Quote (Plaguefear @ Sep 30 2020 12:40am)
Venezuela was a third world dictatorship prior to its revolution, and the cia has clearly meddled in its affairs, what really hurt them however had nothing to do with communism.
The saudi's got in an oil war with russia and tanked oil prices as a show of force.
Venezuela was a democracy and elected Hugo Chavez via the Democratic process. Nor did the CIA make a concerted effort to overthrow the Chavista regime. To the contrary, the United States went so far as to warn Chavez in advance that dissident forces were planning a coup, which was (temporarily) realized in 2002.
The oil price collapse is a non sequitur. Price wars happen, all the more so when dealing with a commodity over which nations exercise an incredible degree of control. But Venezuela was uniquely impacted to the extent that it was. Even states that had non-competitive economies (e.g. Saudi Arabia) had exercised financial prudence in the preceding decade and were in a position to weather the storm. In order to fund the social welfare programs that were the hallmark of the regime, additional revenue had to be extracted from the PDVSA. This came at the expense of investment. The regime needed to exercise political control over PDVSA, and the company saw a corresponding talent drain as well-educated engineers left for greener pastures. The nationalization of oil projects funded by high-tech, Western oil companies had unfortunate long-term repercussions, and Venezuela has been completely unable to develop their natural oil reserves and bring additional fields online.
In short, Venezuela's financial woes are inextricably linked to Chavist socialism. High welfare expenditures, combined with heavy government regulation over the economy, and a resistance to financial reform (lest it lead to austerity) all contributed to a Venezuela that could not exist without extreme outlier oil prices (at one point I believe they need $140 / barrel to break even) that we're unlikely to ever see again. And while Venezuela pre-Chavez struggled with ineffective government and corruption (as do most countries), those problems have only become worse as a result of Venezuela's transition to a singe-party state.
This post was edited by bogie160 on Sep 29 2020 11:25pm