VENEZUELA - How the Richest Nation in Latin America Collapsed
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- Опубликовано: 27 сен 2024
- Today Venezuela is a failed state, a nation where hyperinflation has recently been at 3700% and where citizens are experiencing an unparalleled humanitarian and social crisis. Difficulty finding food, no drinking water or electricity and a currency (the Bolivar) that has no value. Yet Venezuela has not always been like this. Until a few decades ago it was a rich, wealthy nation with a high human development index. How, then, did Venezuela collapse like this? In this video we will talk about Venezuela before Chávez, focusing on the great national wealth: oil, today nationalized through the state company PDVSA.
Sources:
Hausmann (2015), Venezuela Before Chavez: Anatomy of an Economic Collapse.
Raùl Gallegos (2016), Crude Nation: How Oil Riches Ruined Venezuela.
Restuccia (2018), The Case of Venezuela
Now do Argentina next. I always wondered how a country went from one of the richest in the world to a developing nation in such a silent way.
There are several factor that were involved in our slow but consistent decline.
It was one of the richest countries in the world, but you should take into account that none of the current population was there when that happened. Most of Argentines (90% of the population) came with the huge migrations that took place between the finish of the XIX century and the beginning and the middle of the XX century. The majority of them, Italians, followed by Spaniards and Germans, Frenchs, etc. Those immigrants were not the ones who made the economic boom. They migrated to a country that was already rich when they came.
Therefore, the current population were not the people who could make the country one of the richest in the world. Many things happened: with the huge migrations (literally, at the beginning of the XX century there were more foreigns than Argentinians) came new problems: anarchism and socialism, carried by Italians and Spaniards, collapsed the government, they brought with them terrorism and ideals of anarchism which collapsed the government of that time. Also, they carried with them social issues, like illiteracy, unemployment, homelessness, and more things. The majority of the modern Argentina´s population were those who came during that epoch.
Although it´s not that simple. Argentina´s economic boom was very related with the status of Great Britain as a great power. When Britain started to decline, so us. We suffer the first consecuence in the "Panic of 1890", which was a economical crisis. When US ascended, they were not interested in our market, nor in our products, nor in our economy at all. They banned our meat (which was one of the most important products in our economy), and they didn´t invest in the rails, which were fundamental for the transport of our products (Argentina is a very big country, so the train is very important if you want to transport a product which was produced 1500 km away).
The First World War helped us. We maintened our neutrality because the European market demanded a lot of products (especially consumer products). Our economy started to heal (since the 1890´s crises). Then, migrations started again when the war finished. But at the beginning of the 20s something changed: the world started to close. Self-supply started to be the rule. The world-market closed, and for an economy such as the Argentinian, which lied on exports, it was fatal: the economy declined, inflations appeared, governments felt, others rised.
The beginning of the II War was not very beatiful for Argentina. Fascism was very appealing, especially because of our Italian ascendence, Mussolini supported fascism in Argentina, and insisted that we should join the Axis, but we didn´t. That didn´t signify that we didn´t supported them, since we did. Many people went to Italy to fight in war.
In a very big social turmoil, with a lot fo unemployment, inflation, worries about what was happening in Europe, Juan Domingo Perón, a wanted-to-be fascist, took power via democracy. He spent all Country´s money in public policits that were similar to the ones adopted by the fascist in Europe: he made a Youth ("Juventud peronista"), the cult personality, high salaries, and so on: the kind of populism that fascism had. His government was a fiasco: he focused more in persuing the opposition than in resolving the economic problems. We declined, the economy declined, the education declined, so the government was intervened by the military. They took power and established a dictatorship.
During Perón´s goverment (and before also) we tried to adecuate to the new world order. Since the world didn´t want to trade, we industrialized. It was a fiasco: we don´t have enough population to sustain such a big industry. We are not capable because we are only 40 millions, and in those times we were 10 millions. It was impossible.
