A few years back until 2012, Venezuela was one of the most rapidly growing economies in the world. It had already left behind many developing countries of the world. Till 2012, Venezuela was the largest coal producer of Latin America and it stood second when it came to the countries that had the most gold reserves. It stood 6th when it came to the countries that had the largest reserves of oil and it had already left countries like the USA, Canada, and Mexico far behind in this aspect.
The countries economy thrived on its natural mineral resources like bauxite and iron ore. So what made Venezuela topple from such great heights? The answer is pretty straightforward and simple to understand. Nicolas Maduro’s initial term was ridden with bad governance and a lack of strategies. However, the second term is far more controversial as it is filled with political disturbances and lack of clarity in terms of leadership.
Venezuela was dependent on its oil reserves heavily but when the prices of oil fell around the world it found it hard to provide subsidies on food and social welfare schemes. The issue escalated in the term of Maduro as he failed to control the growing inflation and falling GDP of the country. In 2016, the GDP of Venezuela was minus 8 percent and the rate of inflation was 481 percent.
Back then, the unemployment rate was 17 and this tells us why the country has failed to grow in recent years. If we see India in this context then it seems that we are in a far better position. However, we must also realize that only a couple of bad decisions can make situations as bad if not worse.
Currently, India is witnessing the highest rate of unemployment in the last 45 years. The GDP growth rate has also declined rapidly in the past few months. Also, like Venezuela, the government of India is trying to destabilize the country by spreading hate, centralization of power, and communalism.
Venezuela’s condition is so bad that 94 percent of its population today is forced to live in poverty. Millions of people have fled from the country and massive killings have taken place making the country the third highest in the world terms of violence. The situation in India is not as bad as in Venezuela but we are seeing that people have been slaughtered and lynched in the name of religion and cow.
The government is trying to enforce its law by acting against the constitution as they did by abolishing the 370 and 35A articles. Similar things were seen in Venezuela as well and the president is now trying to rewrite their constitution. From this, we can conclude that a few years of destabilization and poor governance can spoil the entire economic condition of a nation. Therefore, if we do not handle and control the situation now then our economy can slide further down.