A socioeconomic and political crisis began in Venezuela in the presidency of Hugo Chávez and has continued into the current presidency of Nicolás Maduro. The current situation is the worst economic crisis in Venezuela's history and among the worst crises experienced in the Americas, with hyperinflation, soaring hunger, disease, crime and death rates, and massive emigration from the country. Observers and economists have stated that the crisis is not the result of a conflict or natural disaster but the consequences of poorly executed populist policies that began under the Chávez administration's Bolivarian Revolution, with the Brookings Institution stating that "Venezuela has really become the poster child for how the combination of corruption, economic mismanagement, and undemocratic governance can lead to widespread suffering".
On 2 June 2010, President Chávez declared an "economic war" because of the increasing shortages in Venezuela. The crisis intensified under the Maduro government, growing more severe as a result of low oil prices in early 2015, and a drop in oil production from lack of maintenance and investment. The government failed to cut spending in the face of falling oil revenues and has dealt with the crisis by denying its existence and violently repressing opposition. Political corruption, chronic shortages of food and medicine, closure of companies, unemployment, deterioration of productivity, authoritarianism, human rights violations, gross economic mismanagement and high dependence on oil have also contributed to the worsening crisis.
The contraction of national and per capita GDPs in Venezuela between 2013 and 2017 was more severe than that of the United States during the Great Depression, or of Russia, Cuba, and Albania following the collapse of the Soviet Union. In recent years, the annual inflation rate for consumer prices rose hundreds and thousands of percentage points while the economy contracted by nearly 20% annually.
The crisis has affected the life of the average Venezuelan on all levels. By 2017 hunger had escalated to the point where nearly 75% of the population had lost an average of over 8 kg (over 19 lbs) in weight, almost 90% of the population was living in poverty, and more than half did not have enough income to meet their basic food needs. From the beginning of the crisis to 2017, more than 2.3 million Venezuelans have left the country. Venezuela led the world in murder rates, with 56.3 per 100,000 people killed in 2016 (compared to 5.35 per 100,000 in the US or 1.68 per 100,000 in Canada) making it the third most violent country in the world.
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