5 Causes of Poverty
Of the population of the world, over 3 billion people live on less than $2.50 a day. This is a staggering number that begs the question, why? What are the causes of global poverty? There is a multitude of reasons as to why poverty devastates countries, but here are the top five causes of global poverty.

5 Causes of Global Poverty

  1. War: A country that goes to war can impact poverty greatly. There are several factors to consider when looking at how war contributes to poverty. There is the destruction of the infrastructure wherever the conflict rages. Fierce fighting can destroy power facilities, buildings and roads and usually take years to rebuild. The disruption of trade can have a devastating impact on the goods that people rely on. The halt to production in factories, growing of crops and work in mines can bring a country’s economy to almost a complete stop. The human cost is the most devastating out of every impact that war can bring. Not only is there the number of dead to consider, but also the number of people fleeing the conflict zones. Large numbers of a country’s workforce are fleeing the conflict zones looking for peace in a different country. Today, 71 million people have been displaced because of war and violence in countries all over the world. Since the creation of organizations such as the United Nations, countries are more willing to talk to each other and keep the peace rather than fight.
  2. Little to No Education: Often, when a country is in poverty, there is very little to no education available for its citizens.  Nearly 1 billion people came into the 21st century not knowing how to write their names or read a book. When a nation lacks in education, they become an untrained workforce for an impoverished nation. Families in these countries often cannot afford to send their children to school, and frequently require them to work to support their families. By the year 2000, it was possible to send every child in the world to school and in order to do that, the world would have only had to spend less than 1 percent of what it does on weapons. However, this obviously did not happen. Even though 1 billion people or 18 percent of the population could not read or write at the start of the century, this statistic is still an improvement from 1980 when the world illiteracy rate was 30 percent.
  3. Corruption: One can blame poverty in a country on the leaders as well as any outside factors. A country with corrupt leadership can have a devastating impact on the well being of its people. Corruption can divert much-needed resources and funds away from those that need them. Every country may have some level of corruption, however, the most poverty-stricken countries often show the most corruption. According to Transparency International’s Corruption Index, out of the 177 nations it ranked, 118 had a score of 50 or less. A score of 100 means that the country is free of corruption. Meanwhile, the least developed nations in the world have a score of 28. Fortunately, many countries are creating offices to hold their leaders accountable. Cuba, for example, has started the Ministry for Auditing and Control that aims to fight corruption within the country.
  4. Inflation: Countries’ economies can fluctuate from extreme highs to lows. Venezuela is a current example of a country going through this type of hardship. The South American country was able to prosper from an economic boom from its oil industry. When that began to regress, the country’s economy began to take a turn for the worse. Inflation ruined the country, making goods almost impossible to afford. There was also a lack of necessary supplies such as food and medicine. The current poverty rate in Venezuela sits at 90 percent out of a population of 32 million. Because of the economic hardship, 4 million people have left Venezuela as refugees. Despite Venezuela’s struggles, there are examples of countries that have faced terrible economic times and turned things around. Norway had one of the worst economies at the turn of the 20th century, but through foreign aid and resources, it is now one of the richest nations in the world.
  5. Natural Disasters: A natural disaster can have an overwhelming impact on a country’s livelihood and the well-being of its people. There is very little that anyone can do to stop natural disasters from happening. Earthquakes, tsunamis, hurricanes, landslides, volcanic eruptions and tornadoes can destroy areas and leave whole regions to pick up the pieces. Countries that are already in poverty struggle to recover and frequently sink deeper into poverty. According to the World Bank, over 26 million people enter poverty each year because of natural disasters. By the end of 2018, the world lost $225 billion as a result of natural disasters globally. As technology improves, countries become better prepared for natural disasters and have more warning.

No matter what the causes of global poverty are, there is always a solution to fix them. Whether it is through international aid or a change in legislation around the world, people can eliminate those causes, or at the very least, limit the devastation of poverty.

– Sam Bostwick
Photo: Pixabay

Venezuelan Crisis
For decades Venezuela’s government and economy have struggled significantly. Entering Venezuela into a search engine will generate links to a multitude of foundations attempting to relieve the Venezuelan Crisis. What is the Venezuelan Crisis and how is the U.S. reacting?

The South American country’s history is full of political and social inequity. Venezuelan leadership has been rocky at best since Simon Bolivar led the country to independence more than 200 years ago. Despite his original constitutional implementations of extremely strict rules such as capital punishment for any public officer guilty of stealing 10 pesos or more from the government, the country quickly fell into corruption.

History of Corruption

The disorder apparent in Venezuela’s contemporary governmental and social climates stems from centuries ago when inefficient leadership set the precedent. The country did not institute a democratic election until 1945. That is more than 130 years after its founding and establishment of the civilian government. Turmoil ensued as Marcos Perez Jimenez, a military figure, overthrew the first elected President Romulo Gallegos within eight months. Admiral Wolfgang Larrazabel, in turn, ousted Jiminez and leftist Romulo Betancourt subsequently took power. This period of rapid regime change defined by government instability and disorganization instilled a distrust that still resonates in the hearts of Venezuelans today.

