Relationship with International Organizations
The Bolivarian Republic of Venezuela in South America is roughly twice the size of California with a population of more then 24 million people led by President Hugo Chavez since his election in February, 1999 (Country 1-4). With respect to international organizations, the economics of Venezuela are important to consider among other factors such as human rights conditions and the environment. The real growth rate of Venezuela’s GDP is 2.7% with per capita income of $6,100 (Country 6). More than 67% of those living in Venezuela are under the poverty line (Country 6). Inflation and unemployment levels are high, with 12.3% inflation and more 14.1% of the country is unemployed (Country 6).
The major industries in Venezuela include petroleum, iron ore mining, construction materials, food processing, textiles, steel, aluminum, and motor vehicle assembly. The annual budget for Brazil is $21.5 billion but annual expenditures exceed this number coming in at $27 billion (Country 7). Of all the industries in Venezuela, the country’s rich petroleum reserves allow the petroleum industry to dominate the economy, accounting for approximately one-third of its GDP. After a harsh recession in 1999, rising international oil prices somewhat aided economic recovery, even though the country experienced non-oil sector and capital flight.
The U.S. is the major import and export partner of Venezuela. External debt for the country is estimated at $34.5 billion, while the country was the recipient of more than $35 million in international aid with more likely due to massive flooding (Country 7-8). One of Venezuela’s biggest problems is its over-reliance on oil with severe economic changes resulting from declines in real oil prices and revenues. During the 1990s real wages fells by 23% in Venezuela, despite mandatory minimum wages imposed for most of the decade (Country 8).
With respect to...