Introduction
Venezuela has long been regarded as one of the riches and peaceful countries in the entire Latin America. This great stride was as a result of the vast oil reserves available in the country. However, this aspect has negatively changed due to the political, social, economic, and institutional Venezuela Crisis witnessed in modern times.
Explanation of the Venezuela Crisis
As mentioned above, Venezuela is currently experiencing numerous types of crisis ranging from political to economic. The political crisis is primarily due to hunger for power between two politicians who have established a great rivalry. Each of them is incredibly enthusiastic about becoming the country’s legitimate leader. The socialist party in the country has for a while been the PSUV party (BBC NEWS, 2020).
This political crisis has championed the adversity witnessed in the economic sector, leading to a significant reduction in its per capita income. Consequently, the economy has deteriorated, and the developing political war between the opposition leaders and the reigning leaders has caused the entire nation’s governance to stagnate (Buxton, 2005). The ensuing political crisis has resulted in the shortage of medical supplies as the relationship between Venezuela and other companies has degenerated. There is a speeding up of the history of a situation that, for a while, has been gradually developing in the country.
Social and institutional
Social and institutional cries are also showing up with adverse effects on the citizens, and neighboring states becoming uncontrollable. Various organizations in the country are at war and cannot respect the legitimate policies of one another. Conflict is the order of the day. For instance, the legislative arm of the government does not get along with the executive arm. Studies suppose that the parliamentary elections carried out in 2015 are the root cause of Venezuela’s current crisis (Buxton, 2005).
The country is slowly becoming more polarized and radicalized as time goes by, leaving the government in tatters. The tremendous stagnation of activities and projects in the country can be attributed to society’s divisive nature. A substantial group of residents is supporting a president of their choice. This misunderstanding among the citizens and the leaders is a driver for the crisis existing in the country (BBC NEWS, 2020).
Venezuela Crisis
Demonstrations from citizens are the order of the day in Venezuela. Many people are giving accusations against President Nicolas Maduro. They are not ready to tolerate his dictatorship leadership, and champion for his resignation from the heavily and hotly contested seat. However, President Nicolas Maduro is unwilling to step down, claiming that the opposition conspires to destabilize the nation with the United States of America (U.S Department of State, 2020).
A look at the suspended election for legislators in 2016 shows that the resulting postponement was met with demonstrations due to the legal voters’ dissatisfaction. The government gave a ‘vague’ reason for imminent voting irregularities to occur contrary to the belief of many voters across the country’s boundaries. A possible key contributor to the country’s boundaries should be the notion that the court ruling stripped them of their supermajority (Hellinger, 2000).
In turn, the opposition swore in three legislators (venting their anger on the court and the ruling president). The disagreements continued when the ruling court suspended a stay-or-go referendum to have President Maduro resign (U.S Department of State, 2020). In addition, regional elected were postponed to the following year.
Effect of Venezuela Crisis on Citizens
Numerous citizens are suffering. This is due to lack of fundamental necessities, remarkably sufficient food, and water to survive. Besides, many of them are languishing in unemployment and insufficient funds to seek health care services from the nation’s health care facilities. Others are yet searching for a better and peaceful environment where their security and safety is guaranteed.
There is a higher emigration rate in the country due to the increased cost of living, multiple violent actions and injustices. Forgotten illnesses such as outbreaks of cholera and malaria are again gaining an upward trend (the re-emergence of the once eradicated diseases). Several children are continually losing their lives to hunger, malnutrition and related diseases (U.S Department of State, 2020). Approximately more than four million citizens have become internally displaced, while about five million have become refugees (Otis, 2018).
In a nutshell, the challenges Venezuela Crisis include;
A drop in the revenue earned from oil sales
Venezuela is renowned for its massive oil reserves in the whole world. Its previously huge economy owes its growth and development from the oil reserves. It has for a while been one of the wealthiest countries in Latin America. The enormous economy was liable for the peace and democracy that existed despite the lack of fairness in the distribution of natural and government resources.
The past couple of years have seen the economy collapse rapidly (Lorde, Jackman & Thomas, 2009). The output from oil production has fallen by over a hundred thousand barrels per day. The effects are a decreased amount of profits (expected return on investment). The primary cause of these unwanted effects is the poor and corrupt governance and management of the oil reserves.
Hyperinflation in the country
The state’s inflation rate dramatically and progressively hiked year-in-year-out from 50 percent in 2014 to 540 percent in 2017. According to reports filed by the opposition, this surge is associated with a higher rate of depreciation of the value of the local currency (Kiger, 2019). This would further diminish the economic prowess of Venezuela, leaving its residents languishing in poverty.
Becoming a victim of war and conflicts
There is a high level of speculation and hoarding in the country from the various business individuals in the different locations within the country. Consequently, a reduction in the profitable economic operations and related activities of the country is inevitable. This aspect leads to the weakening of the currency’s value on the black market compared to other nations with a robust economy.
Insufficient food and water (the most basic needs) for use by the residents
The prices of food and related items have enormously increased due to the weakening economy and the Venezuela Crisis. The government is attempting to sustain the inflow of cash. This unexpected change in the cost of essential commodities causes a severe shortage among those unable to afford it. Long queues of customers are ever-present inside and outside groceries, supermarkets, and government offices (seeking aids).
