GLOBAL PERSPECTIVES

Corruption Lies at the Heart of Venezuela's Chaos

Jul 25, 2019 | 10:00 GMT

Numerous people wearing caps in the colors of the Venezuelan flag take part in a protest against the government of President Nicolas Maduro on Venezuela's day of independence.

Numerous people wearing caps in the colors of the Venezuelan flag take part in a protest against the government of President Nicolas Maduro on Venezuela's day of independence. Graft lies at the heart of Venezuela's unraveling.

(RAFAEL BRICEÑO SIERRALTA/NurPhoto via Getty Images)

Highlights

  • Venezuela is suffering from unique humanitarian, economic and institutional crises, but the common root of all three problems is the country's widespread corruption.
  • Officials in President Nicolas Maduro's government have absconded with billions of dollars from the public budget by abusing the official exchange rate.
  • As the links between the humanitarian disaster and graft become more evident, it will increasingly become harder to stabilize Venezuela in the long run.

It's a humanitarian, economic and institutional crisis that has grabbed the world's attention. According to the United Nations refugee agency, more than 4 million Venezuelans left their country between 2015 and June 2019, seeking refuge in Colombia, Peru and Brazil. In the economic field, the International Monetary Fund projects that Venezuela's hyperinflation will reach a whopping 10 million percent this year. And in terms of institutions, the country has had two presidents since January: Nicolas Maduro, who is supported by the Venezuelan security forces but lacks diplomatic recognition from most of the West, and Juan Guaido, who enjoys Western international support but lacks local military support. But lost amid Venezuela's dire crises is the underlying cause that is fueling the country's chaos: corruption. Deeply ingrained at all levels of Maduro's government, corruption is devouring Venezuela's wealth as it exacerbates the country's other problems and complicates the prospect that Venezuela will overcome...

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