Why Venezuela Is So Poor Despite Having So Much Oil

Venezuela, despite having the largest oil reserves, faces severe economic challenges. The country's colonial history, independence struggle, and oil discovery shaped its trajectory. Initially prosperous due to oil, Venezuela's economy suffered from over-reliance on this resource, leading to Dutch Disease. Political changes under Hugo Chavez and Nicolas Maduro, combined with falling oil prices, resulted in hyperinflation and a mass exodus. Recent stabilization offers hope, but recovery will be slow.

What is the main reason for Venezuela's economic struggles despite its vast oil reserves?

• Lack of natural resources

• Over-reliance on oil

• High levels of tourism

• Strong agricultural sector

Which indigenous civilization was mentioned as being present in Venezuela before European colonization?

• Inca

• Aztec

• Tomodo Quika

• Maya

Who was a key figure in Venezuela's fight for independence?

• Simon Bolivar

• Juan Guaido

• Hugo Chavez

• Nicolas Maduro

What major resource discovery shaped Venezuela's modern economy?

• Natural Gas

• Diamonds

• Oil

• Gold

What economic effect describes Venezuela's over-reliance on oil?

• Stagflation

• Recession

• Inflation

• Dutch Disease

What was one of the consequences of Hugo Chavez's economic policies?

• Diversified economy

• Increased foreign investment

• Deepened dependence on oil

• Reduced social welfare

What percentage of Venezuela's export revenue is still accounted for by oil?

• 95%

• 75%

• 50%

• 100%

What was the hyperinflation rate in Venezuela compared to the US?

• 300%

• 5000%

• 1000%

• 3000%

Which country saw the highest increase in Venezuelan immigration between 2015 and 2017?

• Brazil

• Peru

• Colombia

• Chile

What recent trend offers a glimmer of hope for Venezuela's economy?

• Increased oil production

• Tourism boom

• Economic stabilization

• Massive foreign aid