So guys let's start our new topic,
Map of Venezuela Source- CIA |
Venezuela which is located in Northern Part of South American Continent and it's capital is Caracas. It is bounded by Guyana in East, Brazil in South and Columbia in West.
WHY VENEZUELA IS IN NEWS NOWADAYS??
This is because the economic conditions of people are getting worse and worse day by day because of hyperinflation. And this is also leading to a Refugee Crisis as till now more than 3 million people have migrated to other neighbouring countries .WHY SUCH A SITUATION IS THERE?
You must have heard that Venezuela has an oil export buisness , so you might be thinking that other countries who export oil are rich, like Saudi Arabia and Qatar. So why Venezuela is not as much rich as these countries?
The answer to this question is, because to extract oil from Venezuela the government have to first invest billions of dollars to extract oil and then the oil is sold. And in case of Saudi Arabia they have been blessed by god, they does not require huge amounts of money to extract oil from ground.
WHAT'S THE PROBLEM?
Reason for Economic Crisis
- As the point of time, I am creating this article price of 1 barrel oil is 50$ in international market , and this prices does not suit Venezuela. We can say that Venezuela is overdependent on crude oil for it's economy as Exports accounted for 16.7% of GDP and petroleum products accounted for about 95% of those exports. Venezuela is the sixth largest member of OPEC by oil production.
- There in no private company in Venezuela, there is only one company PDVSA in Venezuela and you can say Venezuela is being runned by PDVSA only. And PDVSA is runned by Army and Venezuelan Government, so now this company is going into losses and they are not able to give salaries to their employees( Venezuela Citizens).
From the reasons mentioned in the first two points, the economy of Venezuela is destroying day by day. And as I said earlier, that it takes billions of dollars to extract oil from ground, so now Venezuela is not being able to extract the oil present under it's territory.
By this we can assume that the ruling party in Venezuela especially the President of Venezuela is under a lot of pressure. And this a common sense of politics that opposition parties in Venezuela would like to gain support when ruling party is under pressure.
WHAT'S THE PROBLEM BETWEEN USA AND VENEZUELA?
US President Donald Trump said that they recognizes Venezuelan opposition leader Juan Gaidó as interim President of Venezuela.So by this move we can assume that US is trying to make a situation of coup in Venezuela in which Juan Gaidó can replace Nicolas Maduro.
There are 2 reasons that why USA would like to do coup in Venezuela-:
1. One is which USA openly says to media, it is that the present government of Venezuela which is headed by Nicolas Maduro is not able to control Venezuela properly as because of hyperinflation, mass protests against Nicolas Maduro. So it is necessary to replace Nicolas Maduro, so it is providing funding of millions of dollars to the opposition parties.
2. This reason is not said by USA openly to the media, but the reason there are reports that Russia is trying to make a military base on an Venezuelan Island.
But none of reports were verified.
In response to Trump recognition of Juan Gaidó as President of Venezuela , Maduro broke the diplomatic ties with US and gave it's embassy diplomatic staff to leave Venezuela in 72 hours.
Proof Showing the Russian Investments in Venezuela |
Now, China and Russia are investing Billions of Dollars in Venezuela in various sectors, so that Venezuelan economy can become stable, and when economy will become stable, Maduro has to accept the orders that Russia or China would like to implement .
Report by Reuters
We can assume that at time when China and Russia started investing in Venezuela, USA become nervous, and when reports came regarding military base in Venezuela, USA became more nervous. So USA said to replace Maduro by Gaidó, the actual reason was to keep Russia and China out of Venezuela but Donald Trump said that in a way as mentioned in Point 1 of Reasons of Coup.
So now, USA with its close allies is not considering Maduro as a President of Venezuela.
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