- There was the political crisis as two centre of power confronted to usurped the top most position. The leader of Venezuela’s National Assembly, Juan Guaido has declared himself as president of Venezuela on January 23, challenging the power of current President Nicolas Maduro, who was recently sworn in as president of Venezuela for a second consecutive term.
- The United States has officially recognized Juan Guaido as the legitimate president of Venezuela. Several EU nations, including France, Britain, Germany, and Spain have said they would recognize Guaido if President Maduro doesn’t announce new elections.
- However, Russia, Turkey, Iran, and China have supported President Nicolas Maduro and called him as the legitimate president of Venezuela.
- The US has also imposed sanctions on Venezuela’s state-run oil company, Petróleos de Venezuela, S.A (PVDSA).
Reasons for the crisis in Venezuela
- Economic Reason
- Venezuela has the highest proven oil reserves in the world. The economy of Venezuela is mainly oil-based.
- During the early 2000s, when oil prices were high, the Venezuelan government has used oil profits to reduce inequality and poverty, providing food subsidies.
- When oil prices dropped in 2014, the government suddenly had to make lots of cutbacks. This led many people to begin buying goods on the black market, causing inflation to rise.
- Currently, the annual inflation rate in Venezuela has reached 1.3 million%. This has led to the scarcity of basic items such as food and medicines and demonstrations against the government.
- Political Crisis and Corruption
- Current president Nicolas Maduro took charge after former president Hugo Chávez died in 2013.
- The government of President Maduro also faced the charges of corruption and mismanagement of the economy.
- Mr. Maduro was sworn in for a second term recently. But, his main opponents either boycotted or were banned from running in the election.
- After the result of the election was announced, massive protests erupted in Venezuela.
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