Essay Sample on US Influence in Venezuela: Oil-Rich State, Internal Struggles & More

Introduction

The United States has played a critical role in influencing the balance of power among several countries in the world. The United States is regarded as a world's superpower, and its actions towards a particular state are likely to influence politics and even economic consequences in that country. The United States has been involved in many peacekeeping missions as well as the installation of order in many countries.

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Venezuela is an oil-rich state but is regularly inflicted by internal problems such as corruption, politics as well as the oil crisis. These problems have made it difficult for Venezuela to be governed and power plays a greater role in this country. Due to this, the country has seen the intervention of different states in the affairs of Venezuela, for example, the United States and Russia. The United States has played a significant role in ensuring political stability in Venezuela.

The purpose of this paper is to investigate the role played by the United States in the restoration of power in Venezuela between 2002 and 2019. The paper will also the relationship between Venezuela and OPEC, current issues in Venezuela as well as how to fix major problems in Venezuela.

Relationship Between Venezuela and OPEC

Venezuela is a member state of the Organization of Petroleum Exporting Countries (OPEC). Venezuela was among the top oil exporting country before there were economic wars in the country. However, Venezuela remains among the top highest exporters of petroleum due to its oil reach barrels estimated at reserves of approximately 297 billion barrels in 2012 (Van de Graaf 182). One of the major problem that has affected the Venezuela oil market is political instability brought about by poor governance in the country. There are economic wars since leaders are fighting among themselves to control the oil reserves as well there is rampant corruption in the public sector. Due to this, there has economic pressure from within the country due to the war between political leaders as well as pressure from other members of the OPEC.

The collapse of Venezuela is a significant factor in influencing the oil market. Due to this, the OPEC and the United States are greatly involved to ensure the country is back to sanity to avoid these crises (Ikein 396). The OPEC believes that oil prices are likely going to be affected as well as the supply of oil in the world. The OPEC demands that all political tensions in Venezuela have to be addressed to ensure the country is functioning stably to avoid dire effects on the oil market. The OPEC has constantly required the intervention of the United States in the political affairs of the Venezuela state to ensure the oil market is not greatly affected.

Oil output in Venezuela has constantly been declining for the last decade. The decline in oil supply form the country despite being a petrostate has led to numerous concern by other members of OPEC. The decline needs to be controlled to avoid further issues and problems in the oil export market. The country's leadership needs to sober up and reduce political tension which would minimize economic tensions in the country.

Current Issues in Venezuela

Political Issues

Political discontent in Venezuela has been on the rise for very many years. The Venezuelan citizen claims the rising cost of living due to inflation, power cuts, and food shortages. Politically the country lacks a stable leader as the recent elections were marred by boycotts. Election boycotts meant that the current President Maduro was not the preferred candidate for the position, but due to this the president retained his power and is ruling for the second term. The opposition leader Mr. Guidao in the country has also claimed to be the president. Due to this, the country has been subject to political tension even as Mr. Guidao declared to assume executive powers even though president Maduro was still in office. Therefore, the political situation is so tense that the country has been suffering from political instability.

The country is in a dilemma over who is its legitimate president. Over 50 countries recognize Mr. Guidao as the legitimate president including the United States and those in Latin America. On the other hand, Russia and China recommend President Maduro for the presidency in the country. Due to this country lacks political leadership which could spar development and economic order in the country.

Political issues in Venezuela have been constant for a long time which has even hindered democracy in the country. Most of the opposition leaders in Venezuela have been prevented from contesting for political seats leading to the upsurge in political crisis. Political issues started in 2003 when President Hugo Chavez who is believed the one who brought about these issues in the country (Amundaray 6). The country does not even know which leader to deal with and this has led to constant tensions even from the OPEC requiring legitimacy of leadership in the country. The OPEC is even pleading with the United States to recognize President Maduro to avoid oil crises in the world which are brought about by the political situation in Venezuela.

Economic Issues

Economic problems in Venezuela are as a result of economic wars and falling oil prices. The oil crisis brought many challenges in the country due to the rising and falling of the prices. Reduction in prices led to a decrease in petroleum capacity. Consequently, this was a significant concern among other OPEC nations which has led to continuous economic feuds between Venezuela and OPEC. Also, the oil prices in the country have been affected by political instability due to the lack of a legitimate leader who could spearhead economic development in the country. Oil prices have also led to increased inflation in the country as well as a persistent political crisis. The oil prices are rising in the international market whereas they are falling in the Venezuelan markets.