The trend of unreliable leaders continued until the late 1960s and 1970s when a beacon of light emerged. This age saw much-needed transparency in public assets, contrasting with previous leaders who were heavily corrupt. During this time, other South American countries even began to restructure their governments after the Venezuelan model. However, Venezuela lived this era of tranquility for only a short time because of one man: President Jaime Lusinchi.

Lusinchi served as President from 1984 to 1994. Even in the era of Nicolas Maduro, he stands as the epitome of Venezuelan corruption. In his 10 years as the country’s leader, a corrupt security exchange program stole an alleged $36 billion from the government. Additionally, many accused Lusinchi of stealing from the National Horse Racing Institute to promote the campaign of his successor, Carlos Andres Perez.

Venezuela’s economy functions almost solely on oil exports. The volatility of international oil demands, a market characterized by consistent inconsistency, historically parallels with the state of the Venezuelan market. A booming oil stock in an oil-dependent country naturally creates extraordinary temptation, a temptation that Lusinchi gravely fell into.

Making the national situation worse, the money Lusinchi stole from the government came from a temporary oil surge. Therefore, when oil prices normalized, the economy faced a much more difficult catching up than it would have otherwise.

For many Venezuelans, Lusinchi reopened recent wounds concerning government distrust. This fueled a wave of anger that the famous populist Hugo Chavez harnessed. Lower-class Venezuelans blamed government corruption and greed of the elite for the country’s extreme economic and social issues. The support of this large base played an important role in electing Chavez as President in 1998.

Today’s Dictatorship

To understand the current state of affairs under Maduro, it is vital to understand Chavez’s impact on the Venezuelan Crisis. Chavez’s policies raised (and still raise) enormous controversy as he led using traditionally socialist policies. Under these policies, Venezuela saw a 50 percent reduction in poverty and a dramatic reduction in the unemployment rate.

These policies were only achievable because of a 2004 soar in oil prices in the middle of Chavez’s presidency. His excessive spending on categories like food subsidies, education and health care was only possible through this boom. To get the Venezuelan people to reelect him, Chavez did not scale back these programs to match declining oil prices and set up his country to fail.

In 2014 Venezuelan oil prices crashed, leaving the economy in shambles as Chavez’s programs quickly racked up an enormous deficit. This also started the massive inflation of the Venezuelan bolivar that the country still struggles with today. Following Chavez’s death, Nicolas Maduro gained power in 2014, taking on the responsibility for the economy and deficit. Maduro failed to diversify the oil-rigged economy. This caused the petrostate to fall back into extreme poverty, currently wielding a poverty rate of around 90 percent, double what it was in 2014.

The Council on Foreign Relations quotes Venezuela as “the archetype of a failed petrostate,” describing it as a sufferer of the infamous Dutch disease. The transition to this began back in 1976 when then-President, Carlos Andres Perez, nationalized the oil industry creating the state-owned ‘Petroleos de Venezuela (PDVSA). Chavez’s mismanagement of this company led it to render weak profits. Internal issues such as insider business practices and drug-trafficking also littered the business with corruption. Chavez then sanctioned a series of other national businesses and foreign-owned assets tilting the country towards extreme socialism.

This progression of increased nationalization slowly opened the doors for Maduro to initiate authoritative rule. He abused this power in multiple facets which had devastating consequences on the well-being of the country and its people.

Early in his rule, Maduro placed his supporters in the Venezuelan Supreme Court and replaced the National Assembly with his own Constituent Assembly. Through this cunning, undemocratic move, he essentially eliminated all political opposition and erased any check on his power. This allowed him to pass extremely contentious policy such as the abuse of food importation. Because of Maduro’s extremely poor operation of a socialist economy, hyperbolic inflation rates currently plague the country. While the political elites operate on a 10:1 rate, the rest of the country uses around a 12,000:1.

To make matters worse, Maduro delegated food commerce to the military which has access to the significantly decreased exchange rate. To make enormous profits, it buys food at the 10:1 rate and then sells it domestically at a 12:000:1 rate. The 2017 statistic shows that Venezuelans lost an average of 27 pounds, highlighting the horror of Maduro’s corruption.

What is the US’s position in all of this?

As expected, the U.S. with its long history of an anti-socialist stance disapproves greatly of the Maduro suppressive regime. There is historical friction between the two, which emerged again during Chavez’s time in a battle between capitalist and socialist ideals.

After Maduro’s reelection, the Trump administration grew furious and decided to use aid as a tool against the dictator. In an act of defiance against the U.S., Maduro rejected all supplies from the capitalist power. The U.S. decided to use this move to its advantage, pledging to send copious amounts of humanitarian aid and urging Venezuela’s officials to defy their President’s orders.

As Dylan Baddour states in his article for The Atlantic, “Those who support the mission say that soldiers will be motivated by the impact Venezuela’s crisis is having on their families to switch sides and affect a peaceful transfer of power.” However, not everyone supports this mission because of the U.S.’s bittersweet past regarding Latin American intervention.

Citizens in countries like Chile, Nicaragua and Panama certainly are in living memory of times when American involvement only made matters worse. But as Baddour writes, in a situation as dire as Venezuela’s during the Venezuelan Crisis, “the world’s most powerful country showing up at Venezuela’s border with truckloads of food and medicine is much better than what it has done in the past.”

