Oil Scarcity In Venezuela Research Paper

Food Scarcity in Venezuela. Venezuela (Bolivarian Republic of) is a small country located in South America. Since its independence from Spain in 1811, this country has actively played an important role as a hub for international commerce, in the beginning producing agricultural products such as coffee, sugar, rice, cocoa among many others. A hundred years later, in 1912 the first oil well was drilled.
The Royal Dutch Shell and then Rockefeller’s Standard Oil became major producers of oil in Venezuela. Within a few years, by 1929, Venezuela was the world’s second largest oil producer, after the U.S., and the world’s largest oil exporter. Between 1920 and 1935 oil’s share of exports went from 1.9% to 91.2%. This had an immediate and positive impact on Venezuela’s economy and its system.
Throughout the entire 20th century, Venezuela’s economic system shifted from an agricultural-wise-diversified-economy to an entirely
For example, until 2009, Venezuela was a major coffee exporter, but it began importing large amounts of it three years ago to make up for a decline in the domestic production. Prices are being set below market-clearing price.

Why Venezuela has one of the highest inflation rates in the world today?
Venezuela is not only the country with the largest oil reserves in the world, it’s also one of the countries with highest inflation rate on earth. According to the Central Bank of Venezuela, the inflation rate was recorded at 29.4% in April of 2013, a number that may be even higher if we take into consideration the fact that the directors of the Central Bank are appointed and exclusively ratified by the Executive Power. Venezuela has registered a string of staggering inflation figures in recent years, with the number standing above 20% for six consecutive years since