The issues of inflation in Venezuela has also brought many challenges in the country. The government has no suitable policies to address inflation issues in the country. Even though there were increased government expenditures, this could not yield better results in addressing inflation. Also, the government had adopted increased printing of new currencies during the leadership of President Chavez and President Maduro. Increased currency printing has led to the Venezuelan currency being weak, and thus, the rates of inflation have heightened.

Venezuela has also witnessed a change of currencies which continued to affect the country economically. In 2008 the currency changed from standard bolivar to the bolivar fuerte which was more worthy than the previous currency. Also, in 2018 the country switched its currency from bolivar Fuerte to bolivar Soberano. However, these currency changes have not been impactful on the rate of inflation in the country. The rate of inflation in Venezuela is estimated by the International Monetary Fund to be 1 million percent. The high rate of inflation is as a result of the country's weak currency (Ahmed et al. 133).

High inflation has led to increased costs of living. There are no government subsidies which can be sued to supplement the provision of essential amenities in the country. Due to the lack of subsidies from the government, it has been difficult to assess essential amenities such as food. Affordability of these commodities has been greatly affected by rising corruption, and most citizens are suffering. However, the heightened political tension in the country has led to the increased economic crisis as well as there is poor governance in the country as most leaders are corrupt which makes it difficult to achieve economic development in Venezuela. The states are also experiencing a severe shortage of medicine supplies for hospitals in the country.

Organized Crime-Related Issues

Venezuela is among the nations which are known for high crime victimization as well as homicides within the Latin America region (Sikkink & Ellen 319). However, homicides have been decreasing, for example, a study by Venezuelan Violence Observatory (OVV) established there was a reduction in homicides rates between 2017 and 2018 at a rate of 81.4 homicides by 100,000 people. In most cases, these homicides are castigated by criminal groups who engage in extrajudicial killings within the country. Also, crime victimization has been on the rise due to Venezuelan military and security forces involvement in killings in the country. Moreover, there are more Colombian illegally armed groups operating in Venezuela who are engaged in drug trafficking.

Drug trafficking is a major concern in Venezuela as it's considered as a transit route for cocaine and other drugs due to its proximity to Colombia (Bergman 27). Venezuela has been constantly put on watch for failing to adhere to international antidrug obligations as required under international drug-control certification procedures. The country also in 2005 cut ties with the United States drug enforcement agency (DEA) due to its investigation of Venezuelan officials. Also, drug trafficking is persistent due to money laundering and corrupt officials in the country.

Money laundering and illegal mining are also some of the current issues affecting Venezuela. 91% of gold in Venezuela is mined illegally according to the Global Initiative against Transnational Organized Crime (Global Initiative against Transnational Organized Crime 1). Moreover, illegal mining has contributed to environmental degradation and deforestation in the country as well as human rights violations. Money laundering is widespread across the country ranging from government officials, banks as well as real estate sectors in the country. Also, the presence of drug traffickers in the country has led to increased corruption and money laundering.

Role of the United States

The United States of America had close relations with Venezuela before the leadership of President Hugo Chavez and President Maduro. Venezuela was a major exporter of oil to the United States, but this was affected by these two leaders. The United States was opposed to their authoritarianism way of leadership under which the country witnessed severe crime against human rights (Riera 174). The US government is dearly concerned with a political crisis and economic crisis in the country even though it has issued economic sanctions against the Venezuelan state. President Maduro continuously blames the United States for the crises in Venezuela due to its economic sanctions.

The aim of the United States involvement in Venezuelan affairs is to ensure there is peaceful coexistence in the country as well as political and economic balance. The US is concerned with deteriorating democracy and respect for human rights in Venezuela. Therefore, due to this, the United States government has come up with measures to address these issues, for example, the federal government has increased funding to support the civil society in Venezuela to promote democracy and human rights.

The Trump administration is also concerned with drug trafficking and terrorism issues in Venezuela. The administration labeled economic sanctions against Venezuela to aid in dealing with these issues (Guida 185). The United States has restricted the Venezuelan government access to the United States financial markets as well as Venezuela digital currency and debt transactions. Despite the fact that this economic sanctions the United States government continue to provide humanitarian aid to Venezuela because of encouraging and promoting stability in the country. The initiatives are done to ensure that political and economic stability in Venezuela is restored to normal.

The United States has joined other states which comprise the Organization of American State...