Venezuela is facing many current crisis as reported in an article in Corporation Wiki. Most prominently among these is an electrical blackout that that is partly being caused by a lack of water in the Hydroelectric dams that fuel a significant amount of the nation’s electricity. The cyclical storm El Nino is partly responsible for this lack of power in the hydroelectric plants, but many are questioning why a country like Venezuela, with its massive oil reserves would have a problem providing power.
The Economist pinpoints the inability of the socialist government to invest in its energy infrastructure as the major cause of the current problems. While the country did invest billions into various thermoelectric projects, these projects were not properly maintained and are in a state of disrepair. Overall according to expert named Norka, the country’s electrical projects failed to keep up with the demand and a variety of austerity measures have been implemented to curb demand for electricity.
Electrical infrastructure problems are not the only ones the country is facing. Rampant inflation is also leading to problems in the country and is expected to be approximately 400% in the current year alone. Shortages of food and even the largest beer brewer closing has been reported.
Now a major power play is in effect in which the President Nicholas Maduro is battling the opposition’s Youtube video propaganda which attempted to first shorten Maduro’s term in office which was blocked by the nation’s Supreme Court, and is now pursuing a referendum to replace Maduro in office.
Furthering these challenges is a precipitous drop in oil prices which has limited Venezuela from financing their various socialist programs and to import generators and other infrastructure and food needed to placate the population.