There is, of course, a concern that Venezuela could transform into the next Syria — where the majority of the population suffers because of one belligerent leader. But if the U.S. takes a proper humanitarian route with its aid, unlike previous attempts, it could do more help than harm. Hopefully, Venezuela will accept aid and transfer power peacefully and efficiently to someone that does not endorse such heinous policies. Until then, the U.S. simply providing its current amount of humanitarian aid is a positive step in the right direction to relive some of the effects of the Venezuelan Crisis.

Liam Manion
Photo: Flickr

inflation in Venezuela

Venezuela has been in a decades-long economic crisis. Its economic decline is historically marked by el Viernes Negro or Black Friday. Black Friday took place on February 18, 1983, when the nation’s bolivar began depreciating in value. Inflation in Venezuela has been rising ever since. Recent hyperinflation in Venezuela has caused mass poverty across the nation. The result have been shortages of food and medical supplies and an unemployment rate of 35 percent as of December 2018.

Origins of Depreciation

In order to understand potential ways to alleviate Venezuela’s rising inflation rates, it is essential to understand how the economy reached this point. Back in the 1970s and early 1980s, Venezuela was a flourishing oil tycoon in possession of some of the world’s largest oil deposits. A worldwide shortage of oil raised the prices of barrels and created a golden period of economic growth for oil giants like Venezuela. Once the 1980s rolled in, oil prices stabilized. People started looking for more affordable, alternative energy methods.

This was detrimental to Venezuela’s economy since there was less demand for oil. Heightened production due to the previously increased oil prices left Venezuela with an abundance of oil produced and less demand. Venezuela’s reliance on exporting oil became its undoing. The price of oil continued to drop as the years progressed. Venezuelan oil production continued to exceed the actual demand. Inflation in Venezuela began here as the nation struggled to adapt in the face of failing exports.

Worsening Factors

Several factors contributed to the inflation of the Venezuelan bolivar. One factor was increased spending on social welfare programs and the importation of basic goods during Hugo Chávez’s presidency. While these actions helped to alleviate social unrest, this type of spending couldn’t be sustained as the oil-based economy tanked. In 2008, the global price of oil dropped to around $34 dollars per barrel, a record low that severely cut Venezuela’s core income. In 2014, another record low sealed Venezuela’s economic down spiral as the nation could no longer rely on its chief export for a means of financial stability.

However, this did not deter spending on welfare programs and imports, which led the nation into deficit spending. Deficit spending continues to be a major factor in increasing inflation in Venezuela. The further the nation falls into debt, the more the value of the bolivar depreciates. Currently, the full value of Venezuela’s debt is exceeds “the value of its exports” by 738 percent. Because of its massive debt, the U.S. implimented trade restrictions in early 2019. This has further decreased the sales from exports and the nation’s gross revenue.

Currency printing has been another cause of inflation in Venezuela. In order to pay for the importation of basic goods, more money has and is being printed by banks and the government. The value of the bolivar depreciates the more that is printed. It should be kept in mind, however, that these aren’t the only factors in inflation. The situation is deeply complex, spanning over decades of domestic mismanagement and failing international relations.

Qualifications for Hyperinflation

According to Forbes, a nation’s economy reaches hyperinflation once its monthly inflation rate surpasses 50 percent for a full thirty days. Once that inflation rate drops below 50 percent for another full thirty days, it is no longer in hyperinflation. Venezuela has been in a continued episode of inflation with some peaks of hyperinflation since November 2016.

Because of the longevity of Venezuela’s financial crisis, the nation’s economy is considered to be in hyperinflation. According to the International Monetary Fund, Venezuela’s GDP will drop another 25 percent by the end of 2019. The projected inflation rate by the end of 2019 will surpass 10 million percent.

Alleviating Inflation

Despite the economic down spiral in Venezuela, there is a potential solution that is common across business analysts. Forbes and Bloomberg Business both suggest that Venezuela adopts “dollarization.” This means abandoning the domestic currency in favor of foreign currency. Dollarization allows the economy to stabilize as Venezuela could leave behind the bolivar and adapt to an already stable foreign currency.

The reasons for inflation in Venezuela are numerous. There are some solutions out there, but they have yet to be implemented. In this case, adopting the American dollar may be the best approach to curb the rising inflation in Venezuela and reduce the poverty caused by inflation.

Suzette Shultz
Photo: Flickr

Venezuela's Failing Economy
People know Venezuela as one of the most diverse environments in the world because of its natural features, landscape and wide range of wildlife. Venezuela has massive oil reserves and ranks in the top list among countries such as Saudia Arabia, Canada and Iran, making it the most urban country in Latin America. However, in only approximately six years, the country has seen a drastic economic decline. Venezuela’s failing economy has placed the country in headlines across the world. This article will highlight a few casualties resulting from Venezuela’s financial crisis, as well as evaluating its causes.

The Impacts of Venezuela’s Economic Crisis

The extended effects of Venezuela’s economic crisis are hitting those who choose to remain in the country the hardest. Venezuela’s failing economy has led to a severe shortage and rationing of resources, including food, water and electricity. Despite the country being oil-rich, many Venezuelan’s are questioning why they are struggling. “It’s so unfair; we are such a rich country. It’s not fair that this is happening,” Jakeline Moncada told the Washington Post.

