In the middle of the biggest economic collapse of any nation in modern times, Venezuela is experiencing a fundamental, and perhaps irreversible, change within its economic system. Since 2019, Venezuela has been driving full throttle towards an economic phenomenon, which I refer to as implicit dollarization.
Since Chile became a democracy in 1989, this South American country has been the most successful economy in its region, by far. A region constantly overwhelmed by social unrest, political turmoil, and staggering levels of income inequality and extreme poverty.
Pope Francis has manifested on numerous occasions his anti-capitalist vision of the world. In his latest encyclical, entitled Fratelli Tutti, Francis argues that the COVID-19 crisis exposed inherent problems of the free market system.
On Tuesday, Maduro proposed new legislation that encompasses the privatization of the oil industry, the possibility of returning expropriated companies to their original owners, and the free trade of strategy goods, such as fuel.
The main constraint for growth in Venezuela is not related to market failures nor any purely economic issue, but to the political institutions of the country. As a result, Venezuela exemplifies that the economic issues of most nations are a result of their bad governance.
Five years ago, a Belarusian teenager studying film in Poland set up a YouTube channel to show videos that he made and poke fun at his country's longtime leader, Alyaksandr Lukashenka.