The industrialization model was tried, and tried, and tried during the 30s, 40s, 50s, 60s, 70, 80s: all were a fiasco. All goverments tried a new kind of industrialization, and all were bad. None was capable of finding the suitable one for our country. Although we were bad, we were not as bad as Italy or Spain during that time, so they still coming. We were very good indeed, since our economy was strong. But the influx stopped when we suffer our second most big crisis: the hyperinflation of the 1989 and 1990. There, we could say that economy staggered, but the coup the grace came eleven years after that.
During the 90s we admited that the industrialization model was worthless. The world was again opening. Trade was again something that all the nations wanted. It was our opportunity! So we started to do again what we know: trade. Our economy afloat. We started to recover what we lost. Until 2001. The 2001 economical crisis was our ultimatum. That is where we declined, but it was not our "normal declining" it was a "latin american" one. Our economy crashed, poverty ascended, education went to trash...
Since 2001, our economy doesn´t recover. 50% of the population lives in poverty. We have the second most high inflation in the world, being the first Venezuela.
The youth is going to Europe and we are suffering a very big emigration crises, all "returning" to Europe. At least Italy (and at some extent, Spain) recognizes us as Italians so they give us the nationality. Many are living abroad since the beginning of the crisis. I, myself, am planning to go to Europe, since a big chunk of my family is there and I speak the language (as many).
It is very sad. Years goes by, and the country looks more and more like a latin american one. At least in the past we were proud to say that we were not like any other country in Latin America (except Chile and Uruguay, which were as successful as us). It´s extremely sad indeed. Witness how your country is took by uncivilized people, and how declines and declines without at end it´s depressing. I think that the majority of the youth doesn´t see a way to resolve this issue. Thus, they go away as I will do too.
Sorry for the long text. I tried to sum up all but it´s impossible to talk about so many things in a comment thread. It would be very nice if this guy makes a video talking about Argentina´s current situation, but if he not, at least you have my comment here.
I´m more than pleased to talk about the situation. If anyone wants to discuss, either through here or through any kind of mean, I´ll be pleased to do so.
@@LucianoVonH Thank you for the very detailled explanation, very interesting.
I hope you guys find a solution. It would be great to see Argentina stabilise and grow again.
Hopefully it will happen some day.
@@LucianoVonH Wow, this was actually really detailed and helped explain a lot to me about why Argentina is in the current socio-economic decline it is. Thanks.
@@LucianoVonH I disagree with your characterization of the Italian and Spanish immigrants, and the Anarchist movement in general but otherwise great summation.
I strongly recommend you watch "The argentinian economic decline: Truth or myth?" By the channel Badempanada
Nice video, but I would like to say a couple of things:
1) The sanctions of the USA to my country Venezuela went to the oil companies and state companies, it was not a commercial sanction as a factor of the crisis.
2) The problem with Chávez's policies was that he expropriated hundreds of companies, which caused private investments to fall and increased dependence on oil much more, this also includes the number of social programs that Chávez carried out to reduce poverty .
3) Currently the corruption of the PSUV (United Socialist Party in Venezuela) is so big that the opposition is almost non-existent and there are too many political prisoners.
Este tipo es un izquierdista. Si no has visto su video sobre Colombia
blame the usa when it was Venezuela's policies that bankrupted the nation with their job-crushing and money printing-spending complex
@@franknwogu4911 sanctions hurt the venezuelan economy, just ask the UN.
@@miguelgrohmannhernandez2224 the sanctions only were at officials not goods
@@miguelgrohmannhernandez2224 Do you have information that confirms that the UN said that the sanctions harmed the nation?
This video is 100% true. Especially, how the Venezuelans have taken a goose that lays golden eggs and put it on life support.
I’ve always told my Venezuelan friends that Petroleum is not a blessing, but a curse. Unfortunately in almost every country that has vast oil wealth, makes the population lazy, arrogant, entitled, and ignorant.
And BTW anyone who thinks Chavez was the one who screwed up Venezuela, is totally wrong. It was screwed up prior to Chavez.
