Essay Example on U.S. Sanctions on Venezuela: Global Power Struggle?

2017 Economic Sanctions

The United Stated aimed at frustrating Maduro by piling pressure for him to step down. Unluckily, Maduro did not secede. The U.S turned the sanction from a regional crisis to a global power struggle. Venezuela tops the world's crude oil market and is closer to the United States compared to any other country. It is with this that the executive order of states saw Venezuela as a potential threat to the United States.

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Effects of the 2017 Sanctions

The United States barred U.S persons from transacting with the Venezuelan government and its entities. This was seen through the closure of Venezuelan accounts in financial institutions, and other financial restrictions that have had severe negative impacts on oil production and the economy. Consequently, Venezuela lost its ability to cover for the

Maintenance and operational costs thereby could not carry out new investments to maintain its oil production. In addition, the annual oil production fell 30.1% in 2018 compared to 11.5% in 2017. The difference was the equivalent amount to provide for medicine and food in the country.

In 2018, the food imports dropped to $2.46 billion compared to 2013 which $11.2 billion in 2013. A research by Codevida in 2018 noted that 80% of the deaths was attributed to water shortage. A population of more than 300, 000 individuals were at a higher since they could not afford medical care access. The Venezuelan pharmaceutical federation noted that the shortage of essential medicines was 85%.

2019 Sanctions

The economic sanctions brought in 2019 would use any avenue to end President Maduro`s dictatorship. Donald Trump had indicated instituting a military action to bring regime change. Trump`s administration noted that the central purpose of these sanctions was to bring a military rebellion against Maduro such that they would topple the government. Consequently, the pain and suffering that would be experience by Venezuelans would not be a damage as such but a sanction strategy.

The U.S government labeled the Venezuelan state owned company, Petroleos de Venezuela (PDVSA) as sanctioned entity in that it was barred from international trade. More so, in 21018 the United States, being the largest market for oil (36% of Venezuelan oil as of 2018), cut off its importation from Venezuela. Later on in march 2019, the state department in Washington ordered trading house and affiliates of oil to cut their dealing with Venezuela or they could face these sanctions themselves. The next sanction was the freezing of Venezuelan assets and trade credits. This was aimed to stop the economy from stabilizing.

Effects of the 2019 Sanctions

From the onset of the sanctions, there was several detrimental effects on the economy. First, the national oil production fell by 400,000 barrels per day, leading to $8 billion loss in export revenue. The proceeds of oil export is the only way Venezuela could import food. The sanction was so rigorous that it affected Venezuela`s electrical sector. From the trade barrier, Venezuela could not pay for its power supply thus increased overreliance on hydroelectric power. Besides, the electrical crisis has affected the medical sector. The blackouts reported fatalities of patients who depended on Intensive care and dialysis.

Secondly, the Russian company, Gazprom, froze its PSDVA accounts followed sanction threats by the United States. Moreover, the access to correspondent banks was wiped out. The credit access to essential services like medicine and food was curtailed. Lastly, the IMF had suspended access from $400 million in special liquidity drawing rights citing the political chaos following the National Assembly president Juan Guaido who claimed being the rightful leader. Venezuela became incapacitated

Conclusion

The United States and anti-Maduro opposition will not win the hearts of Venezuelans. If they cared, they would help the most affected by the crisis. 68% of Venezuelans believe that the United States sanctions has worsened their quality of life. It has been two since and still Maduro`s grip for power grows stronger. The safety of the American continent is jeopardy. Geopolitical adversaries are helping Venezuela. Russia has issued bombers in support of Maduro regime. As global support for Guaido increases, Russia props its support to Maduro.

The Trump admiration has a couple of apparatuses accessible before the military choice is the just one remaining. By expelling sanctions, Maduro's system would acquire power, yet the US would need to depend on military activity. A military choice for Venezuela would be disastrous. It would just worsen the tumult in Venezuela and make it significantly bloodier. The nation has probably the biggest store of weaponry in the Western Hemisphere, and it's not all around defended. That makes way for furious fights that could unfurl in urban communities around the nation and raises the likelihood that an extended battle against outfitted groups faithful to Maduro could proceed regardless of whether he were in the long run toppled. What's more, provincial nations that back Guaido and bolster America's endeavors are against military mediation. Brazil, for instance, has just said it wouldn't let the US utilize its domain to attack Venezuela. Indeed, even those in Venezuela who need Maduro out don't need the US to utilize military power to get that going.

References

Sachs, J. (2019). Economic sanctions as collective punishment: the case of Venezuela. Center for Economic and Policy Research.

Nelson, R. M. (2018, January). Venezuela's economic crisis: Issues for congress. Congressional Research Service, the Library of Congress.

MILLS, F., & Hojen, L. (2014). US Sanctions Against Venezuela: A Wrong Turn For Regional Diplomacy. Council on Hemispheric Affairs, on December 15th 2014.

Weisbrot, M., & Sachs, J. (2019). Punishing Civilians: US Sanctions on Venezuela. Challenge, 62(5), 299-321.