The Natural Resource Curse of New Populist Countries: A Case Study Based on Chavez Doctrine in Venezuela

Abstract

Venezuela, a nation with abundant oil and natural gas resources, had anticipations of a successful and optimistic future. Nevertheless, political instability, economic downturns, and societal tensions have gradually undermined that prospect. This paper explores the issue of the resource curse in Venezuela, resulting from both resource abundance and the Chavezist philosophy of government in the country. Using the methodological aspect of process tracing within case studies, this paper outlines the continuing impact of Chavezist policies on the economy and national resources and their subsequent effects. The article's format consists of an introduction to the Venezuelan background, an examination of the literature, a discussion of the main study, an analysis of its significance, and suggestions for further research. The main findings reveal that Venezuela, a country rich in resources, is confronted with various political, economic, and social difficulties under Chavismo's direction. The factors behind the resource curse are intricate and interdependent, mutually influencing one another. Through a detailed review of Venezuela's specific case, we can better understand the obstacles encountered by countries endowed with natural resources, as well as the interrelationships between the resource curse and their politics, economy, and society. At the same time, gaining insight into the resource usage challenges that resource-endowed countries face can aid governments in effectively devising and executing policies. The full potential of resources can be achieved while avoiding the resource curse's negative consequences.