- Feb 2018
You're walking it back. I didn't compose your post so don't blame it on me. All you needed to do was to be honest.BECAUSE Venezuela's dependence on oil sales hollowed out their economy!
I can't fit everything in a post. I thought you were aware of these things, and wouldn't need spoonfeeding!
Venezuela is not and has never been a truly socialist country in anything more than the social democratic sense, a mostly privately owned economy with sizable social programs to balance out disparities in wealth.
EVERY economy where oil production and export becomes greater than 50% of its GDP, ends up hollowing out as oil revenues overwhelm all other production. There is only one exception to the rule.........Norway! Perhaps because Norway is a social democratic society where the public sector provides benefits for everyone and has progressive income taxation to limit the gaps in income. And the Government is about the only major oil producer in the world that has managed to squirrel away its share of oil revenues into a national capital fund that is in the billions (I haven't looked up the number recently) while Canada, including the Province of Alberta, Alaska and ME nations like Saudi Arabia are burning through their sovereign wealth funds and will have nothing left in a few short years.
Venezuela has spent a large amount of its oil profits on building housing and social programs for the poor, but unlike Norway, they haven't been saving for a rainy day!