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This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
Has nationalization and mismanagement of the oil industry contributed to Venezuela's collapse?
Wednesday, July 22, 2020
By Samuel Henning
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YES
In 1975, long before the avowedly socialist government of Hugo Chávez was elected in 1999, the country nationalized its oil industry. Chávez, who ruled until 2013, nationalized much more of the economy, including a number of oil and gas development projects. Mismanagement of those assets, along with other nationalizations and macroeconomic policies, have contributed to a "collapse of really unique proportions" under his successor Nicolás Maduro, says Ricardo Hausmann, a Venezuelan economist.
Venezuela's economy since 2015 has suffered from plunging oil revenues and poor policy responses that have resulted in hyperinflation, massive poverty and worsening relations with the U.S., formerly its main oil buyer. Economic output fell 35% in 2019.
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Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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