Many turn to natural water reserves despite safety concerns as these reserves often come from sewage drains leading to the spread of preventable diseases. Meanwhile, frequent power outages have caused water sanitation facilities to cease proper function. Physicians have noticed an increase in illness that commonly results from contaminated water and food, such as amoebiasis.

Estimates determine that more than 60,000 Venezuelans who started treatment for HIV now lack access to antiretroviral medications as a result of Venezuela’s failing economy. Many Venezuelan’s that could afford medical services before, now experience challenges attempting to access medical and health services. As a result, those dependent on medications must make costly trips to neighboring countries or hope to find donated medicines from organizations outside of the government.

As Venezuela’s economy has drastically decreased, a survey that the country’s top universities conducted estimated that more than two-thirds of the population lives below the poverty line. As the country experiences hyperinflation of 1.7 million percent, many families cannot afford to feed themselves more than one meal a day. Various organizations have ceased publishing the statistics of the country after specific data showed significant negative changes. For example, The Health Ministry stopped reporting data in 2017 after reports indicated a high rise in infant mortality rates. After the inflation rates suddenly rose, Venezuela’s central Bank discontinued publishing its figures in 2016. In this instance, Venezuelan organizations stopped sharing information once the statistics showed unfavorable characteristics.

Accessibility

Venezuela’s failing economy has led to difficulty accessing resources like medicare, and as a result, nearly 10 percent of the Venezuelan population is emigrating to other countries. Although Venezuelans are having a few problems getting out of the country, there has been a more significant challenge getting resources in. The military has restricted many resources from passing through its borders or at least the areas where they have the right to. The Pemón community, which borders along Brazil, has spoken in support of permitting assistance through its territory. This region, known as La Gran Sabana, also contains the only paved crossing between the two countries.

When Nicolás Maduro became president in 2015, many nations did not consider him the country’s leader but rather Juan Guaidó, the Venezuelan opposition leader. As a result, Maduro severed the remaining diplomatic relations between Venezuela and the U.S. as well as ceasing the accessibility of aid into Venezuela. Maduro has resisted outside assistance, describing the efforts as the United States desiring to meddle in Latin American affairs. However, many believe that the sudden decline results from mismanagement of funds and corruption.

Venezuela has several countries willing to provide support as it endures this period of financial difficulty. It will only receive this aid if its government allows, though, as it regulates the resources that pass through its border. Once nations can establish a common interest and agree on how to address the issue, Venezuela’s reconciliation can begin.

Kimberly Debnam
Photo: Flickr

 

The Fall of Venezuela’s Oil-Based Economy
Currently, Venezuela is in an economic crisis. According to the International Monetary Fund (IMF), Venezuela’s inflation rate will exceed 10 million percent by the end of 2019. This high inflation has destroyed Venezuela’s economy, causing poverty and unemployment rates to rise. In turn, it has also created mass food and medical supply shortages across the nation. Venezuela was not always in a state of crisis; it was once a thriving country backed by a booming oil-based economy. If one understands the fall of Venezuela’s oil-based economy, they will know how Venezuela’s current crisis came to be.

Fruitful Origins

Back in the 1920s, people found some of the world’s largest deposits of oil in Venezuela. Upon this discovery, Venezuela embarked on the path of a petrostate. As a petrostate, Venezuela’s economy relies almost entirely on oil exports. The government overlooked domestic manufacturing and agriculture, choosing to import basic goods instead of producing them within Venezuela. With strong support for an oil-based economy, Venezuela rode on its economic boom until the end of the worldwide energy crisis of the 1970s.

The 1970s energy crisis involved international oil shortages due to interrupted supplies from the Middle East. In place of the Middle East, Venezuela became one of the top oil suppliers worldwide. Oil prices thus skyrocketed due to limited suppliers and oil production in Venezuela increased to meet rising demand. Venezuela added about $10 billion to its economy during the energy crisis, providing enough wealth to cover the importation of basic goods. It was even able to begin more social welfare programs.

The Fall

Once the energy crisis ended in the early 1980s and oil prices stabilized again, Venezuela’s economy saw its first notable decline. Oil production did not decrease in spite of lowered oil prices and demand, resulting in a capital loss for Venezuela’s economy. The production of oil is an expensive endeavor which requires high capital investment in the hopes of that even higher sales can offset the investment. Therefore, while oil production remained high, Venezuela failed to build off of the investment, losing capital immediately.

This loss of capital marked Venezuela’s oil-based economy’s initial fall, as Venezuela risked its well-being on the unstable oil market. Just prior to the drop in oil prices, Venezuela went into debt from purchasing foreign oil refineries. Without investing in domestic agriculture or manufacturing, the Venezuelan government became economically strapped; it could no longer pay for its imports and programs, and especially not its new refineries.

In order to pay for its expenses, Venezuela had to rely on foreign investors and remaining national bank reserves. Inflation soared as the country drilled itself further into debt. It was not until the early 2000s that oil prices began to rise again and Venezuela could once more become a profitable petrostate — in theory. Under the regime of Hugo Chávez, social welfare programs and suspected embezzlement negated the billions of dollars in revenue from peaked oil exports.

