The US imposed monetary sanctions on Venezuela in August 2017, restraining its access to the United States commercial markets. After that, Venezuela’s economy and oil industry collapsed. Expert Mart Weisbrot, assistant director of the Jeffrey Sachs and Center for Economic and Policy Research noted that the restrictions led to the collapse and the subsequent human suffering. To prove their notion, Weisbrot and Sach consider Colombia as a counter objective for Venezuela. Then they assert that Venezuela and Colombia’s oil output trends were alike before the sanctions and digressed after the restrictions imposed when Venezuela’s output reduced much further. They reason that injunctions must have resulted in Venezuelan’s further decline.
The Monetary Implosion Began Long Before Injunctions Took Place
Oil productions drifts were anything but comparable in the decade before restrictions. Besides, Colombia had an oil surge in the 2000s that was slightly fuelled by the 20,000 Venezuelan oil experts that Chavez sacked from PDVSA in 2003, which led to the country’s production to fall. The inclinations can only be made to appear alike before injunctions by conveniently re-balancing the axes and only considering data from 2013 forward.
The Two Countries Have Distinct Oil Industries
The two nations are radically different in other aspects. Colombia has had pro-promotion oil strategies since the 2000s and has performed well in the present years. In comparison, Venezuela has been slow. In the last decade, its independent institutions have been scraped out, the rule of law has disappeared, and deepening economic misrepresentations have led to an unprecedented humanitarian catastrophe and economic recession. A month after the financial restrictions in late 2017, Nicolas Maduro sacked both the PDVSA principal and oil minister and substituted them with an independent military general with no expertise in oil. The new executive fired and detained more than sixty senior administrators of the oil corporation including its former president on bribery charges.