QUESTION 1 (55 MARKS)

Using the link provided below, access the following case study on Venezuela:

Cheatham, A., Roy, D., & Labrador, R.C. (2023, March 10). Venezuela: the rise and fall of a petrostate. Council on Foreign Relations. https://www.cfr.org/backgrounder/venezuela-crisis [Accessed 14 March 2023].

Analyse Venezuela’s economy and identify the internal and external factors that have led to its current economic position. If necessary, you are welcome to do further research. (20)
Develop a cause and effect model for the Venezuelan economic crisis. Be guided by the rubric provided below:  (35)

QUESTION 2 [45 MARKS]

Analyse the state of the economy currently and map a reform programme to put it on a growth path in the aftermath of the COVID19 pandemic. With this in mind, make sure to consider issues of sustainable development, economic growth and equity in your proposed reformation programme.

Bear in mind this question will require you to read and research further than the content given to you in the Study Materials provided. Be guided by the rubric provided below: (25)

Answers to Above Question on Venezuela Economy

Answer 1: 

An analysis of the case of Venezuela indicates that the economy has faced a crisis over the years, in the form of scarcity of basic goods, and high inflation level. A critical analysis indicates that the extensive dependence on oil is a major factor that is affecting the economy of Venezuela in a negative way. The high level of inflation and political instability across the economy, with high levels of corruption within the Venezuelan government has all contributed towards an economic crisis across the economy.