Venezuela

Oil And Drugs

Celine Bia
Oct. 20, 2014

Located on the Northern coast of South America lies Venezuela, or officially known
as Bolivarian Republic of Venezuela. Venezuela is known to be one of the most urbanized
countries in South America with twenty three states, Columbia, Brazil and Guyana all
borders Venezuela in the Northern coast. President Nicolas Maduro Moros has been in office
since 2013 however there have been some big current concerns in Venezuela. Rampant
violent crimes, over dependence of the petroleum industry, high inflation, lack of
fundamental human rights and widespread scarcity of consumer goods. Venezuelas economy
depends on their oil revenues to help them become a great and stable country.
The GDP (Gross Domestic Product) measures everything made in the country.
Venezuelas GDP is estimated to about 401.9 billion dollars. The oil industry in Venezuela
makes about twelve percent of the GDP. Venezuela does not have the best GDP because of it
slowing in 2013 causing it to be this low in 2014 into 2015. Compared to Colombias GDP
which is 502.9 billion, they are not terribly behind. However, compared to Brazil with 2.4
trillion and the United States with 15.7 trillion they do not have the best GNP. Venezuela,
ranked 175 out of 178 countries shows how low they are economically with GDP.
The Gini Coefficient measures equality within the country. The scale that the Gini
Coefficient is measured on ranges from zero to one hundred, zero being everyone is equal
while one hundred represents highly unequal. Venezuela has a 39 while Colombia and Brazil
both exceed over 50. This shows that even though the surrounding countries have less
equality, Venezuela has better equality for everyone which is a major plus in most point of
views. With the Gini Coefficient Venezuela has a better measurement than the surrounding
countries, however, with the GNP they have a lower ranking than the surrounding countries.

Venezuela has approximately fourteen million people in the labor force. They have
about seven percent employed in agriculture, 21.8 percent engaged in industrial works and
while 70.9 percent work in services. They have an unemployment rate of 7.8 percent and the
unemployment is decreasing. Venezuelas highest ever unemployment rate was about twenty
percent while the lowest unemployment rate at approximately five percent. Compared to
Colombia and the United States they have a lower unemployment rate now, however not as
low as Brazils rate of 5.5 percent.
Petroleum, natural gas, iron ore, gold, bauxite, minerals, diamonds and hydropower
are the many natural resources in Venezuela. The two main natural resources they rely on are
petroleum and oil. With the largest oil reserves in Latin America and the Caribbean,
Venezuela puts overdependence in the oil and the petroleum. With this major oil reserve they
have great potential for the country. Venezuela has benefited from the increasing
international oil prices which permit the government to spend more money on programs for
the country. The with the oil benefits the government was able to allow many private
companies in sectors as telecommunications and banking, mining and metallurgy, also
hydrocarbons. The oil reserve has also benefited the people by financing board-based social
programs because of these programs there was an important decline in poverty. The poverty
in Venezuela was about fifty percent and it decreased to thirty percent in 2013. The oil
reserves have benefited Venezuela and will most likely continue to benefit them.
Venezuela both imports and exports goods for the country. The make about 91.78
billion on their exports, the major goods that Venezuela exports include petroleum, petroleum
products, bauxite, aluminum, minerals, chemical and agricultural products. The country's
export partners are the United States, who buys the most from them, and China, India,

Netherlands and Cuba. Venezuela import about 59.32 billion in goods such as; agricultural
products, livestock, machinery and equipment, transportation equipment, medical equipment,
chemicals and iron and steel products. They get these products from the United States,
China, Brazil and Columbia.
Every country has external factors that affect their country and for Venezuela the
concerns are drugs and human trafficking. Many men, women and children are taken into the
human trafficking system. Most of the victims stay in Venezuela and are forced in to
prostitution or forced labor. Some these victims that end up in Venezuela are from Colombia,
Haiti, Peru and China. The government does not fully abide by the minimum standards for
ending human trafficking. However, the governments effort to end the trafficking has grown
by them increasing the investigations of the offenders linked to forced sex trafficking and
forced labor. Another major concern involves illegal drugs going through and being stored in
Venezuela. Very large quantities of cocaine, heroin and marijuana transit through Venezuela
to be transported to the United State and Europe. Venezuela is a key transit for moving drugs,
there are cells from Colombia and Mexico stationed in Venezuela to make sure the drug have
a safe passage. Approximately two-hundred tons of drugs pass through Venezuela a year.
The security forces have corrupt member, therefore causing Venezuela to be a successful
transit for the drug trade. Due to the major drug transit many Venezuelans now purchase,
store and traffic the drugs. These two factors are big concerns in Venezuela at the moment
and will most likely continue to be problems.
Venezuela has great potential to become a great country economically with the
massive oil reserve in the country. They have a few downsides with the drugs and human
trafficking but that doesnt overcome all the benefits they receive with their major oil

industry. Venezuela in my opinion needs to focus on helping the country through the benefits
the oil industry provides and also to try to simmer down the drug trade going on within the
country.

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