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Venezuelan economic crisis of 2016

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During 2016, the economy of Venezuela entered a state that news outlets variously described as "collapse", "chaos", or "starvation". The collapse was caused by a combination of the fall in oil prices, the socialist economic policies of Hugo Chavez and Nicolás_Maduro, economic mismanagement, and price controls.

Effects included a refugee crisis, with many fleeing in boats, massive inflation, electicity blackouts, and a dramatic increase in crime, particularly homicide. From 1 November to 28 November 2016, the black-market value of a United States Dollar rose from 1467 to 3480 Bolivars. Hence, the 100 Bolivar note, the largest note in circulation at the time, saw its value fall to roughly 3 U.S. cents. Even in 2015, people were carrying backpacks full of cash to pay for purchases, and the problem became worse in 2016, with people often visiting multiple ATMs in order to get cash. Hungry crowds stormed supermarkets and attacked food trucks. Some residents crossed into Columbia, legally or otherwise, in order to purchase food. Some wealthy residents shopped online for food, which arrived from Miami, while others were able to purchase food at upscale stores in Caracas, with prices tied to the value of the U.S. Dollar.

A few professions remained profitable. Bitcoin miners were able to earn large sums of money due to the subsidised price of electricity, but they feared for their safety. Many poor people found work in gold mines, but Malaria was also prevalent. People close to the regime earned money through drug trafficking, though some ended up in U.S. prisons. Others found work in the Venezuelan black market, allowing them to earn money, but also risking prison.

References

  1. "Hungry Venezuelans Flee in Boats to Escape Economic Collapse". The New York Times. 25 November 2016.
  2. "Venezuelans face collapsing economy, starvation and crime".
  3. Stolk, Raúl (25 May 2016). "Venezuela Has Become a Starvation State".
  4. "My Venezuela Nightmare: A 30-Day Hunt for Food in a Starving Land" – via www.bloomberg.com.
  5. Bremmer, Ian. "These 5 Facts Explain Why Venezuela Could Be on the Brink of Collapse".
  6. Reporter, Nick Robins-Early World News; Post, The Huffington (2 June 2016). "What's Behind The Economic Chaos In Venezuela".
  7. "Venezuela Reaches the End of the Road to Serfdom".
  8. McDonnell, Patrick J. "The biggest worry in crisis-ridden Venezuela: crime".
  9. "Venezuela's Murder Epidemic Rages on Amid State of Emergency".
  10. CNN, Osmary Hernandez and Rafael Romo. "Venezuela blackouts: 'We can't go on'". {{cite web}}: |last= has generic name (help)
  11. Gillespie, Patrick (29 November 2016). "Venezuela's currency is in 'free fall'".
  12. Grillo/Caracas, Ioan. "Why Venezuelans Are Carrying Backpacks of Cash on the Streets".
  13. "Want Groceries in Venezuela? First Stop at Six ATMs" – via www.bloomberg.com.
  14. Dickinson, Elizabeth (21 September 2016). "On the Venezuelan-Colombian Border, the Tide Has Turned".
  15. "Venezuela reopens Colombian border to allow shoppers to cross". 18 July 2016 – via www.bbc.com.
  16. "Venezuelans are storming supermarkets and attacking trucks as food supplies dwindle".
  17. rt-egb, teleSUR /. "Rich Eating Well in Venezuela, Basque Executive Shows".
  18. "Bitcoin Miners Make Big Profits but Fear for Safety in Venezuela - CryptoCoinsNews". 30 November 2016.
  19. "The Secret, Dangerous World of Venezuelan Bitcoin Mining". 28 November 2016.
  20. "Hard Times in Venezuela Breed Malaria as Desperate Flock to Mines". 15 August 2016 – via The New York Times.
  21. "The US government is zeroing in on a suspected 'global hub of drug trafficking'".
  22. Córdoba, José De (3 August 2016). "Venezuela's Maduro Promotes General Indicted by U.S. on Drug-Trafficking Charges" – via Wall Street Journal.
  23. Hong, Nicole (19 November 2016). "Venezuelan President's Nephews Found Guilty on Drug Charges" – via Wall Street Journal.
  24. Toro, Moisés Naím and Francisco. "Venezuela Is Falling Apart".

See also

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