CARACAS.- Ricardo Hausmannprominent Harvard economist and former advisor to the former president Carlos Andrés Pérezsheds light on Venezuela’s dramatic economic decline, describing it as “the largest economic collapse that has occurred in the history of humanity outside of wars,” according to a review The debate.
“Venezuela is a case study in economic contraction,” Hausmann notes, noting that the country’s Gross Domestic Product has declined approximately 75% since 2013. This precipitous decline contrasts sharply with the 9% drop experienced during the Spanish Great Recession of 2011, thus underlining the magnitude of the Venezuelan collapse.
Among the shocking figures revealed by the economist is the drastic reduction in oil production, going from 3.4 million barrels per day during the presidency of Hugo Chávez to barely 700,000 barrels today. Furthermore, he highlights the massive loss of productive capacity in key sectors such as agriculture, with a significant decrease in the amount of arable land and a mass emigration of eight million people.
In this sense, Hausmann addresses the Venezuelan monetary collapse, explaining that the country has suffered the elimination of fourteen zeros from its currency between the mandates of Chávez and Maduro, which is equivalent to one hundred trillion in numerical terms. This situation has led to an informal dollarization of the economy, where prices are set in dollars and the physical bolivar has practically ceased to circulate.
Faced with this gloomy outlook, the economist highlights the urgent need to rebuild the country’s fundamental capabilities, including infrastructure, security and the educational system. However, he recognizes that this monumental task will require a massive injection of funds, which poses significant financial challenges.
Regarding the proposed solutions, Hausmann advocates a pragmatic approach that prioritizes financial stability and the restoration of political trust. He points out the importance of reforming restrictive laws that have limited economic freedom for decades and fostering a sense of dignity in public service.
The economist concludes with a reflection on the role of the United States in the Venezuelan crisis, highlighting the need to balance political and economic interests in international negotiations. Ultimately, Hausmann emphasizes the importance of giving Venezuelans hope for a better future, based on respect for their fundamental rights and freedoms.
Source: With information from El Debate