By 2014, when oil prices took another harsh drop worldwide, Venezuela did not reserve enough funds from its brief resurgence of prosperity. Ultimately, the country fell back into a spiral of debt and inflation.

Lasting Effects

The fall of Venezuela’s oil-based economy sent shockwaves throughout its population, affecting poverty and unemployment rates and causing mass food and medical shortages. Estimates determined that in April 2019, Venezuela’s poverty rate reached nearly 90 percent nationwide. A notable factor of its widespread poverty, some suggest that Venezuela’s unemployment rate was 44.3 percent at the start of 2019.

Unemployment is rapidly increasing in Venezuela as both domestic and foreign companies lay off workers — with some companies offering buyouts or pension packages, and others just firing workers without warning. As Venezuela falls further into debt and its inflation rises, there is not enough demand within the country for foreign companies to stay there.

As previously mentioned, the earlier Venezuelan government chose to rely on imports rather than domestic production for its basic goods. Now, in 2019, the country suffers from its past mistakes. Unable to afford its imports, food and medical supply shortages are rampant across Venezuela. According to recent United Nations reports, over a 10th of the nation’s population is suffering from malnourishment. In addition, malaria — which the country virtually eliminated several decades prior — is reappearing as there are more than 400,000 cases nationwide.

A Way Out

While the fall of Venezuela’s oil-based economy may be detrimental to the nation’s overall stability, there is a way out of ruin: the International Monetary Fund, an international agency that exists to financially aid countries in crisis. In the fight against global poverty, the IMF is a vital tool that can prevent countries from reaching an irreparable state.

If Venezuela defaults on its debt and seeks funding from the IMF, Venezuela would be able to invest in domestic agriculture and other infrastructure. Therefore, if the oil industry continues to decline, there will be a fallback for supplies and potential exports. While this is not a panacea to the fall of Venezuela’s oil-based economy, it is a way for the nation to prepare for any future declines in oil prices and begin to work toward prosperity.

– Suzette Shultz
Photo: Flickr

Fuel Shortage in Venezuela
In 1960, the Organization of Petroleum Exporting Countries (OPEC) established to coordinate and unify policies around the price of oil. This intergovernmental organization consists of 15 nations that produce 44 percent of the world’s oil and own 81.5 percent of the world’s oil reserves. Given the importance of oil in today’s economy, it is reasonable to assume that OPEC members are well-off, especially those with vast oil reserves. However, the fuel shortage in Venezuela proves otherwise.

Fuel Shortages Starve the Country

Venezuela, one of the five OPEC founders, boasts the world’s largest oil reserve. Although this South American country sits on a vast reservoir of mineable liquid gold, there is a fuel shortage in Venezuela that starves it. Due to years of mismanagement and corruption, the oil-rich nation has dried up its gasoline pumps, leaving lines trailing from gas stations that last hours. People can sometimes wait for days to fill their tanks. In the southern and western states of Tachira and Bolivar and the central states of Carabobo and Aragua, people can wait in line for five hours or more. Venezuela has limited power so it rations it; periodic power outages means that people cannot pump gas. However, there are no gas shortages in the country’s capital, Caracas; oil tankers divert into the capital to supply its six million citizens, but also to prevent political unrest around the Parliament.

These fuel shortages and gas station lines are impeding on already troubled Venezuelan lives. The hyperinflation and lack of job opportunities in the country hinder a good quality of life and gas shortages push this even further. Citizens cannot get to their jobs when their cars are empty on fuel or when they are stuck in line to fill up.

However, the fuel shortages in Venezuela are troubling to not only the day-to-day lives of citizens but also the entire agriculture industry that feeds the population. Fuel shortages compound the effect of food insecurity. When there is a shortage of fuel, food cannot make it from farm to market or from city to city. There is no rail system to move food either. Farmers leave harvested produce to rot, simply because the truck that transported vegetables to the market never arrived. On May 20, 2019, the National Federation of Cattle Ranchers in Venezuela issued a public plea to the government citing its difficulty moving cattle across the country.

Delayed shipping dates are not the only way fuel shortage in Venezuela impacts agriculture. Farmers might have nothing to sell because pesticide shipments might not arrive to prevent insects ruining their harvest. Without the shipment of crucial parts, farmers cannot operate basic equipment and without a reliable gas pump, workers cannot take the bus into work. Fuel shortage in Venezuela impacts not only the food but the equipment and the workers necessary to cultivate crops.

Plummeting Oil Production in the World’s Largest Oil Reserve

In the past, Venezuela has provided generous gas subsidies to make fuel almost free. However, the issue of fuel shortage began in 1989, when then-President Perez announced an end to the gas subsidy. The announcement resulted in large riots and since then, the suggestion of increased prices of oil is taboo. Thirty years later and after six years of economic crisis and recession, oil is still cheap, but production has dropped significantly. At the beginning of 2019, PDVSA, the state-owned oil and gas company, produced 1.2 million barrels of oil. On April 2019, this figure dropped down to 830,000. This decrease in production is due to obsolete machinery and under-resourced facilities. Additionally, as of now, only two refineries are in operation.

In addition to the mismanagement and corruption that has caused these plummeting oil production rates and shortages, the Maduro government also blames the corruption of former management of resources and U.S. sanctions. These sanctions prevented the export of specific materials that refine crude oils into usable fuel.

