Boom to Bust: The Fall of Venezuela

The case discusses the collapse of Venezuela’s economy with the country going from being a rich nation with the largest reservoir of oil to one in the middle of a messy economic crisis. While the country earned a huge amount of oil income from 1999 to 2013, it failed to utilize that extra income to create a sound economy. This led to the downfall of its economy, society, and finances. During his last days, President Hugo Chavez (Chavez) chose Nicolas Maduro (Maduro) as his successor. Maduro, who became President in 2013, inherited a messy economy and a disturbed society. Analysts observed that Maduro failed to revive the dwindling economy and that under him, the situation only worsened. The rate of inflation skyrocketed; almost 70% of the population was living under poverty; the rate of crime and unemployment increased like never before; the fiscal deficit increased with every passing month; and the country as a whole was on the verge of total collapse. Industry experts believed that the political instability prevailing in the country was a major contributor to Venezuela’s condition.