Hugo Chavez's transformative presidency left behind an economic model that has sown deep, heated divisions within Venezuelan society. The country's oil reserves—among the world's biggest—largely sustain the state-controlled economy, in which social development and affordability for the poorest sectors of society are prioritized. But stringent currency and price controls and a thriving black market for U.S. dollars have contributed to inflation, stagnant production, and frequent goods shortages, catalyzing vocal discontent with the government's economic management. Crashing oil prices in late 2014, paired with reduced output, threaten to diminish the country's main source of income.
Read Full Article »
