Venezuela and its role in the world economy

VENEZUELA AND ITS ROLE IN THE WORLD ECONOMY

Introduction

Venezuela is a nation very much built by oil . Compared with other Latin American countries , Venezuela has the highest GDP besides ranking fifth in GDP per capita . The pumping of oil was first done in 1917 from Lake Maracaibo 's bed , found in the upper northwest of the country . Prior to 1917 , coffee and cocoa acted as the main export products of Venezuela However oil has been the country 's chief export commodity since 1926 Venezuela was among the founder member countries that

established OPEC (Oil Producing and Exporting countries . This is the cartel that enormously influences the global oil prices . Venezuela until 1970 was the leading oil exporter in the world (Pomeranz and Topik 251 , but since then it has fallen to the third position

Venezuelan Economy

The coffee era in Venezuela was brought to a close after the first commercial oil drilling was carried out in 1917 , and reinforced subsequently with the 1920s oil boom . The country transformed eventually from a considerably poor agrarian society into the wealthiest state of Latin America . Venezuela by 1928 was the globe 's leading oil exporter and second in terms of the leading oil exporter in the world was maintained by Venezuela until 1970 , the year that its oil production acquired its peak (Weaver 44

During the 30s , oil production accounted for 90 percent of Venezuela 's the...