Inflating Crisis: Venezuela’s Fight Against Collapsing Economy

"The current state of Venezuela should compel world leaders, international committees, humanitarian organizations, and neighboring countries to foster sustainable solutions that uphold democracy, restore economic balance, and defend human dignity."

Prolonged crises due to hyperinflation, notorious corruption, economic deterioration, and heavy dependence on oil revenues and natural resources have beset the country of Venezuela for the past decades. Once the wealthiest nation in Latin America, proud of its tradition of independence and democracy, Venezuela has descended into a pool of national collapse, poverty, and political dictatorship. Delving deep into the spiraling of this country reveals a longstanding battle of Latin American nations with political crisis, economic mismanagement, and a heightened rate of crimes and unemployment. Together, these factors continue to drive people to flee their homeland in search of food, better living conditions, and work opportunities, all colliding to impede the prosperity of the nation.

Over the past two decades, Venezuela has faced the severe consequences of economic mismanagement. From the policies of the then-President, Hugo Chávez, that ultimately caused the country’s dependency on oil exports to increase to over 95% of its total exports, to the intensification of the macroeconomic mismanagement by the authoritarian successor, Nicolás Maduro, Venezuela’s economic policies have neglected other industries and failed to diversify its sources of revenues. These political and economic miscalculations have driven millions of people from Venezuela to leave the country in order to survive. According to the United Nations High Commissioner on Refugees, roughly 8 million Venezuelans have left since 2014, which the UN confirmed as “the largest forced displacement crisis ever in Latin America.”

Displaced Venezuelans have sought refuge across Latin America and the Caribbean. Most of them are finding homes in neighboring countries such as Colombia, Peru, and Brazil, with Colombia hosting the largest number of Venezuelan refugees and migrants—nearly 3 million. However, this influx has also burdened the social services of the receiving countries, particularly in areas near the borders of Brazil, Colombia, Ecuador, and Peru.

As of 2025, over 20 million Venezuelans are living in multidimensional poverty, with meager access to rights-essential goods and services, including food and essential medicines. Many are left with no choice but to adopt extreme survival strategies just to survive the longstanding economic crisis of the nation. The International Monetary Fund (IMF) projects Venezuela’s annual inflation rate for 2025 to reach 269.9% , while Trading Economics reports an even higher current rate. 

Beyond the economy, repression of dissent and resistance exacerbates the struggle of the Venezuelan people. Since July of this year, there have been reported killings of 23 protesters and imprisonment of 1,900 political prisoners. This struggle continues to perpetuate the suffering of the Venezuelans, dimming their hope to live in a better nation that cares for their rights and welfare. 

Economic crises are great barriers, making it harder for nations like Venezuela to rise from the wreckage of corruption, mismanagement, and repression. The current state of Venezuela should compel world leaders, international committees, humanitarian organizations, and neighboring countries to foster sustainable solutions that uphold democracy, restore economic balance, and defend human dignity. Standing with Venezuela in rebuilding its once prosperous history will champion the dignity of its people, restoring justice and equality in what they once called their home, with freedom, stability, and hope at its core.

This article was written by the MUN-UPD applicants under the South America Continent Family.