Economic and Political Crises in Venezuela
Wednesday, May 18th, 2016May 18, 2016
Last Friday, May 13, Venezuelan President Nicolás Maduro decreed a 60-day state of emergency that increased executive, military, and police powers. It was the second time this year that Maduro had issued such a decree. He said the latest was intended to “to tend to our country and, more importantly, to prepare to denounce, neutralize, and overcome the external and foreign aggressions against our country.” The president has long accused his political opposition and foreign powers, particularly the United States, with economic and political sabotage.
Like his predecessor, President Hugo Chávez, Maduro has relied upon revenue from oil, Venezuela’s top export, to support the nation. However, a sharp fall in the global price of oil since the early 2000’s has ravaged the economy. Critics of the Socialist government also blame the crises on the failures of Chávez and Maduro to diversify the economy, save, and make long-term investments in such services as education and health care. In addition, the government has refused to accept aid from such international lending organizations as the International Monetary Fund.
By early 2016, Venezuela could not afford much-needed imports. Ordinary Venezuelans suffered from severe shortages of staple foods, medicines, and other basic products. In addition, skyrocketing inflation reduced the worth of their salaries. Health workers lacked basic medicines and supplies, and broken medical equipment could not be replaced. Shortages of water and electric power, caused by drought, also have had a large impact. To save power, the government declared a two-day work week for civil servants and implemented rolling blackouts. In many cases, hospitals lack electricity to operate life-saving equipment and even the water to clean medical facilities.
The economic problems coincided with a political struggle between Maduro and Venezuela’s legislature, the National Assembly. In December 2015, the Democratic Unity opposition coalition, led by Henrique Capriles, won a majority of Assembly seats. It was the first time in over 15 years that the Socialists lost control of the legislature. However, Maduro and the Supreme Court have blocked most of the Assembly’s new legislation, and Maduro has said it is a matter of time before the Assembly disappears. Opposition members in the Assembly vowed to oust Maduro by legal means. But, in April 2016, the Supreme Court blocked an attempt to shorten Maduro’s term by constitutional amendment and, in May, electoral authorities appeared to be delaying formal proceedings that could lead to a recall referendum on Maduro’s rule.
Amidst this economic and political climate, public demonstrations and looting have become increasingly common. A recent poll indicated that about 70 percent of Venezuelans wanted Maduro out of office, and the opposition collected nearly 2 million signatures, far more than needed, to legally kick start a recall referendum. Capriles called on the military to choose between the Constitution and Maduro. For now the president is hanging on, but his shelf life may be limited.