Rentismo is the tendency of monoculture economies, particularly those whose economic base is in the production and exportation of oil, to subsidize state projects with the excess yields of their main industry. Such tendency creates dependency, and diminishes creativity and competitiveness. Although many related examples of all the consequences of Rentismo issues are found all through history, today it is an issue most notoriously present in countries of weak economic and politic structure. A republic which clearly has being diminished by the ill of Rentismo is Venezuela. On this time, Venezuela remains a state whose strategies are mainly base on the development as well as on the stability of the oil industry and market. Being among the greatest oil economies of the world, an active member of OPEC, and having an eclectic endowment of natural and geographical resources, Venezuela, in principle, posses an enormous potential to ignite the inception of an integral and sustainable economy. What strains are keep in it then, from achieving such potential? The following research project will focus on the issues associated with Rentismo:
- It will first draw a picture of the Venezuelan oil industry, to understand the political and economic causes for its current structure.
- Then, it will elaborate on present studies and forecasts of the Venezuelan potential and actual production of oil, in order to give some insides of the capacities of a mono-producer state.
- Finally, it will analyze Venezuela’s role in the oil global market.
Over-all this examination is expected to return a solid understanding for the reasons of Venezuela’s Magical State, as well as some suggestions of how to fade of the vicious cycle of Rentismo.
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