It’s downfall was importing everything, producing nothing, and investing wealth in other countries!
The thing with Chavez is people just need someone to blame for their problems. It can't possibly be any specific society has inherent problems that need actual work to fix it has to simply be the leader sucked. Now Chavez was not great and he objectively made mistakes but as you said Venezuela had many issues long before Chavez that heavily contributed to it's current crisis
No it was *socialism!* 🤪
Resources are a curse when not managed correctly.
The main problem being that if people earn more because of these resources, wages go up which in turn makes it harder to stay competitive in other sectors.
The current government of Venezuela read this concept, and did the exact opposite, create state owned enterprises that make it even harder for private sector companies to be effective.
@@UnholyWrath3277 no, Chavez didn't some "mistakes", he is the one who robbed, killed, and wanted to make Venezuela his own house where he can give the national treasure and money to other countries and to himself, his family and his friends
@@raul7649 Amen
So sad that few years ago that Venezuela was on a deep inflation and it continues. You were right about what lessons can be learned from it “money and mismanaged”. Its hard for them to recover.
Love from Vancouver, Canada... Keep up the great work...
Socialism!!! Yaayyy!!!! Works so well!!!
Grande Nova!sono felicissimo che tu sia conosciuto anche all'estero!!complimenti per l'inglese
I clicked on this video because of the subject and then pleasantly surprised to see it was this guy’s channel that I’ve been loving lately but always forgot to note the channel name. Well, now I am subscribed and will never miss a video! Great work! Can’t wait to see more and more from you :)
Complimenti per il coraggio che ci vuole ad esporre il proprio inglese al mondo in questo modo.
Da persona che parla inglese a livello madrelingua, posso dirti che è tutto comprensibile, ma c'e qualche piccolo errore di lettura, che ci sta ovviamente.
Il consiglio migliore che posso darti forse è di parlare ancora piu piano di quanto tu voglia fare, dai il giusto tempismo ad ogni parola e ad ogni frase, prendi spunto dai piu grandi narratori di documentari, o da altri canali simili al tuo che gia sicuramente conosci.
Rallentando tutto, anche la pronuncia andrà a migliorare col tempo.
Spero siano consigli apprezzati
Grandissimo Nova!
Promising channel, keep going
This was an excellent overview on venezuelan contemporary economic history. The country's economy has been steadily declining for the last couple decades. I think the Chavez administration was the cherry on top to settle Venezuela's doom, though. I'm looking forward to part 2 and hoping you expand on this period. It's very interesting to see a foreigner so well informed, keep on with the good work!
Very well done video. Really objective and well researched. Most videos on Venezuela either focus solely on saying how it is all the USA's fault with sanctions while completely disregarding the economic mismanagement and corruption in the country that played a larger role in it's current state. Plus, the use of humor is really good😂 Thanks for this better balanced video.
Well the channel is leftist, and he claimed that the sole purpose of the sanctions was to starve the Venezuelan civilians to death, even though it was against the state industry rather than commercial based sanctions.
Grande nova!!
Portare il tuo format anche all'estero è stata una grandissima idea, keep it up 💪🏻
Pizza! Pasta! Bellisimooo!
@@ericktellez7632 bruh
@@ItaliaFundatur mamma mia!
Epa mano muchísimas gracias por hacer este video saludos desde Venezuela 🇻🇪
Hey man thank you a lot for making this video greetings from Venezuela 🇻🇪
I‘m very thankful that I found this channel. You make great and detailed videos. I hope you will get more attention
I found your channel today . I just wanna say woo great content , visuals and commentary . I don’t know if you started on your next episode but if I can make a suggestion Sudan
Keep it up great video
Agriculture was not economical compare to imports from Colombia, Brazil or Argentina, both the lack adequate logistic infraestructure in the countryside plus a case of the Dutch disease made it so.