Solutions

Corruption, mismanagement and sanction stand-offs are difficult to address. However, there are many NGOs that operate on a community level and provide for those immediately in need. The Venezuelan Engagement Foundation Group (VEFG) is one of these NGOs with programs that address the effects of the fuel shortage and resulting food insecurity. One of its top missions is to provide nutritional meals to children in need through food programs. This year, its food programs have targeted communities in need, mainly children who are the most impacted demographic regarding food shortages. VEFG’s #FeedAKid campaign guarantees that $1 can give a child one meal a day through community kitchens and school canteens. Currently, VEFG feeds 3,000 children, teenagers and elders in 32 different centers worldwide or 90,000 meals a month.

Venezuela’s position is full of contradictions. As an oil-rich OPEC country with fuel shortages and once the richest country in South America, it is now grappling with hyperinflation, failing job markets and food insecurity. The corruption and mismanagement in government have failed to convert the potential of oil into social welfare. Venezuela has limitless potential in terms of its crude oil reserves ready for refinement. The efforts of NGOs on the local level and change on the national level will refine the crudity of poverty into prosperity.

– Andrew Yang
Photo: Flickr

Conflict in Venezuela
In January 2019, Nicolás Maduro won the Venezuelan presidential election, bringing him into his second term as president. Citizens and the international community met the election results with protests and backlash, which has only added to the conflict in Venezuela. The National Assembly of Venezuela went so far as to refuse to acknowledge President Maduro as such. Juan Guaidó, an opposition leader and president of the National Assembly, declared himself interim president almost immediately after the announcement of the election results, a declaration that U.S. President Donald Trump and leaders from more than 50 nations support. Russia and China, however, have remained in support of President Maduro.

During his first term as president and beginning in 2013, Maduro has allowed the downfall of the Venezuelan economy. His government, as well as his predecessor, Hugo Chávez’s government, face much of the anger regarding the current state of Venezuela. Continue reading to learn how the conflict in Venezuela is affecting the poor in particular.

How Conflict in Venezuela is Affecting the Poor

Maduro’s aim was to continue implementing Chávez’s policies with the goal of aiding the poor. However, with the price and foreign currency controls established, local businesses could not profit and many Venezuelans had to resort to the black market.

Hyperinflation has left prices doubling every two to three weeks on average as of late 2018. Venezuelan citizens from all socio-economic backgroundsbut particularly those from lower-income householdsare now finding it difficult to buy simple necessities like food and toiletries. In 2018, more than three million citizens fled Venezuela as a result of its economic status to go to fellow South American countries such as Colombia, Brazil, Panama, Ecuador, Peru, Chile and Argentina. However, nearly half a million Venezuelans combined also fled to the United States and Spain.

Venezuela is currently facing a humanitarian crisis that Maduro refuses to recognize. The opposition that is attempting to force Maduro out of power is simultaneously advocating for international aid. As a result, local charities attempting to provide for the poor are coming under fire from Maduro’s administration, as his government believes anything the opposition forces support is inherently anti-government.

In the northwestern city of Maracaibo, the Catholic Church runs a soup kitchen for impoverished citizens in need of food. It feeds up to 300 people per day, and while it used to provide full meals for the people, it must ration more strictly due to the economic turmoil. Today, the meals look more like a few scoops of rice with eggs and vegetables, and a bottle of milk. While the Church’s service is still incredibly beneficial, it is a stark contrast from the fuller meals it was able to provide just a few years prior.

The political and economic conflict in Venezuela is affecting the poor citizens of the country in the sense Maduro’s administration is ostracizing local soup kitchens and charities. A broader problem facing the poor is that because Maduro refuses to address the humanitarian crisis, international organizations like the International Committee of the Red Cross (ICRC), UNICEF and the World Food Programme (WFP) are unable to intervene and provide aid.

Project HOPE

There are non-governmental organizations (NGOs) that are making an effort to help Venezuelans suffering as a result of this crisis. One of the easiest ways they can be of service is by providing aid and relief to citizens who have fled to other countries. Project HOPE is an organization that currently has workers on the ground in Colombia and Ecuador to offer food, medical care and other aid to those escaping the conflict in Venezuela. Project HOPE is also supporting the health care system in Colombia in order to accommodate the displaced Venezuelans there.

The current conflict in Venezuela is affecting the poor, but it is also affecting the entire structure of the nation. It is difficult to know what the outcome of this conflict will look like for Venezuelans and for the country as a whole. What is important now is to continue educating people about the ongoing crisis so that they can stay informed. Additionally, donating to Project HOPE and other NGOs working to provide aid to Venezuelans in neighboring countries would be of great help. With that, many Venezuelan citizens will know that people support them and are fighting to see progress.

– Emi Cormier
Photo: Flickr

Mass Migration Out of Venezuela
Mass migration out of Venezuela has several determinants including high inflation, crime rates, food and health care scarcity and the violation of human rights by government forces. These crises are deteriorating living conditions within this Latin American nation, creating a strong push factor for its citizens. The mass migration out of Venezuela is a phenomenon of desperation and necessity, resulting in millions of Venezuelans fleeing from the struggling nation.

Where are Venezuelans Fleeing to?

