Alternative pathways

Question 1

Venezuela

Answer 1

Hugo Chavez was elected president of Venezuela in 1998
Venezuela is an OPEC member and has huge oil reserves
Government nationalise the oil industry and removed BP from the country
Dave free oil to left leaning allies such as Cuba
Poverty rate fallen from 48% to 32% by 2010
Literacy rates improved from 80% to 95%
Introduced price controls on food and malnutrition dropped by 50%

Question 2

Negative impacts on Venezuela

Answer 2

Extra spending led to 60% inflation by 2013
Global oil price collapse in 2010 lead massive budget deficit
Price controls led to farming bankruptcies and problems of supply
Venezuela is currently an economic crisis and has defaulted on its debts
Poverty is rising again