The devaluation of the Bolivar in the 80s should have discourage imports and provided incentives for national production, however an often hostile legislation towards the private sector including price control, currency exchange controls and the threat of confiscation (a hallmark of chavismo in the 00s) has prevented local production to flourish.
Agriculture and tourism experience a rise in the 90s and alongside the privatization of failing state owned heavy industries, were part of the liberalization efforts that ended with Hugo Chavez rise to power.
Venezuela overinvested in infrastructure during the oil boom so I suppose the Dutch disease was the biggest part of the problem. That and the concentration of land, because if you have small farmers the truth is people will produce regardless of it being highly economical or not because that's what they do. They are apart from the integrated urban economy so it's not like they can do anything else, in this context. Agriculture grew in Venezuela when oil prices fell, but it's unlikely that it would have continued during the commodity boom even without Chavez, unless Venezuelans suddenly learned how to deal with natural resources in a positive way which considering their history and other countries in the region, I'd say, is an unlikely alternative.
You deserve one million subscribers!
Cioè ho appena scoperto che hai un canale in inglese! Grandissimo💪💪
I'm from Southern Brazil, and even here you can find Venezuelan refugees. Who are living a lot better in a country that's not doing that well itself.
Super well done! Just discovered your channel and I'm loving it very much. Greetings from your neighbours in Malta!
12:48 Just a small correction but PDVSA was founded on January 1st 1976 in the government of Carlos Andrés Pèrez from the nationalization of the many oil industries in the country, Shell, Mobil and Standard Oil for example.
1990's
The gas price goes 1 Cent more higher: Civil war
2010's The prices goes ludacris crazy higher: PERO TENEMOS PATRIA *se va la luz por 6 dias*
Great video! I’m from latin america and learned a lot of things I didn’t knew
Great video.
anxious for a Brazil video
Grande Nova!
Hi, native English speaker here. When dealing with large numbers like at 1:45, you say the number normally than what place it appears in. This rule applies to everything outside 100's place (455) at 1:45 in the video. So, the number in your video would be like this Ten Million, Five Hundred and Seventy-One Thousand, Four Hundred Fifty-Five.
Keep up the excellent work.
Very educational, and enjoyable, sir. 🎯🌎
And now the empire has sent a delegation to meet Maduro to beg for oil. Why Maduro and not Guaidó?
As a veneuelan i have to say that your information is outdated, now in 2022 supermarkets are full, aswell as drug stores and everything else, it is just that everything is in dollars so its now more expensive than before.
Daje Simò, italiani spingiamo questo video perché questo impegno merita un premio
Situation of Venezuela is so messed up that I think nobody knows what to do to fix it. 😔
Seriously even if a successful economic program would be made to fix Venezuelan economy, still corruption and the instabile situation of their political environment will waste all their efforts. And unfortunately, nobody can change that, except Venezuelan citizens. Those who can vote. If their electoral and democratic system can still be considered independent from corruption too.
Then there's military that seems have an independent will. That's a grave fact. A dangerous threat to citizen sovereignty.
Frankly speaking, Venezuela future isn't bright. We should help them. If only we can do something for them, our governments probably will do nothing. Or nothing without having back some rewards. Not gratis at all.
That's sad.
call in ex prime minister of India Mr Manmohan Singh .. he can fix it . but he is old but still
There is an example of a country that manage oil wealth extremely well: Norway.
I don't know if it is possible to move to that model though...
@@anteeko hey check about Manmohan singh . I am telling you . he is one of the worlds best economist and he did fixed India's economy when he was fiance minister of India in 90's
@@6militant Interesting thanks
@@anteeko Venezuelas economic policies were inspired by Norway’s system but due to American interference and economic warfare we have what Venezuela is today
this channel will grow very fast
Please upload a video of Chavez. This was really interesting
More on Latin America please🥺🥺🥺
I don’t know many channels covering Latin America
These videos are what I needed to improve my english✌
Man your videos are so good and informative. Greetings from Estonia
I've been living my entire life in Venezuela and you're wrong. The problem with my country comes to just one word: socialism
A lesson so simple yet so ignored. When your making money save some for a rainy day and/or invest it industries, stocks etc. Wherever your a person, business or country. Great video, hopefully your channel grows.
