly


The Conversation


Ray Hadley's interview with Scott Morrison

RAY HADLEY: Prime Minister, good morning.    PRIME MINISTER: G’day Ray.   HADLEY: I was just referring to this story from the Courier Mail, which you’ve probably caught up with today about t...

Ray Hadley & Scott Morrison - avatar Ray Hadley & Scott Morrison

Prime Minister's Remarks to Joint Party Room

PRIME MINISTER: Well, it is great to be back in the party room, the joint party room. It’s great to have everybody back here. It’s great to officially welcome Garth who joins us. Welcome, Garth...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Ben Fordham, 2GB

BEN FORDHAM: Scott Morrison, good morning to you.    PRIME MINISTER: Good morning, Ben. How are you?    FORDHAM: Good. How many days have you got to go?   PRIME MINISTER: I've got another we...

Scott Morrison - avatar Scott Morrison

Business News

Tips to find the best plastic manufacturing supplier for your needs

Plastics are very much an important part of all of our lives, but they’re particularly valuable to a wide variety of industries that rely on their production for their operations. The industries, ...

News Co - avatar News Co

7 foolproof tips for bidding successfully at a property auction

Auctions can be beneficial for prospective buyers, as they are transparent and fair. If you reach the limit you are willing to pay, you can simply walk away. Another benefit of an auction is tha...

Dominique Grubisa - avatar Dominique Grubisa

Getting Ready to Code? These Popular and Easy Programming Languages Can Get You Started

According to HOLP (History Encyclopedia of Programing Languages), there are more than 8,000 programming languages, some dating as far back as the 18th century. Although there might be as many pr...

News Co - avatar News Co

News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion