Editorial: The Crisis in Venezuela

The political and economic crisis hitting Venezuela continues to worsen. President Nicolás Maduro’s government is under siege by nature, by the oil markets, by the opposition and by its own ineptitude. The standard of living of Venezuelans has crumbled, propelled by an impotent government that seems overwhelmed by the circumstances surrounding it.

The recent 30% wage hike and the leader’s threat of a popular rebellion to force oil companies to stop production are but acts of desperation in the face of an inflation rate that may reach 700% and further scarcity of merchandise in stores. These are Maduro’s visceral reactions to events beyond his control.

The popularity of Hugo Chávez’ Bolivarian Revolution was based on high oil prices that signified a major source of income, which allowed him to help the poorest sectors in the country. However, his lack of vision and caution caused the system he created to start collapsing as oil prices sank, leaving the country without revenue.

To make matters worse, weather phenomenon El Niño brought about a severe drought, drastically reducing production at the Guri Dam, which provides 70% of the country’s electricity. The subsequent weakening of the already deteriorated power infrastructure has provoked a gargantuan energy crisis.

Today, Venezuela works on low speed. The public sector has significantly cut down the work week, and private companies say they cannot operate normally without the supplies that they are unable to buy in the absence of dollars. It is worth remembering that shortages are usually a way for the entrepreneurial class to protest. All this has the economy hitting rock bottom.

Venezuelans are sick and tired of not having electricity, jobs, basic necessities or public safety. They elected an opposition-led National Assembly that has already started preparing to hold a referendum to oust Maduro before the end of his term in 2019.

The road to dismissal is not easy, but it is the only institutional mechanism to change the government. We will have to keep our eyes out to see what happens next, and hope that violence does not explode in Venezuela and that the regime is able to understand that the country is fed up.