Oh no, no, no. I lived in South America and Venezuela was indeed very rich, but only for a few rich, while the vast mahority, over 90%, libed in worste misery than today. Dont believe me? Why you think Chavez and Maduro still have support?
Ah Venezuela
The only place where you have to sell RuneScape coins to feed your family
For the algorithm!!!
Idea- For the first ~10 videos you make on this channel, introduce yourself before diving into the content- The fact that you’ve already done hundreds of these videos on your main channel gives you a lot of credibility
Great power comes Great responsibility
-Uncle Ben
I like your editing, man, as an editor myself. Well done, from the 🇺🇸
New, favorite channel.
Great channel.
Great Video; I was exercising my english and then I found this
Amazing video, king! I'm love your videos!
Great video ,i was really waiting for your English channel please upload more video👍
The real tragedy is you getting a Gallon of milk for 2.30 & me paying $4+
Bravo. We follow you in Africa.
Great new channel 👍
Awesome video! Thanks!
"Richest nation in Latin America"..... 🤔❔❔❔
WTF with the ppl here blaming USA for the situation in Venezuela??
nessun "per aspera ad astra"?
In inglese fa un po' strano
@@novalectiointernational il Latino e' apprezzato all estero, e' anche la tua frase Di rito. Io ti chiedo gentilmente Di provarci, magari funziona
Grandeeeeee
Già 30k!
Props to the merc Mattias Nilsson for kicking out the UP out of the country!
Your videos are amazing
Saudi Arabia is wholly dependent on oil, imports most of the products sold there, has no or low taxes, most of its people are on the government's payroll, and doesn't even have the farmlands of Venezuela. *So, how come SA is not a basket case like Venezuela* ?
This channel is a find. thanks for your work. "I can take this risk", ha ha ha ha.Subscribed.
basically the us does not like any sort of opposition on the south.
Dejame adivinar, mexicano?
@@bjack8315 no, baby. Mexicans aren't the only ones in Latin America.
@Sean Francis Waters Lancaster what for it to fall just like the ussr
Amazing video try making another one on libya
The song by C tangana at the beginning Just made me Happy.
Oil ain't so cheap anymore. They smuggle oil from my country (Colombia) to Venezuela... which is very, VERY ironic since it was the other way around for decades... and we don't even have a 10th of their oil reserves. And their military has ALWAYS been involved in politics. Even before the 20th century. Great video, nonetheless!
Oh, and Argentina is also a country with 2 dollar values. The official value and the so-called Dólar Blue.
Thanks
Amazing video 💖💖
You are an amazing man 🤩 👌
You Also forgot to mention the italians who migrated to Venezuela 🇻🇪 apparently south América is always a very desirable destination for italians I actully have some family members who léave over their xd why do we like to migrate to south America?
The weather?😅😂
Sarà dura far crescere sto canale
The effects of American intervention as usual!!
What a fool you are.. American intervention only played a small part. Venezuela was destroyed from the inside.. by other Venezuelans.
Correct! 💯
And there's oil in the North Sea! But they're killing Venezuela with an embargo!! And blaming Socialism. And now condemnig Russia for the invasion of Ukraine!!! What HYPOCRISY on the part of the U. S. government!!! It's not for nothing that America is seen as the world's biggest murderer!!
The black market points to the true market value.
As an American the frustration with Venezuela has been in finding accurate, unbiased information about what happened there as domestic media paints the nation as a Stalinist nightmare. I’m keenly aware of the USA’s abusive relationship with Latin America and blatant, if occasionally covert, aggression towards anything that could faintly be regarded as “leftist.” It’s tragic that Venezuela was unable to slice off a portion of those brontosuaurus bucks to develop a more stable and sustainable economy.
