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The Economic Crisis in Venezuela and Its Impact in the Financial and Technological Industries

Venezuela was known decades ago as one of the richest and potential countries in the entire world. After almost 20 years of a dictatorship headed up by all the components of the government, that resourceful and rich country is a thing of the past.

Right now, Venezuela is one of the poorest countries in the world with unstoppable and furious hyperinflation processes which are condemning the 98% of all the Venezuelans.

When my dad arrived in Venezuela looking for a better future in the 70s, he immediately thought: ‘‘this is one of the richest countries I’ve ever seen in my life, anyone willing to work harder and smarter will be a millionaire.’’

Of course, those were the best ages of this beautiful country.

The reality today

Government and political movements ruined a country under a socialist premise (in reality camouflaged to be a communism). The former president Hugo Chavez was elected president in 1999 by majority vote.

Chavez was declared dead in 2013 and his legacy is still on. Chavez is a controversial figure because it’s the most hated person and yet the most beloved.

These are the two faces of the coin: the lowest social class loved him, but the richest hate him.

He was responsible for expropriating thousands of private industries that were sent to the bankruptcy right after. Some of those private industries were expropriated just by solely whim. In nowadays, the 98% of those industries are closed or producing the 10% of what they used to produce.

The minimum salary is easily one of the lowest in the entire world. With a minimum wage of less than 40$ monthly, Venezuelans have no acquisitive power at all.

All the money the Venezuelans earn is directly invested in food, medicines and basic things.

Most concerning yet is the fact that Venezuela has no medicines, foods, services or any kind of product. Venezuela had an inflation rate of 800% the previous years and this year is expected to reach more than 1500%.

There are no medicines, food and many other products because the local industries are being harassed, penalized and dominated by government’ politics producing scarcity.

You need to spend 4-8 hours in a queue to buy a simple toilet paper, a soap, a shampoo, rice, milk and any kind of food. That’s not joking, it’s the reality we are facing today, and you can make those queues twice a week solely.

The positive and negative states of the financial and technology industries in Venezuela

Venezuela is a rotten country, it needs an urgent change in order to be a promising country again and time to heal all the wounds. Hundreds of people left this country behind and start to immigrate to other countries because here are no opportunities for rich or poor people, it doesn’t matter the background.

Personally, I think that investing in Venezuela is one of the most terrible ideas investors can think about. All the technological sector is dated, not efficient and certainly one of the worst economy’ sectors of Venezuela.

Financially, Venezuela is a complete mess. Tons of inflation every single month, banks just hanging from a thread and an entire economy ruined and condemned thanks to a dictatorial government with un-precise and authoritarian policies.

In a few words: Venezuela is one for the worst destiny to invest your money this time, regardless of the sector you’re in.

About Claudio Cerezo

Claudio Cerezo is a young Venezuelan of 23 years-old with a degree in Business Management. Passionate about economy, science, sport and music, he is constantly seeking ways to grow as a person and as a professional.

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