Living in the worst economy in the world, Venezuela | Venezuela

In Venezuela, a country rich in oil, people do not have enough to eat, child mortality is rising faster than in Syria and, according to the UN, about three million people have fled the country since 2015. Formerly the Richer nation of Latin America, Venezuela and its people suffer the ravages of hyperinflation.

On January 23, the head of the legislature, Juan Guaido, began lobbying to remove the current president, Nicolas Maduro, by declaring himself acting president. The United States has imposed an embargo on the Venezuelan state oil company PDVSA, with sanctions aimed at transferring control of Venezuelan oil wealth to those who oppose Maduro.

So, what is it like to live in one of the world's worst economies? How did a country with the largest oil reserves in the world find itself so impoverished and bankrupt? And how will US sanctions affect the nation?

Describing the situation on the ground, Jairo Lugo-Ocando, director of executive education and graduate studies at Northwestern University in Qatar, explains, "Life is very difficult right now, my own sister lives on a salary of $ 10. months as a teacher. "

"I was there last year and I was able to see thousands of people crossing the border." People on a basic salary can not buy staple food. basic foods provided by the government, which do not reach the majority of the population. "

Lugo-Ocando says "The situation is dramatic, the hospitals have collapsed, more than 22,000 doctors have left the country since 2015. The cancer death rate has increased because there was no chemotherapy treatment and the whole situation was as simple as mismanagement of the economy and political unrest. "

Contrary to the charisma and the link with the people of the former leader Hugo Chavez, "Maduro does not have this connection with the people nor the charisma," explains Lugo-Ocando. "There is no money either, the price of oil has risen from $ 112 per barrel to more than $ 60, a dramatic drop in government coffers, and the government has gone into debt. "

"Obviously, the poor are the most affected because they can not reach the essential, but the crisis also affects the middle clbad."

The strengths of Venezuela

The Orinoco belt holds one of the largest reserves of heavy crude oil in the world and oil accounts for 98% of Venezuela's foreign exchange earnings.

US sanctions on the Venezuelan oil sector "are changing the game," said Diego Moya-Ocampos, Senior Analyst at IHS Markit. "This will make it very difficult for the Maduro government to have access to profits from the sale of oil and this will accelerate pressure on him to quit."

"The reason Venezuela's economy is in such a state is due to the widespread corruption and epic mismanagement of government officials, some of which have been laundered in various places, such as the Caribbean, the United States and the United States. And some Latin American countries. "

"For the moment, it is difficult to know exactly where these badets are and to know who, among the greatest leaders of Maduro, is operating them." National Assembly in Venezuela, controlled by the opposition, and which is the only democratically elected institution in the country, has legislated to put in place the necessary mechanism so that these badets can be frozen abroad and redirected to the administration of Juan Guaido (…).

But oil is not the only resource in Venezuela. The country claims to have the fourth largest gold mine in the world. It has been reported this week that President Maduro is preparing to ship 20 tons of gold out of the country. The bank of England has blocked Maduro officials removed $ 1.2 billion worth of gold from its coffers.

Until now, Guaido has the support of the United States, many European countries and countries of Latin America. On the other hand, China and Russia are alongside Maduro.

Also on this episode of Count the cost:

Brazil Vale: It's called the most hated company in Brazil. Vale, the world's largest producer of iron ore, is required to justify its role in the collapse of a dam, an industrial accident that devastated a local mining community. It is feared that more than 300 people died buried under tons of toxic sludge. And anger is rising as it is the second time in five years that Vale's mining waste has devastated the local environment, as reported by Daniel Schweimler of Brumadinho.

Source: Al Jazeera