Is Venezuela experiencing the “resource curse”?

If Venezuela has the largest oil reserves outside the Middle East and the strongest hydroelectric system then how come, this country is facing serious electric and water shortages?

In the last two years Venezuela has experienced 6 nationwide blackouts and power failures, which have lasted for hours in both rural and industrial cities. Recently water rationing has had to be implemented in Caracas.

Instead of being serious Chavez has mocked the people’s water wastage and has given advice such as taking 3-minute showers. It seems that it is always easier to blame the oligarchs for their habits too.

Venezuela has coal deposits, natural gas and oil reserves but as Venezuela’s public services has stated perhaps the issue is the: “resource curse”, which is the theory that countries with so much potential and resources are held back by political disagreements, and inefficiency by the government.

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How Can a Leader Avoid Dealing with Serious Domestic Issues? Chavez has the Answer!

In his weekly “Hello President” show this Sunday on the violence and military buildup along the Colombian-Venezuelan border Chavez said: “Let’s not waste a day in our main aim to prepare for war and help the people prepare for war.” Chavez is know for his controversial and undiplomatic rhetoric at home as well as anywhere really but how serious is this last statement?

Issues between Colombia and Venezuela:

• In the last five years in South America arms purchases have doubled, and reached $ 50 billion last year.
  
• Venezuela and Colombia have a trade relationship worth $ 7 billion. In August Chavez closed the border to Colombian manufactured goods.
• There has been deaths on the border from both sides, accused spies arrested and Chavez has started to massively deport Colombians home even though more than 2 millions of Colombians live in Venezuela.
• Alvaro Uribe, Colombia’s president and Chavez don’t trust each other, as not only do they occupy opposite political spectrums but also issues such as Venezuela’s relationship with FARC, and the U.S military bases in Colombia are main issues blocking a functional relationship between these two neighbors.

Perhaps the U.S hasn’t handled the military base agreement well with the rest of the countries in the region, as Venezuela is not the only suspicious country. Chavez has used the U.S presence in Colombia (acting as a proxy) for arms build up and since 2005 has bought 5-7 billion dollars worth of equipment from Russia.

Especially with this recent statement, it is fairly obvious that Chavez is trying to take attention away from the serious problems plaguing his country such as the high inflation likely to reach 30% this year, the high crime rate, water shortages and electricity rationing.

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