That's what happens when you try to promote a currency actually backed by gold
avete provato a usare il VPN per l'upload per vedere se fa differenza per "l'algoritmo"?
Venezuela is not the only country with two different dollar prices.
It's almost like literal socialism doesn't work, or something.
It's almost like you missed the point of the world turning on this one country
it does tho and that country is not even socialist at all
My girlfriend is Venezuelan, and she tells me sometimes how rich the country and people used to be. She says that Venezuelans would go out, look at something they like, and say "está bueno, dame dos" (looks good, give me two).
Edit - omfg I just got to the part of the video where you mentioned that lmfao I swear I wasn't even that far yet 😂😂😂
Yess, that was during Iranian oil crisis in the 80’s. They had an economic boom and the government plus oligarchy started to spend like crazy; not investing in their own industry, it was easy to buy than produce. When the oil money run out by the end of the 80’s a devaluation was imposed, prices went up and legions of starving poor Venezuela’s took the streets and ransacked supermarkets, the government response was brutal, more than 3000 death on the streets, is called the Caracazo.
That is why Venezuela didn’t have industry, it was easy to import and spend money than become independent, that is why there is an accumulative inflation, because the need dollars to import goods from abroad.
To simply the story:
The rise of the United States of Venezuela was because of the huge amount of oil deposits and attracting huge companies and let them invest in the country to improve the national industry and giving money to its citizens that transformed their lives and took the opportunity of the increasing demand in the 1950s meaning their business is more booming, and attracted more petrodollars in the country and did better in foreign capital and attract more foreigners.
The collapse of the Bolivarian Republic of Venezuela was the result of the nationalization of the country but it was too late for it because of the increase dependency of imported goods while the production inside was left behind and the economic mismanagement combined with the political instability of dictatorships caused by the colonial political institutions implemented that still haunt Latin America, including Venezuela itself.
Exact same thing happened for iran we lost our beloved shah . Shiny times. Grate economy. Freedom .and replaced those with a dictator regim .
I look forward to the next video. Bye.
Great video! I hope you can also upload your Italian language videos in English in this channel as well
For sure, I'll do that step by step 🙂
Feeling the Bern
Venezuelan in here, ask me anything
Why do you hide US involvement in Venezuela's current political problems..
Venezuela is that friend that won the lottery & went broke 🤣
Can you make a video on the Cuban special period? I can see you covering that topic well.
Subscribed after your Turkmenistan-video. A great book on Central Asian history is "Central Asia: A New History" from Adeeb Khalid.
I WANT AN IRAN ONE PLSSSS I LOVE YOUUUU😍 from iran
Your comment at 7:08 sounds very very familier... >cough< CHINA >cough
SOCIALISM at its best 🤣
This is caused by illegal US sanctions!
lmao it’s mot even socialism you American npc 🤣
Thank God that wasn't real socialism
Please do a follow up video of Hugo Chavez presidency
They nationalized private businesses. Then totally mismanaged everything. why shouldn’t they have sanctions put against them. You pay for what you take.
Because those sanctions punish the people and not those in charge. Who is poor, who suffers Maduro or the People?
@@idontknow-ke6td it's putting pressure on the government to change something or be changed
The nationalization happened in 1976 it really doesn't make sense to implant sections for Venezuela for this reason now.
@@jackyex It has nothing to do with nationalization and everything to do with putting pressure on a vile and corrupt regime but I agree that its counterproductive, chavistas have no issues with reining on top of a pile of rubble, there is something thanatical about their movement.
Its best to think of it as a hostage situation.
Kenya had two presidents, an elected president and a people's president ,but they made a deal and the elected president now neglected his deputy and now the deputy president is the opposition leader
Hmm us sanctions started by 2018 way after the socialist economy had imploaded… lets blame them anyway… it is convinient to not have to take responsibility…
I love your accent.
9th! a part of joke, a wonderful video, but I think that it coud be better whit subtitles
We love your channep