According to the United Nations Refugee Agency, as of May 2019, over 3.7 million Venezuelans have fled the country. This is around a 10th of the nation’s population. Of these migrants, around 464,000 are asylum-seekers, with the rest acquiring other forms of residency. The majority of these migrants stay in Latin America, while some flee as far as Southern Europe.

In Latin America alone, the highest concentrations of Venezuelan refugees are located as follows:

  1. Columbia: 1.1 million
  2. Peru: 506,000
  3. Chile: 288,000
  4. Ecuador: 221,000
  5. Argentina: 130,000
  6. Brazil: 96,000

Life of Venezuelan Refugees and Migrants

The main goal of these migrants is to secure human rights in other countries. This is due to Venezuela no longer securing these rights within its borders. The United Nations recognized this motivation behind the mass exodus back in an August 2018 report and has since then been pressing Venezuela to address these concerns. As for other countries recognizing this humanitarian crisis, neighboring nations such as Columbia have built temporary refugee camps to house migrant Venezuelans.

Unfortunately, not all migrants receive legal residency in their countries of refuge. While some migrants obtain asylum or temporary legal residencies, some seeking refuge resort to illegal means, leaving them at risk of deportation. Whether illegal or legal, Venezuela migrants all may face potential hardships.

Across the board, people uproot from their homes in Venezuela, leaving behind everything they once had. Venezuelan refugees face unemployment and homelessness, as well as little to no access to basic necessities for survival. Venezuelan refugees are also particularly vulnerable to robbery and human trafficking. This risk amplifies especially as an illegal migrant, as those migrants may resort to contacting gangs in order to enter a region.

Intervention

To combat the potential hardships Venezuelan refugees may face, many organizations are stepping forward to alleviate struggles for migrants. Taking on health services, organizations like Project Hope are continuously reaching out to hospitals packed with refugees, such as those in Cúcuta, Colombia.

Project Hope trains medical teams, provides on-site doctors, supplies essential medicines and treatment care and provides numerous other forms of aid to assist refugee-filled health facilities across Latin America. The International Refugee Committee and UNICEF are other notable organizations providing medical assistance.

Organizations like Global Affairs Canada and the Pan American Development Foundation are helping with housing Venezuelan refugees and building shelters. For instance, shelters exist in Boa Vista, Brazil, and in other areas of great need. Given the sheer magnitude of Venezuelan migrants, proper housing proves to be one of the biggest challenges countries with refugee influx face.

While there are many organizations providing aid to Venezuelan migrants and refugees, one thing is clear: the best way to help these Venezuelan migrants is to help Venezuela as a country. So long as Venezuela is in an economic, political and humanitarian crisis, citizens will continue to flee it. The mass migration out of Venezuela is not an isolated event; it is a symptom of a much bigger problem plaguing Venezuela.

– Suzette Shultz
Photo: Flickr

10 Facts About Hunger in Venezuela

Food shortages across Venezuela started to rise in 2013, around the time of President Hugo Chávez’s death. Less than a year later, the nation’s oil-dependent economy began to tank and inflation began to soar. Venezuela could no longer afford the cost of its imported basic goods, resulting in nationwide shortages in food and medicine. While the nation’s instability worsens, people are going hungry in Venezuela. Here are the top seven facts about hunger in Venezuela.

7 Facts About Hunger in Venezuela

  1. In 2017, 89.4 percent of Venezuelan households could not afford basic food supplies due to inflation and six out of 10 Venezuelans reported going to bed hungry. In February 2019, peak inflation in food prices hit a staggering 371,545.6 percent and high rates are continuing throughout 2019.
  2. Due to hunger in Venezuela, malnourishment is quite common. The United Nations reported that nearly 3.7 million Venezuelans suffered from malnourishment in 2018.
  3. Mass weight loss is also common across Venezuela as 64.3 percent of Venezuelans lost weight due to food shortages in 2017. Venezuelans who lost weight dropped an average of 11.4 kg each since the shortages began. 
  4. Available food supplies all too often end up on the black market and are sold by bachaqueros. Bachaqueros buy subsidized goods at government-set prices, then sell those goods at double, even triple, the original price, taking advantage of struggling communities. This illegal practice is exacerbated by Venezuela’s compounded crises.
  5. Without easy access to affordable food supplies, some Venezuelans resort to using alternative resources. For example, the yuca root can replace potatoes, which is a similar, yet far cheaper vegetable. In more desperate cases, scavenging for scraps has also become popular.
  6. Although President Nicolás Maduro has rejected many types of humanitarian aid, including extensive efforts to send food supplies, the government has accepted aid from nonpartisan groups. In 2018 alone, Cuatro Por Venezuela, one of the largest relief suppliers, sent 41,804 pounds of food to Venezuela, amounting to 120,000 standard meals for people in need. These supplies are distributed directly to schools, orphanages, nursing homes and homeless shelters all over Venezuela.
  7. In addition to nonpartisan NGOs, international government groups, such as the European Commission (EC), allocated another €50 million to the crisis in Venezuela, along with additional food supplies and nutritional services in March 2019. 

As food shortages continue and people remain hungry, these seven facts about hunger in Venezuela show that the country is in a clear humanitarian crisis. While there are aid efforts out there, supplies must be sent in as nonpartisan support. So long as aid efforts adhere to this restriction, there is hope for hunger relief in Venezuela.

