Venezuela's Collapse, One Year On

It is true that Venezuela’s dire economic situation arises to a large extent from the bursting of the oil price bubble. But this in no way excuses the Maduro and Chavez governments. The fact is that they have failed the poor they claimed to serve. Other countries are also suffering from the oil price collapse – but none is as seriously affected as Venezuela. Like other oil producers, its fiscal plans made no allowance for a falling oil price: but the long slow decline of the Venezuelan economy, the growing inefficiency and indebtedness of its oil industry and the progressive retrenchment of other sectors left it with fewer defenses than anywhere else.  Now, it is facing economic collapse, default and hyperinflation. And no-one will help it. Not even the IMF, because it has shut it out. I have no doubt that in due course, President Maduro will pay a high political price for the collapse of Venezuela’s economy. But the Venezuelan people will pay far, far more. More…