Is There Hope for Change in Venezuela?

A path toward longer-term recovery can be implemented only as part of a democratic political rebalancing. But this regime is determined to stay in power and has faced a divided and defensive opposition. Even peaceful, democratic change would not immediately improve the economy. The most realistic engine of growth is the oil sector, and it will take an extended period and many billions of investment dollars to restructure and restore it. For the Venezuelan business community, this year will be critical, if it’s not already too late. Some companies that have not been expropriated have nonetheless left Venezuela, selling out or writing off assets over concerns about economic performance, ease of operations, and worker safety. Others have hunkered down indefinitely in an effort to outlast the current crisis. More…