—Suzette Shultz
Photo: Wikimedia Commons

Education in Venezuela
The Council of Foreign Relations refers to Venezuela as a failed petrostate, or as a nation struggling economically—and, as a result, socially—due to extensive reliance on a once successful, now-fractured petroleum trade. In 2015, global prices plummeted to less than $49 per barrel of oil. Just a year earlier, the average was $93 dollars per barrel. Since then, the Venezuelan economy has experienced inflation at record high rates—the highest at 2,688,670 percent in January 2019. This led to food and vital medicine shortages across the country. Almost 90 percent of the country’s population now lives in poverty, and education in Venezuela has experienced a major decline.

The economic situation this country has experienced since 1990 is almost entirely responsible for the lack of funding and resources that the country allocates to social welfare programs—particularly those supporting electricity, running water and food security in education. Despite worldwide support for leadership change in Venezuela while it is desperately in need of humanitarian assistance and guidance, people are doing very little to address the needs of individual citizens and the currently under-covered establishment of education in Venezuela.

Why Venezuelans Cannot Stay in School

Under the current system, basic education in Venezuela is compulsory and free–in recent years, however, the Venezuelan government has failed to follow through in ensuring these elementary level schools are in stable condition to foster a learning environment. As the disadvantages of remaining in Venezuela continue to increase, a growing number of Venezuelans have begun immigrating to countries like Colombia and Brazil in search of a better life. The conditions for learning in Venezuela are so dire. UNICEF reported on May 31, 2019, that up to 3,000 Venezuelan children in one region of the country cross daily into neighboring Colombia to get to and return from their school in the Colombian border city of Cúcuta. Seven thousand more students with their families have already left Venezuela behind and migrated to Colombia to live and learn there full time.

The quality of consistent and scheduled education in Venezuela has declined drastically in recent years. Country-wide power outages that lead to the cancellation of classes for days and weeks on end discourage many people in Venezuela from trusting the educational system of their country. While the Ministry of Education in Venezuela has yet to report on the frequency of power outages in Venezuelan schools, a Reuters article found that two major blackouts in March 2019 led to the government canceling classes for a week at the beginning and end of that month. Though classes would normally end at the start of July, Venezuelan Education Minister Aristibulo Isturiz said the school would be open until the end of July to account for missed educational days.

UNESCO has found Venezuelan youth are not remaining in school as they did in years past. In 2009, the gross enrollment ratio for primary students in Venezuela was 101 percent. In 2017, that ratio became 93.37 percent. This is alarming due to the fact that nine years of education (ages 7-14) are legally compulsory by decree of 1880 Venezuelan President Antonio Guzman and solidified through the creation of the Ministry of Public Instruction and the Bolivarian social program Mission Robinson. Though there should be no obstacles keeping children of this age in school, on average 7 percent do not attend. Secondary education adolescent gross enrollment dropped from 92 percent in 2013 to 83 percent in 2017. Between 2013 and 2017, the number of out-of-school children grew by 200,000 and the number of adolescents no longer in Venezuelan schools increased by 150,000.

No Food, No School

This overall decrease in quality also has to do with the fact that children who made sure to attend for the sake of receiving at least one meal per day are no longer receiving a meal at school. At the Santo Anglo School an hour outside Caracas, the nation’s capital, schools have adjusted their protocol so that they are not responsible for feeding students anymore. They ask parents to feed children breakfast before they go to school and end school around 11:45 a.m., which is just before lunch so they do not have an obligation to provide it.

These issues persist in all parts of this country. Francy Rodriguez, a teacher in Venezuela’s capital, told an Al-Jazeera reporter that, “The children have no food at home and they come here to at least get one meal. But we haven’t had food for a year because the kitchen is broken. The children faint during physical education class because their stomachs are empty.” A Venezuelan regional president to a chapter of the National Federation of Educational workers stated that “Hungry people aren’t able to teach or learn. We’re going to end up with a nation of illiterates.”

Efforts to Fix the Crisis

In a joint effort led by the International Organization for Migration and the office of the United Nations High Commissioner for Refugees, 95 worldwide organizations that strive to end migrant crises will be working to solve the Venezuelan migrant crisis by following the Refugee and Migrant Response Plan of 2019. This plan provided “a total of USD 738 million … for the period January – December 2019, including USD 315.5 million for Colombia, USD 117.3 million for Ecuador, USD 106.4 million for Peru, USD 56.6 million for Brazil, USD 35.7 million for the Southern Cone, USD 34.8 million for the Caribbean, USD 21.7 million for Central America/Mexico and USD 49.7 million for regional (Venezuela).”

In addition, UNICEF advocates are appealing to allocate around $70 million to the Venezuelan cause, with a focus on assisting local and national governments within that region to improve the quality of “drinking water and sanitation, protection, education and health services for uprooted children and those in vulnerable communities.” Also, the World Food Programme plans to expand its initiative supplying food in schools that are not meeting healthy standards to Venezuela. In doing so, it provides food security so that children do not feel obligated to enter the labor force at an age they should be learning and growing their intellectual capabilities.

– Fatemeh-Zahra Yarali
Photo: Flickr