Hence, death rates from food shortages are expected to rise tremendously. To curb this menace, citizens have opted to seek refuge from neighboring countries such as Trinidad, Colombia and Latin America. Colombia offers essential goods and services at affordable prices, making it the most affected by Venezuela’s crisis thus deepening the economy further (Oxford Business Group, 2019).
Public health system crisis
The public health system in Venezuela is one of the hardest hit in recent times. Medicines and health equipment are not available for use by the health care workers in public hospitals to offer services to those in need. At most times, patients die as their relatives are out of the hospitals seeking treatment, and do not report back in time to save their loved ones (Page et al., 2019).
High incidence of crime and poverty
Criminal activities coupled with violent actions are widespread all over Venezuela. There are rampant and frequent reports of increased murder cases in the country.
Effect of Venezuela Crisis on Trinidad
Trinidad and Tobago is also a rich country owing to its large oil, natural gas and petrochemical reserves. Therefore, Trinidad and Tobago can confidently be quoted as having a stable economy. However, it has a low population. Proportionate to its population, it has allowed more refugees from Venezuela into its districts than any other neighboring country (Otis, 2018). Immigration into the country raises questions on the evaluation and position of the country’s energy reserves, social welfare support, advancements in the tourism industry and national security.
The dramatic rates of immigration in host countries, such as Trinidad and Tobago, have led to a high level of tension in the host nations. This is because diseases are spreading and spilling over these countries causing restlessness among the native citizens. Besides, the hospitals are unable to accommodate high numbers of patients. Congestion in hospitals is slowly becoming the order of the day (Grillet et al., 2019).
Many of the Venezuelans come to the island as tourists but end up staying there longer due to the comfortable environment contrary to their home country. This unexpected immigration into the country puts Trinidad at an excellent potential of facing a humanitarian crisis. Consequently, the government has devised staunch regulations regarding the migration of Venezuelans into the country.
Security Detail
Security has been beefed due up at its borders due to the Venezuela crisis to ensure that no one gains access to the country without permission. The country is ignoring petitions from numerous Venezuelans seeking a refugee permit to inhabit its refugee camps (Otis, 2018). The country’s government has since deported thousands of refugees from Venezuela, some of whom were looking for a place of safety.
The action mentioned above has made the country enter legal battles with bodies and organizations for currency’s value’ rights. Trinidad signed a convention enacted in 1951, associating with refugees’ status, which is concordant with refugees’ internationally recognized laws (Otis, 2018). However, the United Nations has accused Trinidad and Tobago of breaching the laws that permit an individual to seek for asylum from neighboring countries in case of crisis.
The United Nations states that the refugees mentioned above must not be forced to return to their countries if their lives and freedom are at risk. The government replied that they do not have sufficient space to accommodate a large population. Discussions and heated arguments ensue because Trinidad and Tobago do not have a policy that helps ascertain whether the asylum seekers are legal Venezuelan immigrants.
The country is forecasting to incur an economic cost of roughly 620 million US dollars (Oxford Business Group, 2019). Besides, there are concerns over the effects the immigration could have on the labor market, housing market, and public sector programs, including national insurance and health care ones (Page et al., 2019).
Population aspect in the Venezuela Crisis
The high population could deplete the economic reserves of the country. The consequence of the above would be to get loans from various organizations, notably the World Bank. This step would leave Trinidad and Tobago in a liquidity state.
The cases of crime and violence will likely rise as a result of the insecurity associate with immigration. This aspect would deteriorate the country’s peace, leading to unrest among its residents (Anatol & Kangalee, 2020). As a result, more police officers will be deployed to the boundaries to curb and regulate migration into the country.
Contrary to political leaders and the general public’s views, the businesspersons have projected positive impacts on their business ventures by increasing immigrants. Venezuelans have high expectations on the island and see it as an excellent opportunity to create employment opportunities. They are ambitious to make both ends meet while in Trinidad and Tobago due to the looming peaceful state available.
Economists and business leaders
Economists and business leaders see this a positive effect on the country’s economy. The food and beverage industry and the tobacco sector will reap many profits due to the forecast increase in sales. These are the manufacturing and production subsectors in the country. The food processing capacity of the country will improve (Oxford Business Group, 2019). New investments will be made in agri-business processing. The government will provide more security to these sectors. The overall effect would be boosting the agricultural sector of Trinidad and Tobago.
Due to the upward demographic trend, there will likely be a rise in the formal labor market. Consequently, there is growth and development of the economy of the country (maximum profitability expected). Migrant workers will help replace the traditional low-skilled workers in their traditional sectors. These traditional sectors will be transformed into modern markets with time, further expanding the economy. The retail sector will also receive a boost.
Since Venezuela is no longer exporting oil due to its depletion, Trinidad and Tobago will have reduced competition in making sales. The oil sector is thus likely to reap a lot of profits from its increased sales. The Gross Domestic Product of the country will grow to higher levels. Generally, the economy of the nation will reach greater heights shortly, surpassing its expected returns and profitability projections.
Conclusion-Venezuela Crisis
As a country, Venezuela is in tatters due to the various crises it is going through. It is an unlucky incident for a country previously known to be among the richest and stable regions. As seen for the above analysis, the effects of the crisis affect the county and the neighboring nations.
One of the nations that have been hit hardest by the crisis is Trinidad and Tobago. The latter can be attributed to the peaceful environment that the government offers to all refugees without discrimination. Trinidad is in a dilemma about whether to allow more refugees into the country or not.