• Grayox@lemmy.mlOP
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      10 months ago

      Pretty good till the price of oil plummeted, single resource economies are ticking time bombs.

        • Grayox@lemmy.mlOP
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          10 months ago

          Bruh, Venezuela has some of the dirtiest crude on the planet and lacks the ability to refine it themselves relying on American refineries which have had an embargo against importing Venezuelan oil till last year, you are so out of yout depth in global economics is laughable.

        • VikingHippie
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          10 months ago

          Venezuela is an example of a petrostate, where the government is highly dependent on fossil fuel income.

          Petrostates are vulnerable to what economists call Dutch disease, in which a government develops an unhealthy dependence on natural resource exports to the detriment of other sectors.

          The oil price plunge from more than $100 per barrel in 2014 to under $30 per barrel in early 2016 sent Venezuela into an economic and political spiral, and despite rising prices since then, conditions remain bleak.

          (Source: Council of Foreign Relations)

          So yeah, socialism didn’t kill the Venezuelan economy, over-reliance on fossil fuel did.