According to multiple sources, scholars have noted the Trump Administration’s consistent attacks imposed onto Nicolas Maduro, his repressive regime, as well as his constituents following the debt default crisis in 2017 . Largely due to the death of former President Hugo Chavez and Maduro’s desire to extend his predecessor’s socialist agenda, much of Venezuela’s economy has spiraled into disarray. As a result of the issuance of financial and individual sanctions on most of Maduro’s closest allies, much of these restrictive mandates have included the revocation of travel visas into the US, the sanctioning of two Russian-related oil subsidiaries that transported Venezuelan oil, the blockade of funding sources towards US-deemed terrorist organizations in the Middle East (i.e. Hezbollah), and much more.
Ultimately, all of these US sponsored sanctions have been proven to be effective within the grounds of US Diplomacy; However, much of these sanctions have crippled the Venezuelan economy and has caused for much political upheaval and uncertainty for the next potentially democratic government to take its place. Although much of these sanctions aforementioned have not caused much of a dent in the overall economic output of the nation, a particular sanction, authorized under Trump, caused for the embargo of Venezuela’s state oil company to effectively collapse, not allowing gas to be transported into the US to be converted into gasoline. It has been proven that Venezuela may have more reserves than Saudi Arabia. But in terms of output, Venezuela’s oil industry has collapsed. The country’s production of oil is at its lowest point in 77 years. With a crippled economy and an exacerbated migration crisis comparable to the likes of the Syrian War migration event, The US has not made matters easy for the potential regeneration of Venezuela’s economy.
A remedy to allow for the survivability and sustenance of the Venezuelan economy may involve detaching the state-sponsored aspect and privatizing production output under effective oversight by a delegation from The United Nations Economic and Social Council.
Sources:
Sullivan, Mark P. “Venezuela: overview of US Sanctions.” Congressional Research Service, May 8 (2019).
https://www.bloomberg.com/graphics/2019-venezuela-key-events/
Thanks, Tim, for this post. It has been evident for some time that Maduro lacks Chavez’s smarts and political skills. Yet, what remains a mystery is how and why he has managed to maintain his hold on power, especially given that there is a bona fide competitor by the name of Guaido. The Venezuelan economy is in a shambles, with run-away inflation, yet they are sitting on the largest proven oil reserve in the world, which they apparently cannot exploit. There seems little doubt that the US sanctions are hurting, but yet Maduro has not been overthrown or removed from office, despite the crude attempt to do so. It will be interesting to monitor this situation in the coming months.
–Professor Wallerstein