The Economic Failure of Venezuela: Dutch Disease

The video discusses the concept of Dutch disease, highlighting its impact on Venezuela's economy. It explains how the discovery of natural resources can lead to currency appreciation, making imports cheaper and exports less competitive. This situation harms local industries and redirects labor and capital to the resource sector. The video also critiques Venezuela's government for failing to diversify the economy, leading to the collapse of non-oil industries and reckless spending to mitigate unemployment.

What is Dutch disease and how does it affect a country's economy?

Explain how the increase in oil exports affected Venezuela's currency value.

What were the consequences of an artificially stronger currency for local industries in Venezuela?

Compare Venezuela's approach to managing its oil wealth with that of other oil-rich countries mentioned in the text.

How did the Venezuelan government respond to the economic issues caused by Dutch disease?