In this digital artifact the current situation in Venezuela including economic factors as well as how the near future would looks like is enclosed. The content is based on on statistics, web-information and the author own view, trying to disclose the economic relation of a country though to be reach due to its oil reserves (world number 1) but discovered to be poor because of the investment plan for a sustainable development and other factors. The content is for the general public and for those with particular interested in current Venezuelan situation, as a representative example in the Latin-American region.

1. Bolivarian Republic of Venezuela
- Present and Uncertainties -
Luis Rodriguez
-09Dec2015-
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2. Agenda
- Venezuela
- Domestic Public/Private Finance
Public: Oil, Gasoline, taxes, future oil prices
Private: Venezuelan Privatizations and impact
- International Public Finance
ODA investment and is declining
- Conclusions and Comments
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3. Some facts:
*Atlantic Ocean
*Close to Panama Channel,
Pacific Ocean
*Area: 916,445 km^2
*People: 33 Million
*Official Language: Spanish
*Main product: oil/gas
Bolivarian Republic of Venezuela
https://www.google.co.jp/maps/
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4. Domestic Public/Private Finance
Domestic Resource Mobilization
(DRM)
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5. http://www.opec.org/opec_web/en/data_graphs/330.htm
Without any doubt Venezuelan proven reserves are #1 worldwide, representing 20.09%
of the world reserves, more than all Non-OPEC reserves together and followed by
#2 Saudi Arabia
PDVSA (http://www.pdvsa.com/) is the Venezuelan state-owned corporation
responsible for the exploration, production, refining, transport and commerce of
hydrocarbons.
World Oil Proven Reserves
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6. In Venezuela, with 1Bs you can get 14.26Lts of
gasoline!
Point is to know that, there is a fix exchange rate
(1*) of Official: 1Bs = 1/52 USD, this situation has
created a No-official market for 1Bs = 1/700 USD
(added here just for reference)
Gasoline prices and the exchange rate regulation
creates a huge fiscal hole in the taxation system,
loosing important component to the Domestic
Resource Mobilization (DMR) and affecting directly
the Tax/GPD relationship.
Back in 1961, the relation was 1USD = 3.35Bs (2*)
(1*) http://www.bcv.org.ve/cuadros/2/212a.asp?id=64
(2*) http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/07/19/000178830_98101903574779/Rendered/PDF/multi0page.pdf
The note: Gasoline prices in Venezuela
1Bs = 14.26Lt
(March/2015)
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7. Oil prices
- Oil prices have dropped 60% from Jun/2014 and seems to
have the longest term recovery
- Impact to Venezuelan budgeting based upon approx. 2.5
Million barrels/day
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=D
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8. Venezuelan Nationalization of
Private Sectors
Around 12 years ago Venezuela started a
Nationalization program, reducing the private
ownership industry. As a result:
-Private sector has been reduced (Private
Resource Mobilization) and preventing new
companies to settle down in Venezuela
-Food and services shortages: there is not clear
example of a successful experience like the
one in Venezuela
http://venezuelanalysis.com/tag/nationalization
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9. International Public Finance
Official Development Assistance
(ODA)
http://www.aidflows.org/
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10. Components of ODA
- ODA disbursements are clearly dropping since
its peak of approx. 80M USD in 2007 to a 35.1M
USD in 2013
- Bilateral has been historically the main
contributors
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11. - ODA disbursements has been allocated to social sectors and Education in
more than 50%, with very small contribution to infrastructure.
- Without strong investment in infrastructure, long term productive employment is
not guarantee, communications, commerce, activities are impacted
- This distribution will prevent new investments to arrive the country
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12. Conclusions and comments
- With the current Venezuelan internal politics and administration, the DRM
hardly will contribute to the development of the country
- Private sector is under stress and without clear motivation signal to invest in
the country
- Without DRM, the ODA and any other financial instruments will continue to
decline making the long term recovery and development a real challenge
for next generations
- Inflation (of double digit year on year) needs to be controlled
(http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?sy=1980&ey=2014&scsm=1&ssd=1&sort=country&ds=.&br=1&c=299&s=PCPI
%2CPCPIPCH&grp=0&a=&pr1.x=55&pr1.y=)
- Step by step deregulation of gasoline price and exchange rate needs to be
done
- Clear rules for private and foreign investments are necessary
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