Venezuela’s Economic Problems Essay

Do you know that Venezuela could be one of the richest countries in the world? Venezuela is one of the countries that has one of the most profitable products in the whole world. Venezuela depends mostly in the price of oil to keep their economy afloat because it is one of the products that makes countries economies high. Surprisingly economy in Venezuela is really terrible because there’s not globalization.

They are too many problems going on there: some of these problems are affecting the majority of Venezuelans because there is not education for everyone, the children are forced to work, there is a food crisis and the oil prices are really low. My solution to fix Venezuela’s economy is that the government have to create a new system to make sure that medicine, food and other essentials are available in good prices for all Venezuelans. Also the government should eliminate dysfunctional prices to help the economy, and finally they should let others countries help them, meaning that they should have more relationships with more countries.

One of the biggest problems that Venezuela is facing is child labor conditions. Children in Venezuela like in others countries in the whole world are being forced to work in really deficient conditions. From 10-14 years old boy and girls have to work in places that are really dangerous, they don’t have the opportunity to live their childhood because they are engaged in the worst form of child labor. A 61. 1% of children in Venezuela are being forced to work in domestic services, a 2. % have to work in commercial sexual exploitation, and a 28. 3% of the children are being forced in danger agriculture activities. As a result of this 15,000 childrens are living in the streets, many of them cannot have an education and live with their families. Other will have to work and stay out of their homes. According to the United States Department of Child Labor illustrated, “Children in Venezuela are engaged in the worst forms of child labor, including in dangerous activities in agriculture.

Children between 3 to 6 years old, primarily boys, work in agriculture and nave been known to use dangerous tools, carry heavy loads and apply harmful pesticides. On the other hand Girls between 3 and four years old, work primarily as domestic servants, which causes them to often be isolated in private homes working long hours; they are also susceptible to physical and sexual abuse. (3, 6, 7)” This is an example of how the children are forced to work in really dangerous conditions, the long hours involved susceptible to being physically and sexually abused.

However in 2014 Venezuela made a good advancement in eliminating child labor and improving bad conditions. The government also signed the Declaration of the Regional Initiative to free child labor and improved the conditions of some child labor. But even though the government is trying to help the children in Venezuela, they are not doing enough to eliminate child abuse. Proving that they don’t care about what they are facing, and the way their health is affected. Even now the children in Venezuela are engaged in the worst form of child labor.

It is important to realize that Venezuela is also facing a food crisis in the whole country. Venezuelans are extremely mad at the president because they don’t have products in the supermarkets, also because they are suffering from hunger, because there is not enough products for them to buy. Another reason because they are angry is because they also have children and they don’t want to see them without eating. The low economy in Venezuela is the biggest issue that the country can face because is causing really bad problems between the olice and the people who are mad at the president. As a result of the bad economy the Venezuelans people are doing what they want. According to a reporter in the news he says, “Venezuelans had three days with no electricity and because of this the Venezuelans person start to break the pharmacies and supermarkets to take the products” I think that Venezuelan government have to make a plan to make changes with other countries to improve the food crisis that the country is facing.

Also the Venezuelans are being really angry because they can’t face the food crisis. One reason, because they are acting like that is because they also have children and they don’t want that the child’s suffer from hunger. Adding to this Venezuelans people have to do long lines to buy products in the supermarkets, but they feel angry because there’s no enough products and they don’t know what is the products that they will find in the supermarkets. The major issue that caused the damaging and low economy that the country have now is oil.

As the author Depersio demanded, “The price of oil is one of the most heavily watched trends in economics, as it has an effect on Venezuela” Consequently, because of the oil prices affects, Venezuela have been dramatically in the worst form of being a country going from one of the highest economies to a very low economy in the world. The low oil prices have been affected Venezuelans and many companies that have benefited from the oil and also the good economy.

Oil has gone down for a high amount, Venezuela have to hit $111 a barrier, but they are only getting $33 a barrel the lowest rate in more than a decade. As a result of this effect in Venezuela economy, companies have also been in a lower financial shape because if the companies are benefiting from the oil and the oil made the economy really low, also the companies will be affected. Another consequence that had oil prices caused is that Venezuela have declined more that 350,000 barrels per day because domestic consumption and smuggling have been falling.

One company that is affect is Petroleos de Venezuela, S. A. is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil, as well as exploration and production of natural gas (PDVSA). One example that tells us that this company is being affected is “PDVSA was in bad financial shape even before the oil price collapse, and since it began it has become worse”(Monaldi #3). This company wasn’t in good shape the oil production and the oil prices made the company be more in dangerous.

Consequently the issues happening in Venezuela because of the really low economy can continue like that for many more years. According to the article Columbia Sipa says, “Venezuela macroeconomic crisis will likely get worse for lack of adjustment in an election year, there is even a small probability of hyperinflation and a much higher probability of debt default in 2016” (Monaldi #4). This shows that the country needs to take time to fix their economy because is miserable now and it will continue like that.

As can be seen, Venezuela could be one of the countries with the higher economy in the world because it has one product that others countries needs. Oil is the major issue that caused all the problems that are happening in Venezuela. The oil prices put Venezuela’s economy in really dangerous conditions because it had affected all the country and the people living in there. Also there’s not products in the supermarkets and Venezuelans are angry because there is a food crisis.

The government should improve relationships with others countries, they should make changes to improve the economy. Also the government have to create a new system where the medicine, food and other products are available in good prices for the Venezuelans because everything cost too much. If the government accepts help from others countries they economy can improve, and if the economy improves all the problems happening will improve to because all the issues caused is because of the bad economy.