Venezuela free essay sample

# 8217 ; s Economy As A Whole Essay, Research Paper VENEZUELA? S ECONOMY AS A WHOLE Economy Venezuela is rich in oil and other mineral resources. Its per capita income is approximately mean for Latin America. The state # 8217 ; s public external debt ( excepting the duties of the cardinal bank and PDVSA, the parastatal oil company ) stood at about $ 26.5 billion in 1996. The economic system grew by 4.5 % in existent footings in 1997. Consumer monetary values rose merely 37.6 % in 1997 compared to the record 103 % of 1996. The authorities is trusting for rising prices of 24 % during 1998. The Venezuelan economic system is doing a rejoinder under the Agenda Venezuela, propelled chiefly by the gap of the crude oil sector to foreign investing ( the # 8220 ; apertura # 8221 ; ) , a far-reaching denationalization plan, and programs to reform public sector operations. Oil monetary values have shown a continual diminution since 1996, which is functioning to gnaw the budgetary excess from 4.5 % in 1996 to an estimated 1.5 % in 1997. In July 1996, the Venezuelan Government and the IMF officially announced a $ 1. We will write a custom essay sample on Venezuela or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 4 billion stand-by loan. The World Bank and Inter-American Development Bank are besides lending to attempts to advance cardinal structural reforms # 8211 ; in the bench, electoral system, and societal security/severance wage plans. Petroleum and Other Resources Venezuela # 8217 ; s economic system is dominated by crude oil, and the state is a founding member of the Organization of Petroleum Exporting Countries ( OPEC ) . In 1997, this sector accounted for more than one-fourth of GDP, about three-fourthss of export net incomes, and about half of cardinal authorities # 8217 ; s grosss. Most of Venezuela # 8217 ; s energy exports consist of rough oil, but the state is besides the United States # 8217 ; taking foreign beginning of refined crude oil merchandises. The Government of Venezuela has opened up much of the hydrocarbon sector to foreign investing, advancing the constitution of monolithic new petrochemical articulation ventures and reactivation of inactive Fieldss. The Venezuelan crude oil corporation and foreign oil companies signed eight contracts for geographic expedition and production joint ventures in July 1996. These contracts are expected to bring forth over $ 15 billion in foreign investing. A scope of other natural resources, including Fe ore, diamonds, coal, bauxite, hydroelectric power, gold, and Nis are in assorted phases of development. In 1996, CVG, the state-owned excavation house, announced its first joint venture with a foreign company to develop the Las Cristinas gold mine. Congress is besides sing statute law which would update Venezuela # 8217 ; s 1945 excavation jurisprudence in an attempt to promote greater private sector engagement in mineral extraction. Fabrication, Agriculture, and Trade Manufacturing contributed 15.6 % of GDP in 1997. The fabrication sector grew somewhat ( 2.2 % ) in direct contrast with the contraction in 1996. Venezuela industries and exports steel, aluminium, fabrics, dress, drinks, and groceries. It besides produces cement, tyres, paper, and fertilisers, and assembles autos for both the domestic and export market. The # 8220 ; Agenda Venezue la† envisions the denationalization of a scope of state-owned endeavors, including Bankss. Agribusiness histories for 4 % of GDP, 12 % of the labour force, and 24 % of Venezuela # 8217 ; s land country. Venezuela exports beef, rice, java, and chocolate. However, the state is non self-sufficing in most countries of agricultural production and imports about 60 % of nutrient consumed. In 1996, U.S. houses exported about $ 475 million of agricultural merchandises including wheat, soya beans, maize, soymeal, and cotton to Venezuela, our third-largest agricultural export market in Latin America. The U.S. normally accounts for somewhat more than a 3rd of Venezuela # 8217 ; s nutrient imports. Thankss to petroleum exports, Venezuela normally posts a trade excess. In recent old ages, non-traditional ( i.e. non-petroleum ) exports have been turning quickly but still constitute merely about one-quarter of entire exports. The United States is Venezuela # 8217 ; s taking trade spouse. During the first 10 months of 1997, the United States registered $ 3.0 billion in exports ( about 38 % of Venezuela # 8217 ; s entire ) and purchased $ 12.9 billion in imports ( about 55 % of Venezuela # 8217 ; s entire ) . Venezuela # 8217 ; s trade with other Andean Pact members, peculiarly Colombia, is turning in importance. Labor and Infrastructure Venezuela # 8217 ; s labour force of about 8.8 million is turning faster than entire employment. At the terminal of 1997, official unemployment was 12.8 % , but unofficial estimations are higher. The public sector employs 14 % of the work force, while less than 1 % work in the capital-intensive oil industry. About 25 % of the labour force is nonionized. Unions are peculiarly strong in the populace sector. Venezuela has an extended route system. With the exclusion of air service, transit and communications have failed to maintain gait with the state # 8217 ; s demands. Much of the substructure suffers from unequal care. Caracas has a modern metro, but merely one working rail line serves the remainder of the state. Economic indexs GDP ( 1997 est. ) : $ 72.1 billion. Growth rate ( 1997 ) : 4.5 % . GDP per capita: $ 3,164. Natural resources: Petroleum, natural gas, coal, Fe ore, gold, other minerals, hydroelectric power, bauxite. Agriculture ( 4.7 % of GDP ) : Products # 8211 ; rice ; java ; maize ; sugar ; bananas ; dairy, meat, and domestic fowl merchandises. Petroleum industry ( 27.6 % of GDP ) : Oil refinement, petrochemicals. Manufacturing ( 15.6 % of GDP ) : Types # 8211 ; Fe and steel, paper merchandises, aluminium, fabrics, conveyance equipment, consumer merchandises, and crude oil refinement. Trade ( 1997 est. ) : Exports # 8211 ; $ 23.7 billion: crude oil ( $ 18.3 billion ) , Fe ore, java, steel, aluminium, chocolate. Major markets # 8211 ; U.S. ( Jan.-Oct.1997, 55 % ) , Japan, Germany, Colombia, Nederlands, Brazil, Italy. Imports # 8211 ; $ 10.6 billion: machinery and conveyance equipment, manufactured goods, chemicals, groceries. Major providers # 8211 ; U.S. ( Jan.-Oct. 1997, 38 % ) , Japan, Germany, France, Canada, Italy, Colombia, Brazil. Exchange rate ( Dec. 1997 ) : 504.25 bolivars=U.S. $ 1.