The Economic and Energy Crises during Chavez and Maduro’s Governments

Victor MignoneAndrea Costantini


The purpose of the paper is to understand and explain what could have affected the econom-ic and energy crises during Chávez and Maduro's governments (1999 to present). Also, the present analysis tries to grasp what the possible barriers are, and gives possible policy solutions. In our hy-pothesis, the crisis in Venezuela has roots mainly in the Chávez government, so a deeper research of what could have affected this crisis is important. For this purpose, the pa-per uses a quick historical background of Venezuela from the late 1990s until present days. Also, different authors and perspectives are used to explain the crisis and then give potential policy solutions. In the empirical part, some explanations are given. Possible barriers encoun-tered to these solutions and how they can be overcome are also forwarded. The main hypothe-sis here is that an oil rich country, a medium to low development level with weak institutions, a left-wing political party in the government in Latin America and then foreign involvements and interests, could be the place of an induced inter-national crisis, due to U.S. – through its different power complexes – and possibly other developed countries interested in the oil.