Located on the northern coast of South America, Venezuela bridges the Caribbean and the Andean region. Historically an energy exporter, it now faces deep structural crisis affecting governance and regional influence.

Venezuela’s modern state developed around oil extraction in the 20th century, creating a rent-based economy. Political polarization and institutional erosion undermined economic resilience and state capacity.

Oil discovery and export-led growth

Democratic consolidation

Economic volatility and social tension

Bolivarian political shift

Economic collapse and international sanctions

Venezuela experiences hyperinflationary legacy effects, mass emigration, and degraded public services. Oil production persists at reduced levels under sanctions and external constraints.

Venezuela’s recovery depends on political settlement, institutional repair, and reintegration into global energy markets. Long-term outcomes remain uncertain due to entrenched power structures and regional dynamics.