Venezuela: the crisis of the socialist model

Abstract

Historically, Venezuela was one of the dynamically developing countries in
Latin America, a major producer and exporter of oil, but internal social conflicts
distracted the efficiency of the oil and cement industries, ferrous metallurgy, and
telecommunications. Since the beginning 2014, the country has been in a state of the socioeconomic and political crises, which resulted in a recession in the welfare of the country’s
citizens, the level of unemployment, poverty and social inequality rose sharply, and
reached phenomenal record of negative indicators. The unstable situation in the oil
market, economic sanctions of the US exert great pressure on the country’s economy,
creating obstacles to the restoration of the previous volumes of oil production, which was
the main source of state budget.