Venezuela Crisis

Venezuela is a coastal South American country lies in northern most part the continent. Venusuela is rich in natural resources with lots of natural attraction. In includes hundreds of islands in Caribbean coast. Some popular islands are Isla de Margarita and Los Roques archipelago. Its capital city is Caracas. Its neighbouring countries are Colombia in west, Brazile in south and Guyana in East. The Andes Mountain range of South America starts from northwest of Venezuela and Merida, a base to Sierra Nevada National Park are the main touristic destination including capital city Caracas, Canaima National Park, Margarita Island, Los Roques National Park. The country has population of 31.98 million according to 2017. The currency used is Venezuelan bolivar and Sovereign Bolivar.

Background behind the Venezuela crisis

Now, the Venezuela is facing political crisis that reaches the boiling point when opposition party leader Juan Guido tries to unseat Nicolas Maduro. These all started with the Economic Crisis that is getting worse day after days. The rapid inflation creates lots of crisis effecting day to day economic activity.
On 2nd June 2010, the President Chavez declared "economic war" when the shortages increases and the condition get intensified when oil price rate lowers in early 2015 thus affecting oil production due to lack of maintenance and high extraction cost under Maduro government. Since, 13th May 2016 declare state of emergency in Venezuela.
For Venezuela crisis both political and economic reasons are equally responsible for accelerating inflation resulting shortages of food, medicine, electricity and other necessities and increase political instability.
The Venezuelan economy largely depends on petroleum sector of more than 90% of the country GDP few years back that reached total trade of petroleum to amount 48.1% of the country's GDP in 2014. With begin of 2015 the economy. Ther is no money to buy basics needs by the people due to high inflammation rate. Many people are moving more than three hundred thousand people flew away from the country mainly in Combodia. Although it is an oil export country, but it's not easily extracted from the ground and required lot of investment as it is on very depth from ground surface. When crude oil prices decreases the Venezuela suffers the most as 95% of its country economy depends on crude oil export. Reduce crude oil practice won't meet the investment made to extract the oil. 

Current Status of Venezuela Crisis

There is no any availability of private company in significant amount operating in Venezuela. Only the government company PDVSA controls country's economy and many people depend on it. When this company can’t make profit due to reduce in oil price many families get trouble. This has brought pressure on the current government as it is not able to provide salary to government officials due to high inflammation rate.
Problem never come alone, one problem calls another. The president Maduro faces pressure from the US influencing role in the interior politics of Venezuela. US is the most oil importing country from Venezuela and wants to remain Venezuela in it's favor. But when Russia invest 6 billion dollars of investment alone with that China is also supporting Venezuela US get nervous that Venezuela would go in Russia side and it's influence would decrease on that area. The additional threats is that when Venezuela takes Russia side then the military base establishment by them on Venezuela is the threat to the US. As the conflict on this region would help mostly suffers the US most along with South American region. US wants all these to reduce Russian influence on that region. So, US takes action like they declare they don't accept Maduro's government as legitimate government. The neighbouring country also do not accept Maduro's government as legitimate government afterwards. The US declare opposition party leader Juan Guido as the president of Venezuela which is regarded as president of their influence. The US is funding opposition party to take into their influence.