The wealth of a nation can be a rather complex achievement

view original post

As an example, many (but not a majority) in Venezuela did really well off its oil wealth for a while and they were even a founding member of OPEC. But when the government decided to start taking significant revenue from the oil industry they tried but failed to make good long-term use of it. They also had loads of other problems like multiple corrupt leaders, systemic corruption that blew out the cost of their highway network, subsidies that supported big corporations but crushed smaller competitors, and after oil prices dropped, runaway inflation. Now I know that synopsis doesn’t even scratch the surface of their modern history, but as a consequence of so many things being done wrong, a nation that should still be among the richest in the world is today one of